" Malaysia's franchise industry blueprint is expected to be launched during Franchise International Malaysia 2011 (FIM 2011) this July. "
The blueprint, which has been proposed by Malaysia Franchise Association (MFA) since year 2003, will provide the objective and direction for the local franchise industry.
The blueprint will also benefit franchise players across the board from franchisor, franchisee, consultants and lawyers.
"This blueprint will be constructive for all franchise players and hopefully it will help leapfrog the local franchise industry to the next stage," MFA secretary general Hasma Ahmad said in Kuala Lumpur yesterday.
Incentives to be introduced in the blueprint include those for research and development and innovation, and tax breaks.
The blueprint will also see the amendment of the Franchise Act 1998.
While there is an industry outline under Perbadanan Nasional Bhd (PNS), a government agency responsible for the development of franchising operations since 2005, there is currently no performance index research to monitor the performance or the direction of the franchise industry.
PNS is solely dedicated to provide financial assistance to potential franchise entrepreneurs. However, it is not entirely responsible for the industry's performance, direction and research and design.
It is hoped that a dedicated blueprint will spearhead the local franchise industry's growth in line with the government's aim to create an innovative economy and turn Malaysia into a developed country by 2020.
There are currently some 497 franchise systems registered in the country and MFA is projecting double-digit growth this year after the blueprint announcement.
The target will be spurred by conversion from licensing business to adopting the franchise system, co-branding activities, multiple franchise outlet by franchisee and microfranchising activities like those of home-grown corn and ice-cream franchise Nelson and cleaning business HC Duraclean.
MFA hopes to achieve some RM345 million in sales during FIM 2011, which will be held from July 22 to July 24 at the Putra World Trade Centre in Kuala Lumpur.
Source: Business Times
Tuesday, May 17, 2011