[h=1]DBS SURVEY: GROWING TREND OF MORE CONSUMPTION, LESS SAVING IN SINGAPORE[/h]
Post date:
30 Aug 2014 - 12:12pm
According to a recent report about saving trends in ASEAN countries by DBS, Singapore is the country with the highest savings ratio but this figure has also decreased slightly since 2010.
Many other ASEAN countries including Malaysia, Indonesia, Vietnam and Thailand have also seen a generally decreasing trend of saving over the last 5 years.
The savings ratio in ASEAN countries is much higher than most western countries. For example, Singapore has national gross national savings of over 42% of GDP while the US only has about 16%.
Despite the significantly higher savings ratio in ASEAN countries, the trend is decreasing while in the US, it's actually increasing.
This points to a trend where Singaporeans are spending more of their income rather than saving it.
However, at the same time, Singapore is not promoting more spending by accumulating more debt in property.
Some countries achieve higher spending y promoting people to buy properties with lax borrowing rules.
In Singapore however, there are tight borrowing rules with additional cooling measures such as total debt servicing ratios to ensure that buyers are not over leveraging themselves.
DBS explained that this is a good thing which will help to ensure that there are fewer large fluctuations as it curbs speculative buying.
Post date:
30 Aug 2014 - 12:12pm
According to a recent report about saving trends in ASEAN countries by DBS, Singapore is the country with the highest savings ratio but this figure has also decreased slightly since 2010.
Many other ASEAN countries including Malaysia, Indonesia, Vietnam and Thailand have also seen a generally decreasing trend of saving over the last 5 years.
The savings ratio in ASEAN countries is much higher than most western countries. For example, Singapore has national gross national savings of over 42% of GDP while the US only has about 16%.
Despite the significantly higher savings ratio in ASEAN countries, the trend is decreasing while in the US, it's actually increasing.
This points to a trend where Singaporeans are spending more of their income rather than saving it.
However, at the same time, Singapore is not promoting more spending by accumulating more debt in property.
Some countries achieve higher spending y promoting people to buy properties with lax borrowing rules.
In Singapore however, there are tight borrowing rules with additional cooling measures such as total debt servicing ratios to ensure that buyers are not over leveraging themselves.
DBS explained that this is a good thing which will help to ensure that there are fewer large fluctuations as it curbs speculative buying.
