MALAYSIA’S DIRECT SALES SECTOR SEES NEW HORIZONS WITH POTENTIAL BRICS MEMBERSHIP

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Oct 30 (Bernama) – Malaysia’s direct selling industry stands to gain significantly from the country’s interest in joining the BRICS economic bloc, says the Malaysian Direct Distribution Association (MDDA).

MDDA chairman Datuk Seri Dr Barani Karunakaran said such a move would provide local direct sellers with wider market access, stronger government support and collaborative opportunities for growth in some of the world’s fastest growing economies.

“BRICS countries offer tremendous market growth and expansion opportunities for direct selling.

“These economies, with large, diverse markets and a thriving middle class, are aligned with our industry’s goal of empowering local entrepreneurs and promoting self-sufficiency,” he told Bernama in a recent interview.

Karunakaran noted that the low-barrier, high-opportunity model of direct selling is in line with BRICS’ emphasis on supporting local business development. Joining BRICS will also reduce Malaysia’s dependence on Western markets, allowing the industry to diversify into markets that better support localized approaches.

“This shift could lead to innovations tailored to local cultures and consumer preferences, which are key to sustainable growth. Moreover, a BRICS alliance could potentially increase credibility and consumer confidence among member countries by promoting regulatory and consumer protection frameworks,” he added.

The direct selling industry in Malaysia has shown steady growth. The industry achieved a turnover of RM29 billion in 2023, which increased to RM29.4 billion by the end of September 2024.

Although direct selling faces negative perceptions globally due to misconceptions surrounding MLM programs, Malaysians emphasize that direct selling is a legitimate, government-regulated business.

“The direct selling industry here offers real business opportunities. “We offer a path to financial independence and lifestyle improvements with entry-level roles accessible to people with a variety of educational backgrounds,” he said.

With approximately 115 companies under MDDA, the industry has continued to thrive despite the challenges, even as there has been a decline in the Asian direct selling market.

“This resilience is owed to the strong support of the Malaysian government, including regulatory bodies such as the Ministry of Domestic Trade and Consumer Affairs. Thanks to strong government support, Malaysia’s direct selling market remains stable, which is in stark contrast to the declines seen in neighboring countries,” he said.

Looking ahead, MDDA aims to achieve a turnover target of RM30-40 billion, reflecting optimism about continued growth, especially if BRICS cooperation opens up new opportunities for direct selling companies in Malaysia in untapped markets.

Karunakaran envisions a future where BRICS nations work together to establish standardized guidelines and best practices for direct selling, improving the reputation and sustainability of the sector in these emerging economies.

“With its unique business model, low capital requirements and potential support from BRICS, Malaysia’s direct selling industry could be on the verge of unprecedented growth and global reach. Direct selling in Malaysia is transforming lives, creating entrepreneurs and driving economic growth. “BRICS could be the catalyst we need to further scale these efforts,” he said.

— BERNAMA