BSN should find ways to help people boost savings - Ahmad Zahid

Bank Simpanan Nasional (BSN) should find ways to increase savings among the people in order to attain a high percentage of total national savings, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said.

He said in the march towards a developed nation status by 2020, the people should get into the habit of saving money for the country to reach the national saving rate of 38 per cent for a developed Asian country.

"With high percentage of total national savings, foreign borrowings can be reduced," he said when launching BSN Virtual Teller here today.

He said currently, forced savings through the Employees' Provident Fund, Lembaga Tabung Haji and cooperatives were considered high.

The number of people who saved voluntarily should also be increased, he said.

"Some people said they can't afford to save as they were burdened by high cost of living and the Goods and Services Tax, but if they developed the savings habit since they were young, it would eventually become a habit," he said.

Ahmad Zahid also called on financial institutions to educate their customers on the need to cultivate the habit of saving in the face of challenging economic environment.