Survey Reveals Shopping Addiction as Top Reason for Young Malaysians’ Debt Problems

The Rise of Shopping Addiction: Young Malaysians Drowning in Debt

KUALA LUMPUR, June 18 — A recent survey conducted by the Credit Counselling and Management Agency (AKPK) has revealed that addiction to shopping is the leading cause of serious debt problems among younger Malaysians. The survey, which polled over a million individuals in financial distress, found that 38 per cent of respondents cited spending on unnecessary goods and services as the main reason for their debt woes.

According to Utusan Malaysia, nearly a third of those who admitted to impulse buying said they often make purchases without thinking. Additionally, 20 per cent of respondents stated that they shop as a way to cope with stress, while 19.5 per cent confessed to buying without considering the consequences.

The survey also highlighted that a significant number of those seeking help from AKPK are between the ages of 28 and 30, with credit cards and personal loans being the primary financial facilities used to accumulate debt. As these individuals progress in life, they often take on additional financial burdens such as home and car loans.

With household debt in Malaysia reaching RM1.53 trillion by the end of 2023, economists are warning of a potential debt crisis if corrective measures are not taken. Experts believe that debt levels exceeding 80 per cent of the country’s GDP could have a detrimental impact on economic growth.

One concerning trend identified in the survey is the prevalence of shopping addiction among young Malaysians, exacerbated by the rise of buy-now-pay-later schemes. AKPK’s corporate communication chief, Rohanizam Talib, noted that many youths are drawn to a lavish lifestyle fueled by a “YOLO” (you only live once) or “FOMO” (fear of missing out) mentality, leading them to overspend on credit.

The survey also revealed that housing loans account for the majority of household liabilities, making up over 60 per cent of the total debt accrued in 2023. Despite a 4.1 per cent increase in house prices, stagnant wage growth has left many Malaysians struggling to keep up with rising living costs.

As Malaysia’s economy continues to rely heavily on debt-financed consumption, experts are urging policymakers to address the root causes of financial distress among young people. Without intervention, the cycle of debt and overspending could have long-term consequences for the country’s economic stability.