Malaysia Direct Seller I 2022 I MDTCA

COVER DATUK AZMAN MOHD YUSOF, SECRETARY GENERAL OF THE

COVER STORY

Fuels Competitive Direct Selling Industry Within A Digital Economy

Datuk Azman Mohd Yusof, Secretary General of the (MDTCA) shares his perspectives on the direction of the direct selling industry in Malaysia amidst a digital economy.

MDTCA FUELS COMPETITIVE DIRECT SELLING INDUSTRY WITHIN A DIGITAL ECONOMY

Datuk Azman Mohd Yusof, Secretary General of the Ministry of Domestic shares his perspectives on the direction of the direct selling industry in Malaysia amidst a digital economy.

the direct selling industry has experienced positive growth patterns amid the COVID-19 pandemic over the last two years. Malaysia’s direct selling industry has been ranked among the top 10 globally –ranking sixth globally and fourth in Asia Pacific in terms of sales value according to 2021 Global Direct Selling Retail Sales Report produced by the World Federation of Direct Selling Associations (WFDSA).

Considering the excellent growth potential and economic contributions of the direct selling industry for Malaysia, MDTCA has set its eye on this industry as one of the key economic drivers that has to be further fuelled to harness its potential.

“The direction of the government for the direct selling industry is to reenergise, reactivate and rejuvenate the industry. Therefore, we are reviewing the policies and Acts as well as making allocations for training to drive the industry,” explains Datuk Azman. He anticipates collaboration between MDTCA, the Direct Selling Association of Malaysia (DSAM plan and drive a more robust direct selling industry in the country.

DIRECT SELLING INDUSTRY’S PROMISING OUTLOOK

Speaking about the industry’s promising outlook, Datuk Azman shared that the sales turnover for the direct selling industry in 2020 was recorded as RM25.7 billion, an increase of 19% from the RM21.5 billion recorded in 2019. He added that as of end-May 2022, sales turnover of the industry stands at RM11.4 billion and is projected to reach RM26.5 billion.

He reveals that the sales turnover figure contributes to the national economy under distributive trade services, making it one of the main contributors to the economy.

“The total sales figures of 2021 for the direct selling industry is expected to contribute positively to our nation’s economy despite the country being hit hard by the COVID-19 pandemic. MDTCA is confident that this industry will continue to drive the revival and

revitalisation of the Malaysian economy,” stresses Datuk Azman. MDTCA TO WORK CLOSELY WITH DSAM AND INDUSTRY STAKEHOLDERS

“MDTCA is glad to work with DSAM and industry stakeholders to regulate the industry and we look forward to implementing enhancements to the sector considering its significant role in the Malaysian economy,” he adds.

MDTCA is joining forces with DSAM as well as industry players through strategic partnerships, to enhance the competitiveness of innovative and sustainable businesses within the direct selling industry.

“Cooperation between the government and the two associations, DSAM and industry stakeholders is important for the ease of doing business, and to ensure that industry players always comply with Act 1993. DSAM and industry stakeholders need to play the role

of advisors and facilitator to ensure that the direct selling industry remains relevant as an attractive business segment to venture into, as well as to generate high income,” Datuk Azman elaborates.

ISSUANCE OF MORE LICENSES

Datuk Azman says that in growing the direct selling industry, MDTCA under the Franchise Development and Direct Selling Division has processed and issued about 36 renewals of direct selling licenses with 15 new licenses issued for the period between January 2022 up to end-May 2022. He clarifies that a total of 395 companies are currently actively operating their businesses in domestic and international markets with a valid licenses under the Direct Sales and Anti Pyramid Scheme Act 1993 (Act 500).

According to Datuk Azman, MDTCA issued 30 new direct selling licenses in 2021 and a total

“The direction of the government for the direct selling industry is to reenergise, reactivate and rejuvenate the industry. Therefore, we are now in the midst of reviewing the policies and Acts as well as making allocations for training to drive the industry.”

of 60 new licenses are expexted to be issued in 2022 and 2023.

MDTCA is constantly encouraging this industry to establish a strong market segment with ease of doing business, as it will help to grow the economy and provide job opportunities amid post-pandemic growth. This, in turn, will attract more members while also increasing sales in leaps and bounds.

DIRECT SELLING BLUEPRINT

In 2013, MDTCA introduced the Direct Selling Blueprint. When discussing about the momentum achieved by the blueprint since its inception, Datuk Azman explains, “I am happy to say that the blueprint has achieved its goals. Every consecutive year throughout its course, the Malaysian direct selling industry sales exceeded targeted sales figures.”

“For instance, in 2019 alone, the Malaysian direct selling industry achieved sales of RM21.54 billion,

exceeding the targeted RM18.5 billion. In 2018, the industry achieved sales of RM17.93 billion, exceeding the targeted RM17 billion,” he adds.

This achievement has added positive value to the Malaysian economy as well as introduced of innovative products in the market through the direct sales platform.

The latest blueprint for 2021 to 2025 has been formulated to ensure the development of a planned and structured direct selling industry; and to enhance the capacity and competitiveness of the industry in the short and long term, by taking into account the digital economy, innovative products and good business practices as the main focus areas.

DIRECT SELLING INDUSTRY AND DIGITALISATION

Datuk Azman stresses that the direct selling industry has to actively participate in the digital economy with innovative products and good business practices in order to keep up with the pace of digitalisation in the business world. This includes jumping on the band-wagon of ongoing trends of online transactions and e-Commerce activities.

In considering the unethical practices taking place on e-commerce platforms where sales of direct selling products are concerned, he adds that MDTCA would like to propose that the agreement between the company and their agents be effectively streamlined. This is to safeguard and ensure that the products and services offered to customers remain exclusive on any business platform. In addition to that, an end-to-end system would fare very well for direct selling businesses.

“The direct selling industry is unique because of the exclusivity rights granted to each company in marketing their products. In this regard, with the existence of online transactions and e-Commerce platforms becoming more rampant

nowadays, there needs to be regulatory governance,” Datuk Azman says.

He continues that digitalisation remains one of the key pillars of the blueprint. One of the digitalisation initiatives under the blueprint is to fully utilise the online BLESS system, while also forging strategic partnerships between government and industry players to develop and promote digital business operations.

“Under the Shared Prosperity Vision 2030, Malaysia is moving towards the process of integrating digital technology in all areas of the economy. The digitalisation element has been addressed in the blueprint which was launched in April 2022, therefore all parties need to be committed towards creating inclusivity and quality economic growth, through creative and hightech initiatives within the industry,” highlights Datuk Azman.

MOVING FORWARD

Datuk Azman points out that in order to establish a more robust industry landscape, direct sellers and consumers, must ensure that the interests and rights of licensed traders as well as consumers are protected.

“As long as they comply with existing regulations and laws, the Ministry will continue to support the direct selling industry,” he stresses.

He advises industry players to produce high quality products and services at affordable or reasonable prices, and customise products and services for the local and international markets, as this is important for the industry to remain sustainable and relevant.

“On behalf of MDTCA, I wish to see the direct selling industry continue to excel, be viable, benefit people and contribute to a better economy in the future. Finally, I wish DSAM and industry players all the best.

LAUNCH OF DIRECT SELLING INDUSTRY BLUE PRINT

in May 2022, Datuk Rosol Wahid, Deputy Minister of Domestic Trade and Consumer Affairs officiated the launch of Direct Selling Blue Print at the Malaysia Direct Selling Industry Day Programme. The roadmap is the ministry’s blueprint on the industry’s future direction, and was introduced for the benefit of all industry players, aimed at creating a more conducive and dynamic business ecosystem that develop both domestically and globally.

During the launch Datuk Rosol said that the common perception about direct selling companies revolved around pyramid schemes

or get-rich-quick schemes, and this needed to be changed. He added that the Ministry will continue to focus on increasing the number of direct selling companies with valid licences. The blueprint will also see the Ministry enhancing various initiatives by raising awareness about the potential of direct selling as a source of income and economic generator. With this, the Ministry hopes to drive and arrange strategies to implement a more holistic development for the industry.

The Malaysian Direct Selling Industry Day Programme is a new initiative to expand the industry and to raise awareness

about legal direct selling activities in Malaysia. The programme involved 22 direct selling companies from Direct Selling Association of Malaysia (DSAM) and Malaysian Direct Distribution Association which promoted potential business opportunities to the public. This event also featured an exhibition at Berjaya Times Square in Kuala Lumpur, as well as stage activities related to the direct selling business industry. The exhibition received encouraging response with visitors from all over the country witnessing the extensive business opportunities available within the direct selling industry.

DSAM’S CEO LUNCHEON PRESENTS HARI RAYA CHEER

MORE THAN 100 GUESTS GRACED THE FESTIVE LUNCHEON WHICH FEATURED AUTHENTIC MALAYSIAN CUISINE COUPLED WITH GREAT COMPANY AND AN INTERESTING LINE-UP OF SPEAKERS.

dSAM celebrated Hari Raya Aidilfitri on a joyous note at The Saujana Hotel Kuala Lumpur on 8 June 2022. The event welcomed DSAM’s members, business partners and guests who were treated to a wide spread of festive cuisine. The session began with a welcome speech from Datuk Tan Chong Guan, President of DSAM who expressed his excitement and thankfulness in having the opportunity to host the luncheon after a long hiatus due to the pandemic.

DIGITAL TRANSFORMATION USING ARTIFICIAL INTELLIGENCE BY STEPHEN HO, CO-FOUNDER & CHIEF STRATEGY OFFICER OF DBIX GROUP

Stephen Ho presented on the topic entitled “Digital Transformation using Artificial Intelligence” addressing the challenges faced today by businesses including the direct selling industry, the role of artificial intelligence (AI) and how direct selling companies can use AI to drive their businesses. He expounded on digitalising processes and managing business operations using technology to

derive important data that can enhance the delivery of business results and to progress further.

Stephen shared that AI tools were integral in speeding up the accurate and fast collection and utilisation of data. He expressed that IR4.0 largely revolves automation and utilisation of data in decision-making for businesses. Stephen adds that another important driver of making sense of data in decision-making is machine learning.

He concluded by advising that there is no ‘best AI in the world’, just the right AI for every business which involves how business owners

leverage on it to drive business results.

KOREA, YOUR NEXT DESTINATION BY YANG KYUNG SOO, MANAGING DIRECTOR OF KOREAN TOURISM ORGANISATION (KTO) IN MALAYSIA Yang expressed his pleasure in joining DSAM and its members for this special luncheon. He thanked DSAM President for hosting KTO at this luncheon. Yang spoke about KTO’s active role in driving tourism in Malaysia and in attracting Malaysians to visit Korea and savour its cultural heritage as well as its impeccable attractions. He shared that Korea is well on its way to full normalcy after the pandemic and is beginning to welcome tourists into the country.

The session saw an exciting and mesmerising presentation on the attractions in Korea by a member of the marketing team of KTO, Hiza Idris the speaker pointed out

to guests the most popular tourist spots, cultural villages, modern architecture and its scenic regional festivals as well as sights. She helped DSAM members and guests with tips on the best world-class meeting venues and top cities in South Korea that have the potential for direct selling companies to host their incentive trips.

ENCIK WAN FROM THE MINISTRY OF DOMESTIC TRADE AND CONSUMER AFFAIRS

Twenty-five officers from the Ministry of Domestic Trade and Consumer Affairs (MDTCA) graced the event led by En Wan from Bahagian Franchise dan Jualan Langsung. He expressed his gratitude to DSAM for hosting him and his team, and encouraged DSAM to continue to work closely with MDTCA to regulate the direct selling industry in order to ensure ethical business practices.

DSAM COLLABORATES WITH MRCA TO SUPPORT #WHITEFLAG INITIATIVE

direct Selling Association of Malaysia (DSAM) collaborated with the Malaysian Retail Chain Association (MRCA) in support of the #WhiteFlag initiative, to provide basic necessities to needy members of the community. Through this initiative, DSAM was able to ease the hardship and financial constraints of numerous families and individuals, especially the B40 segment, facing dire straits due to job losses, loss of income and other financial challenges as a result of the COVID-19 pandemic and the movement control orders (MCOs).

Hampers of food items were distributed to households across Kuala Lumpur and Selangor. DSAM made a contribution of RM50,000 towards this cause, the final collection which ended end of

Sept 2021 amounted to RM201,663 in total contributions. Under this initiative, DSAM distributed food boxes to families around the Klang Valley and surrounding areas, essential food items consisting of rice, instant noodles, vermicelli noodles, sardines, baked beans, malt-based chocolate drink powder, and biscuits.

With this initiative, DSAM was able to reach out to more than 6,211 needy families and individuals via 40 distribution centres including PPR Pantai Ria, Kuala Lumpur; PPR Sri Sabah, Kuala Lumpur; Kampung Tasek Permai, Ampang Jaya; Kampung Labu Lanjut, Sepang; Kampung Baru Sungai Chua, Kajang; Salak Selatan Baru, Kuala Lumpur; PPR Seri Nilam, Ampang; PPR Hiliran Ampang, Kuala Lumpur; and PPR Pandan Mewah, Ampang, among others.

PM-INTERNATIONAL AWARDED FOR BIGGEST INTERNATIONAL GROWTH IN 2021

P

M-International received the award for the second time in a row this year in connection with the “DSN Global 100” ranking of the leading direct selling companies worldwide. The award honours the highest yearly revenue growth among all international DSN Global 100 companies.

STABLE GROWTH IN CHALLENGING TIMES

In 2021, PM-International, a provider of premium health, fitness and beauty products increased its group-wide annual sales by more than 35% to USD2.35 billion.

Rolf Sorg, CEO and Founder of PMInternational, said the credit clearly goes to all PM-International distribution partners worldwide.

“Our team partners and corporate team did an extraordinary job. Together we reached an important milestone under the most difficult conditions: our second billion in sales,” he said.

“As we are now heading out of the pandemic, we enter this new era strengthened and with a clear focus on our next goals by combining the personal

interaction that was deeply missed during past two years with new, digitalised opportunities.”

CONSISTENT PERFORMANCE

The announcement of the global top performers in direct sales is always eagerly awaited. Ranking up to 9th place among the largest direct selling companies worldwide on the current DSN Global 100 list, PM-International has made it onto the list for the first time in 2010 and has been consistently listed ever since.

PM-International is one of the world’s largest direct selling companies in the areas of health, fitness and beauty, based in Schengen, Luxembourg. In 2021, the PM-International group registered annual sales of USD2.35 billion.

Founded in 1993, PM-International develops and markets high-quality, premium nutritional supplements and cosmetics through its own brand FitLine® – many of which have a patented technology. The Nutrient Transport Concept (NTC®) represents the company’s core competency. It delivers the nutrients exactly when they are needed

and where they are needed – to the cellular level, from inside and out.

To guarantee a continuous high product quality, the products are regularly and independently tested by ELAB Analytics GmbH. End customers can review information about the analysis directly on the ELAB Analytics website, by scanning the QR code on the product packaging. No other competitor offers this level of transparency.

More than 700 million FitLine® products have been sold worldwide. Well over 1,000 top athletes from more than 60 disciplines and 30 nations trust in FitLine nutritional supplements, and FitLine is the official supplier of numerous sports associations and national teams.

Within the framework of a unique sports marketing concept, there are cooperations with the German, Austrian, Polish and Canadian Ski Associations (DSV, ÖSV, PZN, ACA), the German Ice Hockey Federation (DEB), the Federation of German Cyclists (BDR), the German Athletics Association (DLV), the Swiss Sliding Association (including bobsleigh), the Swiss Handball Federation (SHV) and others.

PM-INTERNATIONAL AG CLINCHED THE BRAVO INTERNATIONAL GROWTH AWARD BY US TRADE MAGAZINE “DIRECT SELLING NEWS”. IT WAS RECOGNISED AS THE FASTEST-GROWING INTERNATIONAL DIRECT SELLING COMPANY.

BUILDING A NEW GENERATION OF MALAYSIAN ENTREPRENEURS THROUGH DIRECT SELLING AND INNOVATION

Empowering entrepreneurs through innovative practices and a time-tested grassroots business model is what QNET, an e-commerce based direct selling company headquartered in Malaysia, the beating heart of Asia, does best.

In its early days, QNET showcased its innovative spirit by redefining the direct selling industry as one of the first adopters of e-commerce in Asia, allowing customers to access QNET’s roster of high-quality products and services no matter where they are.

Twenty-four years since its inception, QNET’s innovative practices extend to its product portfolio, which includes a broad array of products that aim to help people and improve their quality of life, such as its Amezcua, HomePure, and LifeQode range. QNET’s products are developed according to international standards and accredited by scientific advisory boards. QNET’s array of Amezcua products, in particular, led the way in revolutionising the field of personal health by establishing its very own Scientific Advisory Board consisting of health and energy experts from across the globe.

Not only does the company bring high-quality products to the market, but QNET is also a business that firmly believes in nurturing communities of enterprising people to become successful business owners. Through its direct selling business model, QNET has built a strong network of distributors in Malaysia who are passionate about what they do, especially when helping others take charge of their health, wealth, and happiness.

Today, QNET remains at the forefront of the direct selling industry through sheer passion for innovation and a will to empower those around them to live healthier and better lives. Recently, QNET received the Direct Selling Association of Malaysia (DSAM) Outstanding Entrepreneur Award for their distributors’ ongoing efforts in serving customers despite the challenges posed by the pandemic over the past two years.

Not only that, QNET is consistently engaging its Malaysian and international distributors and customers through its flagship bi-annual virtual convention, the V-Convention Connect (VCC). VCC’s fourth edition was held in March and saw a viewership of over half a million people from over 50 countries. The convention is a virtual celebration that lets viewers experience the fantastic products and resources, innovative service platforms, and strong global community that QNET offers. QNET is organising its next V-Convention as a hybrid event – bringing together its community in Penang, Malaysia, in October to showcase QNET’s best products.

Members Directory

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OLA BEZELA SDN BHD

Tel: 603-5632 4313 Website: www.natura.com/my

OMNI AAA (M) SDN BHD

Tel: 603-6207 9811

Fax: 603-6207 9812 Website: www.omniaaa.com

OMX NUTRITION SDN BHD

Tel: 603-8025 9103

Fax: 603-8025 9110

Website: www.omx.com.my

OPTIMO INTERNATIONAL SDN BHD

Tel: 603-5192 1989

Fax: 603-5192 1978 Website: www.optimo.my

PERFECT PENTAGON SDN BHD

Tel: 603-7620 3800

Fax: 603-7620 8282 Website: www.perfect100.com.my

PHHP MARKETING (M) SDN BHD Tel: 607-861 9889

Fax: 607-861 5023 Website: www.phhp.com.my

PURE N FRESH MARKETING SDN BHD

Tel: 604-730 1720

Website: www.purenfresh.com.my

QNET (M) SDN BHD Tel: 603-7967 9888

Fax: 603-7957 5142 Website: www.qnet.net.my

RELIV INTERNATIONAL SDN BHD Tel: 603-5638 8788

RETURN LEGACY SDN BHD

Tel: 03- 61446399 Website: www.returnlegacy.com.my

REVELL SDN BHD

Tel: 603-4021 3800

Website: www.revellglobal.com

RICHNERGY INTERNATIONAL SDN BHD

Tel: 603-7499 2348

Fax: 603-7492 2219

Website: www.richlegacy2u.com

RIWAY (MALAYSIA) SDN BHD

Tel: 03-77345939 Website: www.web.riway.com

SACHAWAY SDN BHD

Tel: 607-558 2188

Website: www.inchaway.my

SAHAJIDAH HAI-O MARKETING SDN BHD

Tel: 603-3348 8588

Fax: 603-3348 8133

Website: www.sahajidahhai-o.com.my

SHAKLEE PRODUCTS (MALAYSIA) SDN BHD

Tel: 603-5622 3188

Fax: 603-5622 3199 Website: www.shaklee.com.my

SHUANG HOR ENTERPRISE (M) SDN BHD

Tel: 603-6275 8818

Fax: 603-6276 6822

Website: www.shuanghor.com.my

SIANG HIN NETWORK SDN BHD

Tel: 603-7960 7322

Fax: 603-7960 7323

Website: www.grandsun.com.tw

SINGER (MALAYSIA) SDN BHD

Tel: 603-7985 9090

Fax: 603-7985 9199 Website: www.singer.com.my

SK MAGIC RETAILS MALAYSIA SDN BHD

Tel: 603-2716 6399

Fax: 603-2716 6400 Website: www.skmagic.com.my

STEMTECH MALAYSIA SDN BHD

Tel: 603-7980 2007

Fax: 603-7980 9700

Website: www.stemtech.com

STEMEY (MALAYSIA) SDN BHD

Tel: 604-646 9028

Fax: 604-646 7153 Website: www.stemeyglobal.com

STOLLE (M) SDN BHD

Tel: 603-7498 0606 Website: www.stolle.com.my

SUCCESSMORE BEING (MALAYSIA) SDN BHD

Tel: 603-6150 2066 Website: www.successmore.com

SUNRIDER INTERNATIONAL (MALAYSIA) SDN BHD

Tel: 603-4253 3266

Fax: 603-4251 4986 Website: www.sunrider.com

SUPERLIFE WORLD SDN BHD

Tel: 603-9202 6566 Website: www.superlifeworld.com

SWISDERM INTERNATIONAL (M) SDN BHD

Tel: 603-5879 8544

Fax: 603-5879 8544 Website: www.swisderm.com

SYNERGY WORLDWIDE MARKETING SDN BHD

Tel: 603-7710 8228

Fax: 603-7710 9229

Website: www.synergyworldwide.com

TDC HOLDINGS SDN BHD

Tel: 6016-561 3380 Website: www.tdchb.com

THANKS AI SALES & MARKETING SDN BHD

Tel: 603-7932 1613

Fax: 603-7932 1619 Website: www.thanksai.my

TIENS HEALTH DEVELOPMENT (M) S DN BHD

Tel: 603-2201 8233

Website: www.tiens.com.my

TOTALIFE (M) SDN BHD

Tel: 603-6144 0528 Website: www.totalife.com.my

TOTAL REACH MARKETING SDN BHD

Tel: 603-7877 6500

Fax: 603-7874 4294 Website: www.newlife.my

TRUE MIX SDN BHD

Tel: 603-7804 9326

Fax: 603-7806 9326 Website: www.thermomix.com.my

TUPPERWARE BRANDS MALAYSIA SDN BHD

Tel: 012-201 6266 Website: www.tupperwarebrands.com. my

UGS NETWORK SERVICE (M) SDN BHD

Tel: 603-5879 1586 Fax: 603-5871 9587 Website: www.ugsnetwork.com.my

UHS ESSENTIAL HEALTH (MALAYSIA) SDN BHD

Tel: 603-2246 0800

Fax: 603-2246 0901 Website: www.usana.com

UNICITY MARKETING SDN BHD Tel: 603-7968 9911

Fax: 603-7968 0888 Website: www.unicity.com

VII NUTRITION SDN BHD Tel: 603-9766 5388 Website: www.viinutrition.com

VING VOIZ SDN BHD Tel: 603-8966 3088 Website: www.vingvz.com

VIVA LIFE SCIENCE SDN BHD Tel: 603-7859 8248 Fax: 603-7859 8249 Website: www.vivalife.com.my

WEALTHY PENTAGON SDN BHD

Tel: 603-2280 0068

Fax: 603-2280 0568 Website: www.easecoxgroup.com

W MYTHS INTERNATIONAL HOLDINGS SDN BHD

Tel: 604-502 2270 Website: www.wmyths.com

YMR INTERNATIONAL MARKETING SDN BHD

Tel: 609-844 2775

Fax: 609-848 4775 Website: www.ymr2.net

YOUNG LIVING (MALAYSIA) SDN BHD

Tel: 603-2280 1000

Fax: 603-2280 1002 Website: www.youngliving.com/en_MY

ZINZINO MALAYSIA SDN BHD

Tel: 603-7955 2222

Fax: 603-7956 2222 Website: www.vmalife.com

ZHULIAN MARKETING (M) SDN BHD Tel: 604-616 2020

Fax: 604-641 3020 Website: www.zhulian.com.my

27 VENTURE SDN BHD

Tel: 603-8051 7352 Website: www.27group.com.my