Kuala lumpur: The Ministry of Entrepreneur and Cooperative Development (KUSKOP) is committed to ensuring a balanced national franchise ecosystem, ensuring that both local players and international brands thrive through the National Franchise Policy 2030 (DFN 2030), while also providing financing and training opportunities for local entrepreneurs.
According to BERNAMA News Agency, Deputy Minister Datuk Seri R. Ramanan announced that 68 foreign food and beverage franchises had been registered under the Malaysia Franchise Express (MyFaX 2.0) system. Meanwhile, local franchises continue to dominate the market with a 52.1 percent share. The presence of foreign franchises is seen as beneficial, bringing investment, strengthening the supply chain, and facilitating knowledge and technology transfer to domestic entrepreneurs and industry players.
KUSKOP believes that foreign franchises' participation will boost the domestic economy, expand opportunities for locals, and enable knowledge transfer to local entrepreneurs. Ramanan addressed these points during a question and answer session at the Dewan Negara, in response to Senator Rita Sarimah Anak Patrick Insol's inquiry about the economic and social impact of new foreign franchises, especially in the snack and fast food sectors.
Ramanan highlighted various government financing schemes to support local franchises, including the Franchisor Financing Scheme and the Franchisee Financing Scheme, which have provided significant financial support to numerous companies. Assistance programs for veteran and retired entrepreneurs are also available, offering business equipment and training services.
Training and financing provided by agencies such as Perbadanan Nasional Bhd (Pernas) have also strengthened the local franchise ecosystem, ensuring balanced competition between local and international brands. Addressing concerns about the impact of large retail chains like FamilyMart, Ramanan emphasized that franchises are locally owned and do not disrupt market balance.
He noted that foreign franchisors make up only 47.9 percent of the market, with local franchisors holding a 52.1 percent share, ensuring continued opportunities for local companies. Ramanan also highlighted the promotion of homegrown brands like Sangkaya, Kenny Rogers, Marrybrown, and PappaRich overseas through trade missions to key markets such as Dubai, Osaka, and Shanghai.