14 Jun 2014 – Bernama
KUALA LUMPUR, June 14 (Bernama) — The Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) targets a 16 per cent increase in the number of registered franchise companies by 2016.
Its Minister Datuk Seri Hasan Malek said to date a total of 726 franchise companies had registered with the ministry.
“Out of this, 58 local franchise companies have successfuly expanded their business to 53 countries globally by opening 1,992 outlets,” he said at a media conference after launching the Franchise International Malaysia (FIM) 2014 at the Putra World Trade Centre today.
Hasan said the ministry was optimistic of achieving the target based on the National Franchise Developmdent Blueprint (NFDB) 2012-2016.
“The Blueprint aims to increase the number of franchises to 860 in 2016 and 1,140 in 2020. The number of franchisees is also targeted to rise to 6,700 in 2016 and 13,000 in 2020.
“Under the NFDB, the contribution of the franchise industry to the nation’s Gross Domestic Product (GDP) is targeted to rise from only 2.2 per cent in 2010 to 4.3 per cent in 2016 and 9.4 per cent in the year 2020,” he said.
Elaborating, Hasan said the target was in line with the government’s strategy to formulate a strategic roadmap for the country to become the regional franchise hub in Southeast Asia by 2020.
The organisation of FIM 2014 enters its 21st year, comprising the exhibition and international conference, with the participation of 51 local companies and 25 international companies for three days beginning yesterday.
Some 12,000 visitors are expected to attend the event, which targets to record a potential investment of RM370 million from the sale of franchise system to 1,500 potential franchisees.
In another development, Hasan said MDTCC would hold a special meeting with some 40 manufacturers and suppliers of essential products on this Monday.
The closed-door meeting was aimed at discussing the problems in relation to the essential items besides looking for ways to resolve the issue of the lack of stock supply of such goods especially before festive seasons.