‘Does anyone know ways a new graduate can get bank loans?’: Malaysians debate debt, wages and the rising cost of living

MALAYSIA: Many Malaysians are aware of the concerns over wage stagnation, increasing cost of living, housing affordability challenges, and the growing gap between income classes (B40/M40/T20) and the real quality of life.

But these fears don’t always seem to match reality. Luxury cars still ply the streets, shopping malls are still bustling, and eating out is still a typical habit among Malaysians.

This raises the question: What is the real concern?

There are online conversations about the rampant use of loans and credit facilities that may be hiding financial constraints. On Reddit, one said, “In Malaysia, it is normal to buy cars on loans regardless of being poor or rich. So many people buy stuff they can’t afford.”

Another said: “I was about to activate Shopee SPL for the zero per cent interest offer, but I paid RM2,500 upfront instead. Using such facilities may make me dependent on them, leading to debt.

And if you don’t plan for these comforts financially, they might turn into a long-term burden, not a short-term solution. One online user neatly summed it up: “Low salary, high cost of living. That’s the result.”

It is even more concerning when youngsters are taking it online for loan advice.

“I’m finishing my degree soon and will have to move away for my job. Unfortunately, I do not have any money for deposit and have zero family help. Does anyone know ways a new graduate can get bank loans with low interest rates to pay deposit for rental?” One Redditor said.

Recent statistics confirm this fear. According to Business Today, personal loans caused 46 per cent of bankruptcy cases in Malaysia between 2021 and March 2026, with unsecured personal borrowing being the main cause of bankruptcy.

People often take out personal loans to consolidate debt, pay for emergencies, get married, renovate their homes, spend on their lifestyle, or even pay for their day-to-day living expenses if their income is low.

Meanwhile, over 70.2 per cent of Malaysia’s formal workforce earned RM5,000 a month or less. All these numbers combined show that while consumer expenditure may be apparent, many households may be piling on debt to preserve their lifestyle under growing cost-of-living constraints.

Quoted from the New Straits Times, an economics lecturer from Universiti Sains Islam Malaysia estimated that around 80% of Malaysians live from paycheck to paycheck, meaning most of their income is spent on necessities with little left for savings or emergencies.

So the question is not really what Malaysians are spending today, but if such expenditure is financially viable in the long term.