Domestic Trade Ministry to facilitate franchise deals in Indonesia, says Saifuddin

Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail said the ministry will act as a facilitator to Malaysian franchise companies who are keen to penetrate the Indonesian market. — Picture by Yusof Mat Isa
Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail said the ministry will act as a facilitator to Malaysian franchise companies who are keen to penetrate the Indonesian market. — Picture by Yusof Mat Isa

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JAKARTA, Nov 25 — The Malaysian Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) will act as a facilitator to Malaysian franchise companies who are keen to penetrate the Indonesian market.

Minister Datuk Seri Saifuddin Nasution Ismail said certain obstacles and constraints pertaining to administrative affairs and bureaucracy, for example, could be addressed through good relations between the two countries.

“There are solutions to all those issues (obstacles and constraints), subject to the trade agreement and control which of course will take into account the local interests.”

He said this to reporters after holding a dialogue with representatives of franchise companies of Malaysia and Indonesia here today, which was also attended by chairman of Malaysian Franchise Association (MFA) Datuk Radzali Hassan and CEO of ndonesian Franchise Association (AFI) Drs Anang Sukandar.

Some of the issues faced by the Malaysian companies to penetrate the Indonesian market were concerning the halal certification, business registration and the bureaucracy in bringing in certain products.

“The ministry will continue supporting efforts to develop the franchise industry in Malaysia which contributes about RM28 billion to the country’s Gross Domestic Product, and we will also continue playing proactive roles to lure more foreign franchise companies to open their branch in Malaysia,” he said.

So far, Saifuddin said 877 franchise companies, 570 of which were locals, had opened over 4,300 outlets in Malaysia.

“And a total of 65 Malaysian franchise companies had opened their outlets in 66 countries. In Indonesia alone, 30 Malaysian franchise companies had opened 688 franchise outlets,” he said, adding that the Malaysian companies must look at Indonesia as a very viable market as the country has a population of over 260 million.

Earlier, the minister launched the Malaysian Pavilion at the 2018 Info Franchise and Business Concept Exposition (IFBC Expo 2018) here, which was also participated by 12 Malaysian franchise companies, including The Manhattan Fish Market, Cheeseu Bistro Sdn Bhd and Marrybrown Sdn Bhd. — Bernama

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