“Glitz and Gloom: Malaysia’s Influencers Showcase Wealth While Buried in Debt”

For many years, Malaysian influencer and entrepreneur Vivy Yusof, 37, alongside her spouse Fadzarudin Shah Anuar, 36, epitomized a glamorous, photogenic power couple within Kuala Lumpur’s social and Instagram landscape – she adorned in her brand’s opulent dUCk scarves, which are priced at up to RM400 (S$120) each, while he played the role of her business partner in constructing their multimillion-ringgit clothing empire.

However, on December 5, fissures emerged in the couple’s ostensibly luxurious and flawless lifestyle – they faced court charges for criminal breach of trust.

They stand accused of siphoning off RM8 million from their now-defunct online retailer FashionValet, which had garnered RM47 million in investment from state asset management firms Permodalan Nasional Berhad (PNB) and Khazanah Nasional Berhad in 2018, despite the enterprise recording substantial losses in the millions of ringgit.

Both entities incurred a total loss of RM43.9 million after divesting their shares in the fashion e-commerce platform in 2023 for merely RM3.1 million.

This led to public outrage.

“What saddens me is that the funds from PNB and Khazanah are unlikely to be retrieved. Naturally, they will categorize it as an investment mistake. How could you allocate RM47 million to a company enduring losses?” expressed TikToker financialfaiz on December 6.

“It’s challenging for us to earn RM10,000 monthly or RM100,000 annually, yet they (FashionValet) can secure RM47 million,” he added.

The authorities have initiated actions against influencer celebrities and entrepreneurs, many of whom display extravagant lifestyles on social media while contending with accusations of financial misconduct, such as the misuse of public funds, unpaid debts, and tax evasion.

Efforts to hold these celebrities accountable have surfaced alarming inquiries regarding the disparity between the apparent affluence of these influencers and their fiscal responsibilities, along with the unattainable lifestyle benchmarks they establish for their vast online following.

In recent times, the case of actress Rozita Che Wan, 51, widely recognized as Che Ta, has made headlines.

On December 10, the governmental agency Majlis Amanah Rakyat (Mara) reportedly conducted a raid on Che Ta’s residence in the Selangor district of Petaling Jaya, confiscating items including a vehicle, furnishings, shoes, and other household belongings, as part of a bankruptcy process due to her inability to repay a nearly RM1 million business loan that has been overdue since 2017.

The news ignited public anger, as Mara provides financial aid to Malays for education and business under the nation’s affirmative action policy.

Mara chairman Asyraf Wajdi Dusuki has persistently urged the actress to clear the debt.

“Mara will not hesitate to pursue legal avenues if you are intentionally neglecting to repay (a loan) while being capable of doing so, and furthermore, you are showcasing your lavish lifestyle on social media,” Datuk Asyraf stated in a Facebook post on December 10.

“Legal action is the last option to guarantee that every sen of the people’s funds can be reclaimed for the advantage of others,” he added.

 

Some individuals argue that the responsibility also lies with public organizations that fail to perform adequate checks on those to whom they lend funds.

Economist Azrul Azwar Ahmad Tajudin commented to The Straits Times: “Misuse or even exploitation of public funds occurs due to the presence of enablers among high-ranking politicians, senior government officials, and all those in the corridors of influence.”

He expressed that individuals in positions of authority may occasionally lack the awareness to conduct basic due diligence before sanctioning loans. Instead, they endorse these influencers due to familial connections, long-standing friendships, shared ideological perspectives, or simply because of their charm or allure.

Malaysia’s tax authorities are closely monitoring influencers. The Inland Revenue Board announced in May that each state has a unit specifically observing influencers and entrepreneurs on TikTok and Instagram, urging them to fulfill their tax obligations.

Another notable figure has recently found herself in undesirable limelight – cosmetics tycoon Hasmiza Othman, better known as Datuk Seri Vida.

On November 25, 727 items belonging to her were reportedly confiscated to settle a RM1.06 million payment that she allegedly owes to a contractor since 2018 for the renovation of her factory in Shah Alam, Selangor.

These possessions included a Kawai piano, several couches, a PlayStation 5, gaming tables, three Toyota Vellfires, a BMW, and more. The raid extended over approximately four hours.

At that time, Datuk Seri Vida was overseas and took to her Instagram to say: “I take this matter earnestly and will dedicate my full attention to the concerns raised. I have engaged a lawyer to advise and assist me in resolving this issue in the best possible manner and in accordance with the law.”

Che Ta commented on her post, stating: “May all be made easy and smooth, Dato Seri.”

Similar to Che Ta, Datuk Seri Vida, 53, has created a public image centered around her extravagant and ostentatious lifestyle.

 

She frequently shares updates about her lavish travels abroad, with one TikTok video dated October 15 illustrating her flying first class aboard Emirates airlines to Dubai.

These incidents underscore a growing concern regarding the disparity between the ostensible affluence exhibited by celebrities on social media and the reality of their financial mismanagement.

Countless Malaysians look up to influencers and entrepreneurs like Che Ta and Vivy for motivation. Che Ta boasts 5.1 million followers on Instagram, while Datuk Seri Vida possesses 2.9 million. Vivy has 1.8 million followers on her account, which she has since made private.

“On my birthday, I did something I never envisioned doing – I switched my account to private… This ‘influencer’ will be un-influencing,” Vivy posted on Instagram on December 18.

The recent scandals indicate that the opulent lifestyle portrayed by influencers may be more illusion than actual reality, raising critical questions about the ramifications of aspiring to a glamorous lifestyle constructed on borrowed funds.

Dr. Joel Low, president of the Malaysian Society of Clinical Psychology, told ST: “The risk lies in the reality that some individuals may genuinely believe in and aspire to embody these influencers’ lifestyles. This could lead many to resort to unhealthy debt to acquire what they desire.”

Psychosocial issues such as depression and social anxiety may emerge when individuals cannot sustain such a lifestyle, Dr. Low cautioned.

With the recent revelations coming to light, many may also feel that they have been misled by the influencers they admired.

“I think numerous individuals might feel deceived that those they looked up to were living a facade,” he expressed.

Even fellow influencers have started engaging in the conversation. Celebrity entrepreneur Aliff Syukri, who has 4.2 million followers on Instagram, was cited by the New Straits Times on December 11: “Numerous businesspeople and influencers in our nation lead extravagant lifestyles – flying business class, donning designer clothing – yet they are significantly in debt. It’s even more disheartening when some of them reside in rented accommodations.”

“Displaying ostentation while burdened with debt not only impacts you but also affects the lenders who placed their trust in you.”