Determination of saving behavior among public servant in Pasir Gudang Municipal Council (MPPG)

This paper aims to analyze the relationship between factors that affecting the saving behaviours among public servant in Pasir Gudang Municipal Council (MPPG). Over the years, numerous researchers have studied on the determinants of personal saving behaviour among the households, student and private employee, rather than public servant. The researcher used four independent variables that affect the saving behaviours which are financial literacy (FL), peer influence (Pl), self control (SC) and income level (IL). Over 251 Pasir Gudang Municipal Council (MPPG) staff completed the questionnaire of determinants on their saving behaviour as well as how much they saved. The results are then analysed by using descriptive analysis, reliability test, Pearson Correlation, and Multiple Linear Regression analysis to determining factors affecting saving behaviours among public servant. The results from regression analysis indicate that financial literacy (FL) and income level (IL) are significant variables that affect the saving behaviours while peer influence (PI) and self control (SC) are insignificant variables that affect the saving behaviours among public servants in MPPG. However, through correlation analysis indicate all variable are significantly with saving behaviour. This signifies that financial literacy is playing important roles in saving behaviour. In practical, this research can contribute to practitioners to strengthen the knowledge about personal finance. In practical, this research can contribute to the retail banks in designing effective strategies to penetrate the employee savers specifically public servants. Last but not least, this research can provide initial preparations from government regarding saving behaviour such as some courses, campaign, talk and many more provide related to smart financial management. Emphasize the benefits of saving habits to increase the level of awareness among staff with financial literacy