McDonald’s Malaysia To Invest RM1 Bln Over Five Years, Open 100 Restaurants

KUALA LUMPUR, Feb 7 (Bernama) -- McDonald’s Malaysia is planning to invest RM1 billion to open 100 new restaurants, modernise existing outlets and strengthen digital capabilities over the next five years.

Its managing director and local operating partner, Datuk Azmir Jaafar said the investment reflects the company’s long-term vision to build a future-ready Malaysian workforce while continuing to expand its nationwide restaurant network.

“Of the RM1 billion, RM600 million will be allocated for new restaurant openings, RM200 million for refurbishing and modernising more than 150 existing McDonald’s Malaysia restaurants, and another RM200 million for technology and digitalisation initiatives,” he said.

He said this at a press conference following the reopening of McDonald’s Titiwangsa Drive-Thru at Jalan Pahang here, the first McDonald’s drive-thru restaurant in Malaysia.

The outlet has reopened with a new identity as the nation’s first Luna concept restaurant and the second in Asia.

Azmir said McDonald’s Malaysia will continue to strengthen its presence in Sabah and Sarawak as well as across Peninsular Malaysia, particularly in high-demand and tourism-driven areas.

“We see significant growth potential in Sabah and Sarawak, as there are still many towns without McDonald’s restaurants. At the same time, we will continue to grow in the Klang Valley and other high-growth locations in Peninsular Malaysia,” he said.

Apart from that, the company plans to expand its franchise network from the current 25 outlets operated by 11 franchisees nationwide, targeting to establish between 70 and 100 restaurants within the next five to 10 years.

“Franchising requires a significant investment of about RM5 million to RM7 million per restaurant, with payback periods typically between three to five years, indicating a relatively healthy return,” he said.

The expansion is expected to create more than 10,000 new jobs for Malaysians, in line with the company’s 100 per cent local hiring policy.

“Every restaurant we open stimulates local economic activity and creates employment opportunities, not only within our restaurants but also across supporting sectors such as logistics, renovation, equipment supply, cleaning and security services,” he said.

The quick-service restaurant operator currently runs more than 370 restaurants nationwide and recorded a 26 per cent year-on-year growth in 2025, despite operating in a challenging business environment.

Beyond expansion, Azmir said workforce development remains a key pillar of the company’s investment strategy through the McDonald’s Vocational Academy, established in collaboration with the Ministry of Human Resources under the National Dual Training System.

“Since 2018, the academy has trained more than 5,000 youths, including participants from B40 communities, rural areas, persons with disabilities and Orang Asli groups. About 80 per cent of them have chosen to continue their careers with us,” he said.

He added that the academy serves as a talent pipeline not only for McDonald’s but also for Malaysia’s broader food and beverage and hospitality ecosystem.

Azmir said in 2023, McDonald’s Malaysia has also established one of the nine global Hamburger University training centres in Kuala Lumpur, reflecting the company’s commitment to leadership development and lifelong learning.

The investment is also expected to support Malaysian small and medium enterprises, with approximately 75 per cent of McDonald’s Malaysia’s food and packaging sourced locally.

“Malaysia is also one of the largest exporters of halal food products within McDonald’s global supply chain, which helps to strengthen domestic supply chains and support local suppliers and farmers,” he said.

Azmir said operational efficiency remains a priority, allowing the company to maintain competitive menu pricing.

“In 2025, our menu price increase was about half of Malaysia’s inflation rate, supported by continuous improvements in supply chain efficiency and restaurant operations,” he said.

He added that after 43 years of operations in Malaysia, McDonald’s Malaysia remains committed to contributing to nation-building through job creation, skills development, local supplier support and community engagement.

-- BERNAMA