LONDON: A joint committee between Malaysian and United Kingdom (UK) franchise business associations will be established to strengthen Malaysia’s franchise ecosystem in the UK, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
The Rural and Regional Development Minister said the initiative would serve as a support platform to help Malaysian franchise brands penetrate the UK market by next year.
“There are plenty of opportunities for Malaysian companies to expand their franchise businesses in the UK, especially in halal-related sectors such as food, traditional medicine and cosmetics.
“I will chair the Cabinet committee on franchises. I will obtain reports on the progress that can be made promptly, and I will review the achievements every six months when I chair this Cabinet committee twice a year,” he told a press conference here Tuesday.
Earlier, he attended the Malaysia-UK Franchise Business Dialogue, held in conjunction with his four-day working visit to the UK.
Ahmad Zahid added that Malaysia is also committed to supporting the franchise ecosystem through financing policies by the Majlis Amanah Rakyat (MARA) and digital grants from the Malaysia Digital Economy Corporation (MDEC), with the aim of achieving RM100 billion in sales by 2030.
He said closer cooperation would be pursued to encourage UK franchises to explore the ASEAN market via Malaysia, while at the same time promoting the expansion of Malaysian brands into the UK market through the proposed committee.
Meanwhile, in a Facebook post, Ahmad Zahid said a proposal had been submitted to include the franchise sector as one of the agendas under the Malaysia-UK SME Working Group, which operates under the Joint Economic and Trade Committee (JETCO).
He said the initiative would see the creation of a dedicated platform by 2026 to support Malaysian brands in penetrating the UK market in a more systematic and effective manner.
“I highlighted the vast potential for establishing more strategic bilateral cooperation. Malaysia is ready to serve as the gateway for UK franchises entering the ASEAN market, which now comprises over 680 million consumers.
“At the same time, we remain committed to expanding the presence of Malaysian brands in the UK franchise market, which is worth over £19 billion annually,” he said.
Ahmad Zahid noted that franchising plays a role as a job creator, a driver of innovation, a cross-border connector, and a powerful tool for social mobility and inclusive development.
He added that Malaysia currently has over 700 registered franchise brands, with more than 70 having successfully entered markets in over 80 countries.
“This clearly proves that Malaysian brands are capable of competing on the global stage,” he said.
