Kuching, 29 Jul 2023,
Sarawakian entrepreneurs, especially those involved in small and medium enterprises (SMEs), should consider venturing into the franchise industry to accelerate growth, said Dr Ripin Lamat.
The Youth, Sport and Entrepreneur Development Deputy Minister said the current business environment requires entrepreneurs to adopt and adapt to new practices to remain competitive.
“Looking at the growth of Malaysian franchise companies this year, franchising plays an important role in the recovery of the country’s economy, especially involving efforts to create job opportunities.
“We hope more Sarawakian entrepreneurs will participate in this business sector. We want as many local entrepreneurs as possible to venture into the franchise sector because it could spur our economy and provide more jobs to our youths,” he said at a press conference after officiating the BizFrancais@Sarawak 2023 at the Borneo Convention Centre Kuching today.
Ripin added that the sales value of the country’s franchise industry is expected to double by 2025.
However, he pointed out that relying on one’s product alone would not bring any significant impact to the growth of the business.
“Whether you want to open up a franchise business in an urban or rural area, you must analyse the market and the demand for a particular product or service.
“Take Sugarbun for example. They have one outlet in Niah and the response is very encouraging. Their business is very good because there is no competition there.”
Ripin said as March 30 this year, only 16 companies in Sarawak operate as franchisors.
Among the factors contributing to this low figure include the state’s vastness and low population density compared to the peninsula, he added.
“But this does not mean the franchise industry in Sarawak cannot be developed. It just needs different approaches and methods in planning. In Sarawak, there are a lot of products that we have that have great potential to be developed in terms of making it into a franchise business system.”
He said the Sarawak government will continue to increase efforts in encouraging more entrepreneurs to venture into the business and consistently host activities to spread information about the franchise business to the public.
According to him, Perbadanan Nasional Berhad (Pernas) has set aside a potential financing of RM5 million to develop Sarawakian entrepreneurs into franchisors.
“If possible, we want more local entrepreneurs to apply for assistance from Pernas. We hope that the allocation of RM5 million given by Pernas for Sarawak can be distributed within six months, then we can ask for another RM5 million.
“We want to activate this business sector in our state since the value of this business sector gives immense benefits. I hope that there will be more franchise industry players from Sarawak,” he added.
Ripin also said those, especially from the low-income group, who are interested to venture into affordable and micro-franchise businesses should participate in the entrepreneurship programme provided by Pernas.
He said the programme will assist them to grow by guiding them to organise and develop their business into a system to become a franchisor.
With Ripin at the press conference were Pernas chairperson Datuk Hazimah Zainuddin and Sarawak Business Federation president Dato Sri Abang Abdul Karim Tun Openg.
Source: The Borneo Post
Full Article: https://www.theborneopost.com/2023/07/29/venture-into-franchise-industry-to-boost-growth-ripin-tells-swakian-entrepreneurs/