Savings mobilization, financial development and liberalization: The case of Malaysia

Beng Ang

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11 Citations (Scopus)


This paper attempts to identify the key factors behind Malaysia s remarkable savings performance. Drawing on the life cycle theory, the saving function is estimated by incorporating other relevant structural features and institutional settings of the Malaysian economy into the specification. Particular emphasis has been placed on the roles of financial factors in mobilizing funds in the private sector. The results suggest that financial deepening and increased banking density tend to encourage private savings. Development of insurance markets and liberalization of the financial system, however, tend to exert a dampening effect on private savings.
Original languageEnglish
Pages (from-to)449 - 470
Number of pages22
JournalReview of Income and Wealth
Issue number3
Publication statusPublished - 2011

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