In today's times that are fraught with economic uncertainties and mass layoffs, financial stability is a top priority for many people the world over. However, we have found that the approach to achieving these goals varies across regions. A recent Blackbox-ADNA survey of over 9,000 respondents across six key ASEAN economies — Singapore, Malaysia, Philippines, Thailand, Vietnam, and Indonesia — reveals interesting insights into how Southeast Asians perceive and pursue their financial aspirations.

Country-wise Breakdown:

Diversification: The Key to Wealth?

When we asked Southeast Asians to name their two most preferred routes to building long-term financial wealth, nearly half of the respondents (47%) said that spreading their investments to minimize risk is an effective strategy for building wealth. This suggests a growing awareness among individuals about the importance of diversification in their investment portfolios. Diversifying investments across various asset classes is considered a way to help mitigate risks and optimize returns. At 72%, this is the most popular choice for Malaysians while Singaporeans aren’t all that gung-ho about it, with 30% selecting this option.

Bank Savings: A Priority for Many

Our survey further highlights that 36% of Southeast Asians prioritise growing their bank savings as a means to achieve their financial goals. Traditional savings accounts have long been considered a safe and reliable option for accumulating wealth, especially for those who prefer a conservative approach to money management.

The significant variations between countries further shed light on national attitudes towards financial goals. In the Philippines, 63% of respondents prioritise bank savings, followed closely by Indonesia at 56%. These numbers suggest that in developing countries where disposable income may be harder to come by, people still believe that cash in the bank is king. However, in Singapore, the figure is much lower at 18%, indicating a potentially different mindset among its residents. This disparity suggests that while some Southeast Asians prioritise bank savings, others may be more inclined towards alternative investment strategies.

However, it is essential to strike a balance between savings and investments to ensure long-term financial growth and many Southeast Asians seem to agree, as evident in our findings.

Climbing the Corporate Ladder

For 30% of Southeast Asians, climbing the career ladder within the same company offers a great opportunity to build long-term wealth. However, Singaporeans seem to be more sceptical in this regard, with only 11% of them endorsing this approach. This could possibly indicate a shift in mindset, where individuals in Singapore are exploring alternative avenues beyond traditional employment for wealth creation.

Investing in Property: A Popular Choice

A quarter of respondents (25%) in Southeast Asia view investing in property as a pathway to financial prosperity. Historically, property investment has been regarded as a sound strategy for wealth accumulation, particularly in countries experiencing rapid urbanization and rising property values. The allure of owning physical assets and the potential for rental income make property investment an attractive choice for many Southeast Asians.

In Singapore, where locals have access to relatively-affordable, government-subsidised housing while the private market continues to soar, it is little wonder that property is seen as a more attractive wealth building option (41%) than elsewhere.

Entrepreneurship: A Promising Route

Our survey reveals that 20% of Southeast Asians believe that running and building their own business is an effective means of achieving financial goals. The entrepreneurial spirit is alive and well in the region, with a significant number of individuals opting for self-employment as a way to generate wealth. In fact, an International Labour Organisation (ILO) study states that even worldwide, almost 7 in 10 workers are self-employed or in small businesses.

Singapore, for instance, is renowned for fostering entrepreneurship, and it provides extensive support to businesses in many ways, including through a comprehensive platform called GoBusiness. With over 100 government schemes consolidated in one place, it offers a wide range of resources to assist entrepreneurs. Such support towards businesses helps explain why, at 32%, Singaporeans ranked this option higher than the average. Malaysians and Vietnamese, however, seem the least inclined towards this option at 7% and 9% respectively.

Short-Term Gains: Flipping Start-Ups

Interestingly, 16% of respondents in Southeast Asia consider starting a business and selling it within five years as a viable route to financial success. This highlights the growing trend of entrepreneurs looking to build a business rapidly with the clear intention of selling it for a significant profit. The allure of quick gains from successful business ventures seems to have captivated the imagination of a segment of the population. Here, Singaporeans (34%) exhibit the highest appetite for making a quick buck through flipping a start-up.

Conservative Outlook on the Stock Market

While the stock market has proven to be a lucrative avenue for wealth creation globally, only 10% of Southeast Asians surveyed named it among the top two options for wealth creation. This conservative outlook suggests a smaller appetite for risk among individuals in the region. Uncertainties in the global economic landscape, including inflation, the Ukraine war, US-China trade wars, and recent crypto crashes, may have contributed to this surprisingly low response.

However, investment experts opine that the stock market can offer substantial returns over the long term and should not be dismissed.

Diverse Strategies and Growing Agility: The Future of Financial Pursuits in Southeast Asia

Evidently, the pursuit of financial goals in Southeast Asia is a multifaceted endeavour and strategies differ significantly between countries. While climbing the corporate ladder and diversifying investments are understandably prominent options for many, others such as property investment, entrepreneurship, and flipping young businesses are also attractive approaches. The conservative outlook towards the stock market, in particular, perhaps indicates a preference for less volatile options at the present time, and as the region continues to evolve and new opportunities arise, Southeast Asians are likely to continue adopting more diversified and agile approaches to their finances.

This is the latest in a continuing series of articles Blackbox will be publishing in the coming months on the evolving perceptions of careers, finances, and related issues in Asia. For assistance in devising a strategic vision that aligns with your company’s workforce goals, reach out to us at connect@blackbox.com.sg