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SINGAPORE: High-income earners in Singapore are saving more and investing less following the onset of the global financial crisis, according to a survey.
A Nielsen Company poll showed that before the bad news hit, close to four in 10 (39%) from the high-income group saved most of their money. But after the start of the economic meltdown, over half (52%) are putting most of their funds into savings.
On the other hand, a smaller proportion of people from this group are putting their money into investments (-7%) and insurance (-6%).
The survey was conducted in March 2009 to find out how high-income earners in Singapore apportion their disposable cash before and after the global economic crisis.
921 Singaporeans aged 18 years and above and earning more than S$7,000 a month were polled.
"Overall, the crisis does not appear to have had a huge impact on the way Singaporeans allocate their funds. But when we zoom in to focus on the various income segments, the Nielsen survey revealed noticeable changes particularly within the high income earners," noted Ms Joan Koh, executive director, The Nielsen Company Singapore.
"Our findings reflect a decreased placement of funds into investment vehicles after the global financial crisis broke, and a corresponding increase in savings among the group of respondents earning above S$7,000."
Nevertheless, high-income earners are still placing most emphasis on investment, with over a third (36%) continuing to invest during this current volatile climate, as compared to other income groups.
Stocks and equities continue to be the main investment instruments, popular with almost half (48%) of all those who put their money predominantly in investments. Mutual funds are next (27%), followed by properties/real estate (14%).
The survey also showed that insurance appears to be less of a focus for high-income earners.
"The proportion of high-income earners who place most of their money in insurance is notably less, especially after the downturn - at only four per cent, compared to the other income brackets which stand at least at 15 per cent," said Ms Koh.
- CNA/ir
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