Ministry of Domestic Trade and Cost of Living was established on 27 October 1990. The objectives of Ministry are to promote the development of a viable, competitive and sustainable domestic economy, specifically in the Distributive Trade Sector.

The Distributive Trade Sector is one of the main contributors to the National GDP and it acts as a buffer to economic stability, especially during the times of uncertainty and unpredictable situation of the global economy. Distributive trade needs to be strong so as to counterweigh any instability in the economy.

At the same time, the Ministry is committed in protecting the interest dan rights of consumers. This includes development of an ecosystem of consumers and businesses that complements each other towards self-regulation, in line with the aspirations of people in a developed country. It is hoped that matured and ethical consumers and business can be developed, with the outcome of an economically and socially balanced nation.

In 2009, the Ministry’s roles and functions were expanded to cover the Franchise and Co-operative Sectors.

Franchise Developement Programme

  • Realising the importance of the franchise industry to the national economic growth, the government introduced the Franchise Development Programme (FDP), a marketing programme based on the concept of Malaysia incorporated which aims to develop entrepreneurs, small-and-medium enterprises (SMEs) in the commercial and industrial services through franchising.

  • Established at the end of 1992 through the Implementation and Coordination Unit of the Prime Minister’s Department, the FDP was a watershed in the history of franchising in Malaysia. The idea was first mooted by then prime minister Tun Dr Mahathir Mohamad to strategically outline a comprehensive plan for the franchising industry as he believed that there are abundance of opportunities for the franchising businesses to grow contributing significantly to the national economy.

  • As the franchise business concept was relatively new in Malaysia, the FDP aimed al increasing the number of franchisors, master franchisees and franchisees, as well as developing homegrown products and services into the franchise business.

  • Five key strategies outlined for these goals namely infrastructure development, product and system development, financing scheme, promotions, training and education. The Local Franchise Product. Development Programme (PPPFT) was introduced to help Burniputera entrepreneurs into ousiness.