Malaysians spend to stay trendy
By TERENCE TOH
terence.toh@thestar.com.my
KUALA LUMPUR: The desire to keep up with the Joneses' in an increasingly materialistic society is the main reason why most Malaysians overspend.
Fomca chief executive officer Datuk Paul Selvaraj said most advertising was aimed at promoting high-end lifestyles and this created pressure on young people to buy things just so they would appear “cool” or “glamorous”.
“There is peer pressure and people buy things they cannot afford just to stay trendy.
“Many buy items more for their image than their functionality.”
Selvaraj said Fomca had recently conducted a national survey on young workers' financial behaviour and habits. Preliminary findings revealed that more than 60% were in debt, totalling about 15% of their income.
These figures, Selvaraj said, were a cause for concern.
He stressed that proper financial education was important to address the debt problem.
“Financial education should be made mandatory at every level.
“People need to have the right skills, knowledge and attitude to help them manage their finances.
“They need to start thinking about saving for the future.”
Psychologist Dr Goh Chee Leong said people associated owning material goods with happiness and this was a major reason why they did not live within their means.
“Many young working adults nowadays are afraid to be seen as falling behind with trends,” Dr Goh said. “They end up buying things they don't want just to conform.”
Goh, who is Dean of the Faculty of Behavioural Sciences at HELP University College, added that most young working adults had grown used to comfortable lives as students.
“They have an unlimited source of money from their parents and live a good life.
“However, when they try to continue this lifestyle as working adults, they run into trouble.”
Goh recommended that Malaysians adopt a holistic view of life to curb their spending habits.
“We have to realise that happiness does not come from products,” he said.
“It comes from having good relationships with friends and family.
“If we change our views on what brings us fulfilment, it is very possible for us to find happiness and still live within our means.”
