Malaysia External Trade Development Corporation

MONDAY, 4 JULY, 2016, BEIJING: Malaysia is strengthening its foothold in China by capitalising on Malaysian capabilities in the services sector, particularly via the franchise industry. With this regards, Malaysia External Trade Development Corporation (MATRADE) will be organising its signature Export Acceleration Mission on the franchise industry in conjunction with the 16th China (Beijing) Franchise Expo (CFE) which is slated from 9-11 July 2016 at the China National Convention Centre in Beijing.

The mission will showcase seven Malaysian franchise brands ranging from restaurants, food kiosk, education system to haircare as well as health & wellness. These brands include Coffeeland, Teh Tarik Place, Nyonyasuan, Daily Fresh, Brainchecker, Craft and Meiko.

Malaysia’s participation in the exhibition is aimed at providing a platform for local players to strengthen their networks in China and promote Malaysian franchise brands in China.  Apart from the exhibition, MATRADE will also be coordinating one-on-one business meetings for the Malaysian exhibitors with Chinese buyers and potential partners from other countries at the event.

The CFE is considered China's premier exhibition for franchises and is a launchpad for international brands to grow their franchise business in China. The CFE has been organised for the past 16 years and has been attracting thousands of franchisors from across the country and worldwide to display their concepts, products and services to the Chinese investors. Among the franchisors attending the event come from regions such as Americas, Europe and Asia. The event also attracts over 300,000 attendees comprising investors looking for franchising opportunities.

Opportunities in China’s franchising market are not only limited to the restaurant industry. Franchising prospects have been identified in the Catering industry, Education and Training, Real Estate Brokerage, Commercial Service as well as Network Technology. Second and third tier cities in China will be the key points for the franchise industry, with more than 80% of Chinese franchisers are beginning to pay attention to the fourth tier cities.

The middle class population in China is projected to grow to 600 million in the next 10 years and the Chinese economy is expected to become the largest in the world by 2050, offering a huge consumer market for the Malaysian players.

Trade between Malaysia and China is increasing at a steady pace for many years -- making China an important export destination for Malaysian companies.  Malaysia’s trade with China in 2015 increased by 11.1% from 2014 to reach RM230.9 billion. In 2015, China remained Malaysia’s largest trading partner for 7th consecutive year since 2009.

In 2015, Malaysia’s trade with China in services was valued at USD 81.76 billion (RM 20.05 billion). Malaysia’s exports of services recorded a growth of 12.32 percent to reach USD 32.50 billion (RM 7.97 billion) in 2015 while imports from China were valued at USD 49.26 billion (RM 12.08 billion).

Economic growth in China, although expected to be at a slower pace (at a rate of about 6.5% annually) still provides ample business opportunities for Malaysian players.

MATRADE as Malaysia’s trade promotion agency will continue to support the local franchise players to expand their business overseas as franchising has been recognised as one of the vehicles to diversify Malaysia’s exports of products and services. MATRADE's initiative via the CFE efforts will also help to achieve a bilateral trade target of US$160 billion between Malaysia and China by 2017.

Given China’s significance, MATRADE sets up five trade offices in main cities namely Beijing, Shanghai, Chengdu, Guangzhou and Hong Kong (Greater China) to facilitate export activities of Malaysian companies.