It’s no secret, everyone wants a taste of the good life. The latest phone, a sleek car, stylish outfits; it’s easy to get caught up in the desire to appear successful.
Social media doesn’t help either, constantly showing us picture-perfect lifestyles that make it seem like everyone else is living lavishly.
But behind the scenes, reality paints a different picture.
For many Malaysians, especially public servants, this pressure to keep up is pushing them into financial trouble, with some even ending up bankrupt.
‘If a Perodua Myvi is what fits your budget, don’t push for a Toyota Vios’
Chief Secretary to the Government, Tan Sri Shamsul Azri Abu Bakar, recently sounded the alarm on this growing issue.
He pointed out that many civil servants are taking on loans beyond their financial capacity, often just to maintain a certain image, reported Berita Harian.
There are public servants who manage millions in government funds, but they struggle to handle their own money and end up taking excessive loans,” he revealed.
He emphasised the importance of living within one’s means.
If you can afford a Xiaomi phone, don’t stretch yourself to buy an iPhone. If a Perodua Myvi is what fits your budget, don’t push for a Toyota Vios,” he added.
It’s a hard truth, many people are borrowing just to show they’ve ‘made it,’ even when their finances say otherwise.
The social pressure to spend
This issue isn’t just about personal spending habits; it’s also driven by social expectations. The need to look successful in front of colleagues, friends, or even on social media can lead people to make unwise financial choices.
Buying luxury items, upgrading to a more expensive car, or living beyond their means, it all adds up, often resulting in overwhelming debt.
And the consequences are serious. Some public servants have been reported bankrupt due to excessive borrowing, struggling to keep up with their repayments.
Regulations and solutions
There are already financial guidelines in place to prevent public servants from falling into deep debt.
Salary deductions for loan repayments are capped at 40%, except for housing and Hajj expenses. If followed properly, this rule could help prevent financial disasters.
To address the issue, department heads have now been instructed to refer struggling employees to the Credit Counseling and Debt Management Agency (AKPK).
This step aims to provide them with professional financial advice and strategies to manage their debt more effectively.
