Overview
Franchising in Malaysia is set to grow significantly as its popularity as one of the preferred ways of doing business. There is increasing interests in franchising by entrepreneurs and this is spurred by government support in facilitating franchise business.
Various programmes have been rolled out since early 1990s to stimulate the franchise industry, and in 1992 a Franchise Development Division was established within the Prime Minister’s Department to administer the franchise development programme. This division was later transferred to MECD in 1995.
The Government, through the Ministry of Entrepreneur and Cooperative Development (MECD) and its agency Perbadanan Nasional Berhad, assumed an important supporting role in nurturing the local franchise industry with the provision of various programmes, assistance and training.
Due to the encouraging growth of the franchise industry, the Franchise Act 1998 was introduced to regulate the industry. It is mandatory for every franchise business in Malaysia to register with Registrar of Franchise.
Foreign franchises were also encouraged to set up operations in Malaysia so that local businesses can partner from foreign franchises with proven business models and track records, to develop and expand the franchise in the regional markets.
As at June 2008, there are 340 franchise systems registered under the Registrar of Franchise; of which 225 are home-grown brands and 115 are foreign franchises. Malaysian franchises with established international operations include education, fashion, footwear, handbags, food and beverages, hotels, eye care, beauty and healthcare and travel services.
Home Grown Franchise Business That Ventured Abroad
Among Malaysian home grown brands that have ventured overseas include; Secret
Recipe, Marrybrown, Nelson’s, Smart Reader and D’ Tandoor.
Ministry/Association Related To Franchising
- Ministry of Entrepreneur and Co-Operative Development (MECD)
Franchise & Vendor Division,
Level 4, Menara Block,
No. 18 Persiaran Perdana,
Presint 2, 62652 Putrajaya
Tel : 603 - 8880 5593
Fax : 603 - 8880 5617
Website: www.mecd.gov.my
- Perbadanan Nasional Berhad (PNS)
Level 98, Menara Dato’ Onn, Putra World Trade Centre,
45, Jalan Tun Ismail,
50480 Kuala Lumpur,
Malaysia
Tel: 603-2698 6670
Fax: 603-2698 6804
Website: http://www.pns.com.my
- Malaysian Franchise Association (MFA)
No.2, Level 5,
Jalan Dewan Sultan Sulaiman 1,
Off Jalan Tuanku Abdul Rahman,
50100 Kuala Lumpur
Tel : 603 - 2697 1557
Fax : 603 – 2697 1559
Website: www.mfa.org.my
Contact in MATRADE
Feedback and enquiries are welcome. Please Contact:
Ms. Zaimah Osman
(Email: zaimah@matrade.gov.my , Tel: 603 – 6207 7133, Fax: 603 – 6203 7260)
Ms. Nur Azni Aziz
(Email: nurazni@matrade.gov.my , Tel: 603 – 6207 7139, Fax: 603 – 6203 7260)
