1. Panel Discussion on International Regulation Lawrence Cheah, Executive Director, Direct Selling Association of Malaysia Mark-e-Dir: Bringing Market to Consumers Wednesday, 17 th April, 2013 New Delhi

2. Direct Selling in Malaysia A Government / Private Sector Perspective 17th April 2013

3. INTRODUCTION Direct Selling in Malaysia MALAYSIA Size :329 847 km² Administration :13 States, 3 FT Population :28 million 50.4% Malay 23.7% Chinese 11.0% Indigenous 7.1% Indian 7.8% Others Putrajaya

4. DSAM Direct Selling Association of Malaysia TIMELINE Direct Selling in Malaysia Street Vendors going Door-to-Door Pre-1970s 1970s Significant presence of foreign Direct Selling Companies 1978 Formation of DSAM by 4 Companies

5. TIMELINE Direct Selling in Malaysia 1998 DSAM launched Code of Conduct Conduct for the Protection of Consumers Conduct towards Direct Sellers Conduct between Companies Code Enforcement Recognised by WFDSA and endorsed by MDTCC 2009 1993 Direct Sales Act 1993 Definition - MLM, SLM, MO Regulations Offences Schemes and Conduct Requirement for a renewable Direct Sales License DSAM’s Code of Conduct enhanced Extra Territorial Effect

6. TIMELINE Direct Selling in Malaysia 2011 Amended Act passed in Parliament and enforced Direct Sales and Anti-Pyramid Schemes Act 1993 Clear definition of Pyramid Schemes Enforcement by Task Force – MDTCC, Police, CCM, Central Bank 2011 2010 Drafting of Amendments on Direct Sales Act 1993 Close collaboration between DSAM / MDTCC (Private Sector / Government initiative) Drafting of National Code of Ethics 2012 Drafting of Direct Selling Blue Print

7. TIMELINE Direct Selling in Malaysia 2012 December Launch of Direct Selling Blue Print 3 phases - 2013 to 2015 - 2015 to 2018 - 2019 & 2020 3 main principles- Improving the Quality of Human Capital (Education, Full-time, etc) - Strengthening the Legal and Delivery Systems (Self Regulation, Advisory, etc) - Enhance the reputation and performance (USD 6.7 bil by 2020, avg USD 1,300) 2012 June Launch of National Code of Ethics For non-DSAM Members 2020

8. SALES TURNOVER Direct Selling in Malaysia

9. PRODUCT RANGE Direct Selling in Malaysia

10. DISTRIBUTION – GENDER, RACE Direct Selling in Malaysia Distributors by Gender Distributors by Race

11. DISTRIBUTION - AGE Direct Selling in Malaysia

12. REGULATORY Direct Selling in Malaysia  Ministry of Domestic Trade, Co-Operatives and Consumerism (MDTCC) o Direct Sales and Anti-Pyramid Schemes Act 1993 (Act 500) (573 AJLs) MLM (73%), SLM (20%), PO (4%), SLM/PO (3%) o Others : Competition Act 2010, Price Control & Anti- Profiteering Act 2011, Consumer Protection Act 1999  Ministry of Health o Product Registration for Health Supplements and Notification for Cosmetics o Asean Harmonization  Ministry of Finance o Finance Act 2012 o GST  Ministry of Information, Communication and Culture o Personal Data Protection Act 2010

13. END Direct Selling in Malaysia 17th April 2013 Thank You For Your Time