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 two (2) parties (or levels) or more than two (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 the transfer of title of ownership to the goods and services.
Foreign business operators engaged in the distributive trade services in Malaysia are subject to the Guidelines on Foreign Participation in the Distributive Trade Services issued by the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC). Distributive traders include wholesalers, retailers, franchise practitioners, direct sellers, suppliers who channel their goods in the domestic market, and commission agents or other representatives including those of international trading companies. The following businesses are excluded from the definition of distributive trade:
a) Manufacturing companies; and
b) Companies granted the status of regional establishments by the Malaysian Investment Development Authority (MIDA).
Products and services governed by other Acts: petroleum products, pharmaceutical, medicinal and orthopaedic products, toxic substances and explosives, arms, ammunitions, agricultural raw materials and live animals are subject to other acts and regulations for specific reasons.