PETALING JAYA: The increasing influence of FOMO (fear of missing out) and YOLO (you only live once) is driving many Malaysians as young as 20 into debt at an alarming rate, according to an expert.
Consumer financial expert Prof Dr Mohamad Fazli Sabri, dean of the Faculty of Human Ecology at Universiti Putra Malaysia, told New Straits Times that the desire to own the latest gadgets, follow fashion trends and maintain a certain lifestyle is leading youths to take on loans they cannot afford, placing them in significant financial trouble.
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“Youths borrowing to buy necessities is a serious issue as it indicates a failure to manage their finances.
“We should not borrow for survival,” he was quoted as saying.
He highlighted the issue by citing examples of individuals compelled to take out loans for basic necessities like rent, car payments, and groceries.
“This should not happen and is very worrying,“ he told the English daily.
His remarks followed a statement from Finance Minister II Datuk Seri Amir Hamzah Azizan, who revealed that the Credit Counselling and Debt Management Agency reported 53,000 individuals under 30 are facing nearly RM1.9 billion in total debt.
He urged individuals struggling with debt to distinguish between wants and needs, pointing out that financial mismanagement among youth is often worsened by peer pressure and social comparison.
“Many individuals are willing to borrow to buy new mobile phones or take out personal loans.
“They are influenced by FOMO and YOLO, following trends without considering their financial realities.
“They often associate with wealthier peers and feel pressured to keep up. As a result, they end up in debt.
“Today, obtaining a loan is easier than ever; you don’t need to visit a bank or rely solely on traditional financial institutions. Some students fall into debt through services like ‘buy now, pay later’ schemes,“ he was quoted as saying.
He advised consumers to rethink their spending habits and carefully assess their ability to repay any loans before committing.
