Prime Minister Ismail Sabri Yaakob said Malaysia had always adapted a pro-franchise policy, and welcomed international franchisors.
“Concerted efforts from industry players are therefore needed to revitalise the franchise industry in the next five years,” he said.
The prime minister invited foreign franchising communities to make Malaysia their hub when establishing central facilities for Southeast Asia, as well as launching their businesses throughout East Asia.
“You will find that Malaysia’s enabling business environment and the pro-business government is an excellent choice for your investments,” he said at the launch of the 28th Franchise International Malaysia (FIM) 2021 virtual exhibition and conference today.
He said the government had allocated RM10 million to the domestic trade and consumer affairs ministry to continue with its enhanced franchise development programme, aimed at training local franchise businesses in international franchise management and practices, business matching and trade missions.
“The government remains committed to supporting the growth of the franchise industry under the ministry’s various initiatives,” he said.
The FIM is the sole large-scale franchise exhibition in Malaysia recognised by the World Franchise Council (WFC) and the Asia-Pacific Franchise Confederation (APFC).
Ismail said Malaysia’s franchise industry recorded a sales figure of RM13.3 billion in 2019 and about RM5.2 billion in 2020.
He said in 2019 alone, the franchise industry provided more than 80,000 jobs with an estimated contribution of RM1.4 billion in wages.
“We are positive that the final sales figure this year will reach RM13 billion, judging from the inherent strength of this industry despite the pandemic,” he said.
Ismail said the effort under the micro and affordable franchise development programme will bear fruit by end of this year, where micro franchisees will begin their businesses.
“Since 1994, Franchise Malaysia brands have shown their resilience when faced with global economic challenges by providing quality products and services. As a result, our franchises have captured the interest of the international market,” he said.
He said 391 new Malaysian franchise outlets were opened globally during the 11th Malaysia Plan from 2016 and 2020.
“We believe the growth of franchise businesses will benefit the nation, entrepreneurs, consumers, bankers, support services, and Malaysian society at large,” he said.
He added that various initiatives targeted at young entrepreneurs to gain fair access to resources had been introduced through grants offered by the micro and affordable franchise development programme.
Under the programme, new business owners are offered matching grants, whereas full grants are offered to franchise owners to expand their business opportunities.
Ismail also expressed his hope that the annual conference, which had RM200 million worth of potential investments, could attract as many as 15,000 visitors.