Factors Influencing Saving Rate in Malaysia

Abstract

There are many factors that influence the saving rate in Malaysia. The main purpose of this research is to determine which economic variables that may influence toward saving rate in Malaysia. Saving rate is one of the major capitals for financial institution for make any other investment. From the investment, the financial institution will earn revenue and will distribute to the depositor in term of dividend. Besides, the interest rate that will charge on the saving will determine either the depositor will make savings or not. In addition, saving is not limited for a certain level of income. Everybody that has surplus money can make any saving that may use in future if there have any emergency cases. Furthermore, this research is continuous from the previous research that study about factors influencing saving rate in Malaysia for 1997 to 2004 and will be continued from 1987 to 2011.