An article featured in Singapore’s Straits Times, reported that a survey conducted by United Overseas Bank revealed that most of the 500 respondents polled pledged to spend an average of only RM7,824 ($2,503) per person, down 11% from last year’s budget of RM8,768 ($2,805).
The respondents, between 18-55 years old, were polled from November to December last year.
Commenting on the findings, UOB economist Francis Tan said it was expected that Singaporeans would be more frugal this year considering the lower growth in wages last year coupled with the expectation that economic growth would be slower as well in the coming 12 months.
“Although Singaporeans are planning to spend less this Lunar New Year, it is heartening to see that the majority want to uphold traditions such as reunion dinners and the giving of red packets,” said Tan.
It is also projected Singaporeans will spend RM1,628 (S$521) on food, an increase of 7%, almost half of which will go towards the all-important reunion dinner for family and loved ones.
The increase in food cost is mainly due to poor weather conditions that affected food supply, as well as a weaker Singapore dollar that drove up the prices of imported food.
“Food plays an important part in the way Singaporean families bond with one another and festive dining would definitely be higher in the pecking order during Lunar New Year celebrations. It is not surprising to see that people are continuing to focus on food during the festive period,” Tan said.
Another tradition that will be retained at all costs will be the giving of ang pows to family members. The survey found that respondents would likely utilise a quarter of their total budget for the celebrations for this purpose.
Parents and parents-in-laws would receive the biggest ang pows this year, at RM1,119 (S$358) and RM825 (S$264) respectively.
The survey also revealed that more than three respondents out of four, planned to save, not spend the money they received from ang pows. 16% planned to invest it while almost all of those polled who received ang pows on behalf of their children, planned to deposit the money into their child’s savings account.