PNS TO FOCUS ON FRANCHISE BUSINESS
It plans to bring at least 5 more master franchisors to Malaysia this year
PERBADANAN Nasional (PNS) plans to adopt a more aggressive approach under its fiveyear blueprint to rebrand itself in the franchising business.
The blueprint emphasises financing and being an investor or equity holder, as well as bringing more franchise businesses into the country.
With an allocation of RM110 million this year, PNS aims to bring in at least five master franchisors to Malaysia.
This is part of its goals to boost its contribution to the country’s gross domestic product (GDP) to RM35 billion by 2020 from RM27.7 billion, or 3.4 per cent, in 2017.
PNS chief operating officer Azlina Juliani Abd Jalil said the company had submitted its fiveyear plan to the Prime Minister’s Department.
“From this year onwards, we want to restrategise and reposition ourselves for growth in tandem with the industry while remaining focused on spearheading and accelerating the franchise business.
“From the total RM110 million expansionary allocation, RM35 million will be for franchise development, RM65 million for medium enterprise entrepreneurship development and RM10 million for retail space provision.
“We aim to be aggressive in rebranding ourselves as a major franchise player with the aim to bring in more franchises into the country — to ramp up the ripple effects of such businesses to the economy,” she said.
PNS was set up in November 1969 as a wholly-owned government company to carry out resolutions from the Second Bumiputera Economic Congress.
Among its major shareholders are the Finance Ministry, Bank Negara Malaysia and Bank Bumiputera Malaysia Bhd.
As at last November, PNS had 56 Gloria Jean’s Coffees outlets under its franchise business across Malaysia, Myanmar, Indonesia and Brunei.
PNS also has several McDonald’s, Marrybrown and Global Art outlets under its franchise and financing schemes.
Asked on the new direction under the Pakatan Harapan government, Azlina said a proposal had been put forth to the Prime Minister ’s Department and it had been approved.
“With the approval, we now have a five-year plan on how to focus and grow the franchise business with the sole purpose of creating more businesses. This will help create new employment opportunities and contribute to the country’s gross domestic product.
“We plan to do this by widening the pool of franchisors, supporting the franchise ecosystem and, at the same time, identifying underserved market segments with potential franchise opportunities.
“We also plan to take advantage of the government-linked companies’ services and leverage it to create more entrepreneurs and job opportunities,” she said.
Azlina said with the five-year plan, PNS was moving towards becoming a major franchise-centric organisation and this would include the acquisition of reputable franchise brands.
“In the future, we plan to carry out more acquisitions of reputable franchise brands and replicate the Gloria Jean’s business model to 10 more major brands as part of our own business venture as a franchise player.