How Southeast Asians are navigating their financial futures

How Southeast Asians are navigating their financial futures

Across Southeast Asia, financial planning is a deeply personal journey shaped by culture, economy, and generation. In Milieu Insight’s latest regional study, 3,000 people across Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines shared how they think about money- what drives them, what worries them, and what their goals are.

At first glance, the financial goals of Southeast Asians seem universal. Building an emergency fund, retiring comfortably, and buying property emerged as the top three aspirations. But beneath these broad priorities lies a complex story- one of contrasting generational mindsets, country-specific challenges, and a tension between financial confidence and stress.

The practical and the aspirational

When asked about their top financial goals, over half of Southeast Asians pointed to building an emergency fund. It’s a practical move in uncertain times, one that hints at a collective desire for security. Retiring comfortably came next, a long-term goal that reflects a region growing older. And in third place: the dream of homeownership, still strong despite rising property costs and changing lifestyles.

Each goal paints a picture of a region balancing immediate needs with future plans, where survival, stability, and success are tightly intertwined.

Defining financial wisdom

When it comes to financial planning, nearly half of respondents defined being “financially prudent” as avoiding non-essential debt. This definition was most common among older generations, particularly Baby Boomers, who have weathered more economic cycles and tend to favor caution. Gen Z, on the other hand, were slightly less concerned with debt and more willing to explore riskier paths like cryptocurrency and NFTs.

Still, across all age groups, investment preferences were surprisingly aligned. Commodities, individual stocks, and bonds or fixed deposits ranked among the most common financial products being considered or invested in. It seems that while younger generations may be open to risk, they’re still drawn to the reliability of traditional assets.

Singapore, the cautious optimist?

Singaporeans stood out in the study for their conservative approach to financial growth. Fewer than one in three defined financial prudence as having multiple income streams, and only 8 percent listed “starting a business” as one of their top financial goals, significantly below the regional average.

This suggests a strong cultural preference for stability, and perhaps a more measured approach to risk compared to neighboring countries.

Confidence isn’t always comfortable

One of the study’s most revealing insights was the gap between how people feel about their finances and what their reality looks like. While a majority of respondents expressed financial confidence, a much smaller portion said they felt financially secure, and even fewer were financially independent.

Only 17 percent of Southeast Asians reported being financially independent at the time of the survey. Another 35 percent expect to achieve it within the next five years. The gap is even wider among generations: nearly 40 percent of Baby Boomers said they had achieved financial independence, compared to just 14 percent of Gen Z.

Country-level insights added further nuance. In Indonesia, one in four Gen Z respondents already consider themselves financially independent. In Vietnam, nearly half expect to reach that milestone within five years.

A closer look at Thailand and Vietnam

Financial stress, it turns out, isn’t equally distributed. Thailand and Vietnam stood out for having the least number of financially secure Gen Z respondents. In Thailand, only 34 percent of Gen Z felt secure, and the figure was just 32 percent in Vietnam.

Even among Gen X—typically considered the backbone of the workforce—Thailand showed signs of strain. While most Gen X respondents across Southeast Asia felt financially secure, less than half in Thailand said the same. In fact, Thai Gen Xers reported the highest levels of financial stress in the region.

Generations in transition

The study also found a gradual progression in financial sentiment with age. Older respondents reported higher levels of financial confidence and security, and lower levels of stress. This generational shift suggests that stability often comes with time, but it also highlights the growing pressure on younger generations to navigate increasingly complex financial landscapes with fewer safety nets.

Despite generational differences in approach and mindset, there remains a common thread: a desire for security, independence, and a better future. Whether through conservative saving or bold investing, Southeast Asians are working toward a financial life that balances freedom with responsibility.

In summary‍

Milieu Insight’s regional study offers a deeper look into how Southeast Asians across generations and countries are navigating money matters. It’s a story of resilience, cautious optimism, and the varied paths people take in the pursuit of financial wellbeing. And while the road may differ for each individual, the end goal remains remarkably similar: to feel secure, independent, and in control of their future.

‍