PAX research says Singaporeans are big spenders: Synovate

Singapore affluents are spending on luxury items, technology and travel despite the economic downturn last year, according to Synovate’s annual PAX survey.

Synovate spoke with 1,709 respondents in Singapore from Q3 2009 and Q2 2010. Affluents are defined as having a household income of over S$6,500 (US$5,016) per month.

“This is the threshold at which people start having the power to buy discretionary items,” said Steve Garton, executive director of media at Synovate.

The study found that Singaporeans are embracing luxury goods more and more, with over half owning at least one luxury product, including luxury watches, designer clothes, jewellery and leather goods valued at US$500 (S$648) or more. Car ownership has also grown substantially over the past year, from 67.1 per cent to 76.5 per cent.

Singapore leads the region on average for gadget ownership, with seven in ten owning a laptop or a notebook. Two-thirds of respondents own a digital still camera and 40.3 per cent own a HDTV.  Smartphone ownership grew from 14.7 per cent to 23.1 per cent over the last year, and 21 per cent own a handheld PC, Palm Top or a PDA.

Singaporeans were found to be the most frequent travellers in the region, with 27.2 per cent travelling for business in the last 12 months. Six in ten have taken a leisure trip.

Total ownership of credit cards rose from 85 per cent last year to 88.3 per cent, with Visa being the most popular, followed by MasterCard and American Express.

Attitude-wise, 91.3 per cent of respondents said that spending time with friends and family is important to them, and more than half like to treat themselves to something special, even if it’s expensive.

Singaporeans were found to posess an international outlook, with 67.8 per cent saying they would like to explore cultures of other countries. 41.7 per cent think international publications are more insightful and half believe international channels are more insightful.

The survey also found that a quarter of affluent Singaporeans have a greater trust in products that they have seen advertised.