Multi-Level Marketing (MLM) has become a significant business model in Malaysia, offering individuals opportunities to earn income by promoting and selling products while building their own network of distributors.
The MLM sector in Malaysia has witnessed remarkable growth, driven by a combination of innovative strategies, digital tools, and expanding consumer interest in health, wellness, and lifestyle products which resulted in the overall expansion of MLM Business worldwide.
This article highlights the top MLM companies in Malaysia, providing insight into their products, revenue, and business opportunities. It also explores the factors contributing to the success of MLM businesses, their economic impact, and the future trends shaping the industry.
Did you know?
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.
Top MLM Companies in Malaysia by Revenue
Sl.No. | Company | Year Founded | Revenue 2023 (Million) |
---|---|---|---|
1 |
Infinitus |
1992 |
3500 |
2 |
QNet |
1988 |
520 |
3 |
Cosway |
1979 |
350 |
4 |
Elken |
1995 |
200 |
5 |
PhytoScience |
2012 |
150 |
6 |
Zhulian Marketing |
1989 |
108 |
7 |
Sahajidah Hai-O |
1992 |
91 |
8 |
Edmark International |
1986 |
52 |
9 |
Destina 1 Int. |
2012 |
36 |
10 |
Asia Herbal Biotech |
2010 |
17 |
Top 10 MLM Companies in Malaysia: An Overview
Many MLM companies have flourished in Malaysia, offering a variety of products, from health supplements to beauty items. In this session, we will explore the top 10 MLM companies in Malaysia, known for their success and impact in the industry.
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Infinitus
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QNet
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Cosway
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Elken
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PhytoScience
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Zhulian Marketing
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Sahajidah Hai-O
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Edmark International
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Destina 1 international
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Asia Herbal Biotech
1. Infinitus
Infinitus is a leading multi-level marketing (MLM) company based in Malaysia, founded in 1992 by James (Kam) Yoke Chun. The company focuses on promoting holistic wellness through products that address key areas such as rest, diet, exercise, and emotional well-being. Infinitus offers a range of herbal teas, dietary supplements, and personal care products.
It provides individuals with opportunities to improve their health while earning commissions and bonuses through its compensation plan. Under the leadership of CEO Huisen Lee, Infinitus achieved a revenue of $3.5 billion in 2023.
2. QNet
QNet is a leading multi-level marketing (MLM) company based in Hong Kong, operating in 25 countries worldwide. Founded in 1998 by Vijay Eswaran and Joseph Bismark, the company offers a diverse range of products across health and wellness, personal care, home living, and fashion accessories, including watches and jewelry.
The CEO, Malou Caluza, leads QNet’s global operations, which are managed through advanced e-commerce MLM software. With a revenue of $520 million in 2023, QNet continues to grow, with its highest earner making significant contributions to the company’s success.
3. Cosway
Cosway is a leading multi-level marketing (MLM) company based in Kuala Lumpur, Malaysia, founded in 1979 by Al Chuah Choong Heong. Known for offering high-quality consumer and health products, Cosway provides an opportunity for individuals to earn by building a network of consumers and distributors.
As the network expands, distributors can unlock various rewards such as group development bonuses, branch bonuses, and leadership development bonuses. The company’s product range includes supplements, personal care, cosmetics, household products, food and beverages, and clothing. With CEO Alice Lee, Cosway achieved a revenue of $350 million in 2023.
4. Elken
Elken, a Malaysian company founded in 1995 by AK Tan, offers a diverse range of health and wellness products. Expanding globally in 1997, it became a leading brand in Southeast Asia, impacting over 1.72 billion people.
Elken has earned prestigious awards, including the Asia Pacific International Honesty Enterprise-Keris Award (2003) and the DSN Global 100 Award (2014). With a 2023 revenue of $200 million, CEO Falko Leonhardt has been key to its growth. Elken’s product offerings span healthcare, beauty, personal care, home care, and food & beverages.
5. PhytoScience
Founded in 2012 by Tan Sri Lai Teck Peng, PhytoScience is a global leader in the health and wellness sector, recognized for its scientifically proven products like the Double StemCell supplement. Headquartered in Kuala Lumpur, the company has quickly grown into a multi-million dollar business, reaching $150 million in revenue in 2023.
PhytoScience offers innovative, award-winning products backed by Mibelle Biochemistry Switzerland and provides a lucrative business opportunity through its balanced financial reward plan. With a strong focus on transformation, the company empowers distributors to achieve both physical and financial well-being, making it one of Malaysia’s top MLM companies.
6. Zhulian Marketing
Zhulian Marketing, established in 1989 by Teoh Beng, is a leading investment holding company in Malaysia, specializing in direct-selling with a broad product range, including jewelry, health, personal care, and beauty products. The company stands out for its ability to innovate and produce high-quality products at competitive prices, thanks to its integrated manufacturing facilities.
Initially known for gold-plated jewelry, Zhulian has expanded into various sectors, including functional beverages, herbal supplements, home technology products, and more. With an advanced compensation plan, distributors can earn through retail profits, bonuses, incentives, and travel rewards, contributing to its $108 million revenue in 2023.
7. Sahajidah Hai-O
Sahajidah Hai-O Marketing Sdn Bhd, established in 1992 by Tan Kai Hee, is a prominent MLM company in Malaysia, specializing in a diverse range of products including nutritional food and beverages, personal care, skincare, cosmetics, and wellness solutions. As part of the Hai-O Group, the company operates from Klang, where Hai-O was originally founded.
Known for its fair and reliable reward system, Sahajidah Hai-O supports its distributors with complete training and incentives, helping many build successful businesses, some turning it into family enterprises. With a revenue of $91 million in 2023, the company continues to empower distributors to achieve financial flexibility and success.
8. Edmark International
EDMARK Group of Companies, founded in 1984 as Ever Dynamic Marketing, has grown into a multi-million dollar enterprise with a presence in over 30 countries. The company, known for its dynamic marketing approach and innovative health and household products, was inspired by its founder Mr. Sam Low Ban Chai’s vision of entrepreneurship and financial freedom.
EDMARK operates its manufacturing arm, EDMARK Industries, with a state-of-the-art facility in Selangor, Malaysia, boasting over 250,000 square feet of production space. With an annual revenue of $52 million in 2023, EDMARK continues to expand globally, empowering individuals through its multi-level marketing model and commitment to quality.
9. Destina 1 International
Destina1 International, founded in 2012 by Lord Prof. Dato Seri Dr. Barani Karunakaran and Prof. Dr. Karunakaran A Dorrasamy, is a leading direct-selling company based in Malaysia. Specializing in health, beauty, and personal care products enhanced with Uniwave by Quantes Technology, the company holds over 50 patents and operates in more than 80 countries.
With a business model focused on multi-level marketing, Destina1 empowers Independent Distributors (IDs) to sell products and recruit others, offering significant financial potential. Destina1 has experienced rapid growth, expanding globally into markets such as Asia, North America, and Europe, and achieved a revenue of $36 million in 2023.
10. Asia Herbal Biotech
Asia Herbal Biotech, founded in 2010 by Rick Gan, is a leading network marketing company in Malaysia, specializing in innovative biotechnology and nutritional products. With a strong financial foundation and partnerships with Resintech Berhad and Multimedia Entertainment Sdn Bhd, the company offers distributors the potential to earn substantial incomes, ranging from RM 5,000 to RM 150,000 per month, along with exclusive bonuses. Led by CEO Dr. Alfred Ng Kok Weng, the company generated $17 million in revenue in 2023. Asia Herbal Biotech is committed to enhancing lives and promoting a healthier, more balanced lifestyle.
Direct Selling industry in Malaysia
The Direct Selling Association of Malaysia’s (DSAM) 2023 statistics show that member businesses saw significant shifts in their product offerings and approaches to sales. The largest category was household goods and durables, which accounted for 30% of sales, a considerable increase from 16% in 2022. As a result of changing customer tastes, wellness items saw a steep decline, falling from 47% in 2022 to 25% in 2023. Due to increased demand in this market, home care goods also experienced impressive growth, rising from 3% in 2022 to 15% in 2023.
The value of retail sales in Malaysia’s global direct selling industry was estimated at 8.6 billion U.S. dollars in 2022, a slight increase from 8.37 billion U.S. dollars in 2021. Retail sales in the country have been growing steadily over the last ten years.
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Is MLM Legal in Malaysia?
Yes, MLM (Multi-Level Marketing) is a legal business model in Malaysia, but there are specific requirements and regulations that companies must adhere to operate legally. Any company wishing to use MLM as a business model must first register with the Companies Commission of Malaysia or the Registrar of Societies (ROS). Additionally, the company must have a physical address within Malaysia and appoint a local director who is a Malaysian citizen.
Furthermore, Malaysia requires a direct selling license to operate MLM businesses. The Direct Sales and Anti-Pyramid Scheme Act 1993 mandates that any person or company engaged in direct selling must obtain a license from the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP).
Operating without this license is considered an offense under the Act, and violators can face severe penalties, including fines of up to RM250,000, imprisonment for up to five years, or both. Additionally, the court may order the forfeiture of any proceeds derived from illegal activities. Therefore, while MLM is legal in Malaysia, it is essential for companies to comply with the relevant regulations to avoid legal repercussions.
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Factors Driving the Success of MLM Companies in Malaysia
Multi-Level Marketing (MLM) companies in Malaysia have experienced significant growth in recent years, driven by a combination of innovation, strategic expansion, and market adaptability.
These companies have successfully held technology, community support, and shifting consumer preferences to build strong, sustainable businesses. As the MLM industry evolves, several key factors have emerged as critical to their success, positioning them for continued growth both locally and internationally and thereby helps to become rich in MLM.
Innovation: MLM Softwares, Mobile Apps and E-commerce Platforms
The emergence of MLM software that has an advanced list of features helped MLM business in Malaysia to scale new dimensions. Though its features could vary from one to the other, they add more benefits for the MLM business. MLM companies in Malaysia use mobile apps for distributors to manage sales, track earnings, and communicate with teams. E-commerce platforms also enable distributors to reach wider audiences, improving business scalability and efficiency.
Global Expansion Strategies
To combat local market saturation, many MLM companies in Malaysia have expanded globally. By utilizing digital tools, they customize their marketing approaches for different regions, tapping into new customer bases and driving growth in international markets.
Training and Community Support
Providing extensive training programs and building strong community networks are vital for MLM success. Companies offer both online and offline training, along with mentorship and incentive programs, to keep distributors motivated and ensure long-term success.
Health and Wellness Focus
Post-pandemic, MLM companies in Malaysia have shifted towards health and wellness products. With rising consumer interest in health, they offer nutritional supplements, organic products, and wellness-focused items that align with current trends and demand.
These factors collectively contribute to the ongoing success of MLM companies in Malaysia, both locally and globally.
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Economic Impact of MLM in Malaysia
Multi-Level Marketing (MLM) has become an important sector in Malaysia’s economy, contributing significantly to the country’s Gross Domestic Product (GDP) and providing substantial employment opportunities. MLM companies have helped drive consumer spending, foster entrepreneurship, and offer income opportunities for individuals across different socio-economic groups.
Contribution to GDP and Employment
MLM businesses in Malaysia play a notable role in the economy by generating billions of ringgit in retail sales annually. As a direct sales model, MLM contributes to the retail and service sectors, promoting both local and international brands.
The industry also creates a large number of jobs, particularly as distributors who act as independent contractors. This allows many people, particularly those seeking flexible working hours, to earn income through sales commissions and team-building activities.
Additionally, MLM provides opportunities for entrepreneurial growth, especially in underserved communities, by offering a low-cost entry point into business ownership.
Contribution to Local and Global Trade
MLM in Malaysia has not only bolstered domestic retail and service sectors but also facilitated global trade. Many MLM companies operate both locally and internationally, which allows for greater export potential of Malaysian products and services.
As MLM companies grow, they also contribute to Malaysia’s export revenue by introducing locally manufactured products to overseas markets. This helps diversify Malaysia’s trade portfolio and improves its standing in the global marketplace.
By providing access to international markets, MLMs help smaller businesses scale quickly and tap into the global demand for wellness, beauty, health, and lifestyle products.
Promotion of Consumer Awareness and Education
MLM companies in Malaysia are also playing an important role in educating consumers about new products and services. Since MLM relies heavily on product endorsements and word-of-mouth marketing, it helps raise awareness of new trends and innovations.
Many MLM companies run educational seminars, workshops, and product demonstrations, which help increase consumer knowledge, improve product literacy, and build trust with customers.
This education is especially critical for promoting health and wellness products, which are a major part of the MLM landscape. By investing in consumer education, MLM businesses contribute to informed purchasing decisions and raise the standard of consumer rights in Malaysia.
Key Statistics from the WFDSA Report
According to the World Federation of Direct Selling Associations (WFDSA), the global MLM industry has seen strong growth in recent years. In the latest WFDSA report, Malaysia stands out as one of the leading markets in Asia for MLM sales and market penetration.
The report highlights the retail sales from MLM companies, showing a steady rise in consumer demand for products sold through MLM channels. Malaysia’s market penetration is also noteworthy, with increasing numbers of people becoming involved in MLM as distributors, driven by the flexibility and earning potential the model offers.
Throughout 2022 and 2023, Malaysia’s direct selling sector shown incredible tenacity. With revenues of RM32.4 billion in 2022—a sharp increase from RM27.5 billion in 2021—it reached a noteworthy milestone. This remarkable expansion demonstrates the industry’s strong demand and adaptability in the face of economic difficulties.
Social and Community Impact
MLM has a significant social impact, particularly through community-building efforts. MLM companies often encourage teamwork, leadership development, and community engagement among their distributors.
Many companies run charity events, social initiatives, and volunteer programs, which not only promote positive social values but also enhance the companies’ reputation within communities. Distributors often form close-knit support networks and collaborate on various social causes, creating a sense of belonging and empowerment that extends beyond financial gain.
These community-oriented activities foster a sense of shared purpose and responsibility, making MLM a source of social capital in Malaysia.
Role of Women in the MLM Sector
The MLM sector in Malaysia has been particularly empowering for women. A large proportion of MLM distributors are women, and the industry has been a source of financial independence and personal development for many.
MLM offers women the flexibility to balance work with family responsibilities, often making it an attractive option for those seeking to work from home or part-time. In addition to the financial benefits, MLM provides women with opportunities for leadership, business training, and networking, which further contributes to their professional growth and empowerment.
As a result, women continue to play a central role in driving the success and expansion of MLM businesses in Malaysia.
These factors underscore the significant economic impact of MLM in Malaysia, providing both financial benefits to the country and empowering individuals, particularly women, within the sector.
Future Trends in the Malaysian MLM Industry
The Malaysian MLM industry is evolving rapidly, driven by technological advancements and changing consumer preferences. As the market becomes more competitive, MLM companies are adopting new strategies to stay relevant and expand their reach.
Future trends in this sector suggest continued growth through digitalization, personalized offerings, and global expansion.
Integration of Artificial Intelligence (AI) and Automation
AI and automation technologies are being increasingly adopted in the Malaysian MLM sector to optimize business processes such as lead generation, customer support, and inventory management. These tools allow companies to reduce operational costs, improve decision-making, and provide a more simple experience for distributors and customers alike.
Sustainability and Eco-Friendly Products
With rising consumer awareness about environmental issues, MLM companies in Malaysia are increasingly focusing on sustainability. Offering eco-friendly, ethically sourced, and organic products is becoming a trend, as consumers are more inclined to support brands that align with their values of environmental responsibility and social impact.
Improved Social Media and Influencer Marketing
Social media continues to play a pivotal role in MLM strategies, with distributors using platforms like Instagram, Facebook, and TikTok to promote products and recruit new members in MLM. Influencer marketing is also growing, as MLM companies partner with influencers to reach younger, digitally-savvy audiences and boost brand visibility.
Increasing Digitalization and E-commerce Integration
The Malaysian MLM industry is embracing digital tools and e-commerce platforms, allowing distributors to manage their businesses online, reach wider audiences, and simplify sales processes. This shift enhances operational efficiency and opens new growth avenues as consumers increasingly prefer online shopping and digital engagement.
Personalized Product Offerings through Data Analytics
MLM companies are using data analytics to customize product recommendations and create personalized offerings based on customer preferences and buying behavior. This helps businesses to improve customer satisfaction, increase sales, and build long-term loyalty by delivering more relevant and targeted products.
Global Partnerships and Cross-Border Expansion
As MLM companies seek new growth opportunities, many are forming strategic global partnerships and expanding into international markets. This cross-border expansion allows them to tap into emerging markets, diversify their customer base, and scale their operations on a global level, ensuring sustained growth in the competitive MLM landscape.
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Conclusion
In conclusion, MLM companies in Malaysia have established a strong presence in the global market, driven by innovation, community support, and a focus on health and wellness products. While the industry continues to face challenges, its adaptability through digitalization, sustainable practices, and global expansion promises ongoing growth.
With increasing participation, especially among women, MLM continues to empower individuals, foster entrepreneurship, and contribute to Malaysia’s economic development. As the market evolves, these companies are poised for even greater success, providing opportunities for both personal and professional growth.