Malaysian Franchise Sales To Increase To RM23 Billion By 2025

Malaysia’s franchise industry expects to see its sales increase to RM22.66 billion by 2025 from RM14.65 billion in 2020, said Prime Minister Datuk Seri Ismail Sabri Yaakob at the recently held the 29th International Franchise Exhibition and Conference Malaysia (FIM 2022) in Malaysia. He noted that the local franchise industry has been growing rapidly, with 1,149 franchisers registered under the Franchise Act 1998. The Prime Minister also noted that Malaysian franchise brands have become more globally renowned, with 68 brands currently present in 74 nations, adding that various initiatives to strengthen the local franchise industry have been implemented to ensure business sustainability and stability, especially during the Covid-19 pandemic and inflation period.

Malaysia - Accelerating Franchise Growth

He said that efforts to develop micro franchises are also being taken to help the B40 income group via the Micro and Affordable Franchise Development Programme (F3M). The F3M, implemented through a series of Engagement Franchise and Training Programmes nationwide, has received an encouraging response from the local community, especially among the bottom 40% income group (B40) and middle 40% income group (M40). The F3M initiative introduced in 2021 aims to increase the number of micro-scale and affordable franchise businesses in the country and help improve the quality of life of the B40 and M40 groups to generate income. In addition, it allows franchisors to develop their franchise brand and produce more players in the franchise industry, especially among the young generation in M40 and B40.

In his remarks, the Malaysian Prime Minister described FIM 2022 as “the best platform to explore various franchise business opportunities and to obtain various information about franchising including assistance and incentives from the government, support services, development activities, as well as training programmes available in the franchise industry.”