panel discussion on international regulation lawrence cheah, executive director, direct selling...
TRANSCRIPT
Panel Discussion on International Regulation Lawrence Cheah, Executive Director, Direct Selling
Association of Malaysia
Mark-e-Dir: Bringing Market to Consumers
Wednesday, 17th April, 2013New Delhi
Direct Selling in MalaysiaA Government / Private Sector Perspective
17th April 2013
INTRODUCTIONDirect Selling in Malaysia
MALAYSIA
Size : 329 847 km²Administration : 13 States, 3 FT
Population : 28 million
50.4% Malay23.7% Chinese11.0% Indigenous7.1% Indian7.8% Others
Putrajaya
DSAMDirect Selling Association of Malaysia
TIMELINEDirect Selling in Malaysia
Street Vendorsgoing
Door-to-Door
Pre-1970s
1970s Significant presence of foreignDirect Selling Companies
1978 Formation of DSAM by 4 Companies
TIMELINEDirect Selling in Malaysia
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
1993 Direct Sales Act 1993•Definition - MLM, SLM, MO
•Regulations
•Offences
•Schemes and Conduct
•Requirement for a renewable Direct Sales License
DSAM’s Code of Conduct enhanced•Extra Territorial Effect
TIMELINEDirect Selling in Malaysia
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
2011
2010 Drafting of Amendments on Direct Sales Act 1993•Close collaboration between DSAM / MDTCC (Private Sector / Government initiative)
Drafting of National Code of Ethics
2012 Drafting of Direct Selling Blue Print
TIMELINEDirect Selling in Malaysia
2012December
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)
2012June
Launch of National Code of Ethics•For non-DSAM Members
2020
SALES TURNOVERDirect Selling in Malaysia
PRODUCT RANGEDirect Selling in Malaysia
DISTRIBUTION – GENDER, RACEDirect Selling in Malaysia
Distributors by Gender Distributors by Race
DISTRIBUTION - AGEDirect Selling in Malaysia
REGULATORYDirect Selling in Malaysia
Ministry of Domestic Trade, Co-Operatives and Consumerism (MDTCC)
o Direct Sales and Anti-Pyramid Schemes Act 1993 (Act 500) (573 AJLs)
MLM (73%), SLM (20%), PO (4%), SLM/PO (3%)
o Others : Competition Act 2010, Price Control & Anti-Profiteering Act 2011, Consumer Protection Act 1999
Ministry of Health
o Product Registration for Health Supplements and Notification for Cosmetics
o Asean Harmonization
Ministry of Finance
o Finance Act 2012
o GST
Ministry of Information, Communication and Culture
o Personal Data Protection Act 2010
ENDDirect Selling in Malaysia
Direct Selling in Malaysia
17th April 2013
Thank You For Your Time