Malaysia's franchises well accepted globally: Hasan Malek

KUALA LUMPUR: Malaysian franchises are well accepted and can be easily implemented overseas without difficulties due to its structured franchising system, says Domestic Trade, Cooperatives and Consumerism Minister Datuk Hasan Malek.

He said the Malaysian franchising system is well structured and adheres to international system as the industry is regulated by the Malaysian Franchise Act 1998 which protects both the franchisors and franchisees.

"Currently, 55 local Malaysian franchise brands have expanded their businesses to 52 countries with a total of 1,988 outlets worldwide.

"Of which, there are nine Malaysian franchise brands with a total of 158 outlets in the United Arab Emirates," he said at the "Franchise Business Networking" in conjunction with the Second OIC Middle East Exhibition and Congress 2013 in Sharjah, the United Arab Emirates, today.

Hasan said the franchise industry in Malaysia has now entered a maturity phase.

Since the 1990s, many local franchise brands have blossomed locally and abroad.

The minister said the Malaysian government has provided strong support to homegrown businesses through various assistance and initiatives to develop the franchise business to compete in the global market.

Among the initiatives are the platforms to promote and market the franchise business like organising expositions to facilitate local companies to participate in international franchise events.

"As of today, a total of 690 franchises have been registered under the Registrar of Franchises.

"The Food and Beverages sector leads with 35 per cent, followed by services and maintenance sector, with 12 per cent, and clothing and accessories 11 per cent of total franchise registered," he said.

Looking forward, Hasan said the government would like to encourage franchise businesses in new and emerging sectors, particularly in the information and communications industry (ICT), tourism and renewable energy technology.

"The government will always support and continue to develop the Malaysian franchise industry so that it is more accessible and can create more opportunities for everyone," he added.

At the three-day exhibition from yesterday, 13 Malaysian franchise companies showcased their "Made-in-Malaysia" products and services.-- BERNAMA

Read more: Malaysia's franchises well accepted globally: Hasan Malek - General - New Straits Times http://www.nst.com.my/nation/general/malaysia-s-franchises-well-accepted-globally-hasan-malek-1.435798#ixzz2olFv1lNC