81% of people polled gift new banknotes for CNY, experts explain why

Why Singaporeans queue for new banknotes every CNY

This piece is part of MS Explains, a segment where we provide clarity to common or key topics, making them easier to digest.

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Singaporeans love to queue. We queue for food, for the newest Apple product, and every Lunar New Year, some of us queue for new banknotes.

The popularity of this phenomenon can be seen every year, when local banks UOB, OCBC, and DBS launch their Lunar New Year pop-up ATMs for new or “fit-for-gifting” notes.

This is compounded by the fact that the Monetary Authority of Singapore (MAS) issues around 100 million new banknotes annually for festive gifting.

The pop-ups are always a crowd-puller, drawing long snaking queues — especially on the first day — with people of all ages rushing to get their hands on the fresh, crisp notes.

A further poll by Answers.sg indicated that 81% of people polled choose to gift new banknotes as much as possible.

Of this number, 49% said that it is an absolute must to do so.

This begs the question: What drives Singaporeans to continue to queue for new notes without fail?

Explaining the culture of gifting new banknotes

According to experts MS News spoke to, deep-rooted customs and traditional values may be one of the reasons driving this enduring phenomenon.

Dr Pamela Goh, a lecturer at the Singapore University of Social Sciences (SUSS), shared that the Lunar New Year marks a new beginning when there is a new moon. She said:

Part of the New Year’s culture includes many other long-standing norms, such as spring cleaning to clear the bad from the previous year and make way for a fresh, clean beginning of another.

As the concept of making space for the new and clean is ingrained in Chinese culture, people would jump at the opportunity to obtain new cash notes — all to start the new year on a good note (pun unintended).

“It is about doing as much as one can to fulfil the concept of welcoming a brand new year with new things and beginnings,” said Dr Goh.

Similarly, Associate Professor at the Department of Sociology of National University of Singapore (NUS) Tan Ern Ser explained that CNY is about doing a reset and discarding the bad.

It is also a time to herald “a great start for the coming year in terms of luck, fortune, happiness, health, wealth, prosperity and everything good in abundance”.

Gifting new notes in red packets is a way to invite these good things and start the year on the right footing, added Prof Tan.

Queuing for new notes may be due to herd mentality

Another possible reason for this desire for new cash notes can be attributed to the human tendency for herd behaviour, Dr Goh said.

This refers to “an alignment or convergence of thoughts and behaviours of everyone in a certain group”, or simply, a need to conform to the opinions and ways of a large group.

Source: Facebook

“Humans tend to emulate the actions and opinions of others especially if there is some kind of benefit, whether real or perceived, to obtain from it,” said Dr Goh.

“Even more so if this benefit comes by only when we imitate other people’s actions, and we would be at a ‘disadvantage’ if we do not do so.”

Furthermore, some red packet givers may feel the pressure to gift new notes due to the “influence of a long-standing culture and behaviours of others”.

Some Singaporeans, like 25-year-old Ashley Wong, do not share this mentality. She told MS News that her family has never been too particular about the practice.

“To my parents, notes from any ATM is new,” said the content creator. However, they do still check the notes they’re gifting for stains and pen ink.

Her aunts who are in their 60s, however, are more “nitpicky” and have said that they prefer brand new notes.

Ms Wong attributes this phenomenon to “saving face” — where people try to avoid looking bad in front of others.

Digital age challenges traditional way of gifting money for CNY

That said, Prof Tan noted that these practices are not set in stone — especially in the digital age where people are starting to use digital transfers.

Singapore banks like DBS have observed a growing preference among its customers for eco-friendly gifting solutions such as QR Ang Baos.

Generally, the digital gifting trend recorded robust growth, with more than S$15 million gifted via DBS QR Gift and eGift during CNY in 2023. This was a 30% increase from the previous year.

Digital gifting was most popular among married couples without children and young singles between 17 and 34, said the bank.

A DBS spokesperson told MS News that although demand for new notes will always be there among a more senior group, there is a shifting trend.

In 2023, the highest uptick in digital gifting was observed among seniors above 62 years old where there was a 25% increase in senior customers using the QR Ang Bao and/or eGift.

The average amount gifted via digital alternatives was S$50.

Old habits die hard

Still, it’ll be a long while before traditions erode, judging by the reception towards the pop-up ATMs.

On 24 Jan 2023, The Straits Times (ST) reported snaking queues at two POSB pop-up ATMs — the first day the new notes were made available.

This is despite the MAS issuing a statement urging people to choose the more sustainable fit-for-gifting notes for Chinese New Year instead of getting new notes from banks.

One 75-year-old retiree shared with ST that she had queued at the same ATM for the past seven years.

Another UOB customer that MS News spoke to shared that he had been withdrawing new notes from the bank for eight years every Lunar New Year.

When asked why he used new notes, he said: “Because it’s [the] New Year. New Year the tradition is new note.”

Also read: Pre-book fit & new notes for CNY from 7 Jan at S’pore banks, QR hongbao also available

Pre-book fit & new notes for CNY from 7 Jan at S’pore banks, QR hongbao also available

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Featured image adapted from CNSS and ThoughtCo.

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