Page 108 - IJPS-11-4

International Journal of
Population Studies Intergenerational transfers in Malaysia

financial transfers. Overall, it has been observed that or gave financial and non-financial support (e.g.,
respondents who are younger, male, working adults, better providing food or clothing, looking after grandchildren,
educated, have higher incomes, are healthier, and have assisting parents in daily activities, etc.) from and to
more parents or children tend to provide greater financial their parents, siblings, and children. For financial
support to their parents or children. At the same time, they support, respondents were asked to indicate which
receive less financial assistance in return. Conversely, it family members they give or receive financial support
has been shown that older, female, lower-income, and less from, their frequency (either on a monthly or yearly
educated people give their parents or children less money basis), and the amount in Ringgit Malaysia (RM). For
but also receive more from them (Chou, 2010; Khan, 2013; respondents who live together with their children or
Logan & Bian, 2003, Masud et al., 2008; Sloan et al., 2002). parents, the survey asked them to indicate the amount
Living arrangements were also found to be a significant of financial support that is excluded from any shared
predictor of intergenerational transfers (Silverstein et al., living costs such as rent, utility, and food. The sample
2006). is chosen among respondents who still have living
Varying patterns of intergenerational transfers may children or parents.
also be seen across ethnic groups as a result of differences 2.1. Statistical analysis and conceptual framework
in their cultural and socioeconomic backgrounds. For
instance, Bumiputera (including Malay, and Bumiputera To determine the distribution of intergenerational transfers,
Sabah, and Sarawak) has the lowest mean household descriptive analysis was first conducted on all dependent
income, at RM 7,093, compared to Chinese (RM 9,895) and independent variables. This was followed by bivariate
and Indian (RM 8,216) (DOSM, 2019). Therefore, analysis. Subsequently, multiple linear regression analysis
Bumiputera is expected to be more dependent on was performed to examine the significant factors that are
financial transfers from their parents and children, associated with the amount of intergenerational financial
compared to other ethnic groups. On the other hand, transfers between respondents and their children or
considering their greater financial capacity, respondents parents. IBM SPSS 26.0 was used to conduct the statistical
who are Chinese and Indian are anticipated to provide analysis for this study.
more financial transfers to their parents and children. This study has four dependent variables to indicate
However, Bumiputera (Sabah and Sarawak) are expected four different flows of intergenerational financial
to receive lesser financial transfers from their parents or transfers, particularly to and from respondents and
children while providing it at a lesser amount than Malay. children, as well as to and from respondents and parents.
This can be supported by the fact that Sabah and Sarawak The dependent variables were derived from the total
have the second and sixth lowest median household amount of financial transfers between respondents
income, respectively, among all states and territories in and their children or parents. These amounts were
Malaysia.
transformed into logarithmic form to mitigate data
2. Data and methods skewness and ensure a normal distribution. Since the
dependent variables are expressed in the natural log
MARS Wave-1 is a nationwide longitudinal survey on aging form, the interpretation of their coefficients in the
and retirement that was carried out between 2018 and 2019 multiple regression models is made in percentage
by the Social Wellbeing Research Centre (SWRC). MARS terms. The financial transfer amount that is recorded
Wave 1 involved 5,613 respondents aged 40 years and older on an annual basis is converted into a monthly basis
living in Malaysia. for standardization. The conceptual framework for this
MARS Wave-1 is part of the harmonized database study is illustrated in Figure 1.
including the U.S. Health and Retirement Survey; Survey of The independent variables for this study include
Health, Ageing, and Retirement Europe; and the Japanese age, gender, ethnicity, education, marital status, living
Study of Ageing and Retirement. MARS has 260 questions arrangement, employment status, health status, number
that fall under five main components: background of living parents/children, income, and financial assistance
information of the respondents and family members, received from the government. All the independent
health and health care utilization, work, and employment, variables are categorical. This study hypothesizes that there
income and expenditure, as well as savings and assets. are significant variations in the factors associated with
With regards to the intergenerational transfers, intergenerational transfers that took place between the
MARS respondents were asked whether they received respondents and their children or parents.

Volume 11 Issue 4 (2025) 102 https://doi.org/10.36922/ijps.1326