KUALA LUMPUR: The country's franchise industry has recorded promising growth, with investments exceeding RM911 million this year, Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri R. Ramanan said.
Ramanan noted that this growth reflects the positive outcomes and global competitiveness of the franchise industry in the country.
He added that the ministry has implemented various initiatives to strengthen the industry, including the establishment of the Franchise Advisory Board, which ensures that holistic and strategic perspectives are considered in decision-making.
"Last year, the country's franchise industry reached a value of over RM700 million, and we aim to surpass RM1 billion in the near future," he told reporters after chairing the 1/2024 Franchise Advisory Board (LPF) meeting here today.
During the meeting, letters of appointment were presented to 15 members, including Ramanan as chairman, alongside other individuals with expertise in various franchise-related fields.
Commenting on the meeting, Ramanan said it yielded valuable insights and recommendations to advance the franchise industry in the country.
He added that representatives from Perbadanan Nasional Bhd (Pernas) and the Malaysian Franchise Association (MFA) presented three papers discussing new initiatives to enhance the registration system, provide financial support to franchise entrepreneurs, and improve the overall effectiveness of the franchise ecosystem.
Ramanan stressed that close cooperation between the government, relevant agencies, and industry stakeholders is crucial for the success of the franchise industry.
"We engaged in a two-hour discussion addressing the challenges faced by franchisors, franchisees, and industry players, while exploring how the ministry can collaborate with the government to support them," he said.
On the establishment of the advisory board, Ramanan said it was formed to provide guidance to the minister and registrar on franchise-related matters.
"The franchise system in our country differs from others, as we are the only nation that has empowered the industry through the Franchise Act 1998.
"This board has been set up to advise the minister and registrar on franchise matters, including the enforcement of relevant laws," he added.