Nanta: Direct sales industry taking off, expected to strengthen domestic economic growth

Datuk Seri Alexander Nanta Linggi — file pic

KUCHING, Dec 10: The direct sales sector in the country recorded encouraging growth which in turn has created a bigger industry which contributes towards the country’s domestic economy.

Domestic Trade and Consumer Affairs (KPDNHEP) Minister Datuk Alexander Nanta Linggi, said this would help the government in its efforts, especially the ministry, to revive the country’s domestic economic growth following the Covid-19 pandemic, based on the positive performance record by the sector in the last three years since 2018 (RM15.9 billion) until 2019 (RM17 billion).

“As of Sept 2020, the direct sales industry in Malaysia recorded a total value of sales worth of RM17.8 billion and it is believed to be able to reach RM20 billion by year end, regardless of the current economic situation.

“This has put Malaysia in the seventh-place globally, and fourth place in the Asia-Pacific region in terms of sales value recorded in the Global Direct Selling Retail Sales Report 2019, from World Direct Selling Association Federation (WFDSA),” he revealed in a press statement today.

Nanta noted, KPDNHEP is proud of the achievement and would continue to be committed in supporting the sector’s growth by adapting to business trend changes and the new norm for trade in the country.


He added this includes making it easier to renew direct selling licenses without neglecting compliance with terms and regulations enshrined under the Direct Selling Act.

“The ministry would also facilitate the application for marketing and advertising activities for promotional purposes, and industry players (companies) now only need to inform the ministry before their campaign begins.

“This proves the confidence and trust of our government, that the industry players always adhere to the standard operating procedures (SOP), rules and regulations implemented,” he added.

Nanta also revealed KPDNHEP took note of several issues raised by the Direct Selling Association of Malaysia (DSAM), including proposed amendments to the Direct Selling Act and the Pyramid Scheme Act 1993, as well as the issue of illegal direct selling online.

According to him, the issues are being refined at ministry-level, and even involves the cooperation of direct sales industry players and e-commerce service providers to find the best solutions concerning the matter.

At the same time, he added, the National Budget 2021 clearly shows the government’s consistency, especially KPDNHEP, towards efforts to rebuild the country’s domestic economy covering all sectors and industries, including direct sales.

“The ministry also would fight for tax incentives for all sectors and industries under its supervision. When examined, the tax incentives are available for any company that adopts Industrial Revolution 4.0, digital technology, and digital transformation for the related services.

“KPDNHEP is also formulating the Direct Selling Industry Plan under the 12th Malaysian Plan (RMK12), specifically in setting the industry’s strategic direction towards contributing to the empowerment of the country’s socio-economic well-being.

“This is inline with the direct sales ability to contribute to the efforts of strengthening the country’s economy, apart from its importance in creating job and business opportunities for the people,” Nanta explained. — DayakDaily