By Arno Maierbrugger Gulf Times Correspondent/Bangkok
Consumer confidence in Asia-Pacific in the second half of 2014 took a slight dip compared to the previous six months last year, a
study by credit card giant MasterCard released on January 15 shows. Altogether, the 16 countries surveyed for the study saw a
combined decrease of 2.9 index points after the region recorded the highest consumer confidence score in more than 10 years in
the previous survey for the first half of 2014.
In the current study, all five key economic indicators — economy, employment, regular income prospect, stock market and quality
of life — recorded declines, MasterCard said. The index is based on a survey conducted between October and November 2014
involving more than 8,000 respondents aged 18 to 64 in 16 countries across Asia-Pacific. It is the 44th survey of consumer
confidence conducted by the company since 1993.
In the region, Northeast Asian countries posted the sharpest declines in consumer confidence, led by Taiwan (down 23.8 index
points to 33.8), Japan (down 17.6 index points to 34.2) and Hong Kong (down 13.5 index points to 40.9). All three markets plunged
below the 50-point neutral mark from the previous survey, MasterCard said, as opposed to China and South Korea where the index
remained relatively stable. In Japan, confidence fell to a two-year low due to worries about the fallout from Prime Minister
Shinzo Abe’s struggling reform programme Abenomics and the weakening yen. Confidence in Taiwan and Hong Kong was weaker mainly
because of the higher risk of tensions with China. Consumer confidence in Australia remained lowest in the region. According to
the study, Australia is the region’s gloomiest consumer market due to worrying job data and a bleak economic outlook.
On the upside, the biggest growth in consumer confidence was recorded in Bangladesh. The country saw the single largest
improvement in Asia Pacific, moving from “optimistic” to “very optimistic” territory at 83.3 index points, up 16.9 points. It is
the only market that experienced a double-digit rise in consumer sentiment, the study revealed. In total numbers, Myanmar, India
and Indonesia are currently Asia-Pacific’s most optimistic markets.
Within Southeast Asia, Malaysia saw the biggest deterioration in consumer confidence, down 11.5 index points to 49.9 in the
period, sliding below the 50 point neutral mark for the first time since the financial crisis in 2009. However, consumer
confidence improved significantly in the Philippines (up 7.7 index points). It was the only country in Southeast Asia to do so,
while Thailand, Vietnam, Indonesia and Singapore remained more or less stable.
“The slight drop in Asia Pacific’s consumer confidence reflects an outlook of cautious optimism,” said Pierre Burret, region head
for Asia-Pacific and Middle East & Africa for MasterCard Advisors.
“Consumers across the region are holding their breath for signs of sustained economic growth and opportunity. Emerging markets
Myanmar, India and Indonesia are the most optimistic because of either positive anticipation for a brighter future or excitement
around their respective newly-minted governments,” he added. But compared to Gulf Co-operation Council (GCC) countries, consumer
confidence in most of the Asia-Pacific nations remains significantly lower.
In the GCC, Qatar has the highest consumer confidence at an index value of 97.2, according to MasterCard’s latest survey of the
region covering the first half of 2014. Qatar is ahead of Saudi Arabia (96.3), followed by Oman (94.6), Kuwait (92.6) and the UAE
(88.7).
