MLM in Singapore should have a regulator

IRAS and the Riway Price War: Riway MLM Distributors Struggle in Silence

In recent years, multi-level marketing (MLM) distributors in Singapore have found themselves caught between rising operational costs and stricter tax enforcement by the Inland Revenue Authority of Singapore (IRAS). While IRAS has every right to ensure fair taxation, its intensified focus on individual MLM distributors has inadvertently triggered a survival crisis within the industry… especially with the sale of Purtier Placenta health supplement.

Traditionally, MLM distributors operated under a more relaxed tax radar, often working as part-time sellers or hobbyists. However, with IRAS tightening compliance requirements—demanding proper accounting, GST registration for higher earners, and even audits—many distributors have been forced to take drastic measures to stay afloat. One unfortunate consequence has been the onset of aggressive price wars.

With little room to maneuver and profit margins shrinking due to tax obligations, distributors have resorted to slashing prices just to make a sale or sell their products. This race to the bottom has created a highly unstable environment where genuine business growth is stifled. New entrants struggle to break even, while veterans burn out trying to compete. Ironically, those who attempt to play by the rules—registering their income and paying taxes—end up less competitive than others who remain under the radar.

Despite repeated appeals from industry players, IRAS has shown little concern for the realities on the ground. Their stance remains clear: taxes must be paid, regardless of the business model or challenges faced. While this ensures fairness in principle, the lack of flexibility or tailored support for small-time distributors has left many feeling abandoned.

In the end, the question remains: Is it truly possible to nurture entrepreneurship while enforcing blanket tax policies without nuance? For now, Singapore’s MLM distributors continue to fight a silent battle—against each other and an unyielding system.