Whats In Store For 2010

Pulse Breakfast Series 2010

What’s In Store for

2010Prepared

By Pulse Group PLC(Symbol: PGRP)

The Survey

Methodology

ObjectiveThe survey aims to study consumers behaviors and opinions towards the current economic outlook in Malaysia.

How did we achieve this?N=1,000 national representative random respondents were selected from Planet Pulse in this 10-minute survey.

When did we achieve this?Throughout December 2009

Facts and Stats

Asia Economic Weather Map

Base = n1000 National Rep Malaysia

5% GDP

Key Findings from the 2009 Asia-Pacific Wealth Report

Asia Pacific’s population of high net worth individuals (HNWIs) fell 14.2% to 2.4 million in 2008 amid a global economic downturn and market volatility. The combined wealth of the region’s HNWIs dropped 22.3% to US$7.4 trillion.

Asia-Pacific Wealth Report 2009

Asia-Pacific Wealth Report 2009The combined wealth of Asia

Pacific’s HNWIs is estimated to grow at an annual rate of 8.8% until 2018, faster than the global average of 7.1%, with China and India likely to lead HNWI growth in Asia Pacific, underpinned by robust domestic consumption and a growing number of affluent individuals.

Japan and China continue to host a large percentage of the Asia Pacific HNWI population and its wealth. Last year, the two markets were home to 71.9% of the region’s HNWIs and 65.8% of total wealth, up from 68.8% and 62.4% respectively in the previous year.

Asian Wealth Segments Behaviours

There are distinctive differences in the behaviours and investment styles of HNWI in Asia.

The Ultra-HNWI mainly invest for wealth preservation as opposed to the emerging-HNWI who invest for accumulation.

The emerging-HNWI are also knowledgeable in terms of investment while the Ultras are more sophisticated, which also explains why both segments manage their own investments actively

State of Economy 2010


Do you believe that the global economy in 2010 will strengthen?

A majority of 80% believe that the global economy will strengthen in

2010



In your opinion, how long do you think it will take for the economy to get back to some form of stability?

Although mostly think that the global economy will strengthen, 69% thought that it

would take at least 12 months or more to reach some form of stability


In your opinion, which of the following regions would bounce back fastest from the economic slump?

Please rank from 1-8.

Rank Region1 Asia-Pacific

2Southeast Asia

3 North Asia4 Europe

5North America

6 Middle East

7South America

8 Africa

Rank Country1 China2 Japan3 UK4 US5 Germany6 Russia7 UAE

In your opinion, which of the following countries would bounce back fastest from the economic slump?

Please rank from 1-7.


The Asian region and countries are expected to recover more quickly than the other parts of the world

Job losses31%

Oil price volatility

29%Big bank bailouts

20% Poor consumer sentiment

14%War in Middle East6%

In your opinion, what may be the major obstacle towards the recovery of the global economy?

Global Economy Recovery Obstacles

Job losses and oil price volatility are highly ranked as the major obstacles towards economy

recovery

1 -- US economic recovery

2 -- Iraq/ Afghanistan withdrawal

3 -- US healthcare

4 -- Nuclear-free Treaty

5 -- United Nations Climate Change Conference (COP 15 Copenhagen)

What do you foresee as Obama's biggest challenge in 2010? Please rank from 1-5.

Obama’s Challenges

Although the US economy is ranked

as the biggest challenge for

Obama, it may now be national security in light of the recent

bomb attempts

42% 30% 25% 3%

Government / Industr

y Regulat

ion

Corporate

Responsibility

Consumer

Demand

Don’t Know

What will keep the ‘Green’ Policy a priority in the face of vital economic recovery in 2010?

Green Policy Factors

As the economic recovery is taking a more significant position, it is the

government and industry regulation that would keep the ‘Green’ Policy a priority


What will be the defining factor in South Africa hosting a successful World Cup?

World Cup Success Factors

Safety and security is without doubt a main concern, especially after the recent gun-shooting incident befalling the Togo

national football team


What do you think will drive the investment and adoption of alternative energy in 2010?

Alternative Energy Drivers


Will you pay to access news on the Internet which is now free?

Paid-for Internet news?

The plan for charging online news announced by Rupert Murdoch, chief executive of News Corp, will not go

down well with the majority as there is sufficient free quality content

Clearly Worse Slightly Worse

UnchangedSlightly BetterClearly Better

5%13% 16%

61%

6%

What is the general economic outlook situation in the next twelve months for Malaysia?

Economic Outlook - Malaysia

A whopping 61% Malaysians believe that the general economic situation is slightly better in the next 12 months, in anticipation of the 10th

Malaysia Plan


If the Malaysian government’s plan to implement the GST in mid-2011 materialise, how much would it affect your purchase intention?

GST Effect on Purchase Intention

The GST implementation would quite much affect the purchase decision of 69% of respondents


A recent proposal was made by the Malaysian Government to impose tax on credit and charge cards starting January 2010. A service tax of RM50 will be charged for each main credit and charge card, and RM25 on supplementary cards. How would this decision affect your credit card usage, if implemented?

Credit Card Service Tax Effect

Service tax on credit and charge cards would result in the majority

cutting down on the number of cards owned


What do you think of the current crime rate in Malaysia?

Malaysia Crime Rate

Unsurprisingly, a majority of 77% respondents thought

that the current crime rates in Malaysia has increased


How well off do you expect your family’s finances will be this year compared to last year?

Family Finances Outlook

A third expect their family finances to be slightly better or pretty much the same this year

compared to the last


What products do you plan to purchase / obtain in 2010?

Products Purchase Intention

Leisure travel / holiday packages

Home electronics / appliances

Desktops / Notebooks

Mobile phone handsets Insurance

Luxury watches

Credit Card

Luxury handbags

Designer Fragrances

Home furnishing / décor

Automobile


Do you plan to spend more or less on…?

Product Purchase Frequency

Around 90% would spend less on alcoholic beverages and

credit card which could both be due to the GST and service

taxes plans.


Based on the current economic situation, how loyal are you to your favourite brands in the following categories? On a scale of 1-5, 1 being ‘Not loyal at all’ and 5 being ‘Very loyal’.

Brand Loyalty

Overall loyalty has decreased compared to 6 months ago


Based on the current economic situation, how loyal are you to your favourite brands in the following categories? On a scale of 1-5, 1 being ‘Not loyal at all’ and 5 being ‘Very loyal’.

Brand Loyalty

Alcohol beverages continues to have least loyalty which also includes

baby/kids products. Financial products such as personal loan and credit cards are shaky as well due to overwhelming

offers


Out of 100%, what is the proportion of your monthly personal income that you allocate on the following?

OthersOthers

Personal Income Allocation

Savings

Car Loan

Home Loan

Shares

InvestmentsInsurance


Do you plan to buy a smartphone in the next 12 months? If yes, which of the following would you prefer?

Smartphone Purchase Intention

Of the 43% who plan to buy a smartphone in the coming 12 months,

half of them prefer the iPhone than Blackberry and others


How often do you use the Internet?

Internet Usage Frequency & Time SpentHow much time do you spend on the Internet in a

week?

Internet usage for most respondents are on a daily basis with a majority spending more than 50 hours per

week

36%SMS

26%

Voice

11%

Internet browser

9%

Camera

7%

Music player

5%

Games

3%

3G

3%

MMS

SMS has the highest share of usage, which is 10% more

than voice calls

Mobile Phone Application Share


Which of the following social media applications are you using or are a member of?

Social Media Participation

A majority of respondents are a

member of Facebook, while 18% use the

Youtube. Friendster is at 17% while Twitter is still slowly catching up

27%

18%

17%

8%

6%

6%

5%

5%

2%

1%


Finally, what is your resolution for the coming New Year 2010?

New Year Resolution

Save more money (20%)

Increase my fitness levels (15%)

Change my

attitude for the better (14%)

Have better care for the environment

(12%)

Spend more time on my

hobbies (10%)

Start my own

business (8%)

Find a job that I like (7%)

Reduce / kick smoking habit (3%)

Spend more time with family & friends (12%)

New Year resolutions for most people is to

save more money but only a small number

of them would kick the smoking habit despite the price increase in

cigarettes

Previous Breakfast Forums

October

November

December

What’s Next…

Thank You!

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Whats In Store For 2010

Business

Transcript of Whats In Store For 2010