Direct selling industry can reach RM20b sales this year, says minister

PUTRAJAYA, Dec 10 — The direct selling industry in Malaysia can reach sales of RM20 billion by year-end despite the current economic challenges, Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi said.

He said the industry hit sales of RM17.8 billion as of September 2020, surpassing the RM17 billion recorded last year and RM15.9 billion in 2018.

The minister said the direct selling industry in Malaysia recorded an encouraging growth to become a large industry that contributed to the country’s domestic economy.

“This will help the government’s efforts to revive the country’s domestic economic growth following the outbreak of the Covid-19 pandemic,” he said in a statement today.

He said Malaysia was ranked seventh globally and fourth in Asia-Pacific in terms of sales value in the World Federation of Direct Selling Associations’ (WFDSA) 2019 global direct selling sales report.

Nanta said his ministry was proud of the achievement and committed to support the growth of the industry by adapting to changing business trends and new trade norms in the country.

“The ministry’s priority is to help facilitate business activities in the country thus, ensuring business operations can be carried out more efficiently,” he said.

The minister said this included facilitating the process of renewing the direct selling license without neglecting the aspects of compliance with the rules and conditions enshrined under the Direct Sales and Anti-Pyramid Scheme Act 1993.

“The Act is being refined at the ministry level and even involves the cooperation of direct selling industry players and e-commerce service providers to find the best solution on the matter,” he said.

He said his ministry was also formulating the Direct Selling Industry Plan for the 12th Malaysia Plan, specifically to draft the industry’s strategic direction towards contributing to the country’s socio-economic empowerment.

“This is in line with the ability of the direct selling industry to contribute to the country’s economic strengthening efforts, apart from its importance in creating employment and business opportunities for the people,” he said. — Bernama