Source from (The Star Online): http://www.thestar.com.my/Business/Business-News/2013/07/01/PNS-Franchisors-should-look-abroad-This-will-allow-local-companies-to-capture-a-much-bigger-market.aspx
Published: July 01, 2013
“We should be venturing overseas given the relatively small market here. Take kopitiam as an example, the market is only for 29 million population.
“If you venture beyond Malaysia, you will have a much bigger market to capture,” managing director Syed Kamarulzaman Syed Zainol Khodki Shahabudin told StarBiz.
“We don’t want to see them to be successful just locally. How big is the local market? We want them to go overseas,” he added.
Nevertheless, Syed Kamarulzaman said venturing overseas had its risk.
Citing homegrown fast-food chain Marrybrown Fried Chicken Sdn Bhd as an example, Syed Kamarulzaman said the company was fast strengthening its foothold, both locally and abroad.
According to Marrybrown website, the fast-food restaurant chain has over 400 outlets in Asia, Middle-East and Africa.
Meanwhile, Nelson’s, which specialises in corn-in-a-cup, has about 600 outlets overseas and 200 locally.
“So far, some 45 companies have been able to venture overseas with more than 1,400 outlets combined.
“That’s a success and we hope companies will be able to capture a bigger market,” he said.
Syed Kamarulzaman said one of PNS’ objectives was to develop local products and market them abroad.
PNS is an agency under the Domestic Trade Cooperatives and Consumerism Ministry with the mandate to lead the development of Malaysia’s franchise industry.
Its main objectives include encouraging more entrepreneurs to invest in franchises by making all relevant resources available to potential investors and ensure that more local products are marketed abroad.
On top of providing funding, PNS offers guidance and special schemes for franchisors and franchisees and welcomes franchise partners to Malaysia.
The agency also provides various platform such as international expo and trade mission.
Syed Kamarulzaman said PNS was currently working on some compulsory programmes like those mandatory training for directors of public-listed companies.
According to the Registrar of Franchise, as at May 2013 there were about 671 registered franchisors in Malaysia.
Of the total, 234 franchisors, or 35%, are in the food and beverages industry, clothing and accessories (11%), services and maintenance (12%), learning centre and nursery (11%), health and beauty care (10%), convenience shop and supermarket (3%), ICT and electronics (4%) and other businesses (14%).
“There is room for improvement (in terms of new business to be franchised). The trend in the the United States is the hotel sector.
“That’s something we’ll be able to grow. We are also looking into barber service, plumbing and workshop,” Syed Kamarulzaman said.
There are also untapped sectors such as eco-tourism, medical tourism, green products and services.
Syed Kamarulzaman disclosed that PNS is the master franchisee for Gloria Jean’s Coffees in Malaysia and Brunei and is currently expanding the number of outlets here.
On funding, he said franchisees had to show that they had the financial strength and would not depend solely on the loan provided by PNS.
The ministry has projected the franchise industry to make up 9.4% of the country’s gross domestic product (GDP) by 2020.
In 2012, the franchise industry generated a total revenue of RM24.3bil.
This year the ministry targets the industry to contribute RM26bil of GDP.
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