MELAKA: The direct selling industry continues to have a positive impact in this country as Malaysia is now ranked sixth in the world with sales value reaching RM25.7 billion in 2020.

Minister of Domestic Trade and Consumer Affairs (KPDNHEP) Datuk Seri Alexander Nanta Linggi said it changed the perception that the industry promotes businesses based on pyramid schemes or get-rich-quick schemes.

"This shows that the direct sales industry is one of the areas of focus that can contribute to strengthening the national economy.

"This industry is capable of creating job opportunities, generating income including additional income and business opportunities among the community," he told reporters after officiating at the Melaka 2022 Malaysian Direct Selling Industry Day programme at Mahkota Parade, Banda Hilir here today.

Also present were Melaka KPDNHEP director Norena Jaafar and chairman of the Unity, Workforce, Community Relations and Consumer Affairs Committee, Ngwe Hee Sem.

Alexander said the direct selling industry has also contributed significantly to the development of skills and the economic growth of small and medium enterprises as well as the empowerment of women with 64 per cent being active in direct selling.

He said that so far a total of 398 direct selling licences have been approved and are still valid for companies to carry out business operations with the concept of direct selling, which is door-to-door, sales by mail order, mail and catalogues as well as electronic transactions.

He said KPDNHEP will continue to regulate the direct selling industry in accordance with the Direct Sales and Anti-Pyramid Schemes Act 1993 (Act 500) including the enforced guidelines, regulations and licence conditions.

"So far a total of 34 companies have had their licences revoked with 26 cases of confiscation value of RM4.2 million from 2020 to 2022.

"The compound value that was imposed was RM71,000 and a fine of RM148,000 with the offences being breaching licence conditions, operating outside hours and not showing the personnel's identification card," he said.

-- BERNAMA