Consumers regain hope, survey finds - consumer confidence in Asia

Business Asia, April 5, 1999

Consumers' confidence in the region, especially in Malaysia, has recovered dramatically in the second half of 1998, according to MasterCard International.

A twice-yearly survey by MasterCard of consumer confidence in 13 countries and territories in the Asia-Pacific region showed consumer confidence in all the markets surveyed, except India, improved after hitting record lows in the June 1998 survey.

It revealed that Malaysia had recorded the highest MasterIndex in the region.

"The perspective of the consumer is that they've hit the trough and are on the way back up," said MasterCard's senior vice-president of marketing in the region, Mr Jonathon Gould.

In the December 1998 survey of consumers' outlooks for employment, the economy, regular income, the stock market and quality of life over the next six months, Malaysia registered the highest score of 67.6 on a scale of 0-100, MasterCard said. This compared with 23.8 points in June 1998.

In Korea, which was second only to Malaysia in terms of improvement, the MasterIndex rose to 44.3 in December last year from a low of 14.1 in June 1998.

China and the Philippines were the only two other markets returning optimistic scores of more than 50 points, it said.

Mr Gould said there might be some correlation between positive consumer sentiment in China and Beijing's drive to spur domestic demand as an engine for economic growth.

"It is indicative that consumers are confident in the way the economy is going and they don't see the Asian flu spreading further north," he said.

Japan posted the lowest score of just 10, but that was its highest level since the start of the regional economic crisis, he said.