The Effects of Savings Culture and Government Policy in Instilling the Habit of Savings:

Abstract

The aim of this study is to understand the factors that influence the attitude towards savings among Malay employees in the public sector in Malaysia. The research study has focused on both internal and external factor in understanding the influence the attitude towards savings among the employees. The internal factor in this study is savings behavior and savings culture while, the external factor is the government policy. The result of the survey that has been conducted on 769 respondents (Malay employees working in Malaysia public sector). The analysis was made using advanced multivariate statistical software of Structural Equation Modelling (SmartPLS v3). The result of the analysis found that í µí±2 value of the model is 0.306 which indicates that the developed model has a substantial impact on the attitude towards savings. Based on the model, savings culture is the most prominent in exhibiting effect on the attitude towards savings.