KUCHING, July 3 — The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) is identifying ways to lower the entry barrier for the franchise industry to RM50,000 to encourage the participation of young entrepreneurs.
Its minister Datuk Alexander Nanta Linggi said meetings with industry players would help the ministry create a formula that would be included in the National Franchise Development Master Plan (PIPFN) 2021-2025.
“Efforts to lower the entry barrier to RM50,000, which previously reached hundreds of thousands for well-known brands, is crucial to help the younger generation take part in the franchise world.
“Therefore, the ministry is trying our best to identify which suitable businesses that we can lower to the sum mentioned,” he told a press conference after attending the Pocket Talk programme with franchise industry players here today.
Also present was the ministry’s secretary-general Datuk Seri Hasnol Zam Zam Ahmad.
Meanwhile, Hasnol said the PIPFN 2021-2025 being outlined would be launched before the middle of next year.
He said the ministry has prepared the draft especially on what would be carried out next year and was in the midst of collecting information from industry players.
“Our focus is on the domestic franchise which includes creating opportunities and lowering entry barriers for young entrepreneurs,” he said.
For the record, the ministry has allocated RM2.46 million for the development of domestic franchises and RM8 million for franchise expansions.
In the 11th Malaysia Plan period, the number of franchise companies has increased from 211 in 2016 to 258 so far.
The value of these companies has also risen from RM8.62 billion in 2016 to RM11.15 billion in 2018. — Bernama