Deep in debt, yet flying first class

Malaysian influencers in the spotlight for allegedly misusing funds even as they flaunt lavish lifestyles

- Hazlin Hassan

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 to 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.