Most Asean consumers 'can cope with rising food costs'
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Seven in 10 people in Singapore say they are able to cope with rising food prices, a new global survey has shown.
They said that their household budgets were flexible enough to handle the higher costs, without them having to significantly shrink spending in other areas.
The online survey by research firm Nielsen polled more than 29,000 consumers globally between February and March, with 503 respondents coming from Singapore.
A similar sentiment was found in other parts of Southeast Asia.
Thailand led the list, with 78 per cent of people saying they were not worried about rising food prices. The figures were 70 per cent in both Indonesia and Vietnam, 66 per cent in Malaysia, and 58 per cent in the Philippines.
Figures were lower in places known for more expensive meals, such as Japan (54 per cent), Britain (44 per cent) and Australia (48 per cent).
So why are Singaporeans apparently unperturbed by the prospect of paying more for their grub?
Economist Shandre Thangavelu said that consumers here “may not have hit the upper threshold of food prices”.
“The level of tolerance is still there. People can still get a decent meal for S$3 or S$4 (Bt75-Bt100). It is still affordable, so an increase is fine,” said and National University of Singapore associate professor.
Bank of America Merrill Lynch economist Chua Hak Bin said that in more affluent countries like Singapore, food accounts for a smaller proportion of total spending.
“This means that consumers feel less of an impact when food prices rise,” he said.
