Ample opportunities for Sarawak businesses to franchise, says MFA

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Datuk Mohd Latip Sarrugi

KUCHING: There are still more rooms for local businesses in Sabah and Sarawak to expand their business through franchising as East Malaysia has a very vibrant franchise industry, says the Malaysian Franchise Association (MFA).

“MFA thinks that Sarawak has many potential in the franchising industry. There is huge potential to convert conventional business or licensing business to franchise mode.

“(There is) potential to educate the budding entrepreneur about franchising and the existing franchisees in Sarawak and Sabah,” chairman of MFA Datuk Mohd Latip Sarrugi told the Borneo Post in a recent email interview.

Additionally, MFA, which serves as a resource centre for both current and prospective franchisors and franchisees, says that the franchising trend in Sabah and Sarawak are very active.

“Sarawak franchise industry will be more vibrant in the years to come.

“Franchisors from Peninsular Malaysia have targeted Sarawak and Sabah as the local frontier that still has more room to grow,” MFA’s chairman highlighted.

The association, which was also formed to support the implementation of Malaysia’s government programme to promote entrepreneurship through franchising, advised budding entrepreneurs to get as much knowledge about franchise by attending MFA’s training programme and read all franchise articles on the internet.

To note, the overall market share of the franchise industry in Malaysia is approximately RM10 billion, with 672 franchisors, more than 5,000 franchisees, and 10,000 outlets.

In addition, MFA estimated that the franchise industry contributes 2.5 per cent to the nation’s gross domestic production (GDP).

Meanwhile, the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) and MFA are jointly organising the annual, largest franchising exhibition and conference in Southeast Asia; Franchise International Malaysia 2013 (FIM 2013) which will be held at Putra World Trade Centre (PWTC) from September 20 to 22.

“Attaining its 20th year pinnacle with proven organising track records, the FIM is a melting pot of local and international franchise players into a world full of opportunities.

“It will assemble main players in the franchise sector from all around the world to discuss current franchise issues and focusing franchise as a key strategy in developing entrepreneurship in Malaysia especially in retail and service sectors.

“This is the perfect venue to launch new franchise system, appoint master franchisees, and identify potential local franchisees, matchmaking and networking functions.

“Malaysia is one of the regional fastest growing franchise markets. With invaluable support from Malaysian government, top franchisors and key financial institution, FIM 2013 promises to be the premier event for continuing successful development of the franchise industry in Malaysia as well as Southeast Asia region. Therefore, take this advantage to expand your business opportunities at FIM 2013,” Mohd Latip concluded.