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Franchise Sector Projected To Contribute RM26.8 Billion To GDP In 2015

Date     : 14/5/2015
Source : BERNAMA

KUALA LUMPUR, May 14 (Bernama) — The franchise sector is expected to contribute RM26.8 billion to Malaysia’s gross domestic product (GDP) this year, compared to RM25.4 billion or the 2.6 per cent registered last year.

Deputy Minister of Domestic Trade, Co-operatives and Consumerism Datuk Seri Ahmad Bashah Md Hanipah said the targeted increase of five per cent was driven by positive growth among franchise companies which stand now at 770.

Of this figure, he added, 22 per cent are international franchisees.

He was speaking at a media conference on the Franchise International Malaysia (FIM) 2015 Exhibition and Conference here today.

Ahmad Bashah said 60 local franchise companies had succeeded in opening 2,000 business branches in 54 countries, including in the middle east and Indonesia.

“Food and beverage franchises dominate the industry with 50 per cent of local companies falling into this category, followed by services at 30 per cent and the rest in other sectors,” he added.

Commenting on the FIM 2015, Ahmad Bashah said the event is a cooperation between the ministry and the Malaysian Franchise Association and has target potential franchise sales to reach RM370 million, compared to RM365 million last year.

The 22nd edition will be held at the Putra World Trade Centre and is expected to attract 12,000 visitors and 139 exhibitors, thereby exceeding the initial target sales of 110 booths.

At the FIM 2014, there were 10,000 visitors and saw the participation of 118 local and foreign exhibitors.

Meanwhile, Ahmad Bashah said a sum of RM20 million over five years had been allocated for franchise development under the Budget 2015, to assist local franchises to expand their businesses to overseas.

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