Kuala Lumpur, 15th Dec 2025,
Malaysia aims to establish the Asean Franchise Gateway to serve as a regional launchpad for franchise expansion across Southeast Asia.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the initiative would streamline regulations and provide legal, intellectual property, halal certification and logistics support for local and foreign brands seeking to enter the Asean market of more than 680 million consumers.
“Complementing this effort, the Internationalisation Programme under the Enhanced Franchise Development Programme (EFDP) will intensify targeted trade missions to priority markets, helping Malaysian brands strengthen their global footprint and build strategic international partnerships.
“By driving this regulatory alignment, ecosystem integration and proactive international outreach, Malaysia can anchor itself as Asean’s premier franchise hub, the natural starting point for global and regional brands entering Southeast Asia,” he said at the Malaysia Franchise Awards Night 2025.
He said the country currently has more than 2,060 registered franchise businesses under the Registrar of Franchise, reflecting what he described as a strong upward trajectory driven by innovation and professionalism.
“Despite global economic headwinds, the franchise sector remains one of Malaysia’s most dynamic industries.
“The franchise industry today supports more than 80,000 jobs and has seen average annual growth of 14 to 16 per cent, demonstrating strong consumer confidence and robust domestic demand,” he said.
However, he acknowledged mounting pressures on the industry, including rising operating costs estimated at 12 to 18 per cent, intensifying competition from foreign brands, and persistent workforce challenges.
To address talent shortages, he said the government was looking at deeper integration of Technical and Vocational Education and Training (TVET) standards into franchise operations.
Among other proposals, he called for the creation of a National Franchise Academy aligned with TVET to develop franchise-ready workers and standardise service excellence across the industry.
Zahid also highlighted opportunities in the global halal economy, valued at more than US$3 trillion and projected to reach US$5 trillion by 2030, saying halal franchising offered a platform to export Malaysian brands and standards worldwide.
Source: New Straits Times
Full Article: https://www.nst.com.my/news/nation/2025/12/1337854/malaysia-eyes-regional-lead-asean-franchise-initiative
