SINGAPORE: MDRi’s Economic and Spending Sentiment Report, released on Thursday (Aug 22) showed that among several countries in the Asia-Pacific region, Singapore has the highest number of respondents who reported an increase in the overall cost of living.
Singapore also had the highest inflation rate and only 51 per cent expressed optimism over local economic growth. Notably, however, 72 per cent of the city-state’s wealthy residents expressed economic optimism.
The study from MDRi, a group business of the international law firm Mishcon de Reya, focused on the economic sentiments of six key markets in the region: Hong Kong, Singapore, Malaysia, Thailand, Vietnam, and Indonesia.
Among them, Indonesia showed the highest levels of optimism in the global, regional, and local markets, being the only country where 60 per cent or more of the respondents had a positive economic outlook.
In Singapore, in contrast, 40 per cent expressed optimism that the global economy will improve and 34 per cent had the same sentiment over the regional economy. However, over half (51 per cent) expressed optimism that the local economy will improve.
Broken down by economic class, while nearly three in four wealthy Singaporeans had positive sentiments about the city-state’s economy, less than half (49 per cent) feel the same way.
When asked the reasons for economic optimism, more Singaporeans pointed to national security (62 per cent) and the stability of the financial system (58 per cent). Innovation and technology (46 per cent) was the least popular of the choices.
Singapore: High cost of living, inflation
MDRi’s report, however, has shown that while higher living costs are common throughout Asia, Singapore has had to bear the heaviest burden.
An eye-watering 92 per cent of Singaporeans reported a slight or significant increase in inflation in 2023—the highest in the region. Nevertheless, all the other Asian nations in the study also reported a high number of respondents who said the same: Vietnam at 89 per cent, Indonesia at 85 per cent, Malaysia at 84 per cent, Hong Kong at 80 per cent, and Thailand at 76 per cent.
This corresponds to the inflation rates in each country, with Singapore again taking the pole position, at 4.8 per cent, followed by
Vietnam at 3.2 per cent, Indonesia at 2.6 per cent, Malaysia at 2.5 per cent, Hong Kong at 2.1 per cent, and Thailand at 2 per cent.
“Singapore’s concerns over inflation are rooted in a combination of factors, chiefly the high goods and services tax, transportation costs, and retail goods. The impact of these factors is being felt acutely, contributing to the significant rise in the cost of living for many Singaporeans,” the study says. /TISG
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