KUALA LUMPUR, Sept 18 — The franchise industry is on track to achieve RM25 billion in terms of targeted contribution to the country’s Gross Domestic Product (GDP) this year.
Domestic Trade, Cooperatives and Consumerism Ministry Secretary-General Datuk Saripuddin Kasim said last year, the industry contributed about RM23.6 billion or equivalent to 2.7 per cent of Malaysia’s total GDP.
“The franchising industry has great potential to grow and is going to be a significant contributor to GDP growth moving forward,” he told reporters after officiating the World Franchise Council (WFC) meeting here today.
Saripuddin said the launch of the National Franchise Development Blueprint last year has somehow regulated the industry and set a strategic direction for it towards making the country a regional franchise hub in Southeast Asia by 2020.
He said one of the efforts towards that was to encourage and promote more home-grown franchise brands into the international arena.
“At the moment, we have 49 local franchisors in 51 countries with 1,494 outlets. Apart from interest in foods and beverages, we also have interest in medium or application to learn English,” he said.
He said franchising is becoming more important as Malaysia aimed to become a high-income nation by 2020.
At the moment, there are 676 franchisors in the country in various industries and services, he said.
Forty-five delegates, representing 26 national franchise associations across the globe, are participating in the annual WFC meeting. — Bernama
