Singapore – Around 6 to 10 Southeast Asians are said to currently have debts or loans, according to a survey conducted by market research firm Milieu Insight in 2023.
The study found that 62% of the Southeast Asian population are currently holding debts or loans, with Malaysia and Vietnam emerging as the nations grappling with the highest amount of people who currently have loans or debt.
The main factor as to why debt and loans have grown in Southeast Asia vary for each country. In Singapore, 49% of Singaporeans choose to take on debt in order to purchase property. On the other hand, 48% of Indonesians and 41% of Vietnamese and Filipinos stated that they took out loans and had debts due to an urgent need for immediate funds.
Regionally, there is a growing concern about indebtedness, with 14% of respondents stating that they aren’t able to save after deducting expenses and debt/loan repayment. This is even more alarming in Thailand, with 24% of respondents being unable to save after covering essential expenses and loans. However, there is a stark contrast in Singapore, where 14% of respondents are still saving more than 50% of their income.
Furthermore, the study revealed that 1 in 4 of Southeast Asians lacked personal finance education, with 39% of respondents attributing their financial literacy to the Internet.
In a press release regarding this, Milieu Insight commented, “Understanding the debt landscape and personal finance dynamics in Southeast Asia has never been more critical. Financial education is thus crucial and should be viewed as a lifelong learning process, with continuous efforts to update and adapt programs to align with evolving economic conditions. By fostering a culture of learning and financial awareness, we can equip our communities with the tools to make sound financial decisions and achieve financial security.”