JOHOR BAHARU: The franchise industry is projected to contribute some RM22.5 billion to the country’s gross domestic product (GDP) this year, says Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.
Speaking at the launch of 1Malaysia Stesen Francais@JB in Jalan Segget, here recently, he said the franchise industry contributed RM21.48 billion, or 2.5 per cent, to GDP last year.
“In foreign countries, the franchise system is recognised as a popular and effective method to expand a business, whether in the country or overseas, besides generating and contributing to the country’s economy.
“The government is still making efforts to expand the franchise brands overseas and to date, a total of 46 Malaysian franchise brands have expanded to 50 foreign countries involving 1,402 outlets,” he said.
Also present at the launch were state Entrepreneur and Cooperative Development, Education and Higher Education Committee chairman Datuk Maulizan Bujang, Johor Baharu Mayor Burhan Amin and Iskandar Regional Development Authority chief executive Ismail Ibrahim.
Ismail Sabri said there are a total of 30 franchise businesses registered in Johor at present of which 27 are local franchisors while the other three are foreign franchisors.
He said the food and beverage sector make up the biggest sector with 11 businesses and the most popular are renowned franchise Daily Fresh from Simpang Renggam and Marry Brown, which together have close to 500 outlets overseas.
According to Ismail Sabri, the government had introduced and developed the franchise industry in the country to enable more particpation by entrepreneurs in the lower and middle income group especially in the small-scale and micro franchises.
He said this is because the franchise system, particularly as a franchisee, is a low-risk business compared with starting a business on one’s own.
“The government is aware that many are worried of investing in franchise business because it is perceived as being high-risk and needs big capital and cannot be participated by the lower income group.
“In fact, the perception is not right altogether because the franchise industry in the country is open to all groups, be they high, middle or lower income, so long as they have the drive and determination to succeed in business,” he said. — Bernama
Read more: http://www.theborneopost.com/2012/05/28/franchise-industry-to-contribute-rm22-5-bln-to-gdp-this-year/#ixzz2Dw7ifZZs
Sunday, December 2, 2012
Tuesday, November 20, 2012
Parliament: Low Capital Micro Franchise Business Good For Low-Income People
KUALA LUMPUR, Nov 19 (Bernama) -- People in the low- and medium-income categories can engage in the micro franchise business because it requires low capital, as little as RM16,000, said Deputy Domestic Trade, Cooperatives and Consumerism Minister Datuk Rohani Abdul Karim.
She said the ministry was holding exhibitions nationwide to entice people in these categories to engage in the business.
"The ministry chooses franchises which require capital of RM50,000 and below to introduce the business to the target groups and change their perception of franchise business requiring millions of ringgit as capital," she said when replying to a supplementary question from Datuk Saifudin Nasution Ismail (PKR-Machang) in the Dewan Rakyat.
Saifudin had wanted to know the number of bumiputera franchisors who had penetrated the international market out of the 46 local companies which had ventured abroad.
Rohani said that of the 46 franchisors, nine or 20 per cent were bumiputera-owned.
"We encourage the growth of more such companies. We also encourage the merging of conventional business with the franchise business," she said.
She also said that the number of registered franchise businesses was 631, with 435 local-owned and of which 143 were bumiputera-owned.
She said the ministry was holding exhibitions nationwide to entice people in these categories to engage in the business.
"The ministry chooses franchises which require capital of RM50,000 and below to introduce the business to the target groups and change their perception of franchise business requiring millions of ringgit as capital," she said when replying to a supplementary question from Datuk Saifudin Nasution Ismail (PKR-Machang) in the Dewan Rakyat.
Saifudin had wanted to know the number of bumiputera franchisors who had penetrated the international market out of the 46 local companies which had ventured abroad.
Rohani said that of the 46 franchisors, nine or 20 per cent were bumiputera-owned.
"We encourage the growth of more such companies. We also encourage the merging of conventional business with the franchise business," she said.
She also said that the number of registered franchise businesses was 631, with 435 local-owned and of which 143 were bumiputera-owned.
Friday, November 2, 2012
Franchising Strategy Helps SMEs Internationalise In Speedy Manner, Says Singapore Minister
By Tengku Noor Shamsiah Tengku Abdullah
SINGAPORE, Nov 1 (Bernama) -- Franchising as a strategy has clearly helped many small and medium enteprises (SMEs) internationalised in a speedy manner, says Lee Yi Shyan, Senior Minister of State, Ninistry of Trade and Industry and Ministry of National Development.
"The expanded sales and scale of operations would in turn provide resources for product development, automation and mass production.
"Franchising could help SMEs enter into a virtuous cycle of profitable growth and rising organisational capability," he said when opening Franchising and Licensing Asia 2012 (FLAsia), a three-day event at the Marina Bay Sands Expo and Convention Centre here Thursday.
Lee noted that in Singapore, the franchising and licensing industry has grown steadily over the years.
In 2011, he said: "Our local franchising industry accounted for 18 per cent of the total domestic retail sales volume.
"The diverse sector has in excess of 500 franchise systems now, with more than 37,000 franchisees operating with an annual turnover of more than S$6 billion. We expect this sector to continue its growth momentum," he said.
He said there were many examples of Singapore companies successfully and rapidly expanding their overseas footprints via the franchising route.
One such company was ladies footwear and accessories label, Charles & Keith, he said.
Other well-known Singapore names have internationalised by adopting a combination of organic growth and franchise strategy. They include BreadTalk, OSIM, Fish & Co, SkinC, Kenko Foot Reflexology and Spas, Mr Bean, Muthu's Curry and Udders.
As Asia continues to grow, Lee said two things will happen.
Firstly, the momentum of foreign brands establishing themselves in Asian cities will continue. Secondly, within Asia, original brands created locally will multiply quickly, he said.
Lee said some of them have attained the critical scale to seek growth opportunities in new and overseas markets.
He said the two-way flow and the accompanying fusion of new ideas would render local markets in Asia more competitive and exciting.
"While many brands prefer to grow their businesses organically, a significant portion of others choose to grow rapidly by adopting the franchising and licensing strategy," he said.
Lee encouraged more SMEs to consider growing their top lines using franchising and licensing systems.
On FLAsia, he said that it was conceptualised as a one-stop shop for deal-making.
Over the years, he said, FLAsia has become an exchange platform for franchisors seeking new markets, entrepreneurs seeking growths, start-ups seeking to enter a new business and private equities seek opportunities to invest.
He commended the Franchising and Licensing Association of Singapore and BizLink for their relentless efforts in promoting the use of franchising and licensing systems among Singapore companies.
-- BERNAMA
SINGAPORE, Nov 1 (Bernama) -- Franchising as a strategy has clearly helped many small and medium enteprises (SMEs) internationalised in a speedy manner, says Lee Yi Shyan, Senior Minister of State, Ninistry of Trade and Industry and Ministry of National Development.
"The expanded sales and scale of operations would in turn provide resources for product development, automation and mass production.
"Franchising could help SMEs enter into a virtuous cycle of profitable growth and rising organisational capability," he said when opening Franchising and Licensing Asia 2012 (FLAsia), a three-day event at the Marina Bay Sands Expo and Convention Centre here Thursday.
Lee noted that in Singapore, the franchising and licensing industry has grown steadily over the years.
In 2011, he said: "Our local franchising industry accounted for 18 per cent of the total domestic retail sales volume.
"The diverse sector has in excess of 500 franchise systems now, with more than 37,000 franchisees operating with an annual turnover of more than S$6 billion. We expect this sector to continue its growth momentum," he said.
He said there were many examples of Singapore companies successfully and rapidly expanding their overseas footprints via the franchising route.
One such company was ladies footwear and accessories label, Charles & Keith, he said.
Other well-known Singapore names have internationalised by adopting a combination of organic growth and franchise strategy. They include BreadTalk, OSIM, Fish & Co, SkinC, Kenko Foot Reflexology and Spas, Mr Bean, Muthu's Curry and Udders.
As Asia continues to grow, Lee said two things will happen.
Firstly, the momentum of foreign brands establishing themselves in Asian cities will continue. Secondly, within Asia, original brands created locally will multiply quickly, he said.
Lee said some of them have attained the critical scale to seek growth opportunities in new and overseas markets.
He said the two-way flow and the accompanying fusion of new ideas would render local markets in Asia more competitive and exciting.
"While many brands prefer to grow their businesses organically, a significant portion of others choose to grow rapidly by adopting the franchising and licensing strategy," he said.
Lee encouraged more SMEs to consider growing their top lines using franchising and licensing systems.
On FLAsia, he said that it was conceptualised as a one-stop shop for deal-making.
Over the years, he said, FLAsia has become an exchange platform for franchisors seeking new markets, entrepreneurs seeking growths, start-ups seeking to enter a new business and private equities seek opportunities to invest.
He commended the Franchising and Licensing Association of Singapore and BizLink for their relentless efforts in promoting the use of franchising and licensing systems among Singapore companies.
-- BERNAMA
Wednesday, August 15, 2012
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