ASEAN consumers stay resilient amid headwinds, UOB Index shows

Consumers were more upbeat on the macroenvironment, with the sub-index rising 4 points. Fifty-seven per cent of the consumers surveyed felt positive about the current economy and 58 per cent about the outlook, both up three points year-over-year (YoY).

Optimism about personal finances dipped slightly, with 56 per cent expecting to fare as well or better financially next year, down three points. Worries overpay cuts rose to 46 per cent, while concerns about rising household expenses eased to 54 per cent, UOB said in a press release.

Of the five ASEAN countries surveyed, Vietnam led the Index at 67, rising three points, driven by strong optimism on macro factors. Indonesia followed at 55 despite a three-point dip. Malaysia recorded the sharpest rise of 11 points to 53, buoyed by improved economic confidence and reduced concerns over expenses. Singapore and Thailand both scored 47, with Singapore posting the steepest fall of 10 points due to dampened sentiments across all indicators, while Thailand ranked lowest on macroeconomic outlook despite healthier personal finance optimism.

The inflation-driven cost of living remained the top concern for 59 per cent of ASEAN respondents, led by Singapore. Spending data showed Singapore UOB customers’ ticket sizes for dining and transport rose six per cent YoY in H1 2025, while daily essentials dipped five per cent, likely cushioned by government support such as U-Save rebates and CDC vouchers.

The financial preparedness across ASEAN remained strong, with 79 per cent of respondents having adequate emergency funds and 78 per cent confident in servicing debts. In Singapore, 61 per cent held at least three to six months’ worth of savings, and insurance coverage rose six percentage points to 19 per cent. Yet, investment discipline fell nine points, with fewer consumers setting aside at least 10 per cent of income for long-term goals.

For younger generations, preparedness lagged. Seven per cent of ASEAN Gen Zs reported no emergency savings or insurance, and in Singapore, 35 per cent did not meet any of the Monetary Authority of Singapore’s four financial planning benchmarks, up nine points from last year. Many youths prioritised spending on experiences, with 73 per cent of Gen Zs and 71 per cent of Gen Ys preferring enjoyment now over future planning.

In Singapore, UOB cardholders’ experiential spending rose eight per cent YoY in H1 2025, with Gen Zs leading at 17 per cent. At the same time, their CASA balances and online Unit Trust investments grew significantly, reflecting growing focus on investment.

ALCHEMPro News Desk (SG)