Date : 2 Feb 2021
Resource : The Malaysian Reserve
Perbadanan Nasional Bhd (PNS) aims to target a minimum of 5,000 financing approval to entrepreneurs in its five-year plan strategy. This is expected to expand the franchise portfolio by 400 percent from RM178 million to RM700 million.
Medac Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said this is expected to create 18,000 jobs and contribute RM4.4 billion to GDP.
He said franchising could help Bumiputera entrepreneurs in improving their socio-economic position, especially through PNS’ Business-In-Transformation (BIT) programme that encourages entrepreneurs to expand their business through franchising.
“The cooperation between Medac and PNS proves that ministries and agencies are able to create a network of cooperation which, in turn, produces more entrepreneurs adopting this business concept.
“This effort encourages economic growth, especially for Bumiputera entities to venture into franchise business,” he said in a statement yesterday.
While PNS gears its goals towards building an effective franchise ecosystem with a comprehensive value chain supported by digital technology, it will also empower the socio-economic development of Bumiputeras through entrepreneurship.
Since 2005, PNS has disbursed a total franchise financing of RM463 million to 2,529 entrepreneurs PNS CEO Mohd Hilaluddin Abd Shukor said the local franchise industry still has vast potential to be explored, and entrepreneurs, especially micro-entrepreneurs, need to be bold in taking proactive steps to participate in the franchise industry to grow their business, particularly in adopting digitalisation.
He said PNS, through the BIT programme, is focused on the development of the micro-businesses in order for them to expand through the franchise methodology.
“BIT programme can facilitate potential entrepreneurs to widen their source of income and help boost the economic growth of the franchise industry post-Covid-19.
“This year, PNS will roll out two new project initiatives, namely ‘Project Xcelerator’ and ‘Be Your Own Boss’ that aim to produce five local franchise entrepreneurs and 1,000 franchisees in 2021,” he explained.
PNS is allocating RM35 million for these projects that are designed to strengthen the participation of Bumiputera entrepreneurs, youth, women and graduates by offering comprehensive training, guidance, financing and market access.
Under the “Be Your Own Boss” project, PNS offers two special programmes targeting women and youth, known as Successful Women Entrepreneurship Engagement Talent or SWEET, and Young Entrepreneurship Engagement Talent, or YOUNITY.
To ensure the success of these new initiatives, PNS will be collaborating with several other ministries to potentially expand the programme offerings, namely the Ministry of Youth and Sports and Ministry of Women, Family and Community Development via Medac’s ministry and agency strategic collaboration programmes.
According to Mohd Hilaluddin, the strategic collaborations between PNS and these ministries are aimed at reaching out and empowering women and youth to become successful business owners.
“Under the BIT programme, PNS has 127 pre-franchise businesses in its incubator, where they are nurtured to grow their business into becoming a successful notable homegrown franchise brand.
“We hope that through Project Xcelerator, it will help fast-track their progress into becoming a franchise business in less than one year,” he added.
PNS has supported a great number of local franchise brands, such as Genius Aulad, Marrybrown, Menara Optometry, Asam Pedas Premier, Tealive, Smart Reader Kids and Putu Bambu World with a total financing amount of RM30.5 million.-The Malaysian Reserve