Singapore consumers spend more as cautious habits still limit festive activity

Across Southeast Asia, travel is also the leading spending driver at 33%. 

Singapore consumers are increasing their year-end spending, but remain the most conservative among Southeast Asian markets, according to UnaFinancial.

The firm found that 69% of Singaporeans spend more during the festive period, compared with 79% across SE Asia. The shares were higher in Vietnam (88%), Indonesia (84%), and the Philippines (73%).

Travel is the main driver of higher spending. Among Singaporeans who expect to spend more, 48% cite travel as the top reason, followed by gifts and celebrations at 23%, home and family expenses at 19% and shopping at 7%.

Borrowing remains relatively restrained in Singapore. Only 14% of respondents said their borrowing increases at year-end. 15% have previously used an online non-bank loan for festive spending, whilst 27% plan to do so this year, mainly to finance travel (17%).

Across Southeast Asia, travel is also the leading spending driver at 33%. Consumers in the region are more likely to take on additional borrowing: 35% report higher year-end borrowing, 36% have used an online non-bank loan for holiday expenses, and 46% plan to use one this year.

UnaFinancial said the findings are based on a survey of 400 consumers across Singapore, the Philippines, Vietnam, and Indonesia.

Analysts attributed Singaporeans’ lower propensity to borrow to higher incomes, better access to traditional credit, and generally conservative financial habits.