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Bear Market Turning Off Singaporean Investors
Consumers in Singapore have been shedding stocks since 2001. A recent survey conducted by AMI Commerce, Banking and Investments (AMI CBI), a specialist business and financial research division of Asia Market Intelligence, shows that currently 21 per cent of the Singapore population invest in stocks, a fall of 10 per cent from September 2001.
While the use of investment-linked plans has remained steady, the use of unit trusts has gone up somewhat. The survey was conducted in July among 1,011 banking customers in Singapore.
According to Piers Lee, General Manager of AMI CBI, 'Consumers who have traditionally 'gone it alone' in the equity markets are turning now to banks and asset managers to handle their portfolios. Even if the bull market returns, the concept of wealth management is likely to stay and the banks will be required to meet the challenge, especially with the advance of international banks in Singapore who are often perceived to offer more specialist knowledge in this field.'
As the survey suggests, more people tend to invest than borrow in Singapore. Last year alone, about 47 per cent of Singapore's working population had investments but only 26 per cent had personal financing. The trend may continue next year. The proportion of banking customers looking to invest next year (12 per cent) is twice of those intending to approach banks for personal financing (six per cent). Among personal financing loans, car loans top the list and in personal investments, more consumers prefer CPF investments.
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