Determinants of saving in Malaysia

This paper aims at determining the determinants of saving in Malaysia. The variables are gross domestic product (GDP), inflation rate (IF), consumption (CMP), level of income (LOI), and deposit interest rate (DIR). The sample of this study comprises of 33 observations each of the independent and dependent variables on a monthly basis for 33 years’ period from December 1983 to December 2015. Methodology used for this study is by using Multiple Linear Regression with time series data sourced from Bursa Saham Malaysia and World Bank data. Therefore, econometric tests are to be conducted to know the determinants of variable such as are gross domestic product (GDP), inflation rate (IF), consumption (CMP), level of income (LOI), and deposit interest rate (DIR) towards saving in Malaysia. Interactive software package E-view would be used for testing and analysing the data collected. The study is an attempt to investigate the determinants of saving in Malaysia. The results of this research paper would provide us with an indicative view and could form an important basis for investors and policy makers in their investment strategies and policy decisions respectively.