Predicting Private Saving Within Malay Community

Abstract

Few reports have indicated that majority of Malaysians do not save enough for retirement and Malays are less likely to save money as compared to other races in Malaysia. A lot of attention has been given to the link between financial literacy and saving thus neglecting other factors that are closely related to individuals. According to Bandura's (1977) theory, financial behaviour is closely related to personal factors such as individual characteristic, cognitive ability, self-efficacy, and religious faith. Therefore, this study aims to examine all the factors predicting private saving. Using 224 Malay respondents, logistic regression analysis was conducted. This study found that parents and religious faith significantly predicted the likelihood of private saving, but individual characteristic, cognitive ability, and self-efficacy did not significantly predict the likelihood of private saving. Thus, this study recommends using parents and religious officers to guide the Malay communities in their private saving.

Examining Factors of Savings Behaviour Among Malaysian Youth

“…The results designate an insignificant negative direct relationship between self-efficacy and savings intention. Likewise, these findings are compatible with past research, such as Goi et al (2019), where the study examined all the factors predicting private savings and discovered that self-efficacy did not have a significant predictive impact on private savings behaviour. Therefore, this relationship is confirmed, and Hypothesis 4 is rejected.…”

“…Various studies have demonstrated that peer influence has a noteworthy and positive correlation with savings behaviour such as Dangol and Maharjan (2018), Jamal et al (2015), Asmawi (2015), Kamarudin and Hashim (2018), Goi et al (2019), Alwi, Amir Hashim andAli (2015), and Syahrom et al (2017). For example, Goi et al (2019) studied the predictions of private savings within the Malay community. The objective of this study is to analyze all the factors that predict private savings.…”

“…Therefore, the belief in self-efficacy forms the foundation for successfully executing selfregulation behaviours. Goi et al (2019) studied the prediction of private savings within the Malay community and showed no significant relationship between self-efficacy and savings behaviour. When examining all the factors predicting private savings, it was found that self-efficacy was not found to be a significant predictor of private savings.…”

Investigating the Factors of Consumers’ Purchase Intention Towards Life Insurance in Bangladesh: An Application of the Theory of Reasoned Action

“…Religiosity is also found as a negative influencer of private saving (Goi et al, 2019) and an individual's preferences for risk (Eck & Nizovtsev, 2011). In many Muslim countries, people with strong Islamic religious beliefs or religiosity are less likely to purchase conventional life insurance (i.e., non-Islamic life insurance) (Chui & Kwok, 2008;Souiden & Jabeur, 2015;Zelizer, 1979), holding a belief that purchasing life insurance is disapproving of God's will (Beck & Webb, 2003).…”