Ministry of Domestic Trade and Consumer Affairs to Seek Additional Funding for Affordable Micro-Franchise Program, Says sec-gen | Malaysia


Ministry of Domestic Trade and Consumer Affairs Secretary General Datuk Seri Hasnol Zam Zam Ahmad speaks to the media after the announcement of the finalists for the 23rd Malaysia Franchise Award 2021 in Putrajaya on November 22, 2021. – Bernama pic

PUTRAJAYA, November 22 – The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) is expected to seek additional government funding for affordable micro-franchise development programs following the encouraging response from franchisees and targeted groups.

General Secretary Datuk Seri Hasnol Zam Zam Ahmad said the RM5 million allocation for the program this year was insufficient to cover the 144 applications received, most of which were from the food and beverage and hospitality sectors. ‘education.

“For this year, we will make a selection of eight franchisors and 29 franchisees only, and if others are deemed eligible, we will try to obtain an additional allocation from the government so that those who wish to join the franchise industry can be received start-up assistance,” he told reporters after the finalists for the 23rd Malaysia Franchise Award 2021 hosted by the Malaysian Franchise Association (MFA) were announced here today.

On April 6, Minister of Domestic Trade and Consumer Affairs Datuk Seri Alexander Nanta Linggi announced that two grants would be offered for the Affordable Micro Franchise Program with the aim of developing more franchise packages worth RM100,000 and below and increase the number of franchise industries. players in the lower 40% (B40) and middle 40% (M40) income groups.

Hasnol Zam Zam said KPDNHEP is in the process of shortlisting the 37 franchisors and franchisees.

“The amount of funds that will be received by franchisors and selected franchisees is not the same as it depends on the type of business being conducted,” he said.

He said that the franchisor would receive a maximum fund of RM100,000 while for the franchisee it would be between 50,000 and 100,000 RM with a funding ratio of 90:10 – 90% supported by KPDNHEP and an additional 10%. provided by the franchisee.

Hasnol Zam Zam said the Enhanced Franchise Development Program (EFDP) aimed at increasing exports has also been actively implemented to help franchise businesses expand their brand internationally.

He said that currently there are more than 1,000 franchise brands registered with KPDNHEP which provide franchise business and employment opportunities.

Among the brands that have succeeded thanks to EFDP is Global Art, which signed a memorandum of understanding with Moroccan investors, while Kenny Rogers Roasters will sign an agreement with an Algerian prospect next December.

About the award, he said that a total of 53 nominations were received from the franchise industry for 17 award categories including Best Malaysian Franchise, Best Franchisor, Best Master Franchise and Award Category special.

Nor Amirah Mahmuddin, a journalist with the Malaysian National News Agency (Bernama), is one of the finalists in the Best Journalist category at the awards ceremony to be held on Dec. 1 in Putrajaya.

Among the franchise brands nominated are OldTown White Coffee, Myeongdong Topokki, Penyet Penyet.Com and Cambridge English For Life. — Bernama


Comments are closed.