KUALA LUMPUR: Malaysia has set an ambitious target to achieve RM100bil in national franchise sales by 2030, says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Zahid, who is also Rural and Regional Development Minister, said that the target is attainable if the franchise industry maintains an annual growth rate of 8-10% while expanding aggressively into international markets.
"More Malaysian brands must venture into global markets, establishing a footprint in at least 25 countries within the next five years," he said at the Malaysian Franchise Association (MFA) Awards Monday (Dec 15) night.
Malaysia plans to anchor this expansion through the proposed "Asean Franchise Gateway", a strategic initiative aimed at positioning the country as a launchpad for franchise growth across Southeast Asia.
He noted that Asean, with a population of over 680 million and a rapidly expanding middle class, presents vast opportunities for Malaysian brands seeking regional and global expansion. Through the gateway, Malaysia can serve as a one-stop centre for franchise internationalisation by offering streamlined regulations, legal and intellectual property support, halal certification alignment, integrated logistics facilitation, and TVET-based workforce development.
Complementing the initiative, the internationalisation programme under the Enhanced Franchise Development Programme (EFDP) will be strengthened through targeted trade missions to priority markets. These efforts aim to help Malaysian franchises forge strategic partnerships, enhance brand visibility, and deepen their international footprint.
"With strong regulatory alignment, ecosystem integration, and proactive international outreach, Malaysia can establish itself as Asean's premier franchise hub and the natural entry point for global and regional brands into Southeast Asia," he said.
Ahmad Zahid also proposed the establishment of a National Franchise Academy integrated with TVET to develop franchise-ready workers, standardise service excellence, and professionalise frontline talent.
"By producing customer-centred and globally competent workers, this initiative will strengthen our franchise ecosystem and accelerate the expansion of Malaysian brands at home and abroad," he said.
He highlighted the vast potential of halal franchising, noting Malaysia's top ranking in the Global Islamic Economy Indicator for 10 consecutive years. The global halal economy, currently valued at over US$3 trillion, is projected to reach US$5 trillion by 2030, offering transformative opportunities for Malaysian franchise brands.
He also pointed to the tourism industry, contributing 15.1% to Malaysia's GDP, as a key sector benefiting from franchising.
"Tourists seek familiar, quality-assured services, and franchised brands often provide the reliability, consistency, and value they expect. As Malaysia's tourism momentum rebounds and we enter Visit Malaysia 2026, the demand for franchise products and services in food, retail, wellness, and hospitality will grow even stronger," he added. – Bernama
