Franchise business
targeted to grow 10%-15% this year
KUALA LUMPUR: Malaysia, which wants more local franchise companies to
venture overseas, is targeting an increase of between 10% and 15% in the
business for this year.
Deputy Minister of Domestic Trade, Co-operative and Consumerism Datuk
Rohani Abdul Karim said that to date, 47 local franchise companies had
penetrated the international market with 1,424 outlets in 50 countries.
The top franchisors overseas include Nelson's with 675 outlets,
DailyFresh (481) and Secret Recipe (25) while England Optical and Marrybrown
had opened 21 outlets each.
Speaking at the signing
of a memorandum of understanding between Export-Import Bank of Malaysia (Exim
Bank) and Malaysia Franchise Association (MFA), Rohani said the ministry was
actively promoting the local businesses in developing their franchise systems
for the international market.
“We provide the platform to promote and market the franchise business
through expos and international franchise events such as the Franchise Malaysia
Goes Global initiatives.
“From the initiatives, 258 potential franchisees had registered their
interest with our local franchisors with a potential RM242mil worth of
investments,” she added.
Last year, the franchise
industry made up about 2.5% of the total gross domestic product (GDP) amounting
to some RM24.3bil.
It was previously
reported that the Government targeted a 9.4% contribution from this industry to
the country's GDP by 2020.
“Our target markets include Indonesia, China and India. This year, we
are going to explore more opportunities in the European market,” Rohani said.
Exim Bank and MFA plans
to spur the franchising business by providing financial, promotional and
knowledge support to eligible franchise players venturing abroad.
“This collaboration with
MFA is testament to Exim Bank's commitment towards supporting the SMEs'
cross-border ventures,” Exim Bank managing director and chief executive
director Datuk Adissadikin Ali said.
On the bank's maximum
amount of loan disbursement to the franchise industry, Adissadikin said “the
sky is the limit” and that it depended on the business.
He said that this year, the bank targetted RM5bil in total loan
disbursement, mainly for companies to expand their business overseas, with 60%
of the amount for those in the construction industry and infrastructure.
“For example, we are supporting the power plant and highway projects in
Indonesia as well as projects in Kuwait,” he noted.
Exim Bank also managed the RM180mil fund allocated by the Government
for the Malaysia Kitchen Financing Facility, which is used to assist in the
setting up or expansion of Malaysian restaurants overseas.
Source: The Star
Date: 13 March 2013
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