Determinants of savings rate in Malaysia

The objective of the study is to investigate the relationship between demographic, gross domestic product and inflation rate to the savings rate in Malaysia. Simple Linear Regression and Multiple Linear Regression are used in this study to find the relationship among these variables. The data collected is in yearly basis from year 1974 until year 2012. The results reveal that only GDP has positive significant relationship towards gross savings in Malaysia. Other variables which are age-dependency ratio and inflation rate have insignificant relationship towards gross savings rate in Malaysia. These results broaden our understanding of the relationship between variables chosen to savings rate in Malaysia.