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Mark-e-Dir: Bringing Market to Consumers Wednesday, 17 th April, 2013 New Delhi

Panel Discussion on International Regulation Lawrence Cheah, Executive Director, Direct Selling Association of Malaysia. Mark-e-Dir: Bringing Market to Consumers Wednesday, 17 th April, 2013 New Delhi. Direct Selling in Malaysia A Government / Private Sector Perspective 17th April 2013.

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Mark-e-Dir: Bringing Market to Consumers Wednesday, 17 th April, 2013 New Delhi

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  1. Panel Discussion on International RegulationLawrence Cheah, Executive Director, Direct Selling Association of Malaysia Mark-e-Dir: Bringing Market to Consumers Wednesday, 17th April, 2013 New Delhi

  2. Direct Selling in Malaysia A Government / Private Sector Perspective 17th April 2013

  3. INTRODUCTION Direct Selling in Malaysia MALAYSIA Size : 329 847 km² Administration : 13 States, 3 FT Population : 28 million 50.4% Malay 23.7% Chinese 11.0% Indigenous 7.1% Indian 7.8% Others Putrajaya

  4. TIMELINE Direct Selling in Malaysia Street Vendors going Door-to-Door Pre-1970s Significant presence of foreign Direct Selling Companies 1970s DSAM Direct Selling Association of Malaysia 1978 Formation of DSAM by 4 Companies

  5. TIMELINE Direct Selling in Malaysia • Direct Sales Act 1993 • Definition - MLM, SLM, MO • Regulations • Offences • Schemes and Conduct • Requirement for a renewable Direct Sales License 1993 1998 • DSAM launched Code of Conduct • Conduct for the Protection of Consumers • Conduct towards Direct Sellers • Conduct between Companies • Code Enforcement • Recognised by WFDSA and endorsed by MDTCC 2009 • DSAM’s Code of Conduct enhanced • Extra Territorial Effect

  6. TIMELINE Direct Selling in Malaysia • Drafting of Amendments on Direct Sales Act 1993 • Close collaboration between DSAM / MDTCC • (Private Sector / Government initiative) 2010 2011 • Amended Act passed in Parliament and enforced • Direct Sales and Anti-Pyramid Schemes Act 1993 • Clear definition of Pyramid Schemes • Enforcement by Task Force – MDTCC, Police, CCM, • Central Bank Drafting of National Code of Ethics 2011 Drafting of Direct Selling Blue Print 2012

  7. TIMELINE Direct Selling in Malaysia • Launch of National Code of Ethics • For non-DSAM Members 2012 June 2012 December • Launch of Direct Selling Blue Print • 3 phases - 2013 to 2015 • - 2015 to 2018 • - 2019 & 2020 • 3 main principles - Improving the Quality of • Human Capital (Education, • Full-time, etc) • -Strengthening the Legal and • Delivery Systems (Self Regulation, • Advisory, etc) • - Enhance the reputation and • performance (USD 6.7 bil by 2020, • avg USD 1,300) 2020

  8. SALES TURNOVER Direct Selling in Malaysia

  9. PRODUCT RANGE Direct Selling in Malaysia

  10. DISTRIBUTION – GENDER, RACE Direct Selling in Malaysia Distributors by Race Distributors by Gender

  11. DISTRIBUTION - AGE Direct Selling in Malaysia

  12. REGULATORY Direct Selling in Malaysia • Ministry of Domestic Trade, Co-Operatives and Consumerism (MDTCC) • Direct Sales and Anti-Pyramid Schemes Act 1993 (Act 500) (573 AJLs) • MLM (73%), SLM (20%), PO (4%), SLM/PO (3%) • Others : Competition Act 2010, Price Control & Anti-Profiteering Act 2011, Consumer Protection Act 1999 • Ministry of Health • Product Registration for Health Supplements and Notification for Cosmetics • Asean Harmonization • Ministry of Information, Communication and Culture • Personal Data Protection Act 2010 • Ministry of Finance • Finance Act 2012 • GST

  13. END Direct Selling in Malaysia Thank You For Your Time Direct Selling in Malaysia 17th April 2013

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