A Critical Analysis of Halal Marketing in Malaysia’s Multi-Level Marketing (MLM) Industry

Abstract

The concept of Halalan Toyyiban is very important in Muslims’ lives in their servitude to Allah. The business itself is broken down into many different kinds, one of those which has become nowadays the trend is Multi-Level Marketing (MLM). MLM business is a business model that involves selling and recruitment of new distributors inside the company. Multi-Level Marketing is seen to be good as it helps many people to achieve their dreams, but ,on the contrary, it is observed as a medium of cheating. With its players reaching 2 million in Malaysia since its establishment in the early 1990s, MLM’s presence in the business industry should not be taken lightly. This research attempts to analyse the current MLM system and its factors that can be categorized as Halalan Toyyiban, as well as the factors which lead to the destruction. This factor includes the system itself, manufacturing, the distribution channels, the after-sales service, and the long-run vision of the company. By doing this, it is aimed that the doubtful (Syubhah) or even the impermissible (Haram) practice of MLM can be eliminated and abstained by the Muslim players, and it is expected that better MLM companies can be established, using proper S.O.P and guidelines. The purposes of the research are gained through a qualitative approach from the library and interviews. Keywords: Multi-Level Marketing, Halalan Toyyiban, Halal Industry, Syubhah, Haram practice, Opportunity, Ethic