KUALA LUMPUR - For years, Malaysian influencer-entrepreneur Vivy Yusof, 37, and her husband Fadzarudin Shah Anuar, 36, were a glamorous, photogenic power couple on Kuala Lumpur's social and Instagram scene - her decked out in her company's luxury dUCk scarves, which retail at up to RM400 (S$120) apiece, and him her business partner helping build their multimillion-ringgit clothing empire.
But on Dec 5, cracks appeared in the couple's seemingly opulent and perfect lifestyle - they were charged in court with criminal breach of trust.
They are accused of embezzling RM8 million from their now-defunct online retailer FashionValet, which had received RM47 million in investment funds from state asset managers Permodalan Nasional Berhad (PNB) and Khazanah Nasional Berhad in 2018, despite the company recording millions of ringgit in losses.
The two entities lost a total of RM43.9 million after selling their stakes in the fashion e-commerce platform in 2023 for RM3.1 million.
Public outcry ensued.
"What makes me sad is that the money from PNB and Khazanah is unlikely to be recovered. And of course they are going to check it off as an investment error. How could you give RM47 million to a loss-making company?" said TikToker financialfaiz on Dec 6.
"It's hard for us to get RM10,000 a month or RM100,000 a year but they (FashionValet) can get RM47 million," he added.
The authorities have started to take action against celebrity influencers and entrepreneurs, many of whom flaunt extravagant lifestyles on social media but face claims of financial misconduct such as misuse of public funds, unpaid debt and tax avoidance.
Moves to hold these celebrities to account have revealed troubling questions about the disconnect between these influencers' apparent wealth and their financial responsibility, and the unachievable lifestyle standards they set for their millions of online followers.
In recent weeks, the case of actress Rozita Che Wan, 51, popularly known as Che Ta, has grabbed headlines.
On Dec 10, government agency Majlis Amanah Rakyat (Mara) reportedly raided Che Ta's home in the Selangor suburb of Petaling Jaya, seizing items including a car, furniture, shoes and other household items, as part of a bankruptcy proceeding over her failure to repay a nearly RM1 million business loan that has been outstanding since 2017.
The news raised public ire, as Mara provides financial assistance to Malays in education and business under the country's affirmative action policy.
Mara chairman Asyraf Wajdi Dusuki has made repeated pleas for the actress to settle the debt.
"Mara will not hesitate to take legal action if you are deliberately not repaying (a loan) despite being capable of doing so, and on top of that, you are displaying your luxurious lifestyle on social media," Datuk Asyraf wrote in a Facebook post on Dec 10.
"Legal action is the last resort to ensure that every sen of the people's money can be recovered for the benefit of others," he added.
Some say fault also lies with public agencies themselves for not conducting proper checks on whom they lend money to.
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Economist Azrul Azwar Ahmad Tajudin told The Straits Times: "Misuse or even abuse of public funds happens because of the existence of enablers among senior politicians, top-ranking government officials and all those in the corridors of power."
He added that those in positions of power may sometimes lack the insight to carry out basic due diligence before approving loans. Instead, they support these influencers due to family ties, longstanding friendships, shared political views or simply because of their beauty or attractiveness.
Malaysia's tax authorities have been keeping a close eye on influencers. The Inland Revenue Board announced in May that each state has a unit that monitors influencers and entrepreneurs on TikTok and Instagram, and advised them to pay their taxes.
Another prominent personality has recently found herself in the spotlight for the wrong reasons - cosmetics mogul Hasmiza Othman, better known as Datuk Seri Vida.
On Nov 25, a total of 727 items belonging to her were reportedly seized to settle a RM1.06 million payment that she has allegedly owed a contractor since 2018 for renovating her factory in Shah Alam, Selangor.
These included a Kawai piano, several sofas, a PlayStation 5, gaming tables, three Toyota Vellfires, a BMW and more. The raid lasted some four hours.
Datuk Seri Vida was abroad at the time, and posted on her Instagram: "I take this matter seriously and will give my full attention to the issues raised. I have appointed a lawyer to advise and assist me in resolving this matter in the best possible way and in accordance with the law."
Che Ta commented on the post, saying: "May everything be made easy and smooth, Dato Seri."
Like Che Ta, Datuk Seri Vida, 53, has built a public persona around her flamboyant and lavish lifestyle.
She often posts about her extravagant trips abroad, with one TikTok post on Oct 15 showing her flying first class on Emirates airline to Dubai.
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These cases highlight a growing concern about the gap between the ostentatious wealth flaunted by celebrities on social media and the reality of their financial mismanagement.
Millions of Malaysians look to influencers and entrepreneurs like Che Ta and Vivy for inspiration. Che Ta has 5.1 million Instagram followers, while Datuk Seri Vida has 2.9 million. Vivy has 1.8 million followers on her account, which she has since made private.
"On my birthday, I did something I never thought I would ever do - I made my account private... This 'influencer' will be un-influencing," Vivy wrote on Instagram on Dec 18.
These recent scandals suggest that the rich and famous lifestyle promoted by influencers may be more illusion than reality - raising questions about the consequences of aspiring to a flashy lifestyle built on borrowed money.
Dr Joel Low, president of the Malaysian Society of Clinical Psychology, told ST: "The danger lies in the fact that there will be some people out there who truly believe in and want to embody these influencers' lifestyles. This would lead to many people resorting to bad debt to get what they want."
Psychosocial struggles such as depression and social anxiety can surface when people are not able to live up to such a lifestyle, Dr Low cautioned.
With the recent cases being exposed, many may also feel they have been misled by the influencers they followed.
"I think many people would feel betrayed that the people they may have looked up to were living a lie," he said.
Even fellow influencers have waded into the issue. Celebrity entrepreneur Aliff Syukri, who has 4.2 million followers on Instagram, was quoted as saying by the New Straits Times daily on Dec 11: "Many businessmen and influencers in our country live lavish lifestyles - flying business class, wearing designer clothes - yet they are deeply in debt. It's even sadder when some of them are still living in rented homes."
"Showing off while burdened with debt not only affects you but also the lenders who trusted you."
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