KUALA LUMPUR: Malaysia is positive on the growth of the franchise industry, targeting it to contribute some RM24bil to the country's gross domestic product (GDP) this year, said Minister of Domestic Trade, Cooperatives and Consumerism Datuk Seri Ismail Sabri Yaakob.
Last year, the franchise industry made up about 2.5% of total GDP, amounting to some RM24.3bil, surpassing the RM22.5bil target for the year.
It had been previously reported that the Government was targeting a 9.4% contribution from the industry to the country's GDP by 2020.
Speaking to reporters after the Franchise International Malaysia (FIM) 2013 soft launch yesterday, Ismail said: “The expected increase of RM1.5bil from last year's target is considered reasonable, given that we are including the micro-franchisors' contribution to the industry.”
Last year, the Government had introduced the micro franchise scheme with an allocation of RM8mil under the National Franchise Blueprint.
“To date, RM6mil in loans have been disbursed from the RM8mil allocation.
“There is a possibility of us allocating more to the scheme if it's fully utilised,” Ismail said.
He said FIM 2013 had entered into its 20th edition and would be organised together with the hosting of the World Franchise Council (WFC) and the Asia Pacific Franchise Confederation Annual Meeting by Malaysia this year.
WFC is the master franchise organisation' represented by 45 countries worldwide, including the United States, Australia, Canada, China, Egypt, France, Japan and India.
“I hope that all entrepreneurs, investors, players and those who are interested to venture into the franchise industry would attend this programme, which would be held at the Putra World Trade Centre from Sept 20 to 22,” he noted.
Also present at the soft launch was Malaysia Franchise Association (MFA) chairman Abdul Malik Abdullah, who said: “This year, FIM is expected to achieve RM370mil in sales transaction. We are confident of attracting 11,000 visitors and would have about 130 exhibitors.”
Last year, FIM chalked up RM356mil in sales as opposed to the RM352mil in 2011.
Said Abdul Malik, among the 130 exhibitors, local exhibitors would account for 75% of the total number of exhibitors, with the rest being foreign exhibitors.
“We are targeting at least 15 countries to participate in this event, and at the moment, we have secured about seven coutries,” he added.
He said the main objective of FIM was to promote franchise products to the public and potential entrepreneurs through the involvement of franchisors in the exhibition as well as to increase the awareness of the public and new entrepreneurs.
FIM is jointly organised by the Ministry of Domestic Trade, Cooperatives and Consumerism and MFA and was introduced in 1994.
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