Singapore – A third of Singaporeans think cash will be the best performing investment in 2022, making it the top pick ahead of stocks, property, and cryptocurrency, according to a report by comparison platform Finder.
About 1,136 Singaporean adults and 39,573 adults globally were surveyed in December 2021, and against the global data, it was found that Singaporeans are the second most likely to back cash out of 26 countries. Only the United States ranks higher at 34%.
The next most popular picks are stocks and property (17% each), followed by cryptocurrency (15%), bonds (7%), NFTs (6%), and commodities (3%).
Finder’s Investment Editor Kylie Purcell said Singaporeans are likely seeing security in cash.
“There’s a lot of uncertainty in the market at the moment and cash is seen as a safe investment, but people need to consider the inflation-adjusted return. In October inflation rose considerably, with Singapore recording its biggest increase to core inflation in three years,” Purcell said.
“$100 dollars today may only be worth $80 down the track so consumers should be thinking about how they can inflation-proof their portfolios while maintaining liquidity should they need the cash,” Purcell adds.
However, Purcell says that with the MAS tightening its monetary policy, it could be good news for cash savers.
“When central banks look to raise interest rates, it’s typically good news for cash savers, and bad news for other investments like stocks,” Purcell concludes.