KUALA LUMPUR: The Government will not hesitate to shut down unethical multilevel marketing (MLM) companies, said Datuk Seri Hamzah Zainudin.
The Domestic Trade, Cooperatives and Consumerism Minister said there used to be more than 600 licensed MLM companies in the country but the figure has been cut to 308.
“This is a very big industry. We monitor the companies to make sure they comply with the necessary standard operating procedures.
“I will not hesitate to revoke their licences,” he told a press conference after opening WorldVentures’ first office in Malaysia.
Hamzah, who was questioned over why he gave a licence to WorldVentures, said the ministry was satisfied with the marketing plan.
“It is a genuine and sustainable business, and will provide a chance to market Malaysia as a tourism hub,” he said.
“Malaysia ranks fourth in the direct-selling market in Asia Pacific and the industry will continue to grow.”
He said the industry would generate a revenue of RM17bil by the end of this year.
“Malaysia is doubling its effort on the last track of its journey to becoming a high-income nation by 2020 and one of my ministry’s missions is to increase the contribution of domestic trade to the gross national income,” he said.
When asked about WorldVentures ceasing its operations in Norway after the Norwegian Gaming Board claimed it to be a pyramid scheme, company president of global sales Jon McKillip told reporters that anyone has the opportunity to question them.
“We are forthright and we disclose all our information and we’re happy to answer any questions that anybody or country has.
“Our objective is to have full sustainability, we want to be here for many generations and we want to put more into the system than we take out,” he said.
McKillip said the company’s products are its memberships, which gives access to DreamTrips – a wide selection of themed vacations.
As WorldVentures does not have a licence from the Tourism Ministry, it has partnered with Skyzone Tours & Travel Sdn Bhd to develop the dream trips and travel packages.