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GUIDELINES ON FOREIGN PARTICIPATION IN THE DISTRIBUTIVE TRADE SERVICES MALAYSIA

MINISTRY OF DOMESTIC TRADE CO-OPERATIVES AND CONSUMERISM

INTRODUCTION

The Guideline on Foreign Participation in the Distributive Trade Services Malaysia requires foreign business operators engaged in the distributive trade services in Malaysia to obtain approval from Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC). Recognizing that the further liberalisation of the distributive trade sector can promote domestic economic development, this guideline seeks to ensure a progressive liberalisation process that can lead to a balanced growth beneficial to both local and foreign players. This Guideline is a revision of the Guideline on Foreign Participation in the Distributive Trade Services Malaysia 2004.

OBJECTIVES

This Guideline seeks to: a) ensure an orderly and fair development of the industry, while ensuring the growth of local businesses; encourage the modernization and increase the efficiency of the industry and its continued contribution to the growth of the economy; and increase Bumiputera participation in the economic sector, in line with the National Development Policy.

b)

c)

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DEFINITION Distributive Trade Distributive trade comprises all linkage activities that channel goods and services down the supply chain to intermediaries for resale or to final buyers. The linkages may be: • • • • direct or indirect between 2 parties (or levels) or more than 2 parties (or levels) within the chain; real physical processes or electronic transactions as defined under the relevant laws; in person or electronic transactions as defined under the relevant laws; and transactions that may or may not involve transference of title of ownership to the goods and services.

Distributive traders include wholesalers, retailers, franchise practitioners, direct sellers, suppliers, who channel their goods in the domestic market, and commission agents or other...