Business

Malaysian franchise industry flourishing amid challenging economy

Syndicated News
Written by Syndicated News

CYBERJAYA, Nov 16 2016 : The Malaysian franchise industry is flourishing despite the challenging economic situation, said Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Seri Hamzah Zainudin.

He said the franchise industry had contributed significantly to the national economy, accounting for 3.4 per cent or RM26.8 billion of gross domestic product (GDP) last year.

“To date, the number of franchise businesses registered with the ministry is 830, out of which 556 are local brands and the rest foreign.

“Based on these developments, the ministry is targeting the industry to contribute RM35 billion or 4.4 per cent to the nation’s GDP by 2020,” he told reporters during a meeting with franchise industry leaders here, yesterday.

The Business Over Coffee-A Session With Export-Ready Franchisors programme, which discussed the challenges faced by export-ready companies to expand their businesses overseas, was participated by over 60 local franchise industry players.

Hamzah said the government’s commitment to boost activities and franchise development programmes next year would be through a RM3.15 million allocation specifically for promotion and marketing.

He said the ministry would also intensify the Franchise Malaysia Goes Global (FMGG) and Enhanced Franchise Development Programme (EFDP), a mission to promote local franchises abroad by focusing on countries in Asean, the Middle East and East Asia.

“The franchise industry’s internationalisation strategy through the FMGG and EFDP will ensure local franchise businesses remain competitive and able to penetrate new markets to meet global demand,” he said.

Hamzah said with the increase of local franchises abroad, he was confident that the government’s agenda to make Malaysia a franchise hub in Southeast Asia would be achieved.

“In 2008, there were only 29 Malaysian franchise brands in 31 countries worldwide involving 174 outlets but now it has increased drastically to 64 brands in 65 countries with 4,045 outlets,” he said. – Bernama

Comments

comments

About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.