Bashah (left) accompanied by Jainab visiting the exhibitor booths at the Community Franchise programme currently being held at Suria Sabah.
KOTA KINABALU: Sabah hosted this year’s first Community Franchise tour, a national programme aimed at encouraging medium and low income groups to venture into business.
The programme organized by the Domestic Trade, Cooperative and Consumerism Ministry (KPDNKK) is currently being held at Suria Sabah Kota Kinabalu, featuring 17 franchise companies from Peninsular Malaysia and four from Sabah who showcase their businesses to visitors until today.
Deputy Minister of Domestic Trade, Cooperative and Consumerism, Dato’ Paduka Ahmad Bashah Md Hanipah, in opening the programme yesterday, said such promotional tour was vital to correct the misconception among the public that franchise business was an industry that only those with high income and big start-up capital could afford to join.
“I must stress here that this is absolutely wrong. Franchise businesses are for everyone, be it the high income, medium or even low income group,” he said.
He said there are tremendous business opportunities in the franchise industry, still wide open to anyone who has the courage to grab them.
He added that the government had even provided all the help needed, including financial assistance, to those who wish to venture into the industry but do not have the financial capability or is worried about investing their own capital.
Through the Community Franchise exhibition, he said, target groups, such as the self employed, retirees, housewives and single mothers, OKU, and fresh graduates will be exposed to some of the business opportunities available and the right information that could help them exploit these opportunities.
He noted that the programme has been highly successful since its introduction in 2011, with an estimated investment for micro franchise amounting to RM56.6 million and RM77.8 million for macro franchise, involving 2,678 franchisees.
“The government’s effort to develop this industry is beginning to bear fruits. As of yesterday (June 28), there were a total of 672 franchise companies in various sectors registered across the country.
“Comparatively, this is an increase of 59 per cent as compared to just three years ago in 2009, where there were only 396 companies registered.
“The franchise segment has also contributed significantly to the country’s gross domestic production (GDP) with roughly RM23.6 billion last year alone. This is a huge number and we are aiming to increase this to RM24.5 billion this year,” he said.
As for assisting new franchisees to start their businesses, he said, the government this year has allocated RM8 million for micro franchise funding, out of which RM6.32 million has been approved to 247 applicants so far.
He urged visitors at the exhibition to learn as much as they can from the programme and grab the remaining allocation to start their own franchise.
Also present was State Community Development and Consumer Affairs Minister, Datuk Jainab Ahmad.