Malaysian Franchise blueprint to be ready early 2009

Kuala Lumpur, Malaysia | August 06, 2008 by D-8 Secretariat

The blueprint will ensure the rapid growth of the industry and acts as a benchmark for the franchise fraternity, says Malaysia’s Deputy Prime Minister, as quoted by Malaysian media sources.

A BLUEPRINT to chart the development of the local franchise industry until 2020 will be ready early next year, Deputy Prime Minister of Malaysia, Datuk Seri Najib Razak said.

Najib said the Ministry of Entrepreneur and Cooperative Development (MECD) is preparing the Malaysian Franchise Blueprint now. “It will ensure the rapid growth of the franchise industry and acts as a benchmark for the franchise fraternity,” he told a news conference after officiating at the Franchise International Malaysia 2008 (FIM 2008) in Kuala Lumpur yesterday.

Also present were Entrepreneur and Cooperative Development Minister Datuk Noh Omar, his deputy Datuk Saifuddin Abdullah, ministry’s secretary-general Datuk Musa Muhamad and Malaysian Franchise Association (MFA) chairman Datuk Mukhriz Mahathir.

Earlier in his address, Najib said MECD is in the process of drafting a franchise dispute mechanism, tailored for Malaysian market. The mechanism that will contribute to a conducive business environment is expected to be ready soon.

Najib said this year, the number of franchise registered in the country has risen to 342 as at July 2008, from 311 franchises at the end of last year.

Meanwhile, Mukhriz said the franchise blueprint will identify the needs of the local franchise players, where they are in the value-chain and how to fill the void in the value-chain.

“The blueprint will facilitate efforts to expedite the franchise industry in a more systematic manner,” he said.

Mukhriz is also optimistic that the industry will be able to maintain its targeted 10 per cent growth despite rising inflation.

The government has set a minimum 10 per cent annual growth for the local franchise industry for the next five years.

He said members of the World Franchise Council and the Asia Pacific Franchise Confederation, who are in Kuala Lumpur for the annual meeting held concurrently with FIM 2008, have expressed concerns that customers’ purchasing power would be hit.

Mukhriz also said that this year’s FIM is expected to attract 10,000 trade visitors and close RM275 million trade deals during the exhibition.

The three-day FIM, which ends on Sunday, is organised by MECD and MFA.

“Franchising business possess a huge potential for intra-trade within D-8 countries,” said Secretary General D-8, Dipo Alam, commenting on the news. He said that the organization wish that a cooperation activity can be soon started by D-8, to develop the potentials of franchising in D-8 regions that covered by no less than 930 millions population.

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