HAI-O HOPES TO PENETRATE CHINA MARKET BY YEAR END

By Tengku Noor Shamsiah Tengku Abdullah and Mahanum Abdul Aziz

KUALA LUMPUR, June 28 (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 Sunday 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, 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 (US$1=RM3.2) 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 (Malaysia Exchange) 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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