The Smart Singaporean Consumer

Google the age demographic of Singapore and you will get to know that around 76% of the Singaporean population is between the ages of 15 to 64. Around 64% of the working population works in the service sector. Also, percentage wise, Singapore also has the highest number of millionaire households. It is a fairly young population with sound incomes. After the recession and the subsequent revival of the Singaporean economy, the onus seems to lie on attracting more tourists as well as providing the average Singaporean consumer with more buying power.

However, the reality is far from what it appears. The high shopping capacity of young Singaporeans is continuously glorified in the media but what one misses out is also the high savings rate on the island. According to academician Peter Coclanis, the private spending of young consumers in Singapore is only after considerable amount of steady savings. Private consumption is fairly less as compared to other developed countries and almost comparable to countries such as China or India. The inconsistency arises due to the fact that young people spend conspicuously in terms of food; clothes and electronics. This is due to the fact that housing and cars are relatively expensive and unaffordable and most young people stay with their parents and use public transport.