THE direct selling industry in Malaysia is booming amid the COVID-19 pandemic. As of September 2020, the industry hit sales of RM17.8 bil, exceeding the RM17 bil of sales recorded in 2019 and is on track to achieve the RM20 bil sales target this year.
Based on a report by the Malaysian Direct Distribution Association (MDDA), direct sales in country increased between 20% and 30% throughout the movement control order (MCO) period.
With the increased of direct selling activities during the period, the industry recorded total sales of RM16.9 bil as of July.
This is as most direct selling companies instantly shifted their business practices by embracing online media and successfully garnered encouraging results.
“This resonates well with the direct selling industry as the back-end support for online and social media marketing provided by direct selling companies has long been well in-placed,” said the President of Direct Selling Association of Malaysia (DSAM) Datuk Tan Chong Guan.
“With the onset of the pandemic, embracing and utilization of these tools became critical as one of the many retail options and outreach for the direct selling industry.”
In fact, the direct selling industry in Malaysia has been on a healthy growth the last few years – total sales of RM13.6 bil in 2017, RM15.9 bil in 2018 and RM17.9 bil 2019.
Malaysia’s direct selling industry is in the world’s top 10. In addition, 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.
The rankings show that the public view the industry positively. Also, direct selling remains as one of the preferred modes for Malaysians to build their business from scratch.
However, it is essential to have proper enforcement. Relevant authorities and ministries should work together to uphold stringent enforcement standard to regulate unlicensed and unethical industry players.
In regards to this, the Direct Selling Industry Plan for the 12th Malaysia Plan is being formulated by the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) – specifically to draft the industry’s strategic direction towards contributing to the country’s socio-economic empowerment.
Meanwhile, KPDNHEP’s minister Datuk Seri Alexander Nanta Linggi said the direct selling industry in Malaysia recorded an encouraging growth to become a large industry that contributed to the country’s domestic economy.
Thus, the industry will be able to help the Government’s efforts to revive the country’s domestic economic growth post-COVID-19 pandemic. – Dec 13, 2020
