The collective revenue of the multi-billion-dollar Malaysian direct selling industry is projected to be flat this year compared with 2014, as the industry grapples with weak consumer sentiment.
Industry insiders said revenue could come in at around RM13 billion ($3 billion), roughly the same as last year. According to Direct Selling Association of Malaysia (DSAM) president Frederick Ng, the goods and services tax (GST) has had an impact on sentiment. He believes growth this year will be flat.
“Consumers nowadays have adopted a cautious attitude towards spending, following the implementation of the GST,” Ng added.
The industry is projected to post a revenue of RM13 bil, up 4.8% from 2013. The industry’s performance for last year would be known later this year, when the Domestic Trade, Co-operatives and Consumerism Ministry announces the actual 2014 turnover.
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