Kuskop ensures fair competition in Malaysia’s franchise sector, with local brands holding a 52.1% market share and receiving RM256 million in financing.
KUALA LUMPUR: The Ministry of Entrepreneur and Cooperative Development (Kuskop) is committed to ensuring a balanced national franchise ecosystem under the National Franchise Policy 2030.
Deputy Minister Datuk Seri R. Ramanan said this ensures both local players and international brands can thrive while providing financing and training for local entrepreneurs.
He revealed that 68 foreign food and beverage franchises are registered under the Malaysia Franchise Express (MyFaX 2.0) system.
Local franchises continue to dominate the market with a 52.1% share, he told the Dewan Negara.
“Kuskop believes that foreign franchises’ participation in the local market will bring multiple benefits,” Ramanan said.
These include boosting the domestic economy through investment and strengthening the supply chain.
It also facilitates knowledge and technology transfer to domestic entrepreneurs, he added.
He was responding to a question on the ministry’s assessment before approving new foreign franchises, especially in saturated sectors.
The government has introduced various financing schemes to support local franchises, Ramanan explained.
The Franchisor Financing Scheme has benefited 122 companies with nearly RM40 million.
Meanwhile, 945 companies under the Franchisee Financing Scheme received almost RM216 million.
Kuskop also provides assistance programmes for veteran and retired entrepreneurs to acquire business equipment.
It offers free or subsidised training and business development consultation services.
Ramanan said the local franchise ecosystem is strengthened through training and financing from agencies like Perbadanan Nasional Bhd.
This ensures more balanced competition between local and international brands.
Addressing concerns about large retail chains impacting small traders, he stressed franchises are locally owned.
“Foreign franchisors make up only 47.9% of the market, while local franchisors account for 52.1%,” he said.
“We are still providing space and opportunities for local companies.”
Homegrown brands like Sangkaya, Kenny Rogers, Marrybrown and PappaRich are actively promoted overseas.
This is done through trade missions to key markets such as Dubai, Osaka and Shanghai. – Bernama
