Technology leading to more young Malaysian millionaires

THE existence of online shopping platforms as well as rapid online currency trading worldwide are among the reasons for the rise of young millionaires in Malaysia, economists said.

Responding to a recent report where 35 people below the age of 30 had declared their income as being above RM1 million in 2022, experts said this latest phenomenon could be positive for the country in the future.

Prof Barjoyai Bardai told The Vibes this has encouraged more youth to be brave in exploring opportunities but stressed the importance of “self control”.

“I happen to know of a case where a friend of my children took his entire family to Europe for a month-long holiday where he spent more than a million ringgit.

“He knows how to make money but ended up spending a million in a month. I think the youth have to know the limit. They need to be wise when it comes to spending,” said Barjoyai.

Barjoyai said it is not surprising as the world has evolved from traditional business to modern-day business.

“Young people are brave and are willing to try new things. All over the world, there are now many young millionaires under the age of 30. Many of them are involved in currency trading, especially cryptocurrency.

“In Malaysia, the same interest is here. Many are now joining currency trading and while some may not or have yet to become millionaires, many have made hundreds of thousands of ringgit a month,” said Barjoyai.

He added that this is a positive sign for the nation and could help develop the country’s economy in the future.

“We should encourage the young to make money on their own and be successful but we also need to teach them on how to spend. Be smart.

“They don’t have to spend a million a month although they can get the same amount in the coming months,” he said.

It has been reported that the number of young millionaires in Malaysia are on the rise, with a 75% increase in millionaires aged 30 and under, recorded in 2022.

Figures from the Inland Revenue Board (IRB) show that 35 people aged under 30 had that year declared their income as being above RM1 million.

This marked a sharp increase from 20 people the previous year.

The IRB said the tax body has recorded a steady number of young millionaires, with at least 20 young people declaring an income of at least RM1 million each year since 2018.

It also said that over 94% of taxpayers under the age of 30 who earn over RM1 million have not recorded any outstanding tax balances in the years between 2018 and 2021.

Online platforms helping youth become rich

Meanwhile, Putra Business School Master of Business Administration (MBA) programme director Ahmed Razman Abdul Latiff said the rise of many online shopping platforms have contributed to the phenomenon.

He also said that many youngsters have been successful in the food and beverage (F&B) business.

“Our world is rapidly moving. Technology is changing on a daily basis. Digitalisation is part of our daily struggle. The internet is everywhere and 99% of us have our own smartphones.

“The youth are savvy in terms of maximising the use of technology. Their creativity is top notch.

“Therefore, they know how to make money out of technology. They make money on F&B, they make money on online business, currency trading and so on,” Ahmed said.

Razman hoped many could be successful in the future for the sake of the country’s development.

“Of course it is positive. We want them to make their own money. The more the merrier. But yes, they need to be wise in terms of spending,” he added. – May 1, 2024.