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TheSun 2008-11-19 Page11 Bracing For Tougher Times
TheSun 2008-11-19 Page11 Bracing For Tougher Times
TheSun 2008-11-19 Page11 Bracing For Tougher Times
tougher times
by Tim Leonard expecting to tighten their belts on dining
newsdesk@thesundaily.com and entertainment (59%), personal travel
(43%) and fashion and accessories (42%)
PETALING JAYA: Consumers in the over the next 12 months.
region are tightening up their belts and It also found 79% of consumers in
bracing for tougher times in the next 12 Malaysia spend above 10% of their personal
months. annual income on discretionary items, with
According to the inaugural MasterCard as much as 15% of consumers indicating
Worldwide Index of Consumer Purchasing they spend above 40% of their personal
Priorities, about 70% of consumers will be annual income on discretionary items.
cutting back on spending next year. Over 60% of consumers across the region
Consumers in Taiwan (90.8%), the spend above 10% of their personal annual
Philippines (90.5%) and Korea (85.5%) are income on discretionary items, with 11% of
among those who will be cutting back on respondents indicating they usually spend
spending most, with consumers in New more than 40% of their personal annual
Zealand (44%), Australia (46.5%) and China income on discretionary items.
(60.1%) showing slightly more resilience. Male consumers (69%) are less likely to
“Consumers across the region are cut back on their discretionary spending
bracing themselves for tougher times than their female counterparts (71%) while
ahead in 2009” said MasterCard Worldwide younger consumers are less likely to cut
economic adviser (Asia/Pacific) Dr Yuwa back on spending as compared to their older
Hedrick-Wong. counterparts. About 68% of consumers aged
“In most markets across Asia, more than 30 years and below indicated they would
half of the respondents surveyed are looking cut back on spending, compared to 72% of
at cutting back on discretionary spending. consumers aged 56 years and above.
“Even in China where consumer One in three consumers is looking
confidence is high, 60% of consumers have to save more than 20% of their income
indicated a reduction in their spending. as savings is considered important to
The index, which provides valuable consumers in all markets, especially
insight into consumers’ savings behaviour to Filipinos (97%), Indonesians (96%),
and their discretionary spending priorities Malaysians (93%), Indians (92%) and Thais
for the 12 months ahead is based on a (90%). Even China which was at the lowest
survey of 6,019 consumers across 14 end of the list had 78% of respondents
markets – Australia, China, Hongkong, stating that saving is important.
India, Indonesia, Japan, South Korea, In the top areas of discretionary spending
Malaysia, New Zealand, Philippines, are dining and entertainment (59%) fashion
Singapore, Taiwan, Thailand and Vietnam and accessories (46%), children’s education
– surveyed in September. (44%) and personal travel (42%).
Data collection was done via personal, Dining and entertainment is the top
telephone and computer-aided telephone purchasing priority in 11of the 14 markets,
interviews, with the questionnaire with the exception of India, Korea and the
translated in the local language. Philippines where children’s education was
The survey found Malaysian consumers top ranked.