Fran­chise in­dus­try posts growth de­spite tough re­tail cli­mate

The Sun (Malaysia) - - SUNBIZ - BY WAN ILAIKA MOHD ZAKARIA

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.

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