Japan and Singapore Post Largest Improvements in Consumer Confidence in Region

In particular, markets such as Vietnam (93.1), Hong Kong (85.8) and China (82.3) are seeing record-high levels of optimism. Other star performers are Japan and Singapore, who have made significant improvements in the level of consumer confidence compared to six months and a year ago. Japan in particular is showing a turnaround with consumers registering optimistic scores on all five MasterIndex factors for the first time since the inaugural MasterIndex of Consumer Confidence survey in 1993.

Overall, despite uncertainties such as the emergence of the Avian flu and prospects of higher interest rates, continuing high crude oil prices, and terrorism, consumers in Vietnam, Hong Kong, China, Singapore, Malaysia and Japan have a strongly optimistic outlook for the next six months. The latest MasterIndex survey was conducted from 15 October to 4 November 2005 and involved 5,404 consumers across 13 key Asia/Pacific markets. Five variables were measured; employment, economy, regular income, stock market and quality of life. MasterIndex respondents were asked about their sentiments on these five variables for the next six months. Other highlights of the latest MasterIndex survey are: - Vietnam tops the list of markets with a score of 93.1. Consumers in Vietnam continue to remain very highly optimistic, with its current MasterIndex at an all-time high due largely to the increasing awareness and knowledge of the Stock Market. - China (82.3) continues to be highly optimistic, with sentiments on Quality of Life, the Economy and Regular Income remaining at about record high for the market. - Singapore (74.8) posts significant gains in consumer confidence compared to six months ago. Singapore consumers are now much more optimistic on factors such as Employment, the Stock Market and the Economy. - Japan (63.0) is showing a strong improvement in its overall consumer confidence score. For the first time since the inception of the survey 13 years ago, consumers are optimistic on all five factors. - Malaysia’s consumer confidence (68.7) further improves over six months ago, with consumers optimistic about the Economy and Regular Income. MASTERINDEX COUNTRY FINDINGS AUSTRALIA (49.8) Consumer sentiment in Australia is considered neutral or cautiously pessimistic. Consumer confidence has declined steadily since reaching a near record high in 4Q 2003, and is now at a two and a half year low. At 49.8, the MasterIndex is lower than both six months (56.5) and a year ago (61.5). Consumers remain slightly optimistic on Regular Income (55.8) and on the Stock Market (54.2), but for the first time since 4Q 2003, they view Employment (44.9) and the Economy (43.5) with some degree of pessimism. CHINA (82.3) Consumers in China continue to be highly optimistic. Sentiments on Quality of Life (93.8), Economy (92.6) and Regular Income (92.4) remain at record high. Sentiments on Employment (78.9) though lower, are also near record high and there appears to be a slight improvement in sentiments towards the Stock Market (53.9) from six months ago (50.1). Consumer sentiments in both Beijing (82.4 vs 80.2 six months ago) and Shanghai (80.6 vs 77.1 six months ago) have improved slightly from six months ago. Consumer optimism is also high in Guangzhou (84.3 vs 91.3 six months ago), though it has dropped slightly compared to six months ago. HONG KONG (85.8) Hong Kong consumers are highly optimistic as they have been six months ago. There are, however, signs that consumer sentiments may be peaking unless there are significant new developments internally, externally or geographically. The current high consumer confidence level is supported by very optimistic sentiments on Employment (95.3), Economy (91.6) and very positive outlook on Quality of Life (83.7), Regular Income (82.8), as well as fairly optimistic expectations of the Stock Market (75.7). INDONESIA (39.0) Consumer confidence in Indonesia falls drastically from six months and a year ago, and consumers are currently rather pessimistic on all economic factors - Employment (25.9), Quality of Life (24.2), Economy (30.0) and Stock Market (38.7). The only exception is Regular Income (76.0), where consumers are still fairly optimistic.