Nine in ten Malaysians plan to save more than they did six months ago, says the recent MasterCard Consumer Purchasing Priorities survey.

In a statement here Monday, MasterCard said the respondents listed investments and retirement as top reasons for saving, followed by renovating or building a home.

The company said according to the survey, in the event of a drop in household income, Malaysians said they would cut back on several items with overseas holiday being top of the list followed by dining out and domestic travel.

"The need of keeping regular savings and paying off debts are the items that are least to be cut back," it said.

MasterCard said according to the survey, should there be an increase in household income, Malaysians showed a similar trend with the most popular choice being to pay off debt, followed by putting money into their saving bank accounts.

"The data suggest that Malaysians are aware of their debts and are proactive in clearing these debts," it said.

Its Country Head, Malaysia and Brunei, Safdar Khan, said in Asia-Pacific, Malaysia was among the countries where consumers planned to save more.

"This is a positive step which can assist Malaysians curb the dangers of overspending and help them in managing their debts, all of which will contribute towards better financial stability," he said.

MasterCard said the survey also highlighted that while most Malaysians claimed to understand basic money management from understanding day-to-day finances to keeping track of spending, about four in ten continued to confess to having problems with setting aside money.

About 50 per cent of respondents also faced problems keeping up with bills and credit commitments, it said.