Determinants of household saving in ASEAN countries

This study examines the determinants of household savings across five ASEAN countries: Malaysia, Indonesia, Singapore, Thailand, and the Philippines. The research investigates the influence of six variables: Gross Domestic Product (GDP), inflation (consumer prices), interest rate, household disposable income, household consumption expenditure, and age dependency ratio. Using panel data collected from the World Bank Data and Thomson Reuters for the period 2009 to 2018, the study employs descriptive statistics, correlation analysis, and regression analysis. The results, based on the Panel Ordinary Least Square (POLS) method, show that GDP, household disposable income, and age dependency ratio have a positive relationship with household saving. Conversely, inflation, real interest rates, and household consumption expenditure are negatively related to household saving. The T-test further indicates that GDP, household disposable income, and age dependency ratio have a significant effect on household saving, while the remaining variables (inflation, real interest rates, and household consumption expenditure) show no significant effect.