Kuala Lumpur, 20th March 2023,
The sales value of the country’s franchise industry has reached RM26 billion from RM14 billion in 2020, said Entrepreneur Development and Cooperatives (Kuskop) Minister Datuk Ewon Benedick.
He said that based on the Franchise Business Annual Report, the sales value of the franchise industry is the highest so far and reflects an increase of 71% in 2021.
“Therefore, the government is targeting 16 franchise industries to grow between 20% and 30% this year,” he said when winding up the debate on the Supply Bill 2023 at the committee level in the Dewan Rakyat on Monday (March 20).
The minister also said that until December 2022, the national franchise industry recorded a total of 1,197 registered franchisor companies and of that number, 713 were local franchisor companies and the remaining 428 were foreign franchisor companies.
“In addition, there are 55 cooperatives that have ventured into food and beverage (F&B) franchise activities as well as the services sector, such as Ar Rahnu X’Change Bank Rakyat for the service sector and Marrybrown, Gloria Jeans Coffee for the food sector,” he said.
Ewon also said the ministry has always encouraged cooperatives to get involved in the franchise business to further boost the development and contribution of the franchise industry to increase income.
The ministry, through Perbadanan Nasional Bhd (Pernas), introduced the Business in Transformation (BIT) Programme in 2013, which is a business transformation programme for micro-entrepreneurs to become more competitive and systematic in doing business.
Through the BIT programme, he said that entrepreneurs will be guided to upgrade their business in terms of image, service quality and business concept to help increase their source of income and further contribute to the growth of the franchise industry.
“Since its introduction, a total of 140 companies from various sectors, such as F&B, retail, services and education, have registered under the BIT programme and until Dec 31, 2022, Pernas has approved a total of RM9.9 million in financing to 313 BIT entrepreneurs,” Ewon said.
Source: The Edge Market
Full Article: https://www.theedgemarkets.com/node/659935