Franchise industry to contribute RM22.5 bln to GDP this year Read more: http://www.theborneopost.com

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