KUALA LUMPUR: Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz has allayed concerns about the level of Malaysian household savings, saying the central bank’s data show about 90% of households have savings accounts.

“The report published by UNDP (United Nations Development Programme) is partial and misleading, as it relies heavily on data by the World Bank, which tracks household savings via banking accounts. It is not truly reflective of the real situation.

“You have to remember that in Malaysia, savings are not necessarily measured by commercial banks. We also have non-bank financial institutions or ‘shadow banks’ like cooperatives, BSN [Bank Simpanan Nasional] and [Lembaga] Tabung Haji,” Zeti told a media workshop session yesterday.

Zeti said she was unworried about the present level of savings among Malaysian households.

She was commenting on UNDP’s inaugural Malaysia Human Development Report 2013 titled “Redesigning an Inclusive Future” that was launched by the organisation on Nov 25.

Citing figures from the household income survey (HIS), the report, which was picked up by news portal the Malaysian Insider yesterday, noted that nearly 90% and 86% of the rural and urban households, respectively, had no savings, while the majority of households, at 88%, had zero earnings from their savings.

It said while Malaysia recorded a relatively high gross national savings rate, most came from the corporate sector.

It also highlighted that the majority of Malaysians will likely struggle in the event of income emergencies as they have no financial assets and no banking or financial account of any kind. It also said more than half or 53% of Malaysian households have no financial assets, while one in three Malaysians do not have an account, the report said.

The report provides a comprehensive and robust look into the challenges facing Malaysia and gives recommendations to steer the nation towards vision 2020 and beyond, said UNDP in its website.

Among the key subjects touched by the independent report are poverty, income and wealth inequality, vulnerable groups, low wages, small middle class, gender inequality, affirmative action, and policy reforms.

The report was sponsored by both the UNDP and the Economic Planning Unit, which is under the Prime Minister’s Department.

It was jointly authored by adjunct professor of Economics and Development Studies at Universiti Malaya (UM), Tan Sri Dr Kamal Salih, director of research at Khazanah Research Institute Dr Muhammed Abdul Khalid, and senior lecturer at UM’s Faculty of Economics and Administration Dr Lee Hwok Aun.

This article first appeared in The Edge Financial Daily, on November 28, 2014.