KUALA LUMPUR: The Malaysian Retail Chain Association (MRCA) is targeting RM120 million in transaction value for 8th Franchise Expo Malaysia 2025 (FEM 2025), up 20% from the RM100 million achieved in 2024.
MRCA president Datuk Ken Phua said the higher target is driven by record-high international participation and strong local demand.
“We have added 10 overseas countries, including the US, Japan, and the UK. Our existing partners from Thailand and China have also expanded their booths. We are almost fully occupied, which points to a very eventful and successful expo,” he said at a press conference on FEM 2025 today.
Furthermore, Phua said, Malaysia’s role as Asean chair this year supports regional participation in the event.
MRCA welcomes Tourism Malaysia as a supporting partner to connect FEM with the tourism ecosystem.
“Tourists visiting Malaysia are not just here for sightseeing but also for cultural and shopping experiences. They are potential franchise investors too,” Phua said.
FEM 2025 will be held at the Kuala Lumpur Convention Centre from Aug 21 to 23. The three-day event is expected to attract about 18,000 visitors and will feature 364 booths across four halls.
Phua said this year’s theme, “Invest in the Future”, highlights opportunities in digitalisation, tourism recovery, and regional integration. “The theme captures the essence of what lies ahead. Strong consumer spending and the strengthening ringgit have created fertile ground for local businesses to thrive.”
Turning to other issues, Phua said MRCA and five other business associations met with the Ministry of Finance last Thursday to discuss the planned expansion of the Sales and Service Tax (SST).
He added that it had a dialogue with the government to consider deferring or adjusting the SST expansion.
“Eight per cent is really, really very, very significant to our costs. We barely make about 10% to 20% in gross profit. “So with all these costs involved, our net profit will either dwindle or, in the worst situations, some may have to close their businesses.”
Phua said the SST, particularly its application to rental costs, would significantly increase operating expenses for franchisors and franchisees.
“Many of whom manage multiple outlets. Can you imagine the impact that will be having on their operating costs as well as the labour costs that has increased? We are also going to be paying the foreigners 2% EPF as well,” he added.
Phua said the government has listened to some of their concerns and already raised the SST registration threshold from RM500,000 to RM1 million. “But it is not good enough. With SCCIM, ourselves and many other associations, our plea is to have it, in fact, deferred or the threshold level up to RM3 million.”
Additionally, Phua said it has also requested a deferment of the electricity tariff increase that is set to start from today.
“At this point, manufacturers, including those exporting, are already facing tariff pressures from the US. A rate hike now is not timely, especially when we are encouraging more entrepreneurial activities.”
