Abg Jo: Sarawak SMEs have great potential to venture into franchise business
Posted on : 12 Nov 2022  Source of News: The Borneo Post

Abang Johari (centre) and Nanta (second right) visiting the booths set up at the Malaysian Good Carnival Borneo Edition 2022 at the Kuching Waterfront. – Photo by Chimon Upon

KUCHING (Nov 12): From kek lapis to songket textile, Sarawakian-owned businesses are poised to become the frontrunners in the global franchise industry, said Premier Datuk Patinggi Tan Sri Abang Johari Openg.

He said small and medium enterprises (SMEs) have great potential to venture into the franchise business given its huge contribution to the nation’s economic growth.

“As (caretaker Domestic Trade and Consumer Affairs Minister) Dato Sri Alexander Nanta Linggi mentioned earlier, our small and medium enterprises contribute to the country’s overall export value every year, and the value is not small.

“This proves that they not only contribute to the development of the country’s economy but also have gained a place in the global market,” he said when officiating at the launching of the Malaysian Goods Carnival 2022 Borneo Edition at the Kuching Waterfront here tonight.

Citing Malaysia’s franchise company’s rapid growth this year, he said the franchise industry also functions a critical role especially in creating employment opportunities.

He said that nearly 49,000 job opportunities had been created in 2021.

“Not only SMEs, but the franchise industry in this country has also grown rapidly with a total of 1,149 franchisor companies registered under the Franchise Act 1998. The number of new outlets opened in the country in 2021 is as much as 13,779, which is an increase of as much as 47 per cent from 2020.

“If we see, from there, there are 11 franchise companies with various brands originating from Sarawak. This includes various categories such as food and beverages, health, beauty and services.

“In fact, Malaysian franchise brands have grown to be leading brands worldwide, with more than 68 brands in 74 countries. Thus, I expect there will be more job opportunities to be created through the increasing number of franchise companies in the country,” he said.

Abang Johari speaking when officiating at the launching of the Malaysian Goods Carnival 2022 Borneo Edition at the Kuching Waterfront on Nov 12, 2022. – Photo by Chimon Upon

Adding on, he also said that the sales value of the national franchise industry would be doubled by 2025.

“The national franchise industry is targeted to increase sales value from RM14.65 billion in 2020 to RM22.66 billion by 2025.”

Abang Johari also spoke about the need for the national franchise industry to expand its product to other sectors.

With opportunities available, he added that the state government will continue to help interested parties especially from the low-income groups to venture into affordable and micro-franchise businesses

“I am confident that more local brands will start gaining a foothold in the local and global markets. Indeed, our Malaysian brand is high quality and comparable to other international products,” he said.

“The state government will continue to increase efforts in encouraging more entrepreneurs to venture into the business and consistently host activities to spread information about the franchise business to the public.

“I hope that there will be more franchise industry players from Sarawak to make into this franchise industry,” he added.