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PERNAS: EMPOWERING GROWTH, CONNECTING OPPORTUNITIES Mohd Hilaluddin bin Abd Shukor, Chief Executive Officer (CEO) of Perbadanan Nasional Berhad (Pernas) speaks to Christina Thomas on the agency’s mandate to lead the development of Malaysia’s franchise industry.
elming the leadership of Pernas, an agency owned by the Ministry of Finance Incorporated (MOF), Hilaluddin is determined to drive the agenda of developing Malaysia’s franchise industry while increasing the number of franchise entrepreneurs. Operating out of Pernas’ headquarters at Menara Pernas in Bangsar South City, Kuala Lumpur, Hilaluddin is no stranger to the business world. Holding a Master of Business Administration in Business Finance from the University of Hull, and a Degree in Finance and Legal Studies from Sheffield Hallam University in the United Kingdom, Hilaluddin’s career spans two decades in finance and banking. He commenced his career in a commercial bank, and subsequently moved on to a merchant bank, now known as an investment bank, managing private debt securities focusing on capital markets. In banking, Hilaluddin managed various sectors and industries such as plantations, telcos, and other corporates. He has also served in Deutsche Bank covering the corporate and retail sectors. His illustrious career also includes serving Khazanah Nasional Berhad, Malaysia’s sovereign
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Malaysia Retailer Vol 9 No 4
wealth fund, for 5 years managing the industry sector, where he had his first taste of the start-up industry, and venture capital fund management. His stint in managing venture capital has given him a good idea of the industry and the market. He personally witnessed the growth of a dairy milk company, their diversification efforts and the innovation of products and market cannibalisation. In fact, he saw text book theories come to life such as market segmentation, differentiation and diversification. That experience broadened his perspective and has enabled him to understand the market better in order to structure financing requirements for customers.
FRANCHISING – A VERY RELEVANT OPTION In sharing his thoughts about franchising, Hilaluddin declares that the bigger question is whether or not franchising is still relevant in current times. Using Gloria Jean’s Coffees as an example, he says, “Nowadays you often see artisan coffee emerging. The franchise business is very challenging. We are talking about millennials, and whether or not they want to take up this business.” Hilaluddin explains that the
franchise business is all about brand names. “It is the brand name that can sell. You need to build new franchise brand names. The franchise business is challenging for both newcomers as well as existing businesses, yet it is relevant.” Where Pernas is concerned, the agency is focused on two key elements, which include attracting franchisees and developing as well as nurturing home grown brand names. The agency is driven by its vision “to be the premier corporation for franchise and entrepreneurship excellence” and its mission “to create and sustain wealth through diversified businesses while providing opportunities to entrepreneurs”. “During the pandemic, the franchise business is very relevant, especially when people lose their jobs. One may want to go into business,” explains Hilaluddin. “If you want to start a new business, you need a strong brand name that can help you kick-off the business immediately, otherwise it takes time to build a brand presence,” he highlights. To help entrepreneurs, Pernas introduced the Xcelerator project to drive homegrown franchise businesses and to help them penetrate the market quickly.
