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August 13, 2008 21:45 PM
Franchise Industry In Malaysia Is Exciting
KUALA LUMPUR, Aug 13 (Bernama) -- The franchise industry in Malaysia is exciting as it is still in its infancy, according to Asia Pacific Franchise Confederation (APFC) chairman, John O'Brien.
"Malaysia has more support from its government than any other country in the world and franchising would, by far, benefit a growing economy," he said in a statement issued by the Malaysian Franchise Association (MFA) here Wednesday.
He said international franchisors were very comfortable coming to Malaysia as the country had a stable economy, good legal system and was English speaking.
"When franchisors choose a country to expand, a concern is the protection of brand names. Malaysia offers a high degree of confidence in the judicial system in protecting brands, trademarks and intellectual property," he explained.
Franchising in Malaysia began in the 1990s. The MFA was formed in 1994 with the objective of supporting the implementation of government programmes to promote entrepreneurship through franchising.
Commenting on the APFC meeting held on July 31 and concurrently with Franchise International Malaysia 2008 (FIM2008), O'Brien said the meeting was the most progressive in its history.
"We are more than a networking organisation as this year we took the initiative to undertake specific projects to further boost the franchising industry.
"It includes best practices in education within the sector to help members engage better with the government and other parties," he said.
On the global economic crisis affecting the franchise industry, the secretary-general of the World Franchise Council ( WFC), Carol Chopra said:"Most countries have reported that the growth rate of franchising is often higher than the average national growth.
"In that sense, these countries are already starting better off in the face of the crisis. However, the crunch will come from financial institutions when potential franchisees apply for loans."
Meanwhile, FIM2008 recorded a total of RM283.3 million franchise deals which exceeded the target of 10 percent growth from last year.
-- BERNAMA
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