PUTRAJAYA: The Ministry of Domestic Trade and Cost of Living is preparing to amend the Direct Sales and Anti-Pyramid Scheme Act 1993 to provide better protection for consumers and legitimate sales representatives.
Deputy Minister Datuk Dr Fuziah Salleh stated this move is crucial as the global direct selling industry grows rapidly and Malaysia needs laws comparable to other countries.
She emphasised KPDN’s commitment to guiding the direct sales industry through legal compliance and preventing illegal activities.
Fuziah noted that despite positive industry developments, players must work harder to overcome public confusion between legitimate direct selling and pyramid schemes.
“This stigma undermined consumer confidence and this situation affected the reputation of legitimate direct sales companies,“ she said in a statement.
KPDN offers several solutions including consumer advocacy to raise awareness about licensed direct sales products and avoiding pyramid schemes.
“This is to improve the image of this industry so that it is seen as one of the contributors to the economy and entrepreneurial opportunities for the people,“ she said.
Fuziah encouraged direct sales entrepreneurs to cooperate with the Intellectual Property Corporation of Malaysia by registering businesses and products requiring patent protection.
“Registered trademarks can become a company’s asset, and can even be licensed or used as investment holdings,“ she added.
Products registered with MyIPO trademarks appear more legitimate, trustworthy and difficult to counterfeit according to the deputy minister.
Intellectual property protection ensures companies selling natural resource-based products operate legally and can take action against counterfeiters.
Fuziah highlighted KPDN’s main agenda to support local products through the Buy Malaysian Goods Campaign.
“KBBM is not just a slogan, but an advocacy and marketing tool that helps promote locally made direct selling products,“ she explained.
The campaign supports Malaysian entrepreneurs and sales representatives while paving the way to global markets.
Last year’s direct sales industry recorded RM34.4 billion in sales value, a 7.4% increase from the previous year.
Malaysia ranks sixth globally and fourth in Asia Pacific for direct sales with the world’s highest market penetration rate of 2.28%.
Fuziah earlier received a courtesy call from representatives of the Malaysian Direct Selling Industry Development Association led by president Datuk Seri Barani Karunakaran.
MDSIDA serves as KPDN’s strategic partner in promoting the direct selling industry at national and international levels. – Bernama