The Singapore Consumer Confidence Index has risen 4 index points to 98 points in Q3, the highest since Q2 of 2011 (103 points), according to Nielsen.
The global information and measurement company Nielsen polled 512 respondents in Singapore.
"Our latest survey results show that Singaporeans are feeling more positive particularly where their personal finances are concerned and accordingly," said Joan Koh, managing director for Nielsen Singapore and Malaysia. "They are showing signs that they will start to spend on things they want and need."
According to the results, there was also a seven percentage point increase in consumers' outlook on personal finances. Fifty-seven percent of the respondents believe the state of their finances in the next 12 months is "good" or "excellent".
However, Singaporeans remain wary on spending; only 36 percent feel the next 12 months is a good time to buy items they need or desire. The majority is pushing spare cash into savings while 32 percent intend to invest in stocks and mutual funds.
"The majority of Singaporeans are putting some spare cash into savings and combined with an increased appetite for stock/mutual fund investments, this indicates a desire to seek ways to preserve and grow their wealth," Koh said.
"The continuing uncertainties over global economic recovery are prompting consumers to play it safe and continue to save on household expenses," Koh added.
Singapore now ranks 15th in the Nielsen Consumer Confidence Index, with India taking the top spot. Asia Pacific, according to Nielsen, remains the most confident region globally.
Sign up for CIO Asia eNewsletters.