Franchising in Malaysia A Brief Overview on the Latest Development

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Franchising in Malaysia A Brief Overview on the
Latest Development

• By
• Malaysian Franchise Association

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Malaysian Franchise Association (MFA)

• The Malaysian Franchise Association (MFA) was
  formed in 1994 to support the implementation of
  the government of Malaysias program to promote
  entrepreneurship through franchising.
• Current members 491
• Members composition of MFA
• 1. Franchisors / master franchisees
• 2. Would-be franchisors / master franchisees
• 3. Franchisees
• 4. Would-be franchisees
• 5. Support Institutions
• 6. International Membership (New
  Category)

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Industry Updates Key Trends

• Franchising is one of the fastest growing sectors
  in Malaysia.
• Over the past four years, there has been a 15
  increase in the number of Registered Franchise
  Business under the RoF, MECD.
• 342 franchise systems registered in Malaysia
  (May. 2008)
• 223 - Home-grown franchise brands
• 113 - Foreign franchises
• Master franchisee
• Franchisee to foreign franchisor

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Industry Updates Key Trends

• Largest contributing industries/sector.
• The total contribution in various sector (Jan
  2008) are as follows
• System Percentage
• Food business 95 28
• Apparels and accessories 52 15
• Service and maintenance 36 11
• Childcare and pre-school education 39
  12
• Health care 30 9
• Retailing and supermarket 12 4
• IT, telecommunication electrical 15
  4

www.mfa.org.my
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Industry Updates Key Trends

• ASEAN Franchise Training Programs
• MFA with the support from Malaysias Ministry of
  Entrepreneur and Cooperative Development (MeCD)
  and Small and Medium Industries Development
  Corporation (SMIDEC) had submitted a proposal on
  developing franchise training programs to all
  ASEAN countries to the ASEAN Small and Medium
  Enterprise Agencies Working Group (SMEWG) meeting
  at Singapore on 29th May 2008.
• Malaysia receives an overwhelming support from
  the ASEAN SMEWG members to proceed with the
  proposal.
• Malaysia will present the proposal to the ASEAN
  Australia Development Cooperation Program (AADCP)
  committee at the end of the year to request fund
  to proceed with the proposal.

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Industry Updates Key Trends

• Perbadanan Nasional Berhad (PNS)
• Perbadanan Nasional Berhad had been appointed by
  the Ministry of Entrepreneur and Cooperative
  Development as the agency to support governments
  policy in producing more entrepreneur.
• MyFranchise under PNS had been appointed as the
  investment arm.
• Currently MyFranchise has 6 brands under its
  belt. They are
• Gloria Jeans Coffee
• Jom Makan (Malaysia Kitchen)
• Forest Secret
• Marrybrown
• 1901
• Autobridal

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Industry Updates Key Trends

• Acquisition of foreign franchises
• Malaysian owned company has been actively acquire
  foreign franchises to be brought into the
  country.
• Berjaya Corporation, a Malaysian franchise
  conglomerate had acquire at least 5 foreign
  franchises. They are
• Kenny Rogers Roasters (Worldwide Rights)
• 7-11
• Starbucks Coffee Company
• Roadhouse Grill
• Wendys
• Singer
• Krispy Kreme Doughnuts
• Papa Johns Pizza
• There are few companies that nurture few
  home-grown franchises in the country

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FIM 2007 Facts Figures

• Held for the 14th consecutive times, from 2nd
  5th August 2007 recorded
• Total business transaction RM249.6 million
• Total visitors 8500
• Exhibitor booths 105
• Participating companies 85
• Breakdown of participating countries 15
• International Participants 38

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Franchise International Malaysia 2009, Conference
Exhibition,Kuala Lumpur

• To be held at Putra World Trade Centre, Kuala
  Lumpur
• Jointly organised with the Ministry of
  Entrepreneur Cooperative Development (MECD)
• FIM2008 expected to draw 150 exhibitors and
  targeting 10,000 visitors

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THANK YOU..
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MALAYSIAN FRANCHISE ASSOCIATION No. 2, Level
5, Jalan Dewan Sultan Sulaiman 1, Off Jalan
Tuanku Abdul Rahman, 50100 Kuala Lumpur
Malaysia. Tel [phone] Fax 603
26971559 E-mail secrtmfa_at_streamyx.com Website
http/www.mfa.org.my