Personal Saving Behavior among Muslim Employees

Abstract

People who are able to save more have less financial stress and are able to enjoy good quality of life. Due to rising inflation rate and volatile economy of Malaysia, Malaysians are encouraged to save money. A survey by Bank Negara Malaysia indicates that the level of financial literacy among Malaysian is underwhelming. The statistical shows that 75% of the respondents have trouble raising RM1,000 cash during emergency. Malay is more financially fragile on financial matters. Hence, this study is conducted to assess the factors that influence saving behavior among Muslim employees. Based on a sample of 531 respondents, the findings reveal that family background, attitude, financial literacy and locality have significant relationship to saving behavior. Meanwhile, religiosity, household income, age and level of education are not significantly related to saving behavior. Strategies for enhancing financial soundness for rural districts should be emphasized. The government is strongly encouraged to organize more financial education workshops to such group of people to enhance their level of awareness on financial management. Ultimately, this study is considered one of the studies that have contributed to the literature by developing apprehensions of saving behavior.