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an annual publication of KDN: PP 10435/04/2013 (032319) NEWS HIGHLIGHTS OF 2015 IN THIS ISSUE... ... AND MORE! Session with Professor Wang Yuben. Eight DSAM Members made an exploratory visit to Beijing from April 26 to 29, 2015. The purpose of the trip was to understand the current regulations for direct selling in China, review the requirements and guidelines when applying for a license, understand the current direct selling environment and exploring the possibilities while paving the way for members to expand into China. During the trip, DSAM met with Fan Wenjie, Deputy Director from the Ministry of Commerce (MOFCOM, responsible for the issuance of direct sales licenses) and Bai Jinghua, Deputy Director from the State Administration for Industry & Commerce (SAIC, responsible for compliance). In addition, a meeting was also held with Professors Wang Yuben and Yang Qian from the Direct Selling Development Research Centre of Peking University HSBC Business School. The functions of this Research Centre is akin to a National Direct Selling Association. To complete the trip, DSAM met with three Chinese media that focus on direct selling and visited New Era Health Industry Group Co Ltd (Zhong Jian), a leading semi-state owned direct selling company. China Media Visits DSAM p4 p10 p13 GST Compliance Pledge Visit from Indonesian Ministry of Trade Exploratory Trip to China April 26-29, 2015 DSAM meeting with the Ministry of Commerce (MOFCOM) of China. During the visits, participants were able to obtain first hand information on the industry from three perspectives: the Chinese government; the non- government; and the media. As of April 2014, there are 35 local companies and 25 multinationals that are issued direct sales licenses. MOFCOM reported that direct selling sales in China for 2014 was CNY27 billion (approximately RM15.7 billion). DSAM visits New Era factory.

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Page 1: NEWS€¦ · University HSBC Business School. The functions of this Research Centre is akin ... has not only the opportunity to present Malaysian direct selling at a global level,

an annual publication of

KDN: PP 10435/04/2013 (032319)

NEWSHIGHLIGHTS OF 2015

IN THIS ISSUE...

... AND MORE!Session with Professor Wang Yuben.

Eight DSAM Members made an exploratory visit to Beijing from April 26 to 29, 2015. The purpose of the trip was to understand the current regulations for direct selling in China, review the requirements and guidelines when applying for a license, understand the current direct selling environment and exploring the possibilities while paving the way for members to expand into China.

During the trip, DSAM met with Fan Wenjie, Deputy Director from the Ministry of Commerce (MOFCOM, responsible for the issuance of direct sales licenses) and Bai Jinghua, Deputy Director from the State Administration for Industry & Commerce (SAIC, responsible for compliance). In addition, a meeting was also held with Professors Wang Yuben and Yang Qian from the Direct Selling Development Research Centre of Peking University HSBC Business School. The functions of this Research Centre is akin to a National Direct Selling Association.

To complete the trip, DSAM met with three Chinese media that focus on direct selling and visited New Era Health Industry Group Co Ltd (Zhong Jian), a leading semi-state owned direct selling company.

China Media Visits DSAM p4

p10

p13

GST Compliance Pledge

Visit from Indonesian Ministry of Trade

Exploratory Trip to ChinaApril 26-29, 2015

DSAM meeting with the Ministry of Commerce (MOFCOM) of China.

During the visits, participants were able to obtain first hand information on the industry from three perspectives: the Chinese government; the non-government; and the media.

As of April 2014, there are 35 local companies and 25 multinationals that are issued direct sales licenses. MOFCOM reported that direct selling sales in China for 2014 was CNY27 billion (approximately RM15.7 billion).

DSAM visits New Era factory.

Page 2: NEWS€¦ · University HSBC Business School. The functions of this Research Centre is akin ... has not only the opportunity to present Malaysian direct selling at a global level,

From the President’s Desk2015 was a year that we saw many ups and downs in the

direct selling industry for Malaysia. There were Members that reported decline in sales but fortunately, the overall

sales for DSAM Members was on the rise. There was the fluctuation of the Ringgit against the US Dollar and also the implementation of the Good and Services Tax (GST) nationwide. GST was a significant taxation initiative that was implemented by the Malaysian government and DSAM played its part in the form of a pledge that was handed to the Minister of Domestic Trade, Co-operatives and Consumerism (MDTCC). The pledge states that our Members would not increase our profit margins for a period of 18 months of the GST enforcement. I am proud to say that this pledge is in-line with the integrity and ethics which all our Members strongly hold as in not taking advantage of GST in order to reap higher profits.

In terms of our collaboration with MDTCC, it was also an interesting year which saw the transfers of the Minister of MDTCC, the Director (in-charge of the Direct Selling Unit) and the Head of the Direct Selling Unit. Since these changes, DSAM has continued our close interactions with the key officers and maintained, if not bettered, the close Government-Association co-operation.

Over the few years of my term as President, there were requests for information from our Members on the status of direct selling in China and its entry requirements. For this, DSAM not only provided these Members with the accurate answers but organised the first study trip for the Association, to China. As this was a very successful initiative, DSAM will continue to organise annual study trips to emerging direct selling markets.

As for media interactions, it was a continuous goal throughout last year. There were some specific instances that DSAM felt the need to engage the media in order that a balanced report is written on certain news events. These engagements were in the form of providing the correct information to the media in order for them to have a true picture of the situation. We have found that the media were quite appreciative of this gesture. Media interaction is an on-going process and there has never been a case of “too much” media relations. Thus, this will continue to be one of the DSAM goals for 2016.

Regulatory-wise, DSAM continues to be the de facto voice of the industry and remains very active as Personal Data Protection Commission Data User Forum for Direct Selling, Member of the Sectorial Training Committee of the Human Resource Development Fund, active participants in the ASEAN Traditional Medicine and Health Supplements (TMHS) meetings and so on. However, one of the most important goal in our interactions with regulators would be to have clear guidelines for the direct selling industry, In this aspect, DSAM has pushed for the drafting of this guidelines by MDTCC. These guidelines will complement the Direct Sales and Anti-Pyramid Schemes Act 1993 and provide a clear-cut approach in conducting our direct selling businesses. We hope to see the realisation of these guidelines soon.

Over the year, in order to have a greater presence in the retail trade in Malaysia, DSAM has initiated interactions with non-direct selling trade associations. These interactions are important as we can leverage on each other’s expertise and good practices in order to bring the best for our Members. In 2015, we have visited the Malaysian Retail Chains Association (MRCA) and the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). I am very pleased to say that since the visits, DSAM is in collaboration with both the trade associations on a few projects beneficial for all parties. DSAM also currently sits in the ACCCIM International Expo Committee.

Over in the global front, DSAM’s Secretariat has actively participated in the World Federation of Direct Selling Associations’ (WFDSA) Asia Pacific Association Performance Program in Bangkok and the global Secretaries Seminar in Stockholm. These are very important meetings where DSAM has not only the opportunity to present Malaysian direct selling at a global level, but also learn the best practices of other Associations. As one of the three WFDSA Association Advisory Council member for Asia Pacific, I had the privilege to attend one of the meeting. Over the last year, DSAM was also involved in the drafting of the amendments for the WFDSA modal Code of Conduct. As a Committee Member of the WFDSA Ethics Committee, one of DSAM’s role is to present an Asian perspective to the drafting of these amendments.

Closer to home, the ASEAN DSAs Working Committee has been equally active. In the last meeting held in Kuala Lumpur, it was agreed that there should be detail guidelines for entering each of the ASEAN direct selling market. Members will be able benefit from this when expanding to our neighbors plus receiving firsthand information and assistance from the respective independent Secretariats.

In closing, I wish to sincerely thank all Members for their support, encouragement and warm welcome (when we visit your offices) throughout 2015. For 2016, it will be a busy year with plans for more CEOs Luncheon, the revival of the Global Women Economic Empowerment programme, the DSAM Bi-annual Convention; a study trip (hint – it’s in mainland Southeast Asia!) and a major surprise initiative. I would like to strongly encourage Members to fully participate and benefit from these programmes. I can assure all participants that at the end of each programme, you will see the take-home value.

2016 is starting to look like a challenging year for the retail industry. As past Retail vs Direct Selling Sales Data indicates, we look forward to record sales for all our Members!

President of DSAMFrederick Ng

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Nanyang Announced New DSAM BoardJuly 2015

DSAM Issues Clarification StatementSeptember 22, 2015

The Star Interviewed DSAMAugust 24, 2015

Nanyang Siang Pau published the appointment of the new DSAM Office Bearers for the term 2015 to 2017. The daily media also highlighted DSAM’s priorities for the next two years. Nanyang wrote that DSAM will continue to strengthen the regional cooperation between national Direct Selling Associations within the ASEAN region. The Association aims to reach out and establish ties with trade associations especially those classified under the Wholesale & Retail sector by the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC). It will also continue the on-going task of further promoting the image and reputation of the Direct Selling industry, both locally and internationally.

There were recent articles in a few chinese dailies reporting that a cult-like syndicate under the guise of direct selling has been recruiting teenagers.

DSAM President Frederick Ng gave a statement in Nanyang Siang Pau to clarify that the activities of this syndicate is not synonymous with the practices of direct selling. In order to have a balanced report, the views of the direct selling industry must also be sought.

Based on the reports by the various media, this syndicate is not operating a direct selling business.

Chief Business Editor of The Star, David Tan spoke to DSAM’s President Frederick Ng who represented the Association on the present and future outlook of the direct selling industry in Malaysia.

Among the topics discussed during the interview, was the impact that the implementation of GST had on the direct selling industry. The weakened ringgit, as part of the global economy downturn, was also dicussed in view of the direct selling landscape in Malaysia.

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Excerpt from The Star interview with DSAM President Frederick Ng.

Nanyang publication featured on its website.

DSAM President Frederick Ng issued statement on direct selling.

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Fostering Closer Ties with Sin Chew DailyNovember 2015

Chinese Media Visits DSAMNovember 2015

DSAM Featured in Malaysia SMEAugust 2015

In line with the Association’s goal of building closer relations with main stream media, a courtesy visit was made to Sin Chiew Daily. DSAM was met by Sin Chiew’s Editor-in-Chief, Datuk Pook Ah Lek and his senior management team. Representing DSAM were President Frederick Ng, Vice President Datuk CG Tan, Treasurer Khor Lee Fan with Board Members Sam Cheong and Lew Soon Kiak. Also present were SL Ho from Elken Sdn Bhd, Logan Lau and Jackson Tan from Cadware Sdn Bhd and Nicholas Tan from Kyani (M) Sdn Bhd.

During the visit, DSAM briefed Sin Chiew on the latest updates and trends in direct selling. Discussions were then focused on pyramid schemes and scams.

A leading publisher from China, Hope Media paid a reciprocal courtesy visit to DSAM. Led by their General Manager Brian Cai, the media group was briefed on the current status of direct selling in Malaysia. An article featuring DSAM and direct selling in Malaysia was published in their main publication Network Marketing in December 2015. The publication has also previously featured DSAM. Based in Wuhan China, Hope Media has monthly publications on direct selling.

The Malaysia SME business newspaper interviewed DSAM President Frederick Ng for its recent August issue. The interview was part of a four-page DSAM featured article in Engage magazine.

(L to R): President Frederick Ng, Hope Media GM Brian Cai, Vice President CG Tan.

Both parties agreed to work together to highlight these illegal operations to the general public. After the discussion, Sin Chiew had a better and in-depth understanding of the industry.

Towards the end of the visit, Sin Chiew introduced their very own online shopping network, known as ‘LogOn’. Sin Chiew Daily has a daily readership of 400,000.

DSAM President Frederick Ng presenting a token to Sin Chiew Daily’s Editor-in-Chief, Pook Ah Lek.

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In 2015, DSAM Board Members visited eight Member Companies. These visits continue to bring positive response from Members while fostering closer relationships.

UGS Network Service (M) Sdn Bhd(L to R): Frederick Ng (DSAM), Alex Tan (MD, UGS),

Sam Cheong (DSAM), Wong Kar Hura (UGS)

Zhulian Marketing (M) Sdn Bhd(L to R): Jenny Hooi (Admin Manager, ZMSB), Sam Cheong (DSAM),

Frederick Ng (DSAM), Danny Teoh (Group MD, ZMSB), Nelson Cheah (Marketing Manager, ZMSB), Tan Chong Guan (DSAM)

Flantech Asia Sdn Bhd(L to R): Sam Cheong (DSAM), Frederick Ng (DSAM),

Yeap Kok Hoe (MD, FA), Cham Lin Tek (CEO, FA), CG Tan (DSAM)

Young Living Malaysia Sdn Bhd(L to R): Sandy Lord (DSAM), Frederick Ng (DSAM),

Khairul Abdul Karim (Country Manager, YLM)

Crony Beauty (M) Sdn Bhd(L to R): Cynthia Lee (COO, Crony), Frederick Ng (DSAM),

Sam Cheong (DSAM), Stephanie Ong (CFO, Crony)

Max Pine International Holdings Sdn Bhd(L to R): Danny Lee (ED, MPIH), Zuan Chien Tong (Consultant, MPIH), Sam Cheong (DSAM),

Frederick Ng (DSAM), Tan Hock Kheng (CEO, Sky Resources Group of Companies), CG Tan (DSAM), Joan Cheong (Branding, Product & Marketing Development Consultant), David Quek (PR, MPIH)

Diamond Interest Sdn Bhd(L to R): Ten Shae Theng (Admin Manager, DI), Frederick Ng (DSAM),

Oi Ho Chooi (MD, DI), Tan Chong Guan (DSAM), Sam Cheong (DSAM)

Jeunesse Global Sdn Bhd(L to R): Sandy Lord (DSAM), Frederick Ng (DSAM),

Dennis Lau (Senior Operations Manager, JG)

Courtesy Calls

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GST DialogueMarch 9, 2015

In the final preparation for the implementation of GST in April 2015, a dialogue with the Royal Malaysian Customs Department was organised for DSAM Members on March 9, 2015.During the event, Customs answered more than thirty GST pre-submitted questions from the participants. The event ended with a Q&A session and a series of informal group discussions with the senior customs officers of the GST Unit.

Accounting firm Deloitte Tax Services Sdn Bhd also presented a topic entitled GST - 1st April and

DSAM Celebrates Hari Raya with MDTCCAugust 2015

DSAM celebrated Hari Raya with the senior officers from the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) in a luncheon held in August 2015. In this festive event, Director of MDTCC Dato’ Abu Samah, Head of the Direct Selling Unit Ahmad Joharee, and members of the Direct Sales License review committee from various departments and ministries were present. At the end of the luncheon, all parties reaffirmed their commitment to further enhance the collaboration for the advancement of the direct selling industry.

Seated (L to R): Mohamad Mahill Ahmad (Senior Principle Assistant Director, MDTCC), CG Tan (DSAM Board), Abu Samah Shabudin (Director, MDTCC),

Frederick Ng (DSAM Board), Shahrin Ismail (Assistant Director, MDTCC).Standing (L to R): Ahmad Joharee Mohamed (Principle Assistant Director, MDTCC),

Mansoor Wan Abdullah (DSAM Board), Razali Hj Iberahim (Chief Secretary, National Council of Consumer Goods Prices, MDTCC), David Cheong (DSAM Board),

Sandy Lord (DSAM Board), Lew Soon Kiak (DSAM Board), Nazierah Che Lah (Assistant Director, MDTCC).

Beyond.This presentation touched on what Members need to comply

with, after the implementation of GST.

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Abu Samah briefing the participants during the CEO Meeting.

AGM and CEO MeetingJune 4, 2015

The Annual General Meeting (AGM) for 2015 was held in June 2015. Over 80% of Members were in attendance. During the meeting, the financial reports were presented by Treasurer Khor Lee Fan while the Board Report was presented by Honorary Secretary, Tan Chong Guan.

As 2015 was an election year, nominations for positions in the Board were earlier taken. There were no contest for the nominations, thus the following Board was elected for the term 2015-2017.

A CEOs meeting was held after the AGM. Director from the Ministry of Domestic Trade, Co-operatives and Consumerism, Abu Samah Shabudin was the guest of honour at this meeting. Abu Samah later briefed the meeting on the updates and current status of the direct selling industry.

Seated (L to R): Lew Soon Kiak (Board Member), Tan Chong Guan (Vice President), Frederick Ng (President), David Cheong (Honorary Secretary), Sam Cheong (Board Member)

Standing (L to R): Tan Kai Hee (Board Member), Khor Lee Fan (Treasurer), Sandy Lord (Board Member), Mansoor Wan Abdullah (Board Member)

Page 8: NEWS€¦ · University HSBC Business School. The functions of this Research Centre is akin ... has not only the opportunity to present Malaysian direct selling at a global level,

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Code Administrator VisitsOctober 2015In ensuring compliance with the DSAM Code of Conduct, DSAM’s independent Code Administrator Tan Sri Dr Sulaiman Mahbob conducts annual visits to members.

In 2015, visits were made to Vita Lifesciences Sdn Bhd and Perfect Pentagon (M) Sdn Bhd. During these visits, checks were made on the members’ compliance with the Code in areas such as cooling off periods, return policies, joining fees and purchase of starter kits, etc. Tan Sri Dr Sulaiman was satisfied that both members visited were in full compliance.

Visit to Vita Lifesciences.(L to R): Chan Kai Siang (Manager, VL),

Tan Sri Dr Sulaiman Mahbob (Code Administrator), Michelle Koh (SVP, VL).

5th Meeting July 22, 2015

(L to R): Kany Soemantoro (APLI), Tan Chong Guan (DSAM), Tram Ha (Committee AmCham Vietnam), Melisa Quijano (WFDSA & DSAS),

Frederick Ng (DSAM), Vicky Pakapun (TDSA), Sandy Lord (DSAM), Joey Sarmiento (DSAP).

(L to R): CG Tan (DSAM), Kany Soemantoro (APLI), Tram Ha (AmCham Vietnam), Dora Hoan (DSAS), Sam Cheong (DSAM), Melisa Quijano (WFDSA),

Pakapun Leevutinun (TDSA), Joey Sarmiento (DSAP).

The 5th meeting of the ADWC was held on on July 22, 2015 in Kuala Lumpur. This meeting was attended by representatives from AmCham Direct Selling Committee Vietnam, the Direct Selling Associations of Indonesia (APLI), Philippines (DSAP), Thailand (TDSA) and DSAM. Melisa Quijano, represented the WFDSA Asia Pacific Consultative Council and DSA of Singapore.

During this meeting, there were exchanges of ideas and practices among the DSAs. One of the many significant outcome will be the comprehensive guidelines for starting a direct selling company in the participating ASEAN countries. This information would be exclusive to members of the participating DSAs in our respective websites.

Signing of MOU January 1, 2015

ASEAN DSAs Working Committee

A Memorandum of Understanding (MOU) between Direct Selling Associations (DSAs) in the ASEAN region was signed on January 1, 2015. This grouping will now be known as the ASEAN DSA Working Committee (ADWC). One of the main focus of this group is to grant assistance to members of ADWC when they expand their businesses to ASEAN countries. DSAM’s members will be able to greatly benefit from the agreement.

Members of ADWC are AmCham Vietnam Direct Selling Committee, Asosiasi Penjualan Langsung Indonesia (APLI), DSAM, DSA Philippines (DSAP), DSA Singapore (DSAS), Thai DSA (TDSA) and the World Federation of Direct Selling Associations’ (WFDSA) Association Consultative Council for Asia Pacific. DSAM is honoured to the first Chair for ADWC.

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Courtesy Visit to ACCCIMOctober 2015Continuing the initiatives for 2015 in reaching out to other trade associations, a courtesy visit was made to the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

Formed in 1947, ACCCIM is the national level organisation of the Chinese Chambers of Commerce with 17 constituent members located separately in 13 states throughout the nation. This association has a membership of over 100,000 Malaysian Chinese companies, individuals and trade associations.

During the visit, ACCCIM was given a true perspective of legitimate direct selling in Malaysia. Both Associations acknowledged that there are many illegal scams and pyramid schemes operating under the guise of direct selling and hope that the Enforcement Division of MDTCC would step up their efforts to curb these activities.

On future co-operations between the Associations, DSAM will encourage its members to explore the options of participating in ACCCIM’s many trade missions overseas especially to developing countries. This fits the framework of direct selling as

this industry has always searched for opportunities to explore the potentials in developing countries.

Before ending, ACCCIM graciously extended an invitation for DSAM to join one of its working committees.

(L to R): Dominique Ng (Infinitus International), Sum Lai Mei and Yong Full Loong (Best World Lifestyle), Ng Yok Gee and Michael Chai (ACCCIM National Council Member),

Dato’ Tan Tian Meng (ACCCIM Deputy Treasurer), Frederick Ng (DSAM), CG Tan (DSAM), Ho Sah Lee (Elken), Danny Goh (CNI Enterprise), Kenny Ng (Biing Han Enterprise).

DSAM Visit MRCAApril 8, 2015

(L to R): Liew Bin (MRCA), Dato Albert Cheng (MRCA), Dato C L Liaw (MRCA), Frederick Ng (DSAM), Lew Soon Kiak (DSAM), CG Tan (DSAM).

DSAM paid a courtesy visit to the Malaysia Retailer-Chains Association (MRCA) on April 8, 2015. Led by President Frederick Ng, DSAM was met by MRCA President Dato’ C L Liaw, and Board Members Dato’ Albert Cheng and Liew Bin.

The purpose of the visit was to foster closer ties in areas of mutual interest, capitalise on each Association’s strengths for the betterment of its members and to highlight the goals and functions of the Association in creating a wider understanding of each’s respective industry. MRCA currently has more than 250 Members.

Reaching Out to Other Associations

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World Consumer Rights Day 2015March 15, 2015The World Consumers Rights Day 2015 was officiated by Dato’ Sri Alias Haji Ahmad, Secretary General of the Ministry of Domestic Trade, Co-operatives and Consumerism on March 15, 2015 in Putrajaya.

In his keynote address, Alias reminded retailers on their ethical responsibilities when dealing with Consumers especially during the period of GST implementation.

During the event, DSAM participated in small exhibition, providing information to visitors on the entrepreneurial opportunities available in direct selling.

GST Compliance PledgeMarch 20, 2015

DSAM Heads the PDPC ForumMarch 2015

Sectorial Training CommitteeMarch 2015

DSAM submitted a Compliance Pledge to the Minister of Domestic Trade, Co-operatives and Consumerism, Dato’ Sri Hasan Malek in March 2015.

In acknowledging that DSAM is the Leader for the direct selling industry in Malaysia, the Minister accepted the pledge which undertakes the industry’s co-operation in areas such as not increasing prices without any unreasonable justification. This pledge is in-line with the implementation of GST in April.

The Personal Data Protection Commission (PDPC) has appointed DSAM to head the Data User Forum for the direct selling industry. With this appointment, DSAM is tasked to draft the Code of Compliance specific to the direct selling industry.

With this Code, the industry would have the relevant guidelines in relation to the Personal Data Protection Act 2010.

DSAM has been appointed by the Human Resource Development Fund (HRDF), Ministry of Human Resources, to be a member of the Wholesale & Retail Sectorial Training Committee (STC). In this respect, DSAM represents the direct selling industry.

The role of the STC is to propose to HRDF on the types of training programmes that the industry requires. It changes from the current concept of HRDF providing training which it believes that the industry needs, to one which the industry demands (requires).

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Courtesy Visit to Key Personnel at MDTCCDecember 2015

A courtesy visit was made to Muez Abdul Aziz, the new Director of Domestic Trade Division. During the visit, Muez was briefed on the status of direct selling, both locally and globally.

Another courtesy visit was also made to Zulkifli Yaacob, the new Principle Assistant Director and Head of the Direct Selling Unit. He replaces Ahmad Joharee.

DSAM will continue to work closely with the Direct Selling Unit to uphold ethical and legitimate direct selling. (L to R): CG Tan (Vice President), Muez Abdul Aziz (Director, MDTCC),

Frederick Ng (President), David Cheong (Honorary Secretary)

Dialogue with the MDTCC MinisterSeptember 10, 2015A dialogue was held between the new Minister of Domestic Trade, Co-operatives and Consumerism, Dato’ Hamzah Zainudin with the representatives from the various industries in September 2015. DSAM represented the direct selling industry in this event.

In his opening address, Hamzah mentioned that he was an entrepreneur before becoming a politician. Thus he can relate to the experiences of companies and understand the challenges faced in the government-private sector working relationships. He also pointed out that he will have a separate session with each industry in order to enhance the current collaborations among all parties.

The session ended off with a two-hour Q&A session. DSAM brought up the issue of the Direct Selling Blue Print which is yet to be implemented. Hamzah will have his officers look into this matter.

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DSAM Visits MDTCC MinisterOctober 2015

Direct Selling Industry DataOctober 2015

A courtesy visit was made to the new Minister of Domestic Trade, Co-operatives and Consumerism, Dato’ Hamzah Zainudin. Present for the visit were members of the DSAM Board plus representatives from member companies.

During the visit, Dato’ Hamzah mentioned plans to assist local direct selling companies to compete in the global market plus making it more lucrative for multinationals to invest in this country. As Malaysia is the leader in terms of sales among ASEAN countries,

there were also plans revealed to make Malaysia the regional hub for the industry.

DSAM was also given the opportunity to voice the current challenges facing the industry. Among the issues brought forth were the non-implementation of the Direct Selling Blue Print, charging of GST on bonuses, and the proposal of co-operatives applying for AJL licenses. Hamzah said that he would look into all these issues as they all have a bearing on the growth of the direct sellng industry.

(L to R): Wong Chiar Min (Elken Sdn Bhd), Khairulanis Mohd Hussein (Morinda [Malaysia] Sdn Bhd), Khairul Abd Karim (Young Living Malaysia Sdn Bhd), Erwin Tan (Forever Living Products [M] Sdn Bhd), Hamzah Zainudin (Minister of Domestic Trade, Co-operatives and Consumerism),

Frederick Ng (DSAM President), David Cheong (DSAM Honorary Secretary), Khor Lee Fan (DSAM Treasurer), Sandy Lord (DSAM Board).

The following are the latest number of Direct Sales licenses issued the Ministry of Domestic Trade, Co-operatives and Consumerism (as of October 2015).

2. Percentage of 100% Foreign Owned companies (among the 359)

Multilevel Marketing companies (MLM) - 75%Single Level Marketing companies (SLM) - 5%Mail Order companies (MO) - 3%

1. Breakdown based on Marketing Plans

Multilevel Marketing companies (MLM) - 256Single Level Marketing companies (SLM) - 66Mail Order companies (MO) - 24SLM + MO companies - 13 Total of Direct Sales licenses 359

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Visit from the Indonesian Ministry of TradeDecember 2015Representatives from the Ministry of Trade (MOT) from the Republic of Indonesia paid a visit to DSAM. The purpose of the visit was to gather information on the regulations and guidelines governing the direct selling industry in Malaysia. General practices and DSAM’s self-regulation among its members were also discussed.

Later, there were exchange of information on illegal schemes and scams that are operating in both countries. The Indonesian MOT will be vigilant of these operations especially of those that are already operating in Indonesia.

(L to R): Lisa Wulandari Prasetiyawati (MOT), Fajarini Puntodewi (Trade Attache, Indonesia Embassy), Frederick Ng (DSAM), CG Tan (DSAM), Pretty Isnaini (MOT).

WFDSA Meetings 2015June 17-18, 29-30, 2015

Visit to Oriflame R&D Centre.

Thai DSA presenting at the Asia Pacific APP.

The WFDSA Secretaries Seminar was held in Stockholm, Sweden in June 17-18, 2015. This annual seminar was attended by sixteen national Direct Selling Associations (DSAs) and The European Direct Selling Association (SELDIA). Among the many interactive discussions held include handling of difficult issues and latest initiatives from the various DSAs. There was also a visit to Oriflame’s R&D Centre in Stockholm where the Secretaries got a first hand explanation on the stringent R&D processes that goes into all Oriflame products.

In June 29-30, 2015, the Asia Pacific Association Performance Programme (APP) was held in Bangkok, Thailand. This event saw the participation from nine DSAs from this region plus Association Consultative Council Members Melisa Quijano and Frederick Ng. One of the many highlights of the programme include case studies of actual situations experienced by DSAs. Participants would then give their input on how their DSAs would have handled similar situations.

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WFDSA Ethics Committee MeetsSeptember 2, 2015The World Federation of Direct Selling Associations (WFDSA) Ethics Committee Chairman, Philippe Jacquelinet and French Direct Selling Association (FVD) General Secretary, Jacques Cosnefroy hosted the Ethics Committee and Ethics Subcommittee meeting on 2nd September in Paris, France.

Attendees at this meeting included representatives from the Direct Selling Associations of France, Malaysia, Germany, UK, US, WFDSA General Counsel, WFDSA Association Advisory Council for the European Region plus participants from Amway, Avon Products Inc., Oriflame Cosmetics and Mary Kay.

During the meeting, discussions were held on the possibility to elevate the current standards of the WFDSA Code of Ethics. Areas of discussion include earnings claims,

distributor relationships, fees, and extraterritorial effect.

These proposed amendments will be presented and discussed at the

WFDSA CEO Council meeting in Beijing, China in November 4-5. 2015. It would subsequently be presented to the WFDSA Board of Delegates.

Global Statistical DataMay 29, 2015In the global statistical data for 2014 released by the World Federation of Direct Selling Associations (WFDSA), Malaysia is ranked 4th in Asia Pacific and 9th globally. Malaysia contributes approximately 3% of the global direct selling sales.

Overall globally, Cosmetics and Personal Care still dominates at 34% of total sales, followed by Wellness at 29%.

United States, 19%

China, 17%

Japan, 9%

Korea, 9%Brazil, 7%

Germany, 5%

Mexico, 4%

France, 3%Malaysia, 3%

Other, 22%

United Kingdom, 2%Asia/Pacific, 45%

Americas, 37%

Europe, 17%

Africa/Middle East, 1%

Regional Sales Top 10 Global Markets

Page 15: NEWS€¦ · University HSBC Business School. The functions of this Research Centre is akin ... has not only the opportunity to present Malaysian direct selling at a global level,

MEM

BERS

UPD

ATE

New Members

Sami Direct Sdn Bhd

Unit T1-L7-2, Level 7, Tower 1Jaya 33 , Jalan Semangat46100 Petaling JayaSelangor Darul Ehsan

(effective June 2015)

Luxor Network Sdn Bhd

Luxor Tech Centre1A, Jalan Teknologi 3/4Taman Sains Selangor 1Kota Damansara PJU 547810 Petaling JayaSelangor Darul Ehsan

Morinda (Malaysia) Sdn Bhd

B2-16, Plaza Damas 3Jalan Sri Hartamas 1Sri Hartamas50480 Kuala Lumpur

Max Pine International Holdings Sdn Bhd

No. 11 & 13, Mukim 11Jalan Icon City, Bukit Tengah 14000 Bukit MertajamPulau Pinang

Mangosteen Beverage (Malaysia) Sdn Bhd

100.6.043, (129 Office) @ The SchoolBlock J, Jaya OneNo. 72A, Jalan Universiti46200 Petaling JayaSelangor Darul Ehsan

Winalite Global Sdn Bhd

Block A, A-11-2, Level 13Viva Home Office85, Jalan Loke Yew55200 Kuala Lumpur

Totalife (M) Sdn Bhd

Unit B-29-06, Block B, Jaya OneNo. 72A, Jalan Universiti 46200 Petaling JayaSelangor Darul Ehsan

Jeunesse Global Sdn Bhd

Unit B-11-3, Block B West, Level 11, PJ8No. 23, Jalan Barat, Seksyen 846050 Petaling JayaSelangor Darul Ehsan

(effective July 2015)

Young Living (Malaysia) Sdn Bhd

GF, Tower 7, Avenue 3Bangsar South8, Jalan Kerinchi59200 Kuala Lumpur

(effective June 2015)

Kyani (M) Sdn Bhd

Lot 2.32 & Lot 3.33The Scott Garden289 Jalan Klang Lama58000 Kuala Lumpur

(effective October 2015)

Taiway Marketing (M) Sdn Bhd(effective December 2015)

Modere Malaysia Sdn Bhdformerly known asNeways Worldwide Sdn Bhd

(effective October 2015)

New Office Premises

Membership CessationName Change

T: 03 7932 3301F: 03 7932 3341

W: www.samidirect.com.my

T: 03 7681 2233F: 03 7681 2266

(effective July 2015)

T: 03 6205 5988F: 03 6205 2180

(effective August 2015)

T: 04 506 0185 F: 04 506 0187

(effective July 2015)

T: 03 7946 6688F: 03 7946 6699

(effective November 2015)

T: 03 9283 6889F: 03 9202 6191

(effective November 2015)

T: 03 7956 9811F: 03 7957 9981

(effective August 2015)

T: 03 7960 6005F: 03 7960 9005

W: www.jeunessemy.com

T: 03 2280 1000F: 03 2280 1002

W: www.youngliving.com

T: 03 7980 0378F: 03 7980 0387

W: www.kyani.net

Page 16: NEWS€¦ · University HSBC Business School. The functions of this Research Centre is akin ... has not only the opportunity to present Malaysian direct selling at a global level,

CONTRIBUTIONS are welcomed.DSAM reserves the right to edit or not publish materials submitted. DSAM SECRETARIAT

Unit 1702, 17th Floor, Block A, Damansara Intan,No. 1, Jalan SS 20/27, 47400 Petaling Jaya, Selangor Darul Ehsan

T: 03 7726 9232 F: 03 7726 9049

E: [email protected]: http://www.dsam.org.my

Views expressed are not necessarily those of DSAM.The Association takes no responsibility for the consequences of any action taken based on any information published in DSAM News and neither shall it be held liable. No part of this publication may be reproduced without the permission of the publisher.

a member of

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AMC Allied Metalcraft Corporation Sdn BhdT: 03 5569 8994 F: 03 5569 6626

Americ Corporation Sdn BhdT: 04 229 3470 F: 04 229 3480

Amway (Malaysia) Sdn BhdT: 03 7946 2288 F: 03 7946 2399

Asia Herbal Biotech Sdn BhdT: 03 5622 2600 F: 03 5622 2900

Avon Cosmetics (M) Sdn BhdT: 03 7965 7000 F: 03 7965 7111

Best World Lifestyle Sdn BhdT: 03 9057 1133 F: 03 9057 2158

Bing Han Enterprise Sdn BhdT: 03 2144 1081 F: 03 2144 7443

Blondal Sales & Service Sdn BhdT: 03 5569 1888 F: 03 5569 1558

Brilliant Point Sdn BhdT: 03 4142 0411 F: 03 4142 0415

Cadware Sdn BhdT: 03 9171 6952 F: 03 9171 6951

CenGreen Global Sdn BhdT: 03 9056 2005 F: 03 9056 2516

Chini Enterprise (M) Sdn BhdT: 03 4048 1268 F: 03 4041 9918

CNI Enterprise (M) Sdn BhdT: 03 5569 4000 F: 03 5569 1078

Creative Dreams International Sdn BhdT: 03 7954 9196 F: 03 7954 9197

Crony Beauty (M) Sdn BhdT: 03 8024 6039 F: 03 8024 6063

Diamond Interest Sdn BhdT: 04 397 4675 F: 04 397 9230 DNMC International Sdn BhdT: 03 5192 1989 F: 03 5192 1978

DXN Marketing Sdn BhdT: 03 7725 3388 F: 03 7725 1188

Elken Sdn BhdT: 03 7985 8888 F: 03 7785 9284

Enagic (Malaysia) Sdn BhdT: 03 2282 2332 F: 03 2282 2335

Flantech Asia Sdn BhdT: 04 537 2200 F: 04 537 0099

Forever Living Products (M) Sdn BhdT: 03 9282 0033 F: 03 9283 5055

Gano Excel Enterprise Sdn BhdT: 04 734 6828 F: 04 732 3828

Grolier (Malaysia) Sdn BhdT: 03 2688 1688 F: 03 2070 5708

HDI Network (M) Sdn BhdT: 03 5633 0906 F: 03 5633 3129

Healthy Futures Sdn BhdT: 03 7661 0812 F: 03 7661 0820

Healthy Homes Marketing (M) Sdn BhdT: 03 9221 2828 F: 03 9221 1868

Herbalife Products Malaysia Sdn BhdT: 03 2687 6300 F: 03 2687 6262

Jeunesse Global Sdn BhdT: 03 7960 6005 F: 03 7960 9005

Kyani (M) Sdn BhdT: 03 7980 0378 F: 03 7986 0387

K-Link International Sdn BhdT: 03 7948 2333 F: 03 7948 2338

Infinitus International (Malaysia) Sdn BhdT: 03 8079 1828 F: 03 8079 1829

Lanfar (M) Sdn BhdT: 03 4296 0649 F: 03 4296 0650

Le Rêve (Malaysia) Sdn BhdT: 03 5569 0050 F: 03 5569 0051

LeRoy International Sdn BjdT: 03-8925 9999 F: 03-8922 2280

Lion Best Sdn BhdT: 03 2145 7739 F: 03 2145 7519

Luxor Network Sdn BhdT: 03 7681 2233 F: 7681 2266

Mangosteen Beverage (Malaysia) Sdn BhdT: 03 7946 6688 F: 03 7946 6699

Mary Kay (Malaysia) Sdn BhdT: 03 7711 7555 F: 03 7711 7556

Max Health & Living Worldwide (Malaysia) Sdn BhdT: 03 7494 1270 F: 03 7931 5018

Max Pine International Holdings Sdn BhdT: 04 506 0185 F: 04 506 0187

Modere Malaysia Sdn BhdT: 03 7966 6899 F: 03 7966 6888

Morinda (Malaysia) Sdn BhdT: 03 6205 5988 F: 03 6205 2180

Nu Skin (Malaysia) Sdn BhdT: 03 2170 7700 F: 03 2170 7799

N.Z. New Image Sdn BhdT: 03 7940 3688 F: 03 7940 3600

OMX Nutrition Sdn BhdT: 03 8025 9103 F: 03 8025 9110

OSN Network Sdn BhdT: 03 7710 9739 F: 03 7710 7739

Perfect Pentagon (M) Sdn BhdT: 03 7620 3800 F: 03 7620 8282

PHHP Marketing (M) Sdn BhdT: 07 861 9889 F: 07 861 5037

P-Life Marketing Sdn BhdT: 03 9057 4559 F: 03 9058 2911

QNet (M) Sdn BhdT: 03 7967 9888 F: 03 7957 5142

Reliv International Sdn BhdT: 03 5638 8788 F: 03 5613 5788

Revell Sdn BhdT: 03 4021 3800 F: 03 4023 6800

Sahajidah Hai-O Marketing Sdn BhdT: 03 3348 8588 F: 03 3348 8133

Sami Direct Sdn BhdT: 03 7932 3301 F: 03 7932 3341

Shaklee Products (Malaysia) Sdn BhdT: 03 5622 3188 F: 03 5622 3099

Shuang Hor Enterprise (M) Sdn BhdT: 03 6275 8818 F: 03 6276 6822

Sophie Paris Sdn BhdT: 03 2281 2400 F: 1300 800 388

Stemtech Malaysia Sdn BhdT: 03 7980 2007 Fax: 03 7980 9700

Totalife (M) Sdn BhdT: 03 7956 9811 F: 03 7957 9981

Total Reach Marketing Sdn BhdT: 03 7877 6500 F: 03 7874 4294

True Mix Sdn BhdT: 03 7804 9326 F: 03 7806 2463

Tupperware Brands Malaysia Sdn BhdT: 03 5636 5500 F: 03 5631 1832

UGS Network Service (M) Sdn BhdT: 03 8060 6989 F: 03 8060 6989

UHS Essential Heatlh (Malaysia) Sdn BhdT: 03 7953 8000 F: 03 7953 8100

Unicity Marketing Sdn BhdT: 03 7968 9911 F: 03 7968 0888

Unilever Malaysia Aviance Sdn BhdT: 03 7951 9888 F: 03 7960 3660

Vita Lifesciences Sdn BhdT: 03 5569 6323 F: 03 5569 2393

VIVA Life Science Sdn BhdT: 03 7859 8248 F: 03 7859 8249

Winalite Global Sdn BhdT: 03 9283 6889 F: 03 9202 6191

Wonder Way Marketing Sdn BhdT: 07 226 7299 F: 07 223 9599

Worldwellness Network Sdn BhdT: 03 7788 7791 F: 03 7788 0949

Young Living (Malaysia) Sdn BhdT: 03 2280 1000 F: 03 2280 1002

Zhulian Marketing (M) Sdn BhdT: 04 616 2020 F: 04 641 3020

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