1 in 3
Singapore investors hold debt: Survey
SINGAPORE: About one in three, or 33 per cent, of investors here
are in debt, according to the latest Manulife Investor Sentiment
Index released on Tuesday (Feb 2).
This places Singapore behind Malaysia (68 per cent) and
Philippines (41 per cent), but ahead of China and Taiwan (both 32
per cent). Examples of these debt include personal loans, student
loans and credit card debts, said Manulife. Mortgages were not
included.
Close to half, or 46 per cent, of indebted investors in
Singapore owe S$10,000 or more, and 44 per cent expect to take
longer than one and a half years to clear their debt. Manulife said
the top contributor to investors' debt was daily living expenses
such as food, utilities and transportation, followed by
discretionary expenses such as clothes, entertainment and
travel.
In addition, more male investors are in debt compared to their
female counterparts, with 37 per cent compared to 28 per cent,
respectively. The men have a significantly higher average debt
amount of S$40,985 compared with the women's S$25,502, the survey
showed.
“Singapore investors are taking steps in the right direction by
working hard to keep track of their expenses and save for
retirement. However, their debt burdens may be holding them back
from achieving their financial goals," said President and CEO of
Manulife Singapore Naveen Irshad.
"We encourage Singaporeans to look at planning their finances
holistically, from making the most of their savings to protecting
their wealth and securing a comfortable retirement.”
The Index is a half-yearly survey measuring and tracking
investors' views across eight markets in the region, and is based
on 500 online interviews in each market of Hong Kong, China,
Taiwan, Japan, Singapore, Malaysia, Indonesia and the Philippines,
Manulife said.
INVESTORS' REGRET
The survey also showed that the majority of Singapore investors,
or 69 per cent, regret not planning their investments better.
When asked the reasons behind their regrets, 27 per cent cited
not being more proactive in reviewing their portfolio, while 26 per
cent said they held on to too much money in cash instead of making
more investments.
Singapore investors who are parents were also found to not
impart their knowledge on financial planning, with 44 per cent
neglecting to do so, the survey showed. Of these, 31 per cent
believe that children should learn on their own while 24 per cent
cited their own lack of knowledge about financial planning as the
reason for not doing so, it noted.
- CNA/kk