Franchise industry posts growth despite tough retail climate
KUALA LUMPUR: The franchise industry has recorded positive growth despite a relatively flat economy and retail environment currently.
Domestic Trade, Cooperatives and Consumerism Ministry deputy secretary-general (domestic trade) Datuk Basaruddin Sadali ( pix) said despite the current economic slowdown and challenging domestic market, the industry has achieved its annual turnover target of RM26 billion this year.
“These franchise companies have shown positive growth and I believe they are not only able to compete locally, but also internationally,” he said at a press conference for the Malaysia Franchise Awards (AFM 2016) here yesterday.
“I also believe with the initiatives taken by the franchisers as well as the franchisees, they will go through all of the challenges and continue to grow in the current economic situation.”
However, Basaruddin said the industry growth rate is expected to slow down slightly this year compared with the previous years, with a growth projection of 10% per annum.
Last year, the franchise industry grew 8%, contributing RM26.8 billion to the country’s gross domestic product, compared with RM25.4 billion in 2014.
On the award night on Nov 11, Basaruddin said 17 awards will be offered for the franchisepreneur, including best franchise system, open category, franchises category and special appreciation.
Among the finalists for AFM 2016 are Avon Cosmetics (M) Sdn Bhd, Berjaya Roasters (M) Sdn Bhd, Senheng Electric (KL) Sdn Bhd, Secret Recipe Cakes & Cafe Sdn Bhd, Coolblog Dessert Sdn Bhd and Permodalan Kelantan Bhd.
AFM 2016, which is organised by the Malaysian Franchise Association, is to, among others, recognise the franchise community’s contribution towards the industry.