Excuse by the BEST PAID govt to act blur on the plight of poor Sporns as they accelerate their replacement with FTrash?
<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published May 4, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Time-out for S'pore big spenders
Card companies, consumers tell of new spending habits in the current uncertain times
By SIOW LI SEN
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Singaporeans are a pretty disciplined lot, going by their credit card spending and payment patterns.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Retail therapy: UOB's regional and Singapore head for cards and payment products Gan Ai Im says that card members are zooming in on value-for-money programmes, so the overall billing contraction is small </TD></TR></TBODY></TABLE>While the headlines tell of the plight of the jobless, a silent army of shoppers are tightening the reins on their plastic.
The middle class, the gainfully employed and even tai-tais now think twice before splurging on discretionary items.
'I'm more conscious about spending on items I don't really need, such as another handbag. But I'll still spend on children,' says investor relations professional Nora Low.
Mrs Low, who has three children, says that she has always paid in full on her credit cards because banks charge high rates otherwise.
<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD bgColor=#fffff1><TABLE border=0 cellSpacing=0 cellPadding=0 width=124 align=center><TBODY><TR><TD vAlign=top>'Consumers have adjusted to the bad news in the market by doing what is prudent - that is, to use credit wisely.'
</TD></TR><TR><TD vAlign=top>
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>SK Phua, a tai-tai who drives a sports car, says that she too has tightened her belt and is not buying luxury items as readily as before.
'I tell myself I need to tidy up that wardrobe, and use those items I have forgotten I bought, before I go out and buy more stuff I have no need for,' she says.
Some banks have reported slower billings, sluggish take-up rates for new credit cards and higher monthly repayments. This may seem counter intuitive during a recession, when some people might need to stretch their credit because they have lost their job or suffered a pay cut.
John Denhof, Citibank Singapore's business director for credit payment products, says that the bank has noticed higher monthly repayments in recent months.
'The average total monthly payment of Citibank credit card members in the four months from December 2008 to March 2009, have increased compared with the period from August 2008 to November 2008,' he points out.
Gan Ai Im, regional and Singapore head for cards and payment products at United Overseas Bank, says: 'Consumers have adjusted to the amount of bad news in the market by doing what is prudent - that is, to use credit wisely.
'Overall, consumers are still using their credit cards for daily essentials, but they are exercising more caution on bigger ticket items.'
Patricia Yap, senior lecturer at Singapore Polytechnic's School of Business, says: 'I have tried in the past few months to spend less on my credit card. I ask myself whether I really need the thing that I am about to purchase before I whip the card out to pay for it.'
Latest Monetary Authority of Singapore data show credit card spending in March was down 3.2 per cent to $2 billion year-on-year, though it had recovered from the previous month's $1.8 billion, which because of seasonal factors is normally slower.
Rollover balance while up 10 per cent year-on-year to $3.4 billion, had contracted about 5 per cent from February's $3.6 billion. The number of cards grew slightly to 6.36 million from 6.33 million a month ago.
There seems to be an abhorrence of debt. 'The idea of paying such a horrendously high rate of interest, or even the late payment charge is frightening,' says Ms Yap.
=> So why is the BEST PAID govt in the world not following the US and even lowly paid Daiwanes govt in cutting the max interest rate charged by the Leegalized Ah Longs from 24% pa to 12% pa? Cos the Familee has a stake in it?
Helen Neo, Maybank Singapore's head of consumer banking, says: 'Our card customers are indeed more disciplined. Compared with previous crises, the rollover balance growth for Maybank and the industry is not as significant.'
At Citibank, new cards are still showing steady growth, but at a slightly slower rate than a year ago.
Mr Denhof attributes this to consumers becoming more cautious and prudent because of the economic climate.
UOB's Ms Gan says that card members are zooming in on value-for-money programmes, so the overall billing contraction is small. 'Programmes that stretch the dollar, such as payment by instalment, are gaining popularity and there is an overall increase in the use of credit rollovers,' she says.
For travellers to China, the UOB CUP card, which offers access at over 1.7 million merchant accepting-points and 150,000 ATMs there, is popular.
Ms Gan says that there have been several thousand new applications a month since the card was launched in November last year.
Citibank, too, says that its dining programmes and cards with tangible savings on practical items are used more by customers, and billings overall have increased.
Mr Denhof says that in January and February this year, Citi's overall card spend was twice as good as the market rate.
According to him: 'This is largely due to the value and savings that many Citibank credit cards, such as the Citi Dividend and Citi SMRT Platinum cards, give customers in these challenging times.'
The Dividend card gives cash back for petrol transactions in town at 5 per cent, on top of any site discount, at all petrol stations.
'In particular, we have seen strong growth in credit card spend on dining,' says Mr Denhof. 'In January, growth in Citibank credit card spend was more than double that of the industry.'
Citibank's dining privilege programme gives discounts and privileges at more than 1,000 merchants.
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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published May 4, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Time-out for S'pore big spenders
Card companies, consumers tell of new spending habits in the current uncertain times
By SIOW LI SEN
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Singaporeans are a pretty disciplined lot, going by their credit card spending and payment patterns. <TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Retail therapy: UOB's regional and Singapore head for cards and payment products Gan Ai Im says that card members are zooming in on value-for-money programmes, so the overall billing contraction is small </TD></TR></TBODY></TABLE>While the headlines tell of the plight of the jobless, a silent army of shoppers are tightening the reins on their plastic.The middle class, the gainfully employed and even tai-tais now think twice before splurging on discretionary items.
'I'm more conscious about spending on items I don't really need, such as another handbag. But I'll still spend on children,' says investor relations professional Nora Low.
Mrs Low, who has three children, says that she has always paid in full on her credit cards because banks charge high rates otherwise.
<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD vAlign=top>
- Gan Ai Im,
</TD></TR><TR><TD vAlign=top>regional and Singapore head for cards and payment products at United Overseas Bank
</TD></TR></TBODY></TABLE></TD></TR><TR><TD height=39>
'I tell myself I need to tidy up that wardrobe, and use those items I have forgotten I bought, before I go out and buy more stuff I have no need for,' she says.
Some banks have reported slower billings, sluggish take-up rates for new credit cards and higher monthly repayments. This may seem counter intuitive during a recession, when some people might need to stretch their credit because they have lost their job or suffered a pay cut.
John Denhof, Citibank Singapore's business director for credit payment products, says that the bank has noticed higher monthly repayments in recent months.
'The average total monthly payment of Citibank credit card members in the four months from December 2008 to March 2009, have increased compared with the period from August 2008 to November 2008,' he points out.
Gan Ai Im, regional and Singapore head for cards and payment products at United Overseas Bank, says: 'Consumers have adjusted to the amount of bad news in the market by doing what is prudent - that is, to use credit wisely.
'Overall, consumers are still using their credit cards for daily essentials, but they are exercising more caution on bigger ticket items.'
Patricia Yap, senior lecturer at Singapore Polytechnic's School of Business, says: 'I have tried in the past few months to spend less on my credit card. I ask myself whether I really need the thing that I am about to purchase before I whip the card out to pay for it.'
Latest Monetary Authority of Singapore data show credit card spending in March was down 3.2 per cent to $2 billion year-on-year, though it had recovered from the previous month's $1.8 billion, which because of seasonal factors is normally slower.
Rollover balance while up 10 per cent year-on-year to $3.4 billion, had contracted about 5 per cent from February's $3.6 billion. The number of cards grew slightly to 6.36 million from 6.33 million a month ago.
There seems to be an abhorrence of debt. 'The idea of paying such a horrendously high rate of interest, or even the late payment charge is frightening,' says Ms Yap.
=> So why is the BEST PAID govt in the world not following the US and even lowly paid Daiwanes govt in cutting the max interest rate charged by the Leegalized Ah Longs from 24% pa to 12% pa? Cos the Familee has a stake in it?
Helen Neo, Maybank Singapore's head of consumer banking, says: 'Our card customers are indeed more disciplined. Compared with previous crises, the rollover balance growth for Maybank and the industry is not as significant.'
At Citibank, new cards are still showing steady growth, but at a slightly slower rate than a year ago.
Mr Denhof attributes this to consumers becoming more cautious and prudent because of the economic climate.
UOB's Ms Gan says that card members are zooming in on value-for-money programmes, so the overall billing contraction is small. 'Programmes that stretch the dollar, such as payment by instalment, are gaining popularity and there is an overall increase in the use of credit rollovers,' she says.
For travellers to China, the UOB CUP card, which offers access at over 1.7 million merchant accepting-points and 150,000 ATMs there, is popular.
Ms Gan says that there have been several thousand new applications a month since the card was launched in November last year.
Citibank, too, says that its dining programmes and cards with tangible savings on practical items are used more by customers, and billings overall have increased.
Mr Denhof says that in January and February this year, Citi's overall card spend was twice as good as the market rate.
According to him: 'This is largely due to the value and savings that many Citibank credit cards, such as the Citi Dividend and Citi SMRT Platinum cards, give customers in these challenging times.'
The Dividend card gives cash back for petrol transactions in town at 5 per cent, on top of any site discount, at all petrol stations.
'In particular, we have seen strong growth in credit card spend on dining,' says Mr Denhof. 'In January, growth in Citibank credit card spend was more than double that of the industry.'
Citibank's dining privilege programme gives discounts and privileges at more than 1,000 merchants.
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