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Your Pricey Haircut Hints at a Positive Trend

Aneeq Aiyman Roslan Jabatan-Ekonomi-PNB
Aneeq Aiyman Roslan PNB Economics Dept
Aneeq Aiyman

6 minit masa membaca

Since the post-COVID-19 period, many of you may have noticed a surge in trendy barbershops popping up across malls in Malaysia. In fact, chances are you’re a regular customer yourself. And yet, despite willingly forking out RM50 for a haircut, many of us still pause and think, “Gosh, that’s steep. Why are barbers charging so much these days?” But it’s not just haircuts. We’re also happily spending RM10–15 on lattes or strawberry matcha’s—sometimes daily. Have you ever stopped to wonder what this growing willingness to pay for these so-called “non-essential” services says about our economy—and the types of jobs we're creating?

To really think about the question I just posed, let’s rewind to our childhoods. Back then, career dreams—ours and our parents’—were usually cast in a familiar mould: doctor, lawyer, engineer, accountant. Why? Because those paths promised stable pay checks and long-term security. Now imagine your 11-year-old self-walking up to your parents and declaring, “Ayah, I want to be a barber,” or “Ummi, I dream of being a barista.”

Chances are, you’d have been enrolled in a two-hour lecture faster than you could say cappuccino. And to be fair, I used to share that same bias.

But not long ago, I found myself sitting in one of those very barbershops, getting a RM50 haircut. Curious, I asked the barber about his journey. He told me he had always wanted to cut hair—he started back in high school. Corporate life never appealed to him. When I asked whether the pay was good and if he saw room to grow, his answer surprised me.

Depending on the brand, he said, barbers can earn 10–20% commission per client—and even more for premium services like washing, colouring, or keratin treatments. Malaysians today demand more sophisticated styles and are more invested in how they look. Meeting those expectations takes real technical skill. A junior barber isn’t just handed a pair of scissors and let loose—complex treatments require training, certification, and experience. Many of the barbershops we see today even run their own academies, with structured programs to help barbers level up. Each new skill not only bumps up commissions but brings them closer to one day running their own shop.

Some might still question how sustainable this career is. But the fact that this ecosystem continues to thrive tells us there’s strong, persistent demand. And that demand exists because we—the consumers—have changed. We’ve become more particular. We don’t just want a haircut; we want a specific haircut. And we’re happy to pay RM50 for it—not because it’s overpriced, but because we value the craftsmanship. It’s not that barbers have become expensive—it’s that our lifestyles have.

And this shift isn’t unique to barbers. It’s happening across the board: with baristas in specialty cafés, bakers of sourdough and pastries, pet groomers, gym trainers, dermatologists and even wedding decorators. These “non-essential” services are in fact higher-order ones. Our growing willingness to pay for them is driving the creation of dignified, skilled jobs—roles that barely existed, at least at this scale, just a decade ago.

Climbing the Ladder: A Natural Step Toward a High-Income Nation

This shift in our spending habits and the jobs being created is actually a natural step in Malaysia’s journey toward becoming a high-income nation. According to the World Bank, high-income countries are defined as those with a gross national income (GNI) per capita above USD13,845 (as of 2022). Malaysia’s GNI per capita reached USD11,780 in 2023—just shy of that mark. But crossing the threshold isn’t only about the number; it’s about cultivating an economy that can sustain higher incomes, offer diverse job opportunities, and support upward mobility. In Australia, for instance, SEEK data shows that baristas earn an average of AUD65,000–70,000 per year—just slightly below auditors, who typically earn between AUD75,000–95,000. (That income gap is notably wider in Malaysia.)

Not everyone has the means or desire to enter corporate Malaysia, but many can and do find meaningful, skill-based careers in the service economy—whether through apprenticeships, technical training, or entrepreneurship. As long as there’s strong consumer demand for quality services, there will be sustainable incentives for people to learn, specialize, and grow.

And that, ultimately, is a crucial ingredient in building a high-income, knowledge-driven nation. That’s not to say you should spend carelessly, its just, not everything you spend is expensive for no reason. So the next time you get your RM50 haircut, just know that you’re not just paying for a haircut, but the quality, craftsmanship and the skillsets of the barber.