CONSUMER confidence in Singapore may have fallen to the lowest level in more than three years, but sentiments in the country are still higher than those in several countries in the region.
Singapore's consumer confidence declined by 10 points to 92 in the second half of this year, according to the latest survey by The Nielsen Company, an information and media firm.
The index was at its peak of 114 points a year ago.
In the Asia-Pacific, Singapore ranks No. 8 in terms of consumer sentiment, ahead of Thailand, Hong Kong, Malaysia, Taiwan, Japan and South Korea.
It is behind India, Indonesia, Australia, the Philippines, New Zealand, Vietnam and China.
Still, Singaporeans are relatively more upbeat than their counterparts across the Asia-Pacific region, which scored an average of 85 points in confidence level, compared to Singapore's 92.
Region-wise, the Asia-Pacific is more optimistic than North America (83) and Europe (77).
However, the Asia-Pacific region is less optimistic than the Emea (Europe, the Middle East and Africa), which has an average of 89 points.
Latin America is the most optimistic region, with a score of 97 points.
Nielsen polled more than 26,000 consumers in 52 countries from Sept 23 to Oct 6, including 500 in Singapore.
The twice-yearly survey was launched in the first half of 2005.
The fall in Singaporeans' confidence comes as the country slips into its first recession since 2002.
Gross domestic product contracted an annualised 6.3 per cent in the third quarter from the previous three months, after shrinking a revised 5.7 per cent in the second quarter of this year.
The Nielsen survey found that seven out of 10 Singaporeans would be more careful with their spending.
If they have spare cash after covering their essential living expenses, the majority (70 per cent) would put the money away in savings.
However, despite the greater emphasis on prudence during difficult times, Singaporeans " being avid travellers " would still spend on overseas holidays and vacations (42 per cent).
They would also pamper themselves with new clothes (30 per cent), new gadgets (24 per cent) as well as carry out home improvements (14 per cent).
The investors among them would use their spare cash to buy shares and mutual funds (21 per cent), while others would pay off their credit-card bills or loans (31 per cent).
Ms Vicky Santos, executive director of The Nielsen Company Singapore, said that there are still opportunities for savvy marketers during an economic slowdown. It is also important for companies to continue spending on brand investment during a downturn, to drive and secure brand loyalty for better days ahead, she added.
"Companies that continue to invest in their brands and products, as well as stay constantly engaged with their target market, will come out of this downturn as winners," she said.
"Consumers will remember the companies and products which best understood their changing needs and demands during a slowdown."
