KUALA LUMPUR (Aug 17): Malaysia’s direct selling industry is on track to achieve the RM20 billion sales target this year, up RM2.1 billion from RM17.9 billion last year, said the Ministry of Domestic Trade and Consumer Affairs.

Deputy Minister Datuk Rosol Wahid said the industry had raked in a total of RM16.9 billion as of July, helped by increased direct selling activities during the movement control order (MCO) period from March 18.

“Based on a report by the Malaysian Direct Distribution Association (MDDA), direct sales in Malaysia grew between 20% and 30% throughout the MCO period,” Rosol said in Dewan Rakyat today.

“The industry recorded total sales of RM13.6 billion in 2017, RM15.9 billion in 2018 and RM17.9 billion in 2019,” he added, in response to a question by Pang Hok Liong (PH-Labis) who wanted to know the annual value generated by the country’s direct selling industry.

In reply to another question by Pang, Rosol said the ministry revoked the licences of five direct selling companies in 2012, three each in 2013 and 2014, one in 2015 and four in 2016. However, no direct sales licences were revoked between 2017 and 2020.

This shows that existing direct selling companies are complying with the industry guidelines issued by the ministry, he said.

“There’s a difference between MLM (multilevel marketing) and pyramid schemes. The former requires the company to be registered with us under the Direct Sales and Anti-Pyramid Scheme Act 1993. So far, no complaints have been lodged against companies registered under this act,” he noted.

The ministry said last Friday that it will review the act to ensure it is aligned with the current business model amid technological advancement.

Ministry secretary-general Datuk Seri Hasnol Zam Zam Ahmad said among the aspects to be looked at is the act’s relevance to the e-commerce business and digital age.

According to him, the ministry will establish a committee, consisting of the Direct Selling Association of Malaysia and MDDA, which will be given six months to conduct surveys, town hall sessions and gather public opinions.

He expects the draft of the revised framework to be presented in Parliament by the end of next year after receiving legislative input from the Attorney General’s Chambers.

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