Multi-level marketing (MLMs), freelancing, e-hailing driving, tutoring, content creation, and more—these side hustles are part of a global trend that has also captivated Malaysian youth.
As the gig economy continues to expand, one might wonder: Is this rise in side hustles driven primarily by financial necessity, or are there other factors at play? Moreover, what impact do side hustles have on youth development? Do they positively contribute to youth development, or do they pose distractions?
1. Additional Income Source: Side hustles offer young people an extra source of income, especially in high-cost cities like Kuala Lumpur and Penang. Many are turning to jobs like becoming Grab drivers or part-time influencers to earn extra money each month.
Example: Some Grab drivers in Malaysia reportedly earn MYR 13 per hour, which can be a significant boost for those just starting their careers. (source)
2. Pursuit of Personal Interests and Development: Side hustles provide an opportunity for young people to explore personal interests and develop their skills. Many young Malaysians have become influencers on social media, sharing their lifestyles, hobbies, and even earning income through brand collaborations and sponsorships.
Example: Malaysian influencer Jane Lau (@janechuck) began her journey as a blogger while still in school at the age of 14, before eventually establishing herself on social media and has since become a successful entrepreneur with her own beauty and fashion brands (Chuck’s and Motherchuckers). (source)
3. Skill Enhancement: Engaging in a side hustle often involves learning new skills that may not be part of their full-time job. These skills can be beneficial in future career opportunities, increasing their competitiveness in the job market.
Example: Many young people who run online stores are exposed to valuable skills in e-commerce, marketing, and customer service, which can be beneficial for future business ventures or career advancement.
The Downsides of Side Hustles:
1. Work-Life Balance: While side hustles can help supplement income, they can also lead to an imbalance between work and personal life. Long working hours can affect mental and physical health, leading to burnout.
Example: A forum netizen commented that working part-time as Grab drivers can potentially lead to overworking and affect their full-time job promotion. (Source: Post#57)
2. Sacrificing Long-Term Career Development: The high returns from side hustles may lead some young people to forgo further education or long-term career development, which can impact their future career trajectory.
Example: Many young people choose to become Grab drivers or influencers instead of pursuing higher education or professional careers, which may affect their long-term career prospects.
3. Lack of Income Stability: Income from side hustles can be unpredictable, making it difficult to rely on it as a stable financial source.
Example: Influencers have expressed concerns that when social media algorithms change or brands stop collaborating, their income can drop significantly. (Source)
Not an Option for Many Young People
Many young Malaysians face significant challenges in making ends meet due to monthly commitments like car installments, student loans, or rental fees, coupled with rising cost-of-living pressures. As a result, they often have no choice but to turn to side hustles to bridge the gap。
“I wish I could save more but can’t because food and groceries are so expensive. I often do not have enough at the end of the month” – Chloe, a marketing specialist (age 29). (Source)
“I don’t know how long I will drive Grab, but as long as I do, I must say that I am blessed to be able to pay off my financial commitments slowly and consistently.” – Vinothini Sandra on LinkedIn. (Source)
For some, it’s truly a matter of financial necessity. However, others may find that with proper self-discipline, they might not need side hustles. Easy access to credit has led to increased borrowings among younger generations, with credit card spending rising from RM138 billion in 2021 to RM177 billion in 2022. The availability of personal loans and buy-now-pay-later schemes further encourages borrowing without fully considering long-term consequences. (Source)
The Harsh Truth: The Hidden Failure Rate of Side Hustles
The reality is that while success stories about side hustles often grab the spotlight, countless failures are overlooked and go unreported. Many individuals resort to side hustles as a way to avoid taking responsibility for their lives, such as forgoing traditional education or stable career paths. Diving into these ventures without a clear sense of direction can lead to significant opportunity costs.
Some may spend their entire lives chasing fleeting opportunities, only to realise that without genuine commitment, achieving meaningful results is impossible. In their pursuit of short-term gains, they often miss out on more valuable opportunities, such as the stable income from a full-time job or the advantages of a good education. Ultimately, many find themselves in a position where they feel stuck, working harder without making significant progress in either their side hustles or their traditional career paths. (Source)
With the side hustle phenomenon growing among Malaysian youth, it’s crucial to balance short-term gains with long-term career development. What is your take on side hustles? Leave a comment below.
