In a world where luxury, glamour, and social media reign supreme, Malaysian influencers have long been a source of inspiration for millions. With extravagant lifestyles on full display, these influencers set the tone for what many consider to be the epitome of success. However, recent scandals surrounding some of Malaysia’s most well-known figures have revealed the harsh truth: many influencers live lavishly, yet are deep in debt.
Take, for example, Vivy Yusof, a prominent influencer-entrepreneur, and her husband, Fadzarudin Shah Anuar. The couple has long been regarded as a power duo in Malaysia’s fashion scene, with their multi-million-ringgit clothing empire and glamorous Instagram presence. But on December 5, the couple’s seemingly perfect life came crashing down when they were charged with criminal breach of trust for embezzling a whopping RM8 million from their now-defunct online retailer FashionValet.
The couple, who received a massive RM47 million investment from state asset managers like Permodalan Nasional Berhad (PNB) and Khazanah Nasional Berhad, are now accused of misappropriating these funds. Despite raking in millions in investments, FashionValet, under their leadership, recorded significant losses, leading to its eventual collapse in 2023. The company sold its shares for just RM3.1 million, leaving public authorities to ponder how such a substantial sum was mismanaged.
The Public Outrage and the Disconnect Between Image and Reality
For many followers of Vivy and her husband’s journey, the scandal has been a shocking revelation. While Vivy’s lifestyle, filled with luxury scarves worth hundreds of ringgit and her husband’s business-savvy image, seemed enviable, it was all a façade built on borrowed money. The public’s reaction has been one of disbelief and frustration.
A popular TikToker @financialfaiz shared his outrage: “It’s hard for us to get RM10,000 a month, but they (FashionValet) can get RM47 million?” The emotions are palpable. How could such a vast sum be entrusted to a company that was clearly not performing?
This case highlights a disturbing trend that has been gaining traction in Malaysia. Social media influencers are constantly flaunting wealth, but behind the scenes, many are financially struggling. Bankruptcy proceedings, unpaid business loans, and financial mismanagement have become recurring themes in the lives of these influencers.
Influencers and the Financial Pressure to Maintain a Lavish Lifestyle
While the FashionValet scandal has dominated the headlines, it’s far from an isolated case. Actress Rozita Che Wan, also known as Che Ta, recently found herself in legal trouble after the Majlis Amanah Rakyat (MARA) raided her home in December. The raid was part of a bankruptcy proceeding, which stemmed from her failure to repay a nearly RM1 million business loan.
Che Ta, who has 5.1 million Instagram followers, had built an image of herself as a successful entrepreneur, but behind the glamour was a mounting debt she couldn’t repay. MARA, which provides financial assistance to Malays for education and business under the country’s affirmative action policy, is now under pressure to recover the funds.
These influencers live in a constant balancing act, attempting to maintain an image of wealth while grappling with the reality of their finances. Public accountability has become an essential aspect of how they are perceived, yet many continue to mislead their followers into believing that their luxurious lives are a true reflection of their financial health.
The Role of Government Agencies and Financial Mismanagement
As shocking as these scandals may seem, they also shed light on government accountability. Azrul Azwar Ahmad Tajudin, an economist, noted that the misuse of public funds often happens because of enablers among senior politicians and top-ranking government officials. He explains that these officials may approve loans for influencers due to family ties, shared political views, or simply because of their outward beauty and charm, rather than conducting proper due diligence.
This lack of oversight has led to multiple instances where funds meant for educational or business development have been funneled into business ventures that never made a profit.
In addition, tax authorities are now tightening the reins on influencers. The Inland Revenue Board has started investigating influencers’ financial activities, ensuring they pay taxes on their earnings, particularly those amassed from platforms like TikTok and Instagram. These platforms have helped launch the careers of many influencers, but now they must face the consequences of their unpaid taxes and mismanaged business operations.
The Impact of Debt on Mental Health
While it’s easy to dismiss these influencers as mere examples of mismanagement, there are deeper societal issues at play. Dr Joel Low, the president of the Malaysian Society of Clinical Psychology, cautioned that these scandals could lead to psychosocial struggles for many of their followers. Influencers, especially those on TikTok and Instagram, often portray their lives as a perfect example of success, leading many of their followers to feel inadequate if they can’t replicate that lifestyle. This constant comparison can result in depression, anxiety, and social pressure to keep up.
Dr Low explains, “The danger lies in the fact that there will be some people out there who truly believe in and want to embody these influencers’ lifestyles. This would lead to many people resorting to bad debt to get what they want.”
The line between what’s real and what’s simply curated for social media has become increasingly blurred. The allure of luxury travel, expensive fashion, and first-class flights might be enough to inspire followers to take on debt they can’t afford in an attempt to live the same lifestyle.
A Wake-Up Call for Aspiring Entrepreneurs
These scandals should serve as a wake-up call to all aspiring entrepreneurs and influencers. The notion that you need to live large to succeed is not only misleading but dangerous. The story of Vivy Yusof, Fadzarudin Shah Anuar, Che Ta, and others is a reminder that financial responsibility must always accompany ambition.
If you’re an influencer or entrepreneur, building your business or brand should come from honest earnings, not borrowed funds. The pressure to live up to societal expectations can be overwhelming, but it’s crucial to remember that true success comes from sustainable financial management, not debt.
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