Hai-O Hopes To Penetrate China Market By Year End
KUALA LUMPUR, June 27 (Bernama) -- Hai-O Enterprise Bhd hopes to spread its wings and enter the markets in China by end of this year or early next year under its expansion plan, its Group Managing director Tan Kai Hee said.
"We have already entered into Indonesia, (and) the next one would be China."Hai-O is involved in wholesaling, retailing, multi-level marketing, and operates a pharmaceutical factory and modern Chinese medicinal clinics.
"One of their representatives is already here and we are having the negotiations now. Of course, it is not easy to get the licence in China but anyhow we will try our best. If not by end of the year or early next year," Tan told Bernama at the Hai-O's Diamond Award ceremony at the Mines Exhibition and Convention Centre near here last night.
The night saw the top sales agents from all regions honoured for their sales achievement.
Also present was Ministry of Domestic Trade, Co-operative And Consumerism (KPDNKK)'s Deputy Secretary-General, Mahani Tan Abdullah, who represented her minister, Datuk Seri Ismail Sabri Yaakob.
Tan said the regulations were quite tight in China and that was why "we try to explore the opportunities with the Chinese.
"Touching on the minister's aspiration to increase sales and achievement of MLM companies to RM10 billion by 2015, Tan said the figure was not something that was impossible to achieve.
"It can be achieved so long the ministry side and the direct selling companies continue to work together and move in synch towards the direction."KPDNKK and the direct selling companies must have a joint framework to achieve the plan," he said.
Tan said the ministry must also identify the potential companies for listing on the Bursa Malaysia stock exchange.
"They should encourage these companies, apart from giving them attractive incentives. I am confident that the more number of companies are listed, the more confidence people will have in the industry."
Tan said the companies listed not only adhere to the Direct Sales Act but are also regulated by the Securities Commission. These companies could prosper fast, he said.
"For example, if 30 companies are listed on the Bursa stock exchange, and the long term sales of each company is about RM200 million, their joint contribution would amount to RM6 billion.
"With capital, these companies could expand to overseas," he said.If there are programmes from KPDNKK for overseas trade missions that bring over direct sales companies along, it would help further, he said.
This way, it would make it easier for the companies to expand and strengthen their business overseas.
"We are confident of the minister's plan to make Malaysia a hub," Tan added.
When asked on the progress of Hai-O's business in Indonesia, Tan said the company had just started and that it would take some time to see the results."Currently, we are in Jakarta and now in the midst of setting up our stockists in two other cities gradually."
Hai-O has five or six products approved for the Indonesian market. The company started initial recruitment activities, having obtained a licence from the Association of MLM in Indonesia in August 2009.
-- BERNAMA
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