United Overseas Bank (UOB) has launched the first UOB ASEAN Consumer Sentiment Index, which measures consumer confidence across five ASEAN countries. The index, based on six indicators from the bank’s long-running ASEAN Consumer Sentiment Study (ACSS), provides insights into how consumers feel about their country’s economic situation and their personal finances.
The 2025 regional index stood at 54, indicating general optimism among respondents. This level is consistent with the previous two years, despite ongoing economic challenges and geopolitical uncertainties in the region.
According to UOB, optimism regarding broader economic conditions increased this year. Fifty-seven percent of survey participants expressed a positive view of their current economy, while 58 percent were optimistic about future prospects—both figures marking a three percentage point rise from last year. However, optimism about personal finances slightly decreased: 56 percent expect to be as well off or better financially next year, down three points. More people reported concerns about potential pay cuts (up four points to 46 percent), though worries over rising household expenses eased by four points to 54 percent.
Ms Jacquelyn Tan, Head of Group Personal Financial Services at UOB, stated: “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.”
Among surveyed countries, Vietnam led with an index score of 67—a three-point increase—driven by strong macroeconomic sentiment. Indonesia ranked second at 55 despite a slight dip from last year. Malaysia saw an eleven-point jump to reach 53 due to improvements across all indicators. Singapore and Thailand both scored 47; Singapore experienced a ten-point drop amid declines across all sentiment indicators.
Despite persistent inflation concerns—59 percent cited cost-of-living as their top worry—financial preparedness remains robust among ASEAN respondents. Seventy-nine percent reported having enough emergency funds for unforeseen events; seventy-eight percent felt confident managing debt; seventy-six percent believed they had sufficient insurance coverage; sixty-nine percent said they had enough investments for retirement or other goals.
In Singapore specifically, more people are taking steps toward financial security: seventeen percent met three or more guidelines outlined in national financial planning recommendations—a seven-point increase from last year. Sixty-one percent have emergency savings covering at least three months’ expenses (up one point), nineteen percent have adequate insurance protection (up six points), and eighteen percent have addressed legacy planning needs (up six points). However, only forty-seven percent set aside at least ten percent of take-home pay for retirement or other goals—a nine-point decrease from last year.
Spending data also reflected these trends among UOB customers in Singapore: daily living costs such as dining and transport rose by six percent during the first half of 2025 compared with last year; overall spending on essentials dropped five percent during that period—a shift potentially influenced by government support schemes like utility rebates and additional vouchers (https://www.straitstimes.com/singapore/politics/over-950000-households-to-get-next-tranche-of-cdc-vouchers-in-january-2025).
Younger generations lag behind older groups when it comes to financial readiness. Seven percent of Gen Zs across ASEAN felt unprepared for emergencies or lacked insurance coverage entirely; thirty-five percent of Singaporean Gen Zs did not meet any basic financial planning benchmarks—a nine-point rise since last year.
The study found younger consumers prioritize present enjoyment over future security: seventy-three percent of Gen Zs prefer immediate experiences rather than saving for later needs. Their spending reflects this preference—UOB cardholders under age thirty saw experiential purchases like dining out or travel increase significantly compared with older groups.
Nevertheless, some young customers demonstrated positive habits by increasing savings account balances faster than other age groups and growing average investment sizes substantially over the past year.
Ms Jacquelyn Tan commented further: “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.”
UOB continues offering resources—including digital tools—to support customer financial preparedness throughout various stages of life.
