London: A joint committee between Malaysian and United Kingdom (UK) franchise business associations will be established to strengthen Malaysia's franchise ecosystem in the UK, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. The Rural and Regional Development Minister stated the initiative would serve as a support platform to help Malaysian franchise brands penetrate the UK market by next year.
According to BERNAMA News Agency, Ahmad Zahid explained that there are ample opportunities for Malaysian companies to expand their franchise businesses in the UK, particularly in halal-related sectors such as food, traditional medicine, and cosmetics. He emphasized his commitment to overseeing the progress, noting his role as chair of the Cabinet committee on franchises. Ahmad Zahid plans to review the achievements bi-annually to ensure timely progress.
During the Malaysia-UK Franchise Business Dialogue, which aligned with his four-day working visit to the UK, Ahmad Zahid expressed Malaysia's dedication to supporting the franchise ecosystem. This will be achieved through financial policies by the Majlis Amanah Rakyat (MARA) and digital grants from the Malaysia Digital Economy Corporation (MDEC), aiming for RM100 billion in sales by 2030.
He further elaborated that the joint committee would facilitate UK franchises exploring the ASEAN market via Malaysia and promote the expansion of Malaysian brands into the UK market. Moreover, a proposal has been submitted to include the franchise sector as an agenda under the Malaysia-UK SME Working Group, operating under the Joint Economic and Trade Committee (JETCO).
Ahmad Zahid said the initiative aims to create a dedicated platform by 2026 to support Malaysian brands in penetrating the UK market more systematically and effectively. He emphasized the potential for strategic bilateral cooperation, positioning Malaysia as the gateway for UK franchises entering the ASEAN market, which comprises over 680 million consumers.
Additionally, Ahmad Zahid highlighted the role of franchising as a job creator, a driver of innovation, and a connector across borders, promoting social mobility and inclusive development. He pointed out that Malaysia currently possesses over 700 registered franchise brands, with more than 70 successfully entering markets in over 80 countries, underscoring their global competitiveness.