Market Info
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Aspiring Malaysian Entrepreneurs Should Venture into Franchising Their Business with Many Initiatives Given by The Govt The franchise industry has grown well in Malaysia, with 614 local franchisors, 68 master franchisees and 408 foreign franchisors being registered under the Franchise Act 1998.
here are presently 13,018 franchise business premises operating, of which 5,419 are those of franchisors or master franchisees while 7,599 are owned by the franchisees. The franchising industry provides stable jobs for more than 80,000 workers with estimated contributions and salaries exceeding RM1.4 billion annually On the success of local franchise brands at the international level, 65 Malaysian franchise companies including Daily Fresh, Nelson, Rotiboy, Global Art, and Smart Reader, had expanded their business overseas with the opening of more than 3,000 outlets in 66 countries. Foreign countries with the most Malaysian franchise outlets are Saudi Arabia, Indonesia, the United States, Australia and China. As part of its continuous support for the franchise industry, the government had allocated RM1.8 million to implement a programme to expand Malaysian franchises to the international level. On the other hand, Perbadanan National Berhad (Pernas) is mandated to lead the development of the country’s entrepreneurship
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Malaysia Retailer Vol 9 No 4
and franchise industry through its expertise in providing quality service and products in several areas. The organisation looks to provide Franchise Financing support for franchise businesses and entrepreneurs catering for all franchise business needs including capital expenditure and working capital requirements. Pernas also provides advisory services inclusive of support to the development of Entrepreneurs and Franchise Business to increase competitiveness in the business environment. Drawing on the encouragement by the government towards inclusive entrepreneurship development programmes, Pernas has developed a new programme that converts businesses into becoming franchisees. The new programme is an extension of the Business-InTransformation (BIT) programme that trains and transforms small entrepreneurs into becoming more competitive and systematic in conducting business and developing their businesses effectively. Entrepreneurs are encouraged through the programme to be more proactive in growing their business and challenge their comfort zone
by setting their sights towards international markets and eventually be ready to export their local brand overseas. Brands such as Gloria Jean’s Coffee, Marrybrown, Tealive, Asam Pedas, and Laundry Bar are among the well-known franchises in the country. Not all franchises will cost you an arm and a leg. There are many low-cost franchises that offer low start-up costs. In Malaysia, we also have franchise packages that start as low as RM50,000 depending on the kind of budget in mind. Assistance is also offered to entrepreneurs in terms of training and capacity building. The trainings are conducted by Pernas Franchise Institute online and are offered for free to equip entrepreneurs with knowledge on how to manage their businesses during the unprecedented challenges posed by the recent and ongoing pandemic. Pernas also offers seven financing schemes to assist aspiring entrepreneurs who want to turn their businesses into franchises. Malaysia has identified franchising as a catalyst for increasing the number of entrepreneurs in the nation.
