Franchise business growing, has been posting 20% growth

PETALING JAYA: Deputy Finance Minister Datuk Donald Lim Siang Chai has commended the homegrown franchise business' contribution to the growth of the industry which is in line with the country's goal to become a high-income nation.

“To date, 586 franchises have registered in Malaysia in which 9% are homegrown brands,” Lim said during the launch of ADAMAS Franchise Concept Outlet.

“Being a young sector, many of our homegrown franchise brands have emerged strongly from the domestic and foreign markets.

“This is a significant growth with a 20% increase per annum in the last two years under the National Franchise Development Master Plan 2012-2016,” he said.

Lim launching ADAMAS Weddings’ Franchise Concept Outlet. On the right is Dr Khoo.

 

The objective of the blueprint is to create a vibrant market by positioning Malaysia as the franchise hub for the South-East Asia and Middle East market. The Government targets a 9.4% contribution from this industry to the country's gross domestic product by 2020.

He lauded ADAMAS Weddings Sdn Bhd's effort in recruiting franchisees from China and Cambodia, which set an example for what other local franchisers could do to boost the development of the franchise industry, adding that entrepreneurship provided endless opportunities and possibilities.

On another note while responding to a reporter on whether lower oil prices would affect the country's economy, Lim said, “The dependency on the oil for the nation's revenue has gone down from the 90s where 50% is on oil. Now, it's only one-third of our revenue on oil only.

“So, the figure (percentage of oil revenue to country's total revenue) is coming down so even though oil price has decreased, it would not really affect us so much,” he added.