Malaysia’s Direct Selling Industry 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 Malaysia Direct Distribution Association (MDDA).

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

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

“With large, diverse markets and an emerging middle class, these economies align with our industry’s goal of empowering local entrepreneurs and fostering self-sufficiency,” he told Bernama in an interview recently.

Karunakaran noted that the low-barrier, high-opportunity model of direct selling aligns well with BRICS’s emphasis on supporting local business development. Joining BRICS would also reduce Malaysia’s dependency on Western markets, allowing the industry to pivot toward markets that better support localised approaches.

“This shift could lead to innovations tailored to local cultures and consumer preferences, which are key for sustainable growth. Furthermore, a BRICS alliance could encourage regulatory and consumer protection frameworks, potentially enhancing credibility and consumer trust across member nations,” he added.

The direct selling industry in Malaysia has shown consistent growth. In 2023, the industry achieved a turnover of RM29 billion, a figure that rose to RM29.4 billion by the end of September 2024.

Although direct selling has faced negative perceptions globally due to misconceptions surrounding MLM schemes, he stressed that Malaysia’s direct selling is a legitimate, government-regulated business.

“The direct selling industry here provides genuine business opportunities. We are offering a pathway for financial independence and lifestyle improvements, with entry-level roles accessible to those from various educational backgrounds,” he said.

With nearly 115 companies under MDDA, the industry has continued to thrive despite challenges, even as the Asian direct selling market experiences a decline.

“This resilience is credited to robust support from the Malaysian government, including regulatory bodies like the Ministry of Domestic Trade and Consumer Affairs. Thanks to strong government support, Malaysia’s direct selling market remains stable, a stark contrast to declines seen in neighbouring countries,” he noted.

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

Karunakaran envisions a future where BRICS nations work together to establish standardised guidelines and best practices for direct selling, enhancing the industry’s reputation and sustainability across these emerging economies.

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

-- BERNAMA