Middle Class is a group of people with an estimated income? According to the Global Wealth Report 2022, it is identified as a group of people with a net worth of between $10,000 and $100,000 (300,000-3 million baht). In economic terms, the OECD and Pew Research Center refer to the middle class as households with incomes ranging from 75%-200% of the median household income in a country. United States is $70,784. Middle-class people are those who earn between $47,189 and $141,568. Returning to Thailand, where the latest data for 2021*, the median income of a Thai household is $23,076, or about 692,280 baht, so a middle-class household in Thailand will have an annual income ranging from 519,210 – 1,384,560 baht, or about 43,000 – 115,000. baht per month

*Source  https://www.globaldata.com/

As the global economy expands over the past decade, As a result, the number of people earning more and the affluent middle class population continues to increase. In Asia, the middle class is growing rapidly, from 2 billion in 2020 to a projected 3.5 billion in 2030. Looking at neighboring ASEAN countries, it is expected that the proportion of the middle class will increase from 91 million in 2010 to 334 million (accounting for 51% of the population in 2030 and in 2020, only the six ASEAN countries, namely Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. It has a middle class population of about 200 million people.

Indonesia, Vietnam, the Philippines, the middle class rises to the top of the world

With the third most populous economy in the world, it is predicted that by 2030 ASEAN will have a population of up to 723 million, of which over 67% will be middle class. Indonesia will have the fastest growing middle class in the world** with 75.8 million people, making it the fourth largest middle class in the world. The Philippines and Vietnam followed in fourth and seventh places, with the Philippines and Vietnam increasing their middle class by 37.5 million and 23.2 million respectively.

**(Source: World Data Lab)

 

The rise of the middle class drives domestic consumption. Because these groups of people have needs and are purchasing goods for consumption and facilitating daily life in both quantity and quality, such as food products, refrigerators, TVs, and mobile phones. Electronic equipment, cars, etc. In addition, what indicates being middle class does not mean income alone. but also the lifestyle way of life, education, occupation, tastes, preferences, etc. that cause the expansion of urban communities It is expected that in 2050, almost 70% of the ASEAN population will live in urban areas. For the above reasons, the rise of the middle class Directly affecting the growth of the industrial sector in the country. Including being a market that is interested in foreign companies.

 

For a rising country like Vietnam, which is expected to have a middle-class population of 56 million by 2030, middle-class people aged 45-65 will play an important role in consumer spending. Therefore, the goal is to invest in building factories to be production bases for domestic and export markets. By seeing the latest data figures in December 2022 that Vietnam has foreign investment projects from 114 countries, a total of 36,278 projects, representing an investment of more than 438,690 Vietnamese dollars. led by South Korea, Japan, Singapore, Taiwan, etc.

 

As in the case of Cambodia that has entered into a lower-middle class income country with an ever-increasing middle class As a result, there are new consumption trends. Evident from the expansion of the retail business. There is an investment to build a shopping mall with foreign capital such as Aeon Mall, Parkson's Mall, including rebranding the existing shopping mall to have a shop. entertainment restaurant Meet the new lifestyle of consumers. and accommodating tourists

 

As for the largest economy in ASEAN like Indonesia, it is determined to restore its status as an Upper-Middle Income Country with economic figures in the last quarter of 2022 growing 5.02% due to the return of consumer demand. along with world market prices of important exports. Like palm oil, coal has risen. Before this, in 2020, Indonesia was classified as an Upper-Middle Income Country before being affected by the COVID-19 crisis. until being downgraded to Lower-Middle Income Country status

Middle-class business opportunities

However, when people gain more wealth, Will shop for a variety of things Increase spending on health, beauty and entertainment products besides food Clothes that are basic necessities, other goods such as financial products Recreational travel, automobiles, computer equipment Household services have big growth prospects in Asia. In particular, financial services will grow rapidly in ASEAN countries. because apparently The middle class will play an increasingly important role in global demand for goods. And when we live in the age of digital technology that helps businesses reach people in different countries. without border restrictions. because apparently The middle class will play an increasingly important role in global demand for goods. And when we live in the age of digital technology that helps businesses reach people in different countries. without border restrictions It is also a source of information that helps businesses get to know consumers in depth. Digital technology is an important weapon in penetrating the market to reach consumers. at Siam Commercial Bank will become a “Digital Bank with Human Touch” Committed to fully upgrading the service to a digital bank and provide complete digital financial services It also plans to expand wealth customers with the Digital Wealth model, opening up the Emerging Wealth market, targeting the new generation with the potential to start building wealth. Using digital means wealth is possible for everyone. The goal is to be a market leader in wealth management that can help plan to increase wealth for customers of all groups. Combining technological strengths from data and sincere service from staff Let customers experience the digital banking that understands and understands more than ever. Affirming strength with continuous and sustainable growth goals Embrace the opportunities that come with this decade's growing middle class wave.

References

https://www.statista.com/statistics/1044791/asean-growth-of-middle-income-population-by-country/

https://www.statista.com/statistics/1309353/sea-middle-class-population-size-by-country/
https://www.oecd.org/social/under-pressure-the-squeezed-middle-class-689afed1-en.htm
https://www.cnbc.com/2023/01/02/middle-class-income-in-major-us-cities.html
https://www.globaldata.com/data-insights/macroeconomic/median-household-income-in-thailand/
https://www.usasean.org/why-asean/growth
https://www.business-standard.com/article/international/more-than-one-billion-asians-will-join-global-middle-class-by-2030-study-121090300111_1.html
https://m.hanoitimes.vn/half-of-vietnams-population-set-to-earn-us20-a-day-by-2030-321791.htm
https://www.mpi.gov.vn/en/Pages/tinbai.aspx?idTin=56367&idcm=122
https://www.bangkokpost.com/business/2227359/america-eyes-asean
https://jakartaglobe.id/business/indonesia-expects-upgrade-to-uppermiddle-income-country-status-again/