RM26.6b to GDP from local franchise industry

KUALA LUMPUR: The local franchise industry contributed RM26.6 billion to Gross Domestic Product (GDP) in 2016 compared to RM26.8 billion in 2015.
Domestic Trade, Cooperatives and Consumerism Minister, Datuk Seri Hamzah Zainudin (pix) said since the government introduced the Franchise Development Assistance Fund (DBPF) in 2005, 85 local franchise companies had received RM5.65 million in funds from the programme so far.
"The performance of local franchise companies has been encouraging. The DBPF programme was introduced to assist companies with a businesses or brand and which have registered their business as franchise business and as franchisor or master franchisee.
"Such companies qualify to apply for a development grant in the form of reimbursement," he said in the Dewan Rakyat today in reply to a question from Anuar Abd Manap (BN-Sekijang).
Hamzah said to date, 65 Malaysian franchises had been established in 66 countries, with 4,271 outlets.

He said the Franchise Expansion programme implemented abroad last year had recorded investments amounting to US$2.83 million (RM11.73 million) in four countries, namely Indonesia, Philippines, Australia and China.
The same promotional missions in Cambodia, Vietnam, Thailand and Indonesia this year recorded investments worth US$900,000 (RM3.73 million).
Hamzah said in terms of registration of franchise companies, the food and beverage sector made up 39% of the total number registered, apparel and accessories (11%), services and maintenance (11%), learning and care centres (11%), beauty treatment and health (10%), IT telecommunications and electronics (4%), convenience stores and supermarkets (2%) and other businesses (12%). — Bernama