Press Office

New Zealand, 7 July 2009: The mantra Eat, Drink and Be Merry is holding strong among New Zealand consumers, as it is across Asia/Pacific, Middle East and Africa. According to the MasterCard survey on Consumer Purchasing Priorities released today, New Zealanders are expecting Dining and Entertainment (79%) to be their top spending priority for the next six months. It took top spot in the previous survey released in December 2008 and topped the list for discretionary spend in 18 of the 21¹ markets across Asia/Pacific, Middle East and Africa.

In New Zealand, Dining and Entertainment was followed by spending on Fashion and Accessories (55%) and Fitness and Wellness (53%).

"Similar to the results at the end of 2008, Kiwis continue to prioritise Dining and Entertainment as their top discretionary spend category. Despite the economic outlook, it still looks like people will continue to undertake some activities as a treat or a way to unwind," said New Zealand Country Manager, MasterCard Worldwide, Stuart McKinlay.

Among the 10 main categories included in the MasterCard survey, spend on Fitness and Wellness is expected to be the least prone to cutbacks in New Zealand, followed by spend on Own Education and Children's Extra-Curricular Activities/Private Tuition² , revealed the MasterCard Worldwide Index of Consumer Purchasing Resilience, which is based on the survey findings.

The MasterCard Survey on Consumer Purchasing Priorities, released twice yearly, provides valuable insights into consumer's discretionary spending priorities for the six months ahead. The latest survey was conducted from 23 March to 18 April 2009 and involved 9,211 consumers from 21 markets. Data collection was via personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary.

The MasterCard Worldwide Index of Consumer Purchasing Resilience measures the resilience of the top planned expenditure categories of consumers to spending cutbacks.

The Index is derived from the following data - the categories of goods and services that consumers would spend on in the coming six months, how important each of these categories is to consumers and if they would cut back on their discretionary spending over the next six months. The Index and its accompanying reports do not represent MasterCard financial performance.

The survey also found that the majority of consumers surveyed in New Zealand (46%) are planning to decrease their discretionary spend for the second half of the year compared to what it was in the last six months.

Dr Yuwa Hedrick-Wong, economic advisor, Asia/Pacific, MasterCard Worldwide said, "The global recession does not appear to have a serious impact on the urban middle class in the Asia/Pacific, Middle East and Africa region compared with previous recessions. Private consumption is holding up well in the region; and in many markets consumers are either planning to maintain or increase their discretionary spending in the next six months. Everything else being equal, the latest findings in consumer purchasing priorities are very positive for a stronger outlook of domestic consumption going forward, in spite of persistent uncertainty in the global economy."

Market highlights include:

Asia/Pacific

Consumer Purchasing Priorities for the Second Half of 2009

• The majority of consumers in China (70%), Japan (63%), Indonesia (59%), India and Hong Kong (58% each) plan to maintain their discretionary spending for the next six months at the same level as they did six months ago.
• In Taiwan (62%), the Philippines (54%), Malaysia (49%), New Zealand and Thailand (46% each), the majority of consumers are looking to reduce their discretionary spending in the next six months.
• Spend on Dining and Entertainment ranks top priority for consumers in Asia/Pacific (71%), in the coming six months. It took top spot in 12 of the 14 markets surveyed in Asia/Pacific: Thailand (100%), Indonesia (89%), Hong Kong (85%), China (83%), New Zealand (79%), Vietnam (78%), Malaysia (76%), Taiwan (73%), Australia (70%), India (67%), Japan (48%) and Singapore (43%). Compared to six months ago, more consumers in Asia/Pacific are prioritizing Dining and Entertainment for discretionary spend in the coming six months (71% vs. 59% six months ago).
• More consumers plan to spend on Fashion and Accessories (50%) compared to six months ago (46%) It was among the top three spending priorities for consumers in Indonesia (73%), China (63%), the Philippines (61%), Vietnam (60%), Australia (58%), New Zealand and Thailand (55% each), Hong Kong and India (48% each), Taiwan (41%), Singapore (40%), Malaysia (38%) and South Korea (35%).
• More consumers also plan to spend on Fitness and Wellness (37%), compared to six months ago (34%), with consumers in India (66%) leading the pack. This category is among the top three spending priorities for consumers in New Zealand (53%), Australia (47%) and Malaysia (37%).
• While personal travel was among the top three categories of discretionary spend for consumers in ten of the 14 markets in the last survey, only consumers in Hong Kong (42%) and Singapore (30%) now consider it among their top three discretionary spending priorities for the six months ahead.

Resilience to Cutbacks on Spend

• Spending on Children's Extra Curricular Activities/Private Tuition is the most resilient to cutbacks, with Vietnam (Resilience Index score: 96), China (95) and the Philippines (91) demonstrating the most resilience in this category.

MasterCard and its Suite of Research Properties
The MasterCard Worldwide Index of Consumer Purchasing Resilience is part of the MasterCard Worldwide Index suite of research products in Asia/Pacific, Middle East and Africa. The other key MasterCard Worldwide Index research products include the MasterCard Worldwide Index of Consumer Confidence and MasterCard Worldwide Index of Women's Advancement.

Besides the suite of Indexes put forth by MasterCard, MasterCard also develops the Survey on Consumer Purchasing Priorities and a series of Insights reports. These are part of its series of ongoing research and analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific region. Over 60 Insights reports have been produced since 2004.

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.