KUALA LUMPUR, April 5 — The government is confident that Malaysia’s franchise industry will be able to contribute RM35 billion to the country’s gross domestic product (GDP) in 2020, based on the positive performance by the top three franchise companies last year.
Citing the Franchise Business Annual Reports, Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said the top three franchise companies, 99 Speedmart, McDonald’s and Seng Heng registered sales of RM3.4 billion, RM2.2 billion and RM998 million, respectively, in 2018.
“This shows that our target of RM35 billion contribution to GDP by the franchise industry in 2020 is very much achievable and realistic,” he said in his opening speech at the Franchise International Malaysia Exhibition and Conference (FIM2019) here, today.
Also present was Deputy Prime Minister Datuk Seri Wan Azizah Wan Ismail.
To achieve the RM35 billion target, Saifuddin said his ministry had been working closely with Malaysian Franchise Association (MFA) to help franchisers expand within and outside the country.
“We have organised exhibitions, trade missions, in-buying missions and training sessions to promote homegrown brands,” he said.
With assistance from Malaysia External Trade Development Corporation (Matrade), there were now 66 Malaysian franchise brands in 65 countries, he said.
To date according to Saifuddin, there are 877 registered franchises in Malaysia, which contributed RM30.03 billion to the country’s GDP in 2018.
“This is significant considering that in 2009, the figure was only RM10 billion,” he added.
On the FIM2019, Saifuddin said the three-day event, beginning today, has attracted 78 companies from 12 countries, with 111 booths.
“The event is expected to receive 12,000 visitors and generate RM400 to RM500 million of investments for Malaysia,” he said.
The FIM2019 is organised by KPDNHEP and MFA beginning today until April 7 at Hall 1, Kuala Lumpur Convention Centre. — Bernama
Source: The Malay Mail Online