Kuala Lumpur, 29th May 2024,
The value of the Malaysian franchise industry is expected to soar to over RM46 billion by 2025, further strengthening its position as an important component of the nation’s economy.
Entrepreneur Development and Cooperatives Ministry (Kuskop) Secretary General Datuk Seri Suriani Ahmad said the franchise industry is robust with an average growth rate of 15 per cent per annum in the past five years.
“This growth is testament to the resilience and potential of the franchise sector in Malaysia, which continues to attract the interest of entrepreneurs and investors. In 2022, the franchise industry contributed over RM36 billion to Malaysia’s Gross Domestic Product (GDP), highlighting the significant economic impact.
“Where the directly or indirectly, contribution of Franchise sector lists it as the main driver of Malaysia’s economic growth,” she said at the Malaysia International Franchise Conference 2024 held in Kuala Lumpur today.
Suriani said local franchise brands are not only economic drivers but also ambassadors of Malaysian entrepreneurship and culture on the global stage.
“Supporting them is not just a strategic move but a commitment in showcasing our country’s innovation and heritage around the world,” she said.
She added that the Enhanced Franchise Export Development Program (EFDP) initiative, is specifically designed to equip local brands with the tools and exposure needed to go international.
“EFDP is important in pushing Malaysian brands into the international spotlight as well as attracting foreign investment into the franchise ecosystem. The government’s commitment to their (entrepreneurs) success is proof of their belief in driving economic growth and creating a more prosperous future for Malaysia,” she said.
Malaysia emerged as a landmark of success in franchising because of its active participation at the global level, she added.
Source: Business Today
Full Article: https://www.businesstoday.com.my/2024/05/29/malaysias-rm46-billion-franchise-industry-remains-a-critical-national-economy-component/
