Southeast Asians exhibit a strong appetite for investing, with stocks, fixed deposit plans, and mutual funds among the top three areas of investment, according to a study by market research platform Milieu Insight.
The study, which covered 3,000 respondents in Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines, shows that 46% of Southeast Asians actively invest their money, with 58% allocating up to 20% of their income towards investments.
However, the study revealed that one in five adopt an ad-hoc approach to investing, indicating potential room for improvement in financial planning strategies.Â
Among all countries surveyed, Singaporeans are the frontrunners in active investing, with 59% indicating they invest their money compared to 46% across the region.
The investment appetite in the region is revealed to be driven primarily by retirement security, wealth growth, and regular income. Despite this, individuals cite fear of losing money, long investment timelines, and fear of missing out on opportunities as the top challenges they face.
Openness for financial advice
The report found that Southeast Asians exhibit openness to professional financial advice, with 60% stating that it increases their confidence.
Among those who invest, 49% rely on advisors as their top source of guidance, highlighting the value placed on expert insight in financial decision-making processes.
Financial literacy crisis
The report also reveals a concerning trend where over four in 10 of Southeast Asians save only up to 10% of their income, indicating a pressing need for greater financial literacy and planning initiatives.
This highlights the need for empowering individuals with the right knowledge and tools necessary for them to build proper financial habits.Â
Missing out on wealth accumulationÂ
While approximately half of Southeast Asians own and use a credit card, there are significant disparities across different countries, with Indonesia reporting the lowest ownership and Singapore leading the pack.
Nevertheless, the study shows that 68% of credit card holders in Southeast Asia pay their balances in full most of the time, demonstrating responsible financial management among a majority of users.
Conversely, 54% of respondents are not actively putting money into investments, potentially missing out on wealth accumulation and financial growth opportunities. This trend may be influenced by various factors such as low financial literacy, limited access to investment opportunities, and preferences for saving over investing.
