New MasterCard Survey Highlights Latest Consumer Savings Habits

While consumers across Asia Pacific, the Middle East and Africa are feeling more optimistic about the six months ahead, many are not letting up in terms of stocking up their coffers. According to the latest MasterCard survey on consumers’ saving priorities, over 40% of them are planning to save more in the coming six months compared to six months ago.

Nigeria (85%), the Philippines (67%), Indonesia (64%), Thailand (56%) and Qatar (52%), have the highest percentage of consumers reporting that they plan to save more in the coming six months. Kenya, on the other hand, has the highest percentage of respondents (42%) reporting that they plan to save less, followed closely by Lebanon (41%). The survey was conducted from 1 October to 9 November 2009 and involved 10,623 consumers from across Asia Pacific, the Middle East and Africa.

Three new African markets were added to this survey - Kenya, Morocco and Nigeria - bringing the total number of markets surveyed to 241. Data collection was via personal, online, telephone and computer aided telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary.

Uncertainty over the economy and hence the need to be prepared for unforeseen emergency expenditures (74%) is the top reason cited by consumers who are planning to maintain or increase their level of saving in the next six months. The Philippines (91%) had the highest proportion of consumers concerned about the economic uncertainty, compared to Morocco (30%) with the lowest proportion among markets in the region.

Apart from having enough for a rainy day, the other main reasons for saving are for investing (44%), buying or upgrading property (37%) and retirement (30%). The majority of the region’s consumers save between 1 – 10% of their income (28%), followed by 11 – 20% of their income (23%). Five percent of the region’s consumers do not intend to save any of their income.

Interestingly, it’s the younger set of consumers who are more enthusiastic about saving. 84% of consumers below 30 plan to save either the same or more in the next six months, compared to those between 30 – 44 years (81%), 45 -54 years (78%) and those aged 55 years and above (76%).

“From an economic perspective, saving intentions can be categorized in two distinctively different ways. The first are saving intentions that lead to future consumption, typically for large expenditures such as purchase and/or upgrade of properties, autos, and for retirement. Savings made for these purposes are therefore leading indicators of future consumption. This type of savings has continued to be a key driver of savings behavior across the Asia/Pacific region,” said Dr. Yuwa Hedrick-Wong, economic advisor, Asia Pacific, MasterCard Worldwide. “On the other hand, savings for precautionary purposes subtract absolutely from present and future consumption when consumers feel the need to save more of their current income because they worry about the future. While we have seen that consumers across this region have turned cautiously optimistic about the economy, they remain nevertheless concerned with the region's near term economic outlook. This is understandable given the recent market volatility and its associated uncertainty. Hence, precautionary savings are staying relatively high in the region, which in turn implies that some downward pressure on future consumption will likely persist,” Dr. Hedrick-Wong added.

The main reasons for consumers saving less are because that they feel they do not earn enough to save (55%), high inflation (34%) and low interest rates/low returns (15%). Japanese consumers feel the strongest about not earning enough to save (87%), followed by consumers in the Philippines (74%) and Moroccan consumers (72%).

 Market Highlights - Asia Pacific

Australia

- A greater proportion of male consumers (52%) surveyed in Australia are planning to save more compared to their female counterparts (43%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (63%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (48%), 45 to 54 years (36%) and 55 years and above (33%).

- The economic uncertainty has caused 49% of Australian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. 51% of Australian consumers however, do not see this as the main reason for saving more/same in the next six months. Among the different age groups, those in the 30-44 age bracket (55%) are most concerned about saving for a rainy day.

- Australian consumers are also saving for buying or upgrading property (37%), international personal air travel (30%) and investments (26%).

- The majority of Australian consumers (31%) plan to save between 1-10% of their income in the next six months.

China

- A greater proportion of male consumers (43%) surveyed in China are planning to save more compared to their female counterparts (39%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (46%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (41%), 45 to 54 years (26%) and 55 years and above (33%).

- The economic uncertainty has caused 78% of Chinese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 45-54 age bracket (86%) are most concerned about saving for a rainy day.

- Chinese consumers are also saving for investments (45%), buying or upgrading property (33%), retirement (23%) and consumer electronics (23%).

- The majority of Chinese consumers (21%) plan to save between 21-30 % of their income in the next six months.

Hong Kong

- A greater proportion of female consumers (41%) surveyed in Hong Kong are planning to save more compared to their male counterparts (37%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (53%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (34%), 45 to 54 years (36%) and 55 years and above (33%).

- The economic uncertainty has caused 68% of consumers from Hong Kong to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those above 55 years and above (90%) are most concerned about saving for a rainy day.

- Consumers from Hong Kong are also saving for retirement (54%), international personal air travel (53%) and investments (51%).

- The majority of consumers from Hong Kong (27%) plan to save between 11-20% of their income in the next six months.

India

- A similar proportion of male consumers (31%) and female consumers (30%) surveyed in India are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (33%) and consumers between the ages of 30 to 44 years (33%) are planning to save more in the next six months compared to their older counterparts – 45 to 54 years (25%) and 55 years and above (22%).

- The economic uncertainty has caused 85% of Indian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-29 age bracket (87%) are most concerned about saving for a rainy day.

- Indian consumers are also saving for investments (54%), buying or upgrading property (38%) and consumer electronics (25%).

- An equal proportion of Indian consumers (39% each) plan to save between 1-10% and 11-20 % of their income in the next six months.

 Indonesia

- A greater proportion of female consumers (67%) surveyed in Indonesia are planning to save more compared to their male counterparts (60%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (71%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (62%), 45 to 54 years (54%) and 55 years and above (58%).

- The economic uncertainty has caused 90% of Indonesian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those above 55 years (100%) are most concerned about saving for a rainy day.

- Indonesian consumers are also saving for investments (63%), retirement (24%) and buying or upgrading property (24%).

- The majority of Indonesian consumers (38%) plan to save between 1-10% of their income in the next six months.

Japan

- A greater proportion of female consumers (32%) surveyed in Japan are planning to save more compared to their male counterparts (22%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (40%) are planning to save more in the next six months compared to their older counterparts– 30 to 44 years (33%), 45 to 54 years (13%) and 55 years and above (21%).

- The economic uncertainty has caused 73% of Japanese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 30-44 age bracket and those above 55 years are equally concerned (75% each) about saving for a rainy day.

- Japanese consumers are also saving for retirement (46%), consumer electronics (36%) and buying or upgrading property (29%).

- The majority of Japanese consumers (27%) plan to save between 1-10% of their income in the next six months.

Korea

- A greater proportion of female consumers (48%) surveyed in Korea are planning to save more compared to their male counterparts (36%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (57%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (42%), 45 to 54 years (32%) and 55 years and above (29%).

- The economic uncertainty has caused 76% of Korean consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 30-44 age bracket (80%) are most concerned about saving for a rainy day.

- Korean consumers are also saving for buying or upgrading property (58%), retirement (50%) and investments (43%).

- The majority of Korean consumers (25%) plan to save between 21-30% of their income in the next six months.

Malaysia

- A similar proportion of female consumers (49%) and male consumers (48%) surveyed in Malaysia are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (64%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (47%), 45 to 54 years (32%) and 55 years and above (40%).

- The economic uncertainty has caused 85% of Malaysian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-29 age bracket (90%) are most concerned about saving for a rainy day.

- Malaysian consumers are also saving for retirement (59%), investments (38%) and buying or upgrading property (29%).

- The majority of Malaysian consumers (32%) plan to save between 1-10% of their income in the next six months.

New Zealand

- A similar proportion of female consumers (45%) and male consumers (44%) surveyed in New Zealand are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (59%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (44%), 45 to 54 years (38%) and 55 years and above (32%).

- The economic uncertainty has caused 48% of New Zealander consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. 52% of New Zealander consumers however, do not see this as the main reason for saving more/same in the next six months. Among the different age groups, those in the 30-44 age bracket (53%) are most concerned about saving for a rainy day.

- New Zealander consumers are also saving for international personal air travel (43%), buying or upgrading property (37%) and retirement (34%).

- The majority of New Zealander consumers (42%) plan to save between 1-10% of their income in the next six months.

 Philippines

- A greater proportion of male consumers (70%) surveyed in the Philippines are planning to save more compared to their female counterparts (63%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (85%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (65%), 45 to 54 years (59%) and 55 years and above (35%).

- The economic uncertainty has caused 91% of Filipino consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 30-44 age bracket (96%) are most concerned about saving for a rainy day.

- Filipino consumers are also saving for investments (53%), buying or upgrading property (52%) consumer electronics (41%).

- The majority of Filipino consumers (36%) plan to save between 1-10% of their income in the next six months.

Singapore

- A greater proportion of male consumers (50%) surveyed in Singapore are planning to save more compared to their female counterparts (42%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (62%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (41%), 45 to 54 years (36%) and 55 years and above (38%).

- The economic uncertainty has caused 73% of Singaporean consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 45-54 age bracket (76%) are most concerned about saving for a rainy day.

- Singaporean consumers are also saving for retirement (54%), international investments (43%) and consumer electronics (38%).

- The majority of Singaporean consumers (29%) plan to save between 11-20% of their income in the next six months.

Taiwan

- A greater proportion of female consumers (38%) surveyed in Taiwan are planning to save more compared to their male counterparts (32%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (48%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (35%), 45 to 54 years (24%) and 55 years and above (16%).

- The economic uncertainty has caused 77% of Taiwanese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 45-54 age bracket (80%) are most concerned about saving for a rainy day.

- Taiwanese consumers are also saving for retirement (60%), investments (54%) and buying or upgrading property (45%).

- The majority of Taiwanese consumers (24%) plan to save between 11-20% of their income in the next six months.

Thailand

- A greater proportion of male consumers (59%) surveyed in Thailand are planning to save more compared to their female counterparts (54%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (73%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (54%), 45 to 54 years (50%) and 55 years and above (43%).

- The economic uncertainty has caused 89% of Thai consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-29 age bracket and those in the 30-44 age bracket are equally concerned (91% each) about saving for a rainy day.

- Thai consumers are also saving for purchase of car/motorcycle (51%), investments (36%) and retirement (35%).

- The majority of Thai consumers (30%) plan to save between 1-10% of their income in the next six months.

Vietnam

- A greater proportion of female consumers (40%) surveyed in Vietnam are planning to save more compared to their male counterparts (35%) in the next six months.

- Consumers between the ages of 30 to 44 years old (42%) are planning to save more in the next six months compared to their counterparts – 18 to 29 years (34%), 45 to 54 years (35%) and 55 years and above (39%).

- The economic uncertainty has caused 82% of Vietnamese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 45-54 age bracket (89%) are most concerned about saving for a rainy day.

- Vietnamese consumers are also saving for buying or upgrading property (35%) and investments (28%) and consumer electronics (28%).

- The majority of Vietnamese consumers (31%) plan to save between 1-10% of their income in the next six months.

 Market Highlights - Middle East

Egypt

- A greater proportion of female consumers (31%) surveyed in Egypt are planning to save more compared to their male counterparts (22%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (37%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (17%), 45 to 54 years (18%) and 55 years and above (14%).

- The economic uncertainty has caused 78% of Egyptian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 45-54 age bracket (85%) are most concerned about saving for a rainy day.

- Egyptian consumers are also saving for buying or upgrading property (46%), investments (45%) and purchase of white goods (38%).

- The majority of Egyptian consumers (27%) plan to save 11-20% of their income in the next six months.

Kuwait

- A similar proportion of female consumers (22%) and male consumers (20%) surveyed in Kuwait are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (30%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (16%), 45 to 54 years (19%) and 55 years and above (17%).

- The economic uncertainty has caused 55% of the consumers in Kuwait to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 30-44 age bracket (57%) are most concerned about saving for a rainy day.

- Consumers in Kuwait are also saving for investments (53%), buying or upgrading property (37%) and purchase of car/motorcycle (28%).

- The majority of consumers in Kuwait (30%) plan to save between 11-20% of their income in the next six months.

Lebanon

- A similar proportion of male consumers (18%) and female consumers (17%) surveyed in Lebanon are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (20%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (18%), 45 to 54 years (16%) and 55 years and above (16%).

- The economic uncertainty has caused 68% of Lebanese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 55 years and above age bracket (92%) are most concerned about saving for a rainy day.

- Lebanese consumers are also saving for investments (41%), retirement (22%) and purchase of car/motorcycle (15%).

- The majority of Lebanese consumers (60%) plan to save between 1-10% of their income in the next six months.

Qatar

- The same proportion of male consumers (52%) and female consumers (52%) surveyed in Qatar are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (59%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (52%), 45 to 54 years (48%) and 55 years and above (47%).

- The economic uncertainty has caused 71% of consumers in Qatar to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-29 age bracket (75%) are most concerned about saving for a rainy day.

- Consumers in Qatar are also saving for buying or upgrading property (47%), investments (46%) and purchase of car/motorcycle (18%).

- The majority of consumers in Qatar (19%) plan to save over 50% of their income in the next six months.

Saudi Arabia

- A greater proportion of male consumers (37%) surveyed in Saudi Arabia are planning to save more compared to their female counterparts (25%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (41%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (32%), 45 to 54 years (28%) and 55 years and above (25%).

- The economic uncertainty has caused 76% of Saudi Arabian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 55 years and above age bracket (88%) are most concerned about saving for a rainy day.

- Saudi Arabian consumers are also saving for buying or upgrading property (42%), investments (35%) and consumer electronics (32%).

- The majority of Saudi Arabian consumers (35%) plan to save between 11-20% of their income in the next six months.

United Arab Emirates

- A similar proportion of male consumers (37%) and female consumers (36%) surveyed in United Arab Emirates are planning to save more in the next six months.

- Consumers who are 55 years and above (45%) are planning to save more in the next six months compared to their counterparts – 18 to 29 years (31%), 30 to 44 years (39%) and 45 to 54 years (35%).

- The economic uncertainty has caused 74% of consumers in U.A.E. to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 30-44 age bracket (76%) are most concerned about saving for a rainy day.

- Consumers in U.A.E. are also saving for investments (45%), retirement (27%) and buying or upgrading property (24%).

- The majority of consumers in U.A.E. (24%) plan to save between 11-20% of their income in the next six months.

Market Highlights - Africa

Kenya

- A similar proportion of female consumers (48%) and male consumers (46%) surveyed in Kenya are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (54%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (49%), 45 to 54 years (36%) and 55 years and above (41%).

- The economic uncertainty has caused 81% of Kenyan consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 45-54 age bracket (92%) are most concerned about saving for a rainy day.

- Kenyan consumers are also saving for investments (58%), buying or upgrading property (35%) and retirement (24%).

- The majority of Kenyan consumers (35%) plan to save between 1-10% of their income in the next six months.

Morocco

- A greater proportion of male consumers (29%) surveyed in Morocco are planning to save more compared to their female counterparts (23%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (33%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (25%), 45 to 54 years (15%) and 55 years and above (29%).

- The economic uncertainty has caused 30% of Moroccan consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. 70% of Moroccan consumers however, do not see this as the main reason for saving more/same in the next six months. Among the different age groups, those in the 30-44 age bracket (33%) are most concerned about saving for a rainy day.\

-  Moroccan consumers are also saving for buying or upgrading property (50%), purchase of car/motorcycle (35%) and consumer electronics (29%).

- The majority of Moroccan consumers (11%) plan to save between 1-10% of their income in the next six months.

Nigeria

- A greater proportion of female consumers (88%) surveyed in Nigeria are planning to save more compared to their male counterparts (83%) in the next six months.

- Younger consumers between the ages of 18 to 29 years old (90%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (83%), 45 to 54 years (83%) and 55 years and above (89%).

- The economic uncertainty has caused 90% of Nigerian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 45-54 age bracket (94%) are most concerned about saving for a rainy day.

- Nigerian consumers are also saving for investments (90%), buying or upgrading property (45%) and international personal air travel (31%).

- The majority of Nigerian consumers (19%) plan to save between 1-10% of their income in the next six months.

South Africa

- A similar proportion of female consumers (42%) and male consumers (41%) surveyed in South Africa are planning to save more in the next six months.

- Younger consumers between the ages of 18 to 29 years old (48%) are planning to save more in the next six months compared to their older counterparts – 30 to 44 years (43%), 45 to 54 years (34%) and 55 years and above (33%).

- The economic uncertainty has caused 83% of South African consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-29 age bracket (86%) are most concerned about saving for a rainy day.

- South African consumers are also saving for investments (42%), retirement (35%) and buying or upgrading property (25%).

- The majority of South African consumers (33%) plan to save between 1-10% of their income in the next six months.

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