Malaysia lines up RM8m loans for small franchises
BERA (PAHANG): The government has allocated RM8 million to be disbursed as loans to entrepreneurs keen to venture into franchise business.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the allocation was made to enable more people, particularly the younger set, to take up franchise business.
"To date, RM1 million has been approved to 60 entrepreneurs nationwide to undertake franchise business.
"We intend to give the balance of the allocation to another 200 entrepreneurs," he told reporters after launching "Jelajah Francais Malaysia" (Explore Franchise Malaysia) programme in Kerayong near here yesterday.
Ismail Sabri said interested entrepreneurs would be given loans ranging from RM10,000 to RM50,000 on condition they must be recommended by franchisors.
"I hope more youths and traders will come forward to do franchise business as the returns are lucrative," he said.To date, 5,315 franchisees have been registered with 576 franchisors, majority of whom are doing food-based business.
Ismail Sabri said the Franchise Act would be amended next year to protect the interests of entrepreneurs engaged in franchise business.
He said the Act would ensure franchisors do not impose excessive charges on franchisees.
"Although small-time franchise entrepreneurs are doing well in their business with all the facilities provided, including advertisements, there are franchisors who levied heavy fees on them," he said.
Proposed amendments to the Act, to be tabled in the March sitting of the Dewan Rakyat, would provide adequate protection to franchisees, said Ismail Sabari. Bernama
Source : New Straits Times
Date : 19 December 2011
Afternoon Highlight (19/12/11/208/466)
No comments:
Post a Comment