More Liberal Services Sector A Boost For Franchise Industry

Business Times:

The government’s recent move to liberalise 27 services sub-sectors has given the franchise industry a shot in the arm, says Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir.

“It has enabled foreign franchisors and new brands to enter the market and support the franchise spectrum like franchisees (to foreign franchisors),” he said when opening the Malaysian Franchise Association’s (MFA) 14th annual general meeting in Kuala Lumpur yesterday.

Mukhriz said the leeway in equity control, for instance, will enable them to have 100 per cent ownership of businesses set up here.

The franchise industry currently contributes about 6 per cent to the country’s retail sector revenue, lagging behind the US and Australia where franchises contribute more than 50 per cent, with US$2.3 trillion and US$130 billion (US$1 = RM3.51) respectively.

In Singapore, there are 500 franchise systems generating US$3.9 billion in revenue. Read on…

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