Malaysia Earned A Staggering RM23.6 Billion From Franchise Business Last Year, Says Minister

KUALA LUMPUR, June 13 (Bernama) -- Malaysia earned a whopping RM23.6 billion revenue from franchise business last year, Domestic Trade, Cooperatives and Consumerism Minister Datuk Hasan Malek said Thursday.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=955983
Published: Jun 14, 2013

Since franchise business was introduced in the country 17 years ago, the business has grown by 200 per cent and contributed 2.7 per cent to the national gross domestic product, he said.

"This remarkable success stems from the strong commitment, interest and seriousness of franchise holders and support from the government which provides various incentives including financial support to expand franchise business to foreign countries," he told reporters after opening the 18th Malaysian Franchise Association annual general meeting here today.

Hasan said Malaysian franchise products have international quality as proven from 47 products, particularly food and beverages, being sold in 50 countries.

"I know a Malaysian who has opened about 50 franchise outlets in India alone. This is a big success as our products have penerated the markets in Australia, the Middle East and Southeast Asia," he said.

"Currently, Malaysia has 672 franchises, of which, 70 per cent are local companies and 30 per cent foreign investors," he said.

Hasan said the government acknowledges the potential of franchise business and would not hesitate to extend all forms of assistance including expediting processing of applications to only seven days.

He said the government would also conduct studies from time to time to introduce new funds to people keen to venture into franchise business.

"The government's most important step is to introduce the National Franchise Development Masterplan last year which will be in force from 2012 to 2016,"he said.

He said the masterplan encompasses efforts to boost competitiveness in the domestic and foreign franchise industry and establishing on-line franchise registration system known as Malaysian Franchise Expressway (MyFEX).

MyFEX will facilitate application and registration of new franchise licence.

-- BERNAMA