Franchising Perspective in Malaysia: Development, Supports, Issues, and Challenges

Abstract

The franchising business becomes an essential to the economy of Malaysia and social. It also considers a popular choice to develop entrepreneurs particularly among Bumiputera in Malaysia. Recognizing the importance of the franchising business, the Government of Malaysia through the Ministry of Domestic Trade and Consumer Affairs (MDTCA) has developed programs and activities to accelerate growth of the franchising business. In February 2020, a total of 915 franchise systems or franchisors have been registered under Malaysia Franchise and subsequently few franchisors have penetrated worldwide such as in Saudi Arabia, Indonesia, United State of America, and Australia. At the same time, Perbadanan Nasional Berhad (PNS) and Malaysia Franchise Association also strongly take part in many franchise initiatives, programs, and activities to support the development of franchising business in Malaysia. Besides that, Malaysia also has developed the Franchise Act to safeguard the franchising industry. Nevertheless, there still exist some issues and challenges. Hence, this paper aims to review the franchising business in Malaysia by discussing the development of franchise business in Malaysia, the supports, and the issues and challenges.

Citation

Sulaiman, M.H.b. (2021), "Franchising Perspective in Malaysia: Development, Supports, Issues, and Challenges", Sergi, B.S. and Jaaffar, A.R. (Ed.) Modeling Economic Growth in Contemporary Malaysia (Entrepreneurship and Global Economic Growth), Emerald Publishing Limited, Leeds, pp. 255-266. https://doi.org/10.1108/978-1-80043-806-420211019