The study also found that youths in ASEAN fall behind in financial readiness, with Singapore’s Gen Zs most at risk
SINGAPORE, Sept. 2, 2025 /PRNewswire/ — In the sixth edition of the ASEAN Consumer Sentiment Study (ACSS)[1], the region’s leading consumer confidence barometer, UOB launched ASEAN’s first UOB ASEAN Consumer Sentiment Index (the Index). The Index was based on six key indicators from ACSS, covering consumers’ confidence level of their countries’ current and future economic conditions and their personal finances. The 2025 regional Index was 54, where a level above 50 reflected consumers’ general optimism. The Index remained stable against the last two years[2], an encouraging sign for the region amid ongoing macroeconomic volatility and geopolitical tensions.
On macroenvironment, ASEAN consumers were more optimistic about the broader economy (sub-index rising by four points). 57 per cent and 58 per cent of respondents felt positive about the current economy and future economic outlook respectively, a year-on-year (yoy) increase of three percentage points each.
As for personal finances, consumers remained optimistic overall, but slightly less so than last year (sub-index dipping by one point). The proportion of respondents who expected themselves to fare as well or better financially next year dropped three percentage points to 56 per cent, and more respondents were worried about the prospects of a pay cut at work, an increase of four percentage points to 46 per cent. This worry over jobs was offset by an easing of concerns over increased household expenses (drop of four percentage points to 54 per cent), while expectations on long-term financial commitments remained flat at 48 per cent yoy. With an overall improvement in ASEAN consumers’ confidence for their country’s economy outweighing the small dip in optimism for their personal finances, the overall Index remained positive at 54 this year.
Ms Jacquelyn Tan, Head of Group Personal Financial Services, UOB, said, “Consumer sentiment is a vital indicator of economic health. As a leading regional bank, we were driven to provide a simple and consistent measurement on consumer’s optimism around the broader economy and their own financial situation. With the new regional Index, we hope to offer businesses insights to consumers’ spending and behaviour in the near-term. Despite market uncertainty, we are heartened to see the resilience in ASEAN consumers’ confidence in both the macroenvironment and their finances this year.”
Of the five ASEAN countries surveyed, Vietnam led the index with a level of 67, an increase of three points from last year, strongly driven by buoyant sentiments on macroenvironment factors. Indonesia was ranked second at 55, despite a three-point dip. Malaysia clocked the highest jump of 11 points to hit a level of 53, driven by improvement across all indicators, most significantly in their optimism for their country’s current economic environment and lesser concerns for household’s increased expenses.
Singapore and Thailand were both at 47, with Singapore having the largest decline of 10 points. Singapore consumers expressed dampened sentiments across all indicators, with the largest drop in their optimism for the macroenvironment, while Thailand fared the lowest for sentiments on macroenvironment factors despite being relatively upbeat about their personal finances.
Financial preparedness in ASEAN holds strong, with Singapore showing improvement
Apart from the Index, ACSS findings also found that despite easing concerns on rising costs of living due to inflation (dropped by three percentage points), this remained the top worry for 59 per cent of ASEAN respondents, with Singapore consumers topping the list.
Spending data for UOB customers in Singapore showed that the average ticket size of daily living expenses such as dining and transport both increased by six per cent yoy for the first half of 2025 (1H25). Despite this, overall average ticket size of daily essentials dipped by five per cent yoy in 1H25, which could have been alleviated by government support measures introduced this year such as the various U-Save rebates and additional tranches of CDC vouchers.
ASEAN consumers demonstrated strong financial preparedness while coping with these concerns, with 79 per cent of respondents declaring that they have sufficient emergency funds to cover unforeseen circumstances. Additionally, 78 per cent felt confident in managing and servicing existing debts, 76 per cent believed they had adequate insurance coverage for current and future needs, and 69 per cent considered themselves as having sufficient investments to fund their retirement and other financial goals.
More Singapore consumers were also taking proactive steps to secure their financial future. The study found that 17 per cent of respondents met three or all four rules of thumb identified by the Monetary Authority of Singapore and financial industry’s Basic Financial Planning Guide (the Guide)[3], a seven-percentage-point increase from last year.
Singapore consumers remain generally well-equipped in terms of emergency funds. 61 per cent of respondents have at least three to six months’ worth of expenses to buffer for unforeseen events, increasing by one percentage point from last year. Singapore consumers are also better protected, with an increase of six percentage points to 19 per cent in terms of insurance coverage. Legacy planning also saw an improvement, with 18 per cent of Singapore consumers meeting this rule of thumb, increasing by six percentage points from last year. However, investments discipline slipped nine percentage points from previous year, with only 47 per cent of Singapore consumers setting aside at least 10 per cent of their take-home pay for retirement and other financial goals.
In line with ACSS findings, UOB customers in Singapore were indeed saving more. Current and savings accounts (CASA) balances saw a strong growth of 25 per cent yoy in 1H25. On protection, overall number of UOB customers with insurance product holdings improved moderately by three per cent yoy in 1H25, although younger customers are trailing slightly behind. On a brighter note, UOB customers were investing more, with their invested assets under management (AUM) increasing 17 per cent yoy in 1H25.
Youth financial preparedness trails behind, particularly in Singapore
Financial preparedness among the younger generations in ASEAN was visibly lacking. Seven per cent of Gen Zs in the region felt completely unprepared in terms of emergency savings and insurance coverage. In Singapore, 35 per cent of Gen Zs did not meet any of the four rules of thumb outlined in the Guide, an increase of nine percentage points from last year.
The study also revealed a shift in younger consumers’ financial priorities, with 73 per cent of Gen Zs and 71 per cent of Gen Ys in ASEAN preferring to spend for enjoyment now rather than worry about the future. More youths also classified experiential spending categories[4] as essential expenditures and were willing to spend more on these categories than the other age groups. 70 per cent of Gen Zs and 72 per cent of Gen Ys were also comfortable with borrowing to fund lifestyle goals such as going on a vacation or new purchases.
Younger UOB customers in Singapore displayed affection for experiential spending as well. UOB cardholders’ overall card billings on experiential spending, across dining, entertainment and travel categories, increased by eight per cent yoy in 1H25. Gen Zs clocked in the highest uplift of 17 per cent yoy and Gen Ys at 12 per cent yoy.
Despite this, UOB’s Gen Z customers did put aside savings and investments for their future. They also had the highest yoy growth for CASA balances in 1H25 among all age groups. Separately, the average ticket size of their online Unit Trusts investment grew by 76 per cent, at least two times higher than other age groups, a reflection of their focus on investment.
While many Gen Zs want to embrace the present, they can continue to do so while balancing the need to strengthen their financial foundations – across savings, insurance, investments, and legacy planning – for greater long-term security. UOB is committed to supporting its customers at every stage of their lives and offers an array of resources and solutions for customers to improve their financial preparedness across savings, investing and protection, including digital tools such as our UOB TMRW app and Wealth on TMRW, coupled with in-person advice through our trained financial advisors.
“Financial planning is most effective when started early, laying a strong foundation that grows over time. We understand that the younger generation today value experiences, and we are here to help them enjoy life now while building financial resilience for the future, because both can go hand in hand. Through our comprehensive suite of solutions across saving, investing and payments, we support our customers at every life stage, from early adulthood to their golden years, ensuring their assets are protected and optimised so they can live everyday with confidence and comfort,” said Ms Jacquelyn Tan.
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About UOB
UOB is a leading bank in Asia. Operating through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, UOB has a global network of more than 470 branches and offices in 19 markets in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. Today, UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings.
For nine decades, UOB has adopted a customer-centric approach to create long-term value by staying relevant through its enterprising spirit and doing right by its customers. UOB is focused on building the future of ASEAN – for the people and businesses within, and connecting with, ASEAN.
The Bank connects businesses to opportunities in the region with its unparalleled regional footprint and leverages data and insights to innovate and create personalised banking experiences and solutions catering to each customer’s unique needs and evolving preferences. UOB is also committed to help businesses forge a sustainable future, by fostering social inclusiveness, creating positive environmental impact and pursuing economic progress. UOB believes in being a responsible financial services provider and is steadfast in its support of art, social development of children and education, doing right by its communities and stakeholders.
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[1] Details of UOB ACSS 2025 and the new Index’s research methodology can be found in the Annex. |
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[2] Based on the same six indicators from the ACSS from past two years, the Index for 2024 and 2023 was retrospectively calculated to be 53 and 55 respectively. |
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[3] ACSS 2025 polled consumers’ financial allocations based on rules of thumb outlined in the Guide: (1) allocating at least three to six months’ worth of expenses as emergency funds; (2) obtaining insurance protection for death, total permanent disability, and critical illness; (3) investing at least 10 per cent of take-home pay for retirement and other financial goals; and (4) making a will and CPF nomination. |
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[4] Experiential categories such as travelling for vacations, fine dining, and concerts, events and festivals. |
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