Country’s gross national savings increased to RM403 billion in 2021, up 19.1%
Published on: Tuesday, December 19, 2023
By: Bernama
In 2021, households’ disposable income grew by 2.8%, attributed to the higher receivables of social benefits and improved labour force participation rate which contributed positively to household spending, said Uzir Mahidin. (Bernama pic)
PETALING JAYA: Malaysia’s gross national savings (GNS) recorded an increase of 19.1% year-on-year (y-o-y) to RM402.6 billion in 2021, compared to RM337.9 billion in the previous year, said the statistics department.
Chief statistician Uzir Mahidin said in terms of institutional, the non-financial corporations sector recorded the highest gross savings with RM283.3 billion or a share of 70.4%.
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“This was followed by households with RM80.8 billion (share: 20.1%) and general government sectors with RM21.8 billion (share: 5.4%).
“The remaining gross savings were from the financial corporations sector, which amounted to RM16.7 billion or 4.1% of GNS,” he said based on the latest National Economic Accounts of Malaysia report (previously known as Distribution and Use of Income Accounts and Capital Account report).
In a statement, Uzir said Malaysia’s gross disposable income posted RM1.50 trillion in 2021 with the household sector comprising RM903.1 billion.
He said households’ disposable income grew by 2.8% as compared to a decrease of 4.1% in the previous year, attributed to the higher receivables of social benefits and the improvement in the labour force participation rate.
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“This has resulted in final consumption or household spending gaining momentum in 2021 by registering a growth of 3.7% (2020: -4.3%).
“Hence, Malaysian households’ savings rate was 8.3% (2020: 8.5%) of households’ disposable income (includes adjustment for the change in pension entitlements) in 2021,” he added.
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Uzir said Malaysia’s economy was a net lender to the external sector with RM59.7 billion or 3.9% of gross domestic product (GDP) in 2021.
Net lending (+) or net borrowing (-) represents the changes in net worth due to savings and capital transfers that were used to fund capital formation or investment.
Uzir noted that the non-financial corporations sector held a net lending position of RM119.1 billion or 7.7% of GDP.
“Both households and financial corporations’ sectors also registered net lending positions of RM28.3 billion (1.8% of GDP) and RM4.6 billion (0.3% of GDP), respectively.
“Nevertheless, the general government sector had a net borrowing position within the economy with an amount of RM92.3 billion (-6% of GDP) in 2021,” said Uzir.
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