Why Do the Rich Keep Getting Richer While Some Malaysians Struggle to Get By?

I got this question on Tellonym today:

“Why’s it seems like the rich only get richer while homeless peeps can’t even catch a break?”

And you know what? It’s a question that used to bug me. As a working mom trying to juggle career, kids, and, adult-ing, you know; life, it’s hard not to look around and wondered why it seems like the rich are just playing🎮 life on easy mode while others are stuck in a never-ending struggle? It’s like a game where some people have cheat codes (motherlode motherlode) or maybe luck? and others are stuck on the toughest level with no extra lives.💔

It’s gonna be a tough topic and loonggggg write up✍🏻, I'm pouring it all out. So, let’s dig into this with a focus🔍 on our very own Malaysian🇲🇾 society and talk about why the rich seem to keep stacking up cash, while others, like those struggling on the streets, can’t even catch a break. 

And trust me, I’m keeping it real - no boring economics lecture here, just some straight-up truths. Yes, life is tough, but hey, I’ve learned a thing or two along the way, will share it with you. Keep on reading sampai habis.

Table of contents

1. The Malaysian System: It’s All About Who You Know and What You’ve Got 🧭
2. The Money-Making Machine: Wealth Breeds More Wealth 💸
3. The Networking Advantage: The Power of "Who You Know" 📇🎯
4. Jadi, How the Rich Get Richer, again?💵
5. The Other Side of the Coin🪙: Why Some Malaysians Can’t Catch a Break 
6. Education: The Great Equalizer? Not So Fast 🎓
7. The Housing Crisis: No Place to Call Home 🏠
8. Again, Why The Pour Struggle?
9. So, What Can We Do About It? Let’s Get Real About Solutions🎯
10. The Malaysian Dream: More Than Just Ringgits and Sen 💫

The Malaysian System: It’s All About Who You Know and What You’ve Got 🧭

Let’s start with the big one - why do the rich💰 keep getting richer? It’s not just because they work harder (though many do); it’s because the system is designed in their favor. Here’s the thing eh, the whole system is set up in a way that makes it easier for those who already have money to make even more. It’s like being born👶🏻 into a family that already owns a ladder🪜 in a world where everyone else is trying to climb walls with their bare hands. The more money you have, the more opportunities you get. It’s easier to invest, easier to take risks, and, most importantly, easier to bounce back from failures. 

Imagine the economy as a giant game of Monopoly. The rich players already own most of the property, so every time someone else lands on their space, they get richer. The rest of us are just trying not to go bankrupt. Got it? The "game"🕹️ is rigged from the start.

The Money-Making Machine: Wealth Breeds More Wealth💸

In Malaysia, the rich have access to resources that most people can only dream of. When you’ve got money, it’s easier to make more of it. This isn’t some secret sauce, but rather basic economics. The rich have access to investments that can grow📈 their wealth. Think about it; property investment, stock portfolios, real estate, businesses🈺 that run themselves. These investments, when managed well, generate passive income, meaning they’re making money while they sleep.

When you’ve got money, you can make it grow, like a nasi lemak business that keeps expanding its menu because the customers just keep coming back.

For the rich, making more money is just a matter of investing what they already have. Contoh lagi, macam planting durian trees🌱; they might take a while to grow, but once they do, they’ll keep producing fruit for years. Meanwhile, those who are struggling are stuck working multiple jobs just to pay the bills, with nothing left over to invest in their future.

Another example, you see this in the property market🏢. Those who can afford to buy homes or commercial properties in prime locations see their assets appreciate over time. They might also be able to leverage their assets to get better loans, which they can then invest in more money-making💲 ventures. It’s like playing with cheat codes in a video game; the rich just keep winning.

The Networking Advantage: The Power of "Who You Know" 📇🎯

But it’s not just about money eh. Ever heard the saying, “It’s not what you know, but who you know”? Yeah, there’s truth to that. It's about connections, access to information, and even the mindset that comes with knowing you have a safety net. 

Ever noticed how some people seem to have doors magically open for them? (pakai cable) That’s because in our society, networking is everything. Having the right connections can open doors that are closed to others. The wealthy often move in circles where opportunities are plentiful. Whether it’s getting insider information on a hot new stock, landing a job or being tipped off about a lucrative business deal💼, securing loan, knowing the right people can fast track your success. These networks are gold mines.

And here’s where it gets even more interesting; these networks often reinforce themselves. Wealthy families tend to send their children to prestigious schools, where they meet other children from wealthy families and they hang out in circles where opportunities just seem to fall into their laps. 

This creates a cycle of privilege that’s hard to break into if you’re not already in the loop. It’s like being part of an exclusive club that keeps handing out VIP passes🎫  to its members. For the rest of us, networking might mean trying to connect on LinkedIn or attending an awkward office potluck party or even networking event persatuan entah apa. But for the wealthy, it’s about golf games⛳ with CEOs, school fundraisers that double as power lunches, and friendships that go back generations.

Jadi, How the Rich Get Richer, again?💵

1. Investments. Rich people often have money to invest in things like stocks, businesses, or real estate. These investments can grow over time, making them even richer.
2. Compounding Interest. This is like money making money. Even small amounts can grow into large sums over time, especially for those who already have money.
3. Inherited Wealth.👛 Sometimes, people become rich simply because they inherit money or property from family.
4. Economic Systems. Our economic system often favors those who already have wealth. Tax laws, government policies, and even the way our financial markets work can benefit the rich more than the rest of us. It's like running a race where some people get a head start.
5. Power and Influence. Who Writes the Rules? Orang have have (read: Rich people) and corporations have more power to shape policies and laws to their advantage. They can lobby politicians, 📰control media narratives, and influence public opinion. It's like having a louder voice in a crowded room. Pernah tengok The Hunger Games? 🏹
6. Limited Competition. In many industries, just a few big companies control the market. This means less competition and higher prices for consumers. It's like a monopoly or jutaria, but legal. And guess who benefits? You guessed it, the big corporations and their wealthy owners.
7. Exploitation of Workers👷🏻‍♂️. To increase profits, some businesses pay their workers low wages and provide poor working conditions. Sometimes an employee needs to do multiple jobs until they burn out just to "learn and gain experience," #iykyk. If they report this to HR, they are told, "If you complain too much, resign then go work somewhere else," This is a sad reality😭, but it is happening. This widens the gap between the rich and the poor. Last year, there was a case of a company that didn't allow their employee to take leave to care for his wife during her confinement period. The wife ended up dying. Imagine if that happened to us? 

The Other Side of the Coin🪙: Why Some Malaysians Can’t Catch a Break 

Now, let’s flip the coin. If the rich are getting richer, why are so many Malaysians still struggling? Why do we see so many people, including the homeless, caught in a cycle of poverty that seems impossible to escape?

The Poverty Trap: The Hidden Costs of Being Broke 🛑

Here’s something that might surprise you; being poor is expensive. Yes, you read that right. When you’re broke, everything costs more. 

Can’t afford to buy groceries in bulk? You’ll pay more per unit. 

Living in a cheaper but remote area? You’ll spend more on transportation.🛻 

And don’t get me started on the cost of borrowing money;

If you don’t have collaterals to back a loan, you’ll be hit with higher interest rates.

This is what economists call the “poverty premium.” It’s a harsh reality😔 that affects many Malaysians, especially those who are already struggling. When you’re poor, every ringgit you spend has to stretch further, but it often doesn’t go as far as it would for someone with more financial security.

Education: The Great Equalizer? Not So Fast 🎓

Education is often touted as the great equalizer. The key to breaking the cycle of poverty; supposed to be the key🔑 to a better life. But in Malaysia, there’s a stark difference between the education available to the wealthy and the education👩🏻‍🏫 available to everyone else. But let’s be real sis, there’s a huge gap between the quality of education in urban areas versus rural ones, and between private and public schools. If you’ve got the money, you can send your kids to the best schools🍎, get them private tutors, and even send them abroad. But for many, especially in rural areas, are often underfunded and overcrowded. Those opportunities and resources just aren’t there.

For many low-income families, education isn’t just about the cost of school fees. It’s about the opportunity cost. When a family is struggling to make ends meet, just to put food🍚 on the table? Education takes a backseat. Kids might have to drop out to help with the family business or take on jobs to support their siblings. It’s a cycle♻️ that keeps repeating itself, generation after generation.

The Housing Crisis: No Place to Call Home 🏠

Let’s talk about housing. In cities like Kuala Lumpur and Penang even Johor Bahru, the cost of living is skyrocketing. For many, owning a home is a distant dream, and even renting is becoming increasingly unaffordable. This has led to a rise in the number of people living in precarious conditions, including the homeless.

When housing is unaffordable, it’s not just about the lack of a roof over one’s head—it’s about the lack of stability. Without stable housing, it’s difficult to hold down a job, access healthcare, or even get an education📚. It’s a vicious cycle that traps people in poverty and keeps them there.

Again, Why The Pour Struggle?

1. Rising Costs, Stagnant Wages. The cost of housing, food, and education is increasing faster than wages. Many Malaysians work long hours for low pay, and job security is often poor. This makes it hard to save money or build a better life. This squeezes the poor and makes it harder to survive.
2. Lack of Opportunities. Not everyone has the same chances to get a good education, find a decent job, or own a home. Factors like where you grow up, your family background👨🏻‍👩🏻‍👦🏻‍👦🏻, and even your gender can significantly impact your life chances. It's like being dealt a bad hand in a game of life.
3. Systemic Barriers. Discrimination, lack of access to quality public services like healthcare and education, and a weak social safety net can trap people in poverty. including programs like welfare and food assistance, can help people in poverty. When these programs are inadequate, it can be harder for people to escape poverty. It's like facing constant obstacles on a journey.
4. The Survival Mode Mindset. When you’re struggling just to get by, your brain🧠 is in survival mode. You’re focused on the next meal, the next bill, and the next crisis. Planning for the future? Investing? That’s luxury talk. For someone living paycheck to paycheck or even worse, on the streets, it’s hard to think about next week, let alone five years from now. When you’re in survival mode, you’re forced to make short-term decisions that can trap you in a cycle of poverty. It’s like being stuck in quicksand, the more you struggle, the deeper you sink. You end up in a cycle where it’s impossible to think about building wealth when you’re just trying to survive.

So, What Can We Do About It? Let’s Get Real About Solutions🎯

Okay, we’ve painted a pretty grim picture, but that doesn’t mean we’re powerless to change things. So, what’s the solution? Honestly, it’s complicated, and there’s no one-size-fits-all answer. I didn't favour any political party, but bluntly said; if you become a leader, you will understand the pressure and the fact that you can't satisfy or please everyone. There will always be someone (or group) who is unhappy. But here are a few ideas that could help level the playing field in Malaysia:

1. Community Empowerment🛖. Let's start at the grassroots level. The most important thing is knowledge. We need more community-based initiatives that provide financial literacy, mentorship, and support for small businesses. This can help people make better decisions with the money they do have. Imagine a network of "kampungpreneurs" who are equipped with the knowledge and tools🖥️ to succeed. This could be a game-changer, similar to our government's Industri Desa initiative. If you don't want to wait for government subsidies or help, you can form a pact with the devil partnership with your neighbors. 
2. Financial Literacy, again. When it comes to teaching your kids about money, budgeting, investing and building credit etc. Don't wait for the teacher to do it eh. You're the parent, so you're the one who needs to teach them. It's not as scary or susah macam rocket science🚀 as it sounds, I promise. Understanding money is like having a superpower. So do it now!
3. Invest in Education. This one’s a no-brainer, but it’s still worth saying. We need to bridge the education gap by providing more resources to underfunded schools and offering scholarships to those who can’t afford higher education. After all, a well-educated population is a wealthy population.
4. Affordable Housing🏘️. It’s time to address the housing crisis head-on. The cost of living in cities like KL, JB and Penang is skyrocketing. We need more affordable housing options so that everyone has a roof over their head.  and we need to ensure that these homes are safe, secure, and accessible. This isn’t just about charity, housing is a basic human right, not a luxury. It’s about creating stable communities where people can thrive.
5. Fairer Tax Policies. Sensitive, cause I pay tax too, Yep, we’re going there. Let’s make sure everyone is paying their fair share, especially the wealthy. By implementing fairer tax policies, we can generate revenue💲 that can be reinvested into programs that support the underprivileged.
6. Universal Healthcare. Healthcare👩🏻‍⚕️ should be accessible to all Malaysians, regardless of income. When people are healthy, they can work, learn, and contribute to society. Plus, it’s just the right thing to do.

The Malaysian Dream: More Than Just Ringgits and Sen 💫

At the end of the day, wealth isn’t the only measure of success. Malaysia is a country rich in culture, family values, and a sense of community. Yes, we need to address the economic disparities that exist, but let’s not lose sight of what really matters - creating a society where everyone has the opportunity to live a fulfilling life.

So, the next time you find yourself wondering why the rich keep getting richer while others struggle, remember this, the system may be tilted, but change is possible. It starts with us - by supporting each other, advocating for fairer policies, and making sure that everyone, regardless of their starting point, has a fair shot at success.🏆

Thanks for sticking with me through this deep diving sesh into one of Malaysia’s most pressing issues. I’d love to hear your thoughts, so feel free to drop a comment or reach out on social media. Let’s keep the conversation going, because together, we can make a difference. 💪✨

P/S: Sebenarnya disregard apa pun tentang rezeki ni, pertama sekali: Bersyukur. Kedua: Usaha, doa dan tawakkal. Ketiga: Jangan bandingkan diri kita dengan orang lain. Rezeki, it's already written. Bukan company yang bayar gaji, Tuhan yang bagi rezeki, okay? Dah tua-tua ni, sama-samalah kita beringat. ٱلْحَمْدُ لِلَّٰهِ

Read more on stock investing here: Malaysia Stock Investment 101: Your Chill Guide to Making Money Sleep😴