United Overseas Bank (UOB) has introduced the first regional UOB ASEAN Consumer Sentiment Index, aiming to provide a consistent measurement of consumer confidence across Southeast Asia. The index is based on six key indicators from the bank’s ASEAN Consumer Sentiment Study (ACSS), including views on current and future economic conditions and personal finances.
For 2025, the regional index stood at 54, indicating general optimism among consumers in the region. This figure has remained stable over the past two years despite ongoing macroeconomic challenges and geopolitical uncertainties.
The study found that ASEAN consumers were more optimistic about their countries’ economies, with sub-index scores rising by four points. Fifty-seven percent of respondents felt positive about the current economy, while 58 percent expressed optimism for future economic prospects—both up three percentage points year-on-year.
Personal financial outlooks were also generally positive but saw a slight decline compared to last year. The proportion of respondents expecting to fare as well or better financially next year dropped three percentage points to 56 percent. Concerns about potential pay cuts increased by four percentage points to 46 percent, though worries over household expenses eased by four percentage points to 54 percent.
Ms Jacquelyn Tan, Head of Group Personal Financial Services at UOB, said, “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 five surveyed ASEAN countries, Vietnam led with an index level of 67—a three-point increase from last year—mainly due to strong macroeconomic sentiment. Indonesia ranked second at 55 despite a dip of three points. Malaysia saw an increase of 11 points to reach 53, attributed largely to improved views on its current economic environment and reduced concerns over household expenses. Singapore and Thailand both scored 47; Singapore experienced a significant drop of ten points with decreased optimism across all indicators.
Despite easing concerns about inflation-driven living costs—which remain the top worry for most respondents—ASEAN consumers demonstrated strong financial preparedness: seventy-nine percent reported having enough emergency funds for unforeseen events; seventy-eight percent felt confident managing existing debts; seventy-six percent believed they had adequate insurance coverage; and sixty-nine percent considered their investments sufficient for retirement goals.
In Singapore specifically, spending data showed increases in daily living expenses such as dining and transport during the first half of 2025 compared with last year. However, overall average spending on daily essentials declined by five percent year-on-year—potentially offset by government support measures like U-Save rebates and CDC vouchers.
Seventeen percent of Singaporean respondents met three or all four basic financial planning guidelines outlined by local authorities—a seven-percentage-point improvement from last year. Emergency fund readiness rose slightly among Singaporeans; insurance coverage also improved while investment discipline declined nine percentage points from last year.
Current and savings account balances among UOB customers in Singapore grew by twenty-five percent in early 2025 compared with last year. Insurance product holdings increased moderately by three percent among these customers; invested assets under management rose seventeen percent over the same period.
However, youth financial preparedness lags behind other groups in ASEAN—with seven percent of Gen Zs reporting no emergency savings or insurance coverage at all. In Singapore alone, thirty-five percent of Gen Zs did not meet any basic financial planning guidelines—up nine percentage points from last year.
Younger generations showed different priorities: most preferred present enjoyment over future planning, classifying experiential spending as essential and being more willing than older groups to borrow for lifestyle goals such as travel or new purchases.
Despite higher spending on experiences—including an eight-percent increase in card billings for dining, entertainment, and travel among younger UOB customers—Gen Zs still managed notable growth in savings accounts and online investment activity.
Ms Jacquelyn Tan added: “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.”