By Elysa Chen and Tay Shi'an

WHEN the financial turmoil hit, this 31-year-old Singaporean didn't just go ahead with her European holiday plans for July.

She even added 130 euros ($260) into the budget to watch U2 in concert in Ireland.

The media industry professional will also be travelling to England, Germany, Hungary or Italy for two weeks with her friends.

Her job, which pays her more than $50,000 a year, has not been affected by the recession.

She said: 'I was planning on a Europe trip for a long time, before all this financial turmoil. My main aim was to meet up with my friends based in Europe.

'(Besides), U2 will never come here!'

She's not the only one still splurging on non-essentials.

Crowds thronged the Soo Kee warehouse sale, which offered discounts of up to 80 per cent, at Kaki Bukit recently.

Post-grad student Sharon Lin, 27, came away with a set of diamond earrings, a necklace and a ring, for $1,400.

She admitted: 'It was a bit of an impulse buy. But I've always wanted a set like this, and it was on sale, so it seemed like a good time to buy.'

She gets a monthly stipend of $1,500.

Housewife, Madam Low KB, 50, spent $5,000 on diamond rings for herself and as gifts for her friends.

She lives in a terrace house with her businessman husband and two grown children.

She said: 'Housewives like us save up for times such as these.

'The discounts were really too good, and I thought that since Mothers' Day is coming up, I could splurge a little on gifts for myself, my sister-in-law and my friends.'

Some are still spending on luxuries as though there is no tomorrow.

Or at least, as though we are not in the midst of one of the most severe recessions the world has seen.

Explaining the record takings at this year's IT show and travel fair, Mr Song Seng Wun, senior economist and head of research at CIMB, said that this is because most Singaporeans are still holding on to their jobs.

He said: 'The recessionary mindset is stronger in other countries where the job losses are much higher. Here, unemployment is on the rise, but the first round of cuts have mainly affected foreigners.

'You don't hear of that many Mr or Miss Tans in Ang Mo Kio who have got retrenched.'

Controlled spending

Associate professor of economics Tilak Abeysinghe, at the National University of Singapore, said the Jobs Credit Scheme has also cushioned the blow of the crisis.

Under this scheme, businesses receive a cash grant based on the CPF contributions they have made for their employees, providing an incentive for them to retain existing workers or even employ new ones.

Singaporeans are controlling their spending, said Mr Song, but have not hunkered down like they did during the Sars period.

'People are still carrying bags in the malls. Look at (shoe retail chain) Charles and Keith. The ladies are still hanging out there.'

Mr Patrick Tan, head of Sincere Watch Academy, said luxury watches are still being sold, although people are 'more careful' with what they buy.

He said: 'With all the talk of gloom and doom, people are thinking longer about their purchases, but they still commit to buy eventually.

'Previously, people bought watches based on the fads. Now, they are looking for value and are more brand-conscious.'

Recession wagon

Mr Song said that while people are still spending, they are looking for sales and value-for-money deals in what he calls 'recession sales'.

Companies use these sales to generate cash flow.

He said: 'The IT show is one big chance to 'lelong' (meaning 'auction' in Malay) off as many goodies as possible.

'I keep telling people that there's going to be lelong all-year round now. Even restaurants are participating in sales.'

Some even have 'recession menus', he said.

Also, with the strong economic growth that we have had over the last few years, some consumers may have gotten used to 'a certain style of spending, and would take time to adjust to their new level of income'.

However, that is translating into bigger credit card bills, he said.

On the other hand, financial planner Henry Goh feels Singaporeans are still spending because they have a lot of savings.

He said: 'Singaporeans are cash-rich. They love to save, so, in a bad time like this, they can fall back on their savings. Some of my friends were retrenched, but life goes on for them, and they barely seem affected.'

But Christmas this year may not be so merry, said Mr Song, when the effects of the second round of job cuts may begin to be felt.

Next year's graduating cohort may also find it even harder to find jobs.

Mr Song said: 'For those who bought that second LCD TV at the IT fair, this may mean no more spending.'

This article was first published in The New Paper.