KUCHING: Local entrepreneurs, particularly, in the food business has been urged to look at the potential of micro franchising as it can assist in business expansion giving larger profit margin.
According to Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, many Sarawakian dishes such as the laksa Sarawak, kolo mee, and ‘gulapong cendol’ had its potential to be marketed outside the state.
“With those local specialty garnering popularity especially in West Malaysia, there is a possibility of creating a franchise where it can be sold under one business,” said Ismail at a press conference after officiating the state level ‘Francais Komuniti’ programme at Semarak yesterday.
According to Ismail, local entrepreneurs should look into setting up a franchise base throughout the state first to ensure that the business could survive before franchising it to the Peninsular.
“We would ask local ministry’s office to survey and look into the potential of not just food, but also services and potential business to be included in the micro franchise programme,” he said and added that at the moment, there was no local business involved in the programme.
“Franchise business had seen an increased in terms of profit returns. For example, a total of RM21.48 billion has been recorded for 2011 while the figure is expected to increase to RM22.5 billion this year,” he said.
He added that by the year 2020, the figure was expected to increase to RM50.5 billion.
Apart from food franchising, he also pointed that service related business and education also has its potential in franchising and said the trend was gaining popularity in the Peninsular.
On the ‘Francais Komuniti’ programme, he elaborated that in 2011, a total of 207 potential franchise businesses had been set up with a total investment of RM8.3 million in four states for the year alone.
“For 2012, we have successfully attracted 152 potential franchises from two states with total investment of RM3.292 million. In total, the programme has successfully set up 359 potential franchise businesses with a total investment of RM11.606 million,” he said.
On the Macro Franchise Loan Scheme, Ismail said from a total of RM8 million allocated, RM2 million had been used.
“The requirements are easy with no guarantor needed and only three per cent interest charged. As of now, 121 franchisees who have participated in this programme are successful in their loan application totalling to more than RM2 million,” he said.