KUALA LUMPUR, July 26 — The franchising industry’s target to contribute RM35 billion to Malaysia’s gross domestic product (GDP) by 2020 is realistic and achievable, said Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail.

He said the industry contributed RM27.7 billion to the GDP last year ,which was 3.4 per cent of the total.

"The contribution of franchise sector to the GDP is very significant. As of May 30 (2018), around 863 franchisors from various sectors were registered with the Franchise Registry. From that total, 40 per cent are from the food and beverage sector.”

Saifuddin said the government was confident in the franchise industry.

"One of the prerequisites that made our target is achievable is of course the number of franchises. But, the volume of sales also contributes to overall performance.

"It has to be the combination of both,” he told reporters at a press conference after officiating the Malaysia International Retail & Franchise Exhibition (MIRF) at Kuala Lumpur Convention Centre here today.

This year, MIRF organised by Malaysia Retail Chain Association is venturing into digitalisation to match consumer trends.

Exhibitors included Maxis, RHB Bank, Mah Sing Group, Old Town White Coffee, Marrybrown and more.

There are over 150 exhibitors with 300 booths for locals and 35 booths for overseas exhibitors.