KUALA LUMPUR, July 22 (Bernama) -- The government is in the midst of
finalising the National Franchise Development Blueprint, which is set for launch
later this year, said Deputy Prime Minister, Tan Sri Muhyiddin Mohd Yassin.
Muhyiddin said the blueprint would outline new policies and directions,
including strategies and action plan aimed at boosting the industry.
"The government is also considering tax incentives to promote franchise as
the preferred business expansion model," he said at the launch of Franchise
International Malaysia 2011 (FIM 2011) conference and exhibition here today.
He said with the resources that the government was pumping into franchise
development, the contributions from the industry for the next five years were
expected to increase twofold, or 4.3 per cent, of the gross domestic product,
providing more than 2.5 per cent to the national employment.
It would continue to increase by more than fourfold to 9.4 per cent by 2020.
Muhyiddin said the government was collaborating with industry players to
conceive and sprout new franchise businesses in specific sectors such as green
technology, early childhood education, personal and healthcare services.
"I have been informed that two brands -- Children Islamic Centre (CIC) and
Genius Aulad -- home-grown franchises assisted by the government that emphasise
on early childhood Islamic education or enrichment centres that use English as
the teaching medium are some of the successful franchise models developed.
"These two franchises are expanding rapidly locally, CIC with 24 outlets
since May 2010 and Genius Aulad with 19 outlets since August 2010, and are
expected to go global with full support from the government," he said.
Meanwhile, Minster of Domestic Trade, Cooperatives and Consumerism, Datuk
Seri Ismail Sabri Yaakob, said the blueprint was at the final stage of
"There are a few incentives that are still in discussion. Insyaallah, we
will launch it before year-end," he told a media briefing after the launch of
FIM 2011 here today.
He said the Franchise Act would be revised this year to ensure that the
ministry would be able detect the problems faced by the franchisees.
"We will table this in Parliament for next session. For now, we only depend
on the franchisors to inform the ministry of the total number of franchisees.
"Hence, it''s difficult to get the right number. If the franchisors do not
inform us, we wouldn''t know," he said.
Ismail said the revised Act would also require franchisees to submit annual
reports to his ministry.
"They don''t do that now, so we don''t know their problems. We only know that
they are faced with financial difficulties when we read the newspapers," he
The revised Act, he said, would ensure that the problems of franchisees''
businesses could be detected earlier as they had to register with the ministry.
DAB CHC THS