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THE Government is preparing to amend the Direct Sales and Anti-Pyramid Scheme Act 1993 (AJLSAP 1993) to provide stronger safeguards for consumers and legitimate sales representatives, while deterring the spread of unscrupulous or illegal business models.
Deputy Minister of Domestic Trade and Cost of Living, Datuk Dr Fuziah Salleh, said the proposed amendments are part of efforts to modernise the legal framework and bring Malaysia’s regulatory standards in line with global practices.
“The Ministry is committed to guiding and upholding the integrity of the direct selling industry in Malaysia through legal compliance and the prevention of unlawful activities,” she said in a statement today.
Fuziah emphasised the urgency of addressing persistent public confusion between legitimate direct selling businesses and pyramid schemes, noting that the resulting stigma continues to erode consumer trust and damage the reputation of compliant companies.
In support of this, the Ministry is rolling out several initiatives, including enhanced consumer advocacy to raise awareness of licensed direct selling products, promote local goods, and help the public steer clear of imitation products or fraudulent schemes.
“This is to enhance the image of the industry, positioning it as a contributor to the economy and a platform for entrepreneurship,” she added.
To reinforce product credibility, KPDN is also encouraging direct selling operators to work with the Intellectual Property Corporation of Malaysia (MyIPO) by registering their business assets, including scientific discoveries or innovations requiring patent protection.
“Registered trademarks become corporate assets. They can be licensed, attract investors, and offer legal recourse against counterfeiters, making products appear more credible and trustworthy,” said Fuziah.
The Ministry's broader agenda to support domestic products—particularly from the direct selling sector—is also being advanced through the ‘Buy Malaysian Products’ Campaign (Kempen Beli Barangan Malaysia, KBBM), which serves to uplift local entrepreneurs and facilitate access to international markets.
Malaysia’s direct selling industry recorded RM34.4 billion in sales last year, a 7.4 per cent increase from the previous year. This achievement places the country sixth globally and fourth in the Asia-Pacific region, with the world’s highest market penetration rate at 2.28 per cent.
The statement also noted that Fuziah recently received a courtesy visit from representatives of the Malaysian Direct Selling Industry Development Association (MDSIDA), led by its president Datuk Seri Barani Karunakaran.
Formerly known as the Malaysian Direct Distribution Association (MDDA), MDSIDA is a strategic partner of KPDN in promoting the sector both domestically and abroad. - October 2, 2025
