A Necessity, Not A Luxury? How Malaysians Are Treating Daily Indulgences Like Essential Spending

ZUS Coffee recently announced the opening of its 1,000th outlet, a remarkable milestone for a proudly Malaysian brand. But what really stood out in the celebration wasn’t just the number — it was their tagline: “A necessity, not a luxury.”

While meant to describe affordable coffee, the phrase really does make you think about today’s economic climate. Across Malaysia, more people are treating lifestyle comforts such as coffee, bubble tea, and streaming subscriptions as everyday essentials, even as living costs rise and savings shrink. 

According to the Bank Negara Malaysia (BNM) Financial Capability and Inclusion Survey conducted in 2024, 61 percent of Malaysians would have difficulty to come up with RM1,000 in case of an emergency, yet spending on small luxuries continues to climb, especially among urban youth.

As we celebrate the success of local brands like ZUS, it’s also worth asking: when does an everyday comfort stop being a luxury and start becoming a financial habit we can’t afford to break?

The Line Between Luxury And Necessity

Once upon a time, luxuries would have been easy to spot. They are the nice indulgences that we enjoyed after all the bills have been paid for the month. Necessities were equally as straightforward: food, rent, transport, and the occasional mamak meal. But in today’s consumer culture, that line has become increasingly blurred.

The term affordability fatigue (or frugal fatigue) has been gaining some traction recently, especially among urban Malaysians. It describes how people are being mentally worn down by rising costs of living — eventually leading them to justify lifestyle expenditure as a necessity. This can be seen as a form of coping. A RM15 iced latte, RM25 lunch delivery, or RM20 streaming subscription may not seem extravagant on their own, but together, they reflect a shift in how we define “basic” comfort.

According to Bank Negara Malaysia’s 2024 Financial Capability & Inclusion Demand-Side Survey, fewer Malaysians are saving compared to previous years — only 58% reported trying to save for the future, down from 67% in 2021. Yet, everyday spending on food delivery, entertainment, and beverages continues to rise, particularly among millennials and Gen Zs. Many justify these expenses as “mental health necessities” or “daily motivators,” showing how emotional value can override financial logic.

Small luxuries such as artisanal coffee or the occasional video game purchase provide quick emotional payoffs amid economic uncertainty. Over time, these small treats can become habitual, becoming part of the baseline for one’s perceived comfort. Before you even realise it, these expenses have slipped into your monthly budgets — often never being questioned when you review your expenses.

Social media and brand marketing also plays a significant role. Lifestyle brands like coffee chains and delivery apps often position themselves as affordable essentials — marketing themselves as affordable essentials that customers deserve to get them through their busy days. This is a subtle but incredibly effective narrative. The result is that convenience and comfort are no longer indulgences, but expectations.

Everyone probably has a friend that likes to make jokes about how they can’t function without coffee. But if you read deeper into it — when comfort spending becomes automatic, it becomes a habit — and habits can completely reshape how we spend and perceive our spending.

What Drives This Phenomenon

So why are Malaysians blurring the line between needs and wants? There are a few key factors in play.

First, convenience has become currency. The COVID-19 outbreak only served to accelerate the implementation of digital payments systems. Today, delivery apps, e-wallets, and QR payments are everywhere, making it much easier to spend — but harder to feel the consequences of our own spending. The “tap-and-go” culture turns casual spending into a seamless, almost invisible habit.

Second, many brands are marketing their products as self-care. They have mastered the art of emotional reassurances, telling customers that they “deserve this” or “you deserve a treat”. In a stressful economy, that message hits home far too often. Small indulgences become justified as mental health boosters — a cappuccino for motivation.

Third, social media fuels comparison. When your feed is filled with café flatlay images and lifestyle reels, it’s easy to equate participation with belonging. Buying becomes a way to fit in, not just a transaction.

Finally, accessibility has redefined luxury. Local brands like ZUS Coffee or Inside Scoop make “premium” experiences feel attainable. Because if everyone can have it, it must be a need, right?

In short, lifestyle spending has evolved from occasional indulgence to emotional necessity — a quiet cultural shift that’s changing how Malaysians live, spend, and save.

What Could Go Wrong?

It’s easy to brush off a daily coffee or delivery meal as harmless — but when every “little treat” becomes a habit, the costs quietly stack up.

The most obvious risk is leaking cash flow. Spending RM10–RM15 on a daily coffee adds up to nearly RM300–RM450 a month, or RM3,600 – RM5,400 a year — money that could have gone toward savings, insurance or investments.

Then there’s the illusion of affordability. With digital payments and seamless transactions, overspending feels painless. That “buy now, worry later” mindset can lead to debt creep, especially when lifestyle expenses are mistaken for essentials.

Finally, there’s a psychological trap. The more we normalise small luxuries, the harder it becomes to cut back when times get tough. What once felt optional now feels like deprivation when removed — a cycle that reinforces dependency on consumption for comfort.

In short: The danger isn’t the occasional treat — it’s when our small comfort spending quietly turns into perceived “needs”, leaving us financially stretched and emotionally bound to spending.

So What Do We Do About “Necessary Luxuries”?

ZUS Coffee’s tagline — “A necessity, not a luxury” — captures more than just a cup of coffee. It reflects a larger trend in Malaysia, where everyday indulgences are quietly becoming perceived essentials. 

The takeaway is simple: enjoy life’s little luxuries, but with awareness and intention. Track spending, set aside emergency savings, and distinguish between what truly sustains you versus what simply satisfies a momentary craving. In an economy where costs keep rising, making thoughtful choices about what counts as a necessity can mean the difference between financial stress and financial resilience.