‘Debt is the worst poverty.’
– enslaved African renowned for his mathematical abilities back in 1700s, Thomas Fuller
As Hari Raya Aidilfitri approaches, the excitement of celebration fills the air everywhere.
Families eagerly anticipate reuniting, homes are adorned with festive decorations, and special dishes, including ‘kek lapis’ and cookies, are lovingly prepared. However, a recent report by ‘World of Buzz’ highlights a concerning trend: 70,000 Malaysian civil servants are taking out personal loans to fund their celebrations.
According to Datuk Seri Abdul Fattah Abdullah, president of the National Cooperative Movement of Malaysia Berhad (Angkasa), this figure represents a 10 per cent increase compared to non-festive months. The desire to celebrate Aidilfitri lavishly often drives individuals to spend beyond their means, leading to financial strain.
While the joy of celebrating a cherished cultural and religious festival is undeniable, the financial costs can be staggering. The expenses associated with Aidilfitri – purchasing new clothes, preparing special dishes, giving out duit raya (money packets), and travelling back to hometowns – quickly add up. For many Malaysian civil servants, particularly those in the lower- and middle-income brackets, these expenses become an additional burden.
To be fair, those working in the private sector and earning minimum wage also face similar challenges.
The ‘World of Buzz’ article further revealed that many civil servants lack emergency savings, making them more vulnerable to financial difficulties. When faced with the costs of festive preparations, these individuals often turn to personal loans as a short-term solution. Unfortunately, this temporary relief comes at a high price.
Festive seasons consistently see a spike in personal loan applications. In addition to holiday expenses, financial pressures also arise from other critical life events, such as the beginning of the school year or the admission of children to higher education institutions. For many, loans provide a quick fix to immediate financial demands, but they also open the door to long-term financial insecurity.
The consequences of borrowing money to fund celebrations extend far beyond the festive season. Between 2020 and 2024, personal loans were the primary reason for Malaysians going bankrupt, accounting for 49.11 per cent of insolvency cases. During this period, 3,800 Malaysian civil servants were declared bankrupt.
Bankruptcy has far-reaching consequences, affecting both personal and professional lives. For civil servants, financial instability can threaten job security and limit career advancement. Additionally, the emotional toll of debt can lead to stress, anxiety, and strained family relationships.
It is crucial to recognise that the pressure to celebrate extravagantly is often fueled by societal expectations.
Social media, with its curated glimpses into others’ seemingly perfect celebrations, intensifies the desire to keep up appearances. This pressure is especially acute during culturally significant holidays like Aidilfitri, where the emphasis on generosity and hospitality can lead to overspending.
Aidilfitri is a time for reflection, gratitude, and togetherness – values not dependent on material excess. There is a pressing need to shift societal attitudes towards more modest and meaningful celebrations. By embracing financial prudence, individuals can protect themselves from the long-term consequences of debt while still enjoying the essence of the festival.
Financial literacy plays a crucial role in fostering responsible spending habits. Budgeting in advance, distinguishing between needs and wants, and setting realistic spending limits can help individuals navigate festive expenses without resorting to loans. Civil servants and those in the private sector would benefit from targeted financial education programs that provide practical tools for managing expenses and building emergency savings.
Government agencies and financial institutions also have a role to play. Offering low-interest emergency funds, providing access to financial counselling, and promoting savings initiatives can empower individuals to make more informed financial decisions. Additionally, public campaigns that highlight the risks of excessive borrowing and encourage modest celebrations could help shift cultural norms.
Ultimately, the spirit of Aidilfitri lies in the values it represents – compassion, generosity and community.
Meaningful celebrations are not defined by how much we spend but by the quality of the time shared with loved ones. Simple and heartfelt gestures often leave the most lasting impressions.
Families can find creative ways to celebrate that do not strain their finances. Homemade gifts, potluck gatherings, and volunteering together as a family can foster a sense of connection and purpose. Emphasising the spiritual aspects of Aidilfitri, such as gratitude and giving back to those in need, reinforces the true meaning of the celebration.
As we prepare for Hari Raya Aidilfitri, prioritise financial well-being and mindful spending. Celebrating moderately not only safeguards our financial futures but also allows us to fully embrace the joy and meaning of the occasion. True celebration is found in the love we share, the kindness we extend, and the memories we create – not in the size of our budgets.
DISCLAIMER:
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at sarahhafizahchandra@gmail.com.
