M'sian franchise brands have captured interest of international market, says Ismail Sabri

Datuk Seri Ismail Sabri Yaakob. -filepic

PUTRAJAYA: Malaysian franchise brands have successfully captured the interest of the wider international market, with a total of 391 new Malaysian franchise outlets opened globally throughout the 11th Malaysia Plan, says Datuk Seri Ismail Sabri Yaakob.

The Prime Minister said that since 1994, local franchise brands had shown resilience in facing global economic challenges by providing quality products and services and as a result, captured the interest of the wider international market.

Malaysia, he pointed out, has adopted pro-franchise policies and welcomes franchisors globally to do business here, in line with the aim of establishing the country as the franchise hub for Asean.

“We believe that healthy growth of the franchise businesses will help prosper and benefit the country, entrepreneurs, consumers, bankers, support services and Malaysian society at large,” he said at the virtual launch of 28th Franchise International Malaysia on Thursday (Oct 14).

In 2019, the franchise industry recorded total sales of RM13.3biil, a 19% increase from the previous year's total sales of RM11.16bil.

The Prime Minister said that for 2019 alone, the industry provided more than 80,000 jobs with an estimated contribution of RM1.4bil in wages.

“We are optimistic that the final sales figure for this year would reach RM13bil judging from the inherent strength of this industry despite the pandemic,” he said.

Ismail Sabri said to boost the growth of franchise businesses, several initiatives including matching grants and full grants have been outlined under the 12th Malaysia Plan.

“We are extending our invitation to foreign franchising communities to make this country your hub in establishing your central facilities in the South-East Asian region and to launch businesses throughout East Asian countries.

“Businesses will find that Malaysia’s enabling business environment and the pro-business government is an excellent choice for their investments,” he said.

The government, he assured, remained committed to supporting the growth of the franchise industry through various initiatives under the Domestic Trade and Consumer Affairs Ministry.