Page 7 - Malaysia Exporters of Franchising Directory

Industry Overview
Malaysia’s franchising system is growing rapidly driven by the potential in the
domestic market which is relatively untapped as the share of the retail business
conducted through is still small at below 10%, as opposed to the developed
economies where 40% of the retail business are being conducted through this
industry. The strong growth in the overseas market in franchising as a new way
of doing business has also acted as a catalyst to spur the growth of Malaysia’s
franchise industry.
Industry Strengths
Malaysian homegrown franchising system represents 71% of the total number
of franchise systems in the country. With over 600 registered franchise systems
and more than 6,000 franchising outlets in the market, Malaysia has strength in
various franchising sectors, ranging from food and beverage to the automotive
related sector (car sales, service centers, and tyre services), clothing and
accessories, learning centre and nursery, retailing and supermarket, healthcare
and beauty care, IT and telecommunication, hotel and tourism agencies,
printing, photo-shops etc.
The Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC)
projects the franchise industry to make up 9.4% of the country’s gross domestic
products (GDP) by 2020 from 2.2% in 2010, to be supported by four strategic
thrusts identified in the National Franchise Development Blueprint (NFDB)
2012-2016. The franchise industry generated a total revenue of RM22.34 billion
from 2006 to 2010 contributed by 404 franchise companies. MATRADE plays a
leading role in promoting the franchise companies to overseas markets.
The Government, through MDTCC and its agency Perbadanan Nasional
Berhad (PNB), plays an important supporting role in nurturing the local
franchise industry with the provision of various programmes, assistance and
training. MATRADE works closely with the related ministry and agency to assist
in identifying suitable activities to promote franchise companies in terms of
their participation in international trade fairs, specialised marketing missions
and business matching programmes. In 2013, revenue of sales generated
through franchise related international promotional trade activities amounted to
RM177.71 million with the expansion of 480 new franchisees.
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