• Wed. Nov 30th, 2022

SMEs in Sarawak have great potential to venture into franchise business

ByStephanie M. Akbar

Nov 12, 2022

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

KUCHING (November 12): From kek lapis to songket textiles, Sarawak-owned companies are poised to become leaders in the global franchise industry, Prime Minister Datuk Patinggi Tan Sri Abang Johari Openg has said.

He said that small and medium-sized enterprises (SMEs) have great potential to venture into the franchise sector given their huge contribution to the economic growth of the country.

“As (Acting Minister of Domestic Trade and Consumer Affairs) 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.

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

Citing the Malaysian franchise company’s rapid growth this year, he said the franchise industry also plays a vital role, especially in creating job opportunities.

He said nearly 49,000 job opportunities were 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 stands at 13,779, which is a 47% increase from 2020.

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

“In fact, Malaysian franchise brands have become leading brands in the world, with over 68 brands in 74 countries. Thus, I expect more job opportunities to be created through the growing number of franchise companies in the country,” he said.

Abang Johari speaking at the launch of Malaysian Goods Carnival 2022 Borneo Edition at Kuching Waterfront on November 12, 2022. – Photo by Chimon Upon

Moreover, he also stated that the sales value of the domestic franchise industry will double by 2025.

“The domestic franchise industry aims to increase the value of sales 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 the opportunities available, he added that the state government will continue to help interested parties, especially low-income groups, venture into affordable businesses and micro-franchises.

“I am convinced that more local brands will start to establish themselves in local and global markets. Indeed, our Malaysian brand is of high quality and comparable to other international products,” he said.

“The state government will continue to intensify its efforts to encourage more entrepreneurs to venture into the business and hold regular activities to disseminate information about the franchise business to the public.

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







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