Business

Published: Friday October 23, 2009 MYT 3:58:00 PM

Survey: Young M'sians plan to save more in next 6 months


KUALA LUMPUR: Younger Malaysian consumers, especially the males, are planning to save more in the next six months, according to a MasterCard survey.

It said Malaysians aged between 18 and 30 (28 per cent) are planning to save more in the next six months compared to their older counterparts of 31 to 45 years (19 per cent), 46 to 55 years (22 per cent) and 56 years and above (15 per cent).

In a statement, MasterCard said the survey found consumers in the Asia-Pacific, Middle East and Africa are saving up for a rainy day and that those below 30 are saving more compared to the older consumers.

The survey, conducted between March 23 and April 18, 2009, involved 9,211 consumers in 21 markets.

Among the highlights for Malaysia are male consumers (24 percent) who proposed to save more compared to their female counterparts (23 per cent) in the next six months.

The economic uncertainties too had caused 70 per cent of Malaysian consumers to either maintain or increase their savings level in preparation for unforeseen emergency expenditures.

Among the different age groups, consumers in the 46-55 age bracket (79 per cent) are most concerned about saving for rainy days.

Malaysian consumers are also saving for investments (59 per cent), retirement (52 per cent) and buying property (28 per cent).

The majority of Malaysian consumers (31 per cent) planned to save between 1-10 per cent of their income in the next six months.

The survey also indicated that in eight of the 21 markets across the region, the majority of consumers are looking to save more in the coming six months.

Topping the list of savers are in Vietnam at 52 per cent, India (47 per cent), United Arab Emirates (47 per cent), South Africa (47 per cent), New Zealand (46 per cent), Philippines (45 per cent), Qatar (44 per cent) and Australia (43 per cent).

The survey also showed Egypt has the highest percentage of 63 per cent of consumers planning to save less

Meanwhile, economic uncertainties and the need to be prepared for unforeseen emergency expenditures (71 per cent) is the top reason cited by consumers who are planning to maintain or increase their savings level in the next six months.

Thailand (95 per cent) has the highest proportion of consumers concerned over the economic uncertainties compared to China (48 per cent) with the lowest proportion among markets in the region.

Besides having an emergency stash, the other main reasons for savings are for investment (46 per cent), retirement (45 per cent) and buying property (40 per cent).

The main reasons for consumers saving less are because they feel they don't earn enough to save (61 per cent), high inflation (34 per cent) and simply because they believe in enjoying life (29 per cent). - BERNAMA

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