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Franchise Highlight

Initial capital of RM50,000 to start a franchise being studied

Sepang, July 7,

The Ministry of Domestic Trade and Consumer Affairs is in the midst of reviewing the proposal to lower the initial capital for franchises to as low as RM50,000, according to its minister Alexander Nanta Linggi.

He said the move will encourage more people to start a franchise business and is among the key focus areas of the National Franchise Master Plan 2021-2025 which is being formulated to develop the franchise industry.

“We want to reduce the initial capital as an impetus for those interested in the franchise business because it is difficult for them to raise the initial capital,” he said at a press conference after conducting a walkabout  to 13 franchise outlets in KIP Mall Kota Warisan here today.

The visit was part of the ‘Domestic Franchise Development Tour Programme’ coordinated by the ministry in collaboration with the Malaysian Franchise Association (MFA).

Nanta said his ministry was gathering views from various parties especially entrepreneurs to identify franchises which can be started with a capital of RM50,000.

In a move to develop the franchise industry, Nanta encouraged shopping malls to place franchise businessmen in order to assist those new to the business.

“The usual problem for new businesses is finding a suitable place as rents are high,” said Nanta.

– BERNAMA

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Source: BERNAMA

Full article: https://www.bernama.com/en/business/news.php?id=1858203

 

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