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Tag: consumer confidence

  • Taiwan Consumer Confidence Dips Despite Strong Economic Forecasts Amid Inflation Fears

    Taiwan Consumer Confidence Dips Despite Strong Economic Forecasts Amid Inflation Fears

    Taiwanese consumer confidence has fallen, with sentiment regarding the economic outlook and spending weakening this month, despite official predictions of the strongest economic growth in decades. A recent survey by Cathay Financial Holding Co. Revealed that inflation concerns and volatility in financial markets are contributing to this cautious mood among consumers.

    The survey highlighted a drop in consumer optimism toward the local stock market and overall risk appetite following recent equity swings. Factors such as heightened tensions between the US and Iran, rising oil prices, and expectations for higher US interest rates have made investors more conservative. Frequent stock trading halts in South Korea and renewed questions about the sustainability of the artificial intelligence (AI) boom have fueled market volatility.

    Divergence in Economic Views

    Consumers now anticipate inflation to average 2.3 percent this year, surpassing the government’s estimate of 2.07 percent and the central bank’s 2 percent target. Their economic growth expectations also fall short of official projections, with consumers anticipating an 8.94 percent expansion this year on average, significantly lower than the government’s forecast of 11.05 percent, which would mark the fastest pace in nearly four decades. Only about one-quarter of respondents expect growth to exceed 10 percent.

    This divergence between official forecasts and household expectations suggests that the benefits of Taiwan’s AI-led economic expansion have not yet translated into stronger consumer confidence. Higher energy costs, inflation risks, and financial market swings are adding to uncertainty, which in turn has led to a weakened willingness among consumers to make major purchases. The index for durable-goods spending has consequently moved into negative territory.

    Investment Sentiment

    Despite the cautious consumer sentiment, Taiwanese equities remain the most preferred investment target for the next six months, selected by 57 percent of respondents. In comparison, 24 percent favored US stocks. For those planning to increase investments, confidence in Taiwanese companies’ ability to sustain earnings was the most frequently cited reason, followed by optimism regarding the economy’s overall strength.

    RetailNews Asia observes that similar patterns of economic growth failing to fully translate into consumer confidence have been seen across other Asian markets, particularly where global economic headwinds and local inflationary pressures create a disconnect between macro-indicators and household spending power. This trend often prompts retailers to adapt strategies to cater to more value-conscious consumers or focus on essential goods over discretionary purchases.

    The survey, conducted from August 1 to August 7, gathered 12,580 responses from customers and members of Cathay Life Insurance Co. And Cathay United Bank Co.

  • Cambodia Boosts Food Safety and Export Potential with Singaporean Partnership

    Cambodia Boosts Food Safety and Export Potential with Singaporean Partnership

    Phnom Penh is taking significant steps to elevate its food safety and processing capabilities through a new collaborative training initiative. The Ministry of Industry, Science, Technology and Innovation (MISTI) in Cambodia, in partnership with the Embassy of Singapore, has commenced a five-day program designed to improve food safety, boost agro-processing, and help Cambodian businesses produce export-ready, high-quality goods.

    This initiative, held at the Cambodia-Singapore Cooperation Centre, provides specialized training for Cambodian officials. The curriculum focuses on essential areas such as food safety management, preservation techniques, value addition, and sustainable production practices, aiming to strengthen the country’s food sector from farm to market.

    Strengthening Consumer Trust And Market Competitiveness

    Minister of Industry, Science, Technology and Innovation Hem Vanndy emphasized that robust food safety systems are vital for protecting public health and fostering consumer confidence. Such improvements also play a crucial role in enhancing the competitiveness of both industrial players and small and medium-sized enterprises (SMEs) within the market. Vanndy noted that investing in food safety safeguards consumer well-being today and bolsters Cambodia’s long-term reputation and economic future.

    The minister highlighted key priorities, including reducing post-harvest losses, adopting modern processing and packaging technologies, adhering to international standards, and promoting resource-efficient production methods. These efforts are expected to support Cambodia’s economic transition from basic production towards higher-value manufacturing, opening new avenues for local producers to reach regional and international consumers.

    A New Phase of Bilateral Cooperation

    Steven Pang Chee Wee, the Ambassador of Singapore to Cambodia, stated that this training program was developed specifically to address MISTI’s priorities, marking a new chapter in bilateral capacity-building cooperation. This marks the first customized course under the Singapore Cooperation Programme to be hosted at the Cambodia-Singapore Cooperation Centre, setting a precedent for future tailored collaborations between the two nations.

    The ambassador acknowledged Cambodia’s abundant agricultural output, noting that it presents considerable opportunities for increased value creation through enhanced processing, preservation, and food safety protocols. The course also supports MISTI’s broader objective of strengthening Cambodia’s National Quality Infrastructure, encompassing standards, metrology, accreditation, and laboratory testing. This systematic approach will help local micro, small, and medium enterprises improve product quality, enabling them to better access regional and international markets. The Cambodia-Singapore Cooperation Centre, established in 2002 and upgraded in 2018, has already provided capacity-building programs to over 19,000 Cambodian government officials, underscoring the long-standing partnership.

    RetailNews Asia notes that improving food safety and processing capabilities is a common strategy across Southeast Asia to boost agricultural exports and strengthen domestic consumer confidence. Similar initiatives have been seen in Vietnam and Thailand, where robust standards are essential for tapping into high-value markets. For retailers and F&B businesses operating in Cambodia, this move promises a more reliable supply chain of locally sourced, higher-quality products, potentially reducing import reliance and supporting local producers.

  • Indonesian Consumer Confidence And Retail Sales Impacted By Job Market Concerns

    Indonesian Consumer Confidence And Retail Sales Impacted By Job Market Concerns

    Consumer confidence in Indonesia has been negatively impacted by widespread concerns regarding job security and reduced purchasing power, according to a recent report by The Jakarta Post. This sentiment has led to a significant decline in the retail sales index for June.

    Bank Indonesia, the nation’s central bank, observed a sharp decrease in its retail sales index during June. Despite this downturn, the bank projects a potential improvement in retail sales figures for the subsequent month, suggesting a possible rebound in consumer activity.

    Questions & Answers

    What factors are primarily impacting Indonesian consumer confidence?
    Consumer confidence in Indonesia is primarily being affected by worries about job security and a perceived decline in spending power among the populace.

    How did these factors reflect on retail sales recently?
    These factors led to a sharp drop in Bank Indonesia’s retail sales index for June, indicating a reduction in consumer purchasing activity during that period.

    What is Bank Indonesia’s outlook for retail sales in the near future?
    Despite the June decline, Bank Indonesia forecasts an improvement in retail sales for the following month, suggesting a potential recovery in consumer spending.

  • Vietnamese consumers among the most optimistic in the world

    Vietnamese consumers among the most optimistic in the world

    Vietnamese consumer confidence has reached a global high thanks to optimism over jobs and personal finances. The Vietnam Consumer Confidence Index has risen by nine points from the second quarter to reach an all-time high at 129 points in the third quarter of 2018, according to the Global Consumer Confidence Survey.

    The survey results have been released by research association The Conference Board in collaboration with global market research company Nielsen.

    The survey ranks the country in second place in the world in terms of consumer confidence, behind India at 130 points.

    While most Asian economies are vulnerable to the ongoing trade dispute between China and the U.S., Vietnam is a possible exception, as it may attract parts of the global value chain that currently run through China, the report said.

    The rise in the confidence index is also due to greater optimism about employment prospects, personal finances and the level of willingness to spend.

    Eight out of ten Vietnamese surveyed said that they were positive about their job prospects, up nine percentage points from the second quarter.

    Eighty-two percent of respondents expected their personal finances will be good or excellent over the next 12 months, up 6 percentage points from the second quarter.

    The majority of them, 63 percent, said that the next 12 months are a good time for them to buy the things that they want and need, 8 percentage points higher than the second quarter.

    Concerns about having a stable job and health (both at 40 percent) remained the top concerns among Vietnamese consumers. The national economy came in third at 27 percent, 5 percentage points higher than the previous quarter.

    Vietnamese consumers continue to take the lead globally when it comes to saving, the survey found. Seventy-two percent of respondents said that they would save their spare cash, up two percent from the second quarter.

    But Vietnamese people are also more willing to spend on big-ticket items. The percentage of people who would spend their spare cash on home improvements increased 10 percent from the second quarter to 48 percent.

    Over half of them, 53 percent, want to spend the money on new clothes, up 7 percentage points from the second quarter.

    Nguyen Huong Quynh, managing director of Nielsen Vietnam, said that when consumers faced multiple concerns, their purchasing decisions will be affected and businesses should always keep a close track on changes in the spending habits of consumers.

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  • Malaysia’s onsumer confidence in Q2 hits 21-year high

    Malaysia’s onsumer confidence in Q2 hits 21-year high

    Malaysian consumer confidence jumped to its highest level in 21 years in the second quarter of 2018 (Q2 2018), as households were upbeat about the labour market and their future incomes, according to Malaysian Institute of Economic Research (MIER).

    The think-tank said its Consumer Sentiments Index (CSI) survey, which involved 1,020 households in Peninsular Malaysia, rebounded above the 100-point optimism threshold to soar to 132.9 points in the second quarter, the highest level since Q2 1997.

    MIER said this is likely due to the recent change in the political landscape, abolition of the Goods and Services Tax (GST) and the consumers’ expectations of an improvement in the economic welfare.

    Speaking at MIER’s 33rd National Economic Briefing today, its executive director Dr Zakariah Abdul Rashid said the survey also revealed that the consumers are having ambitious spending plans in the coming months, especially for consumer durables.

    “This is underpinned by the improved consumers’ current incomes as well as future incomes and favourable employment outlook as shown by the survey results,” he added.

    MIER said based on the CSI survey results, 21% of the households interviewed enjoyed better finances in Q2 2018, the highest proportion received since Q1 2014, while majority (65%) of them saw no change in their incomes recently.

    “Only 13% of the respondents this time lamented being worse off financially then before, the smallest proportion tabulated since Q4 2004,” it noted.

    Consistent with its CSI survey, MIER said that businesses are also upbeat on the economy, as its Q2 2018 Business Conditions Index (BCI) rebounded strongly recording the highest level over the last 13 quarters, surpassing the demarcation level of 100-point threshold of optimism.

    Meanwhile, Zakariah said the government’s decision to abolish the GST and reinstate the Sales and Services Tax (SST) would not significantly impact the country’s economic growth.

    “The brief period of the tax holiday and the shift to SST in September won’t have much impact on GDP as the (GST and SST) elements play a very small or insignificant role in (contributing to) GDP. I think other factors (such as domestic demand, private and public consumptions) are more important,” he added.

    MIER maintained its GDP (gross domestic product) growth forecast at 5.5% this year. GDP growth is expected to moderate to between 4.8% and 5.3% next year.

    Additionally, Zakariah said growth prospects for 2018 and 2019 would depend heavily on resilient growth in domestic demand and good performances of major developed economies.
    Meanwhile, he said, the ringgit is expected to trade between RM4.18 and RM4.20 against the US dollar by year-end due to capital flows amid global interest rate differentials.

  • Vietnamese consumers among world’s most positive

    Vietnamese consumers among world’s most positive

    Vietnamese consumer confidence index achieved its highest score in the last decade, placing it as the fourth most optimistic country in the world, according to market research firm Nielsen.

    The index reached 124 points in the first quarter of 2018, up 9 points over the same period last year.

    “The great economic growth across industries, combined with strong foreign investment flows, increasing household incomes and proper government policies have resulted in optimism among consumers,” said Nguyen Huong Quynh, Managing Director of Nielsen Vietnam.

    “However, positive sentiments did not lead to strong fast moving consumer goods (FMCG) sales in Vietnam, with the market up just 1.8 percent in Q1. The growth was slower than expected and reflected the characteristic of FMCG industry in Vietnam, possibly due to changing consumer behaviors,” Quynh added.

    Having a stable job and good health remains key concerns of Vietnamese consumers. In this quarter, the top five concerns of Vietnamese consumers remained the same as last year. Job security topped the list with 43 percent, followed by health and wellness (41 percent). Other concerns included work-life balance and economic status with both at 23 percent.

    The Nielsen report said Southeast Asia and North America showed the highest level of consumer confidence. The confidence score of consumers in Southeast Asia increased 2 points from 119 in fourth quarter of 2017 to 121 in first quarter of this year.

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  • India, Myanmar top Consumer Confidence rankings

    India, Myanmar top Consumer Confidence rankings

    India tops the Mastercard Index of Consumer Confidence rankings as the most optimistic market in Asia Pacific, with Myanmar, Vietnam, Philippines and Bangladesh rounding off the top five.

    Overall, consumer confidence in Asia Pacific continues to hold steady, showing stability (within plus or minus five points from the previous survey) in nine out of 17 markets. With an increase of 1.2 points in the overall score from the first half of 2016 to 60.9 points in the second half, Asia Pacific sits just above the 60 point optimistic mark.

    However, the overall stability masks some significant movements across five markets in the region compared to the previous six months. Hong Kong, Thailand and Bangladesh saw more than 10 point improvements, while Malaysia and Taiwan saw more than 10 point decreases.

    Bangladesh recorded the largest gain of 11.2 points to 82.8 points – a significant improvement in overall consumer confidence compared to the first half of 2016 where it saw a relatively smaller increase of 4.2 points. Bangladesh’s increase in score was backed by an improvement in all components, the largest coming from heightened expectations in stock market movements (+24.6 points). Both Thailand and Hong Kong also saw a large improvement of 10.1 points, putting Thailand in optimistic territory and Hong Kong in neutral territory.

    On the other hand, eight of the 17 markets saw a deterioration in confidence levels. The biggest decline in optimism levels was observed in Taiwan, followed by Malaysia, and Myanmar. According to the survey, prospects for the stock market was the key driver of the decline.

    Between November and December 2016, 8723 respondents, aged 18 to 64 in 17 Asia Pacific markets, were asked to give a six-month outlook on five economic factors including the economy, employment prospects, regular income prospects, the stock market and their quality of life. The Index is calculated on a scale of 0 to 100, with zero as the most pessimistic, 100 as the most optimistic and between 40 and 60 as neutral.

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  • CapitaLand Vietnam to build Ho Chi Minh City mall

    CapitaLand Vietnam to build Ho Chi Minh City mall

    Singapore developer CapitaLand plans to build a 240 metre tall office tower in downtown Ho Chi Minh City, apparently anchored by at least four storeys of shopping mall.

    artists_impression_of_capitalands_first_grade_a_office_development_in_hcmc

    While CapitaLand has already established a strong presence in Vietnam in the accommodation and serviced apartment sectors, this tower would mark its first foray into retail. Fellow Singapore developers Keppel and Mapletree have both built shopping centres in Ho Chi Minh, Vietnam’s most-populated city.

    CapitaLand Vietnam released an artist’s impression of the new building on Tuesday which clearly shows a strong retail component. In the statement it said the building would incorporate “exciting retail offerings, including some of the city’s best restaurants and cafes, lifestyle and entertainment outlets” on levels above and below ground.

    But when approached for more details, a CapitaLand spokesman declined to reveal further details.

    Also apparently secret is the precise location of the new development, other than it is in the heart of District 1, the CBD, and on the riverfront. CapitaLand says construction will commence in the first quarter – but refused to reveal the exact location of the 0.6ha site it has acquired.

    The development – of an unspecified number of storeys – will be built by CapitaLand’s wholly-owned subsidiary CapitaLand Vietnam Holdings. It will be the company’s first international Grade A office tower in Vietnam and connected with the metro railway line currently under construction. Both are expected to open in 2020.

    Lim Ming Yan, president & group CEO of CapitaLand said in a statement that the acquisition and development of the project serves to diversify CapitaLand’s portfolio and strengthen its foothold in Vietnam.

    “It is also in line with our plan to establish a US$500 million investment fund to focus on commercial properties in Vietnam. CapitaLand has a 22-year track record in Vietnam which has delivered to-date, 22 serviced residences, nine residential developments and now, a prime commercial property. Given its strong growth outlook and positive market sentiments, we are excited to be a long-term player in Vietnam’s growth story and will continue to look out for opportunities to grow our footprint.”

    An eye-catching feature of the building will be lush open terraces towards the top of the tower, “bursting with greenery where tenants can meet, network or relax while enjoying unobstructed views of the Saigon River and the city”.

    It is within walking distance to the city’s vibrant shopping and entertainment area, and CapitaLand’s Ascott Waterfront Saigon – a 222-unit luxury serviced residence due to open in July 2017.

    Vietnam is CapitaLand’s third largest market in Southeast Asia, after Singapore and Malaysia. Last November, CapitaLand announced plans to set up a US$500 million fund to invest in commercial properties in Vietnam; its second one after a US$200 million fund launched in 2010 which has been fully invested in the development of three residential projects in Ho Chi Minh City and Hanoi.

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  • Shopper confidence up in Asia-Pacific

    Shopper confidence up in Asia-Pacific

    Shopper confidence in Asia-Pacific elevated in 9 of 14 markets within the first quarter of 2015, in comparison with solely three that rose within the fourth-quarter 2014, in accordance with the Nielsen International Survey of Shopper Confidence and Spending Intentions.

    The 9 markets additionally remained at or above the 100-baseline degree of optimism. India, whose confidence degree has been on the rise for six consecutive quarters, had the very best index rating within the area of 130, a one-point improve from the earlier quarter and a degree that has not been reached since 2011.

    “The city Indian shopper began the yr with constructive sentiment in anticipation of enchancment by way of reforms and stimulus introduced by the brand new authorities,” stated Piyush Mathur, president, Nielsen India Area.

    “These preliminary indicators of optimism mirror anticipation of financial restoration which are but to manifest whenever you take a look at fast-moving shopper items and auto sectors particularly over the previous few quarters. Furthermore, infrastructure, engineering and different industrial sectors are but to collect tempo. The autumn in inflation is predicted to have an effect on disposable revenue over time, however it is going to take time for the sectors to be restored to perceptible and sustainable progress,” he added.

    Massive index will increase have been additionally reported in Taiwan, the place confidence rose 11 factors to 88 —the very best rating since 2011 — and in Japan, which rose 9 factors to 88, the very best rating for the nation recorded by Nielsen since 2005.

    “Taiwan confirmed a robust rebound firstly of this yr after a decline in fourth-quarter 2014,” stated Andy Huang, managing director, Nielsen Taiwan. “The rise in confidence sentiment was pushed by a robust enchancment within the outlook for jobs, which elevated 16 proportion factors from fourth-quarter 2014.

    “Perceptions about private funds and a willingness to spend additionally improved 9 and 10 proportion factors, respectively. Preliminary GDP forecasts, a falling unemployment fee and a stabilizing shopper worth index have been different constructive indicators firstly of 2015, which doubtless contributed to elevated optimism amongst Taiwanese shoppers,” he added.

    Vietnam and Malaysia likewise reported robust confidence boosts of six and 5 factors, respectively, within the first quarter. Vietnam’s rise to a rating of 112 is the third consecutive improve and the nation’s highest rating since 2010. Conversely, China’s index fell one level to 106 within the first quarter, which comes after a four-point decline in fourth-quarter 2014.

    The Nielsen Shopper Confidence Index measures perceptions of native job prospects, private funds and quick spending intentions amongst greater than 30,000 respondents with Web entry in 60 nations.

  • Thai consumer confidence fell in Jan

    Thai consumer confidence fell in Jan

    Thailand’s consumer confidence index fell to 80.4 points in January from 81.1 last December due to concerns about slow economic recovery, baht appreciation, weak exports and low prices for farm products.

    The University of the Thai Chamber of Commerce announced on Thursday that consumer confidence declined as the national economy was expanding more slowly than its real potential, Thai exports did not recover well, the baht appreciated slightly and prices of farm products fell.

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