Malaysian franchise industry & opportunities on display at Melbourne expo


Malaysia External Trade Development Corporation (MATRADE) Australian Director Ms Noor Hayati has announced that The Honourable Henry Sum Agong, Deputy Minister, Ministry of Domestic Trade, Co-operatives and Consumerism, Malaysia (MDTCC) will be leading an extensive delegation of Malaysian franchise organisations to attend the Franchise Expo in Melbourne later this month.

“Malaysia’s franchising industry has been growing rapidly over the years and the commercial potential in the domestic market is relatively untapped as a share of the retail business,” said Ms Hayati.

“Franchising in Malaysia is relatively moderate at below 10% compared to many other economies whereby 40% of retail business is transacted through franchised operations and therefore represents an immense opportunity for growth.”

The Malaysian government has recognised the significant economic benefits of franchising as a platform for Malaysian entrepreneurs to become SMEs and in doing so further spur growth of the nation’s economy and employment opportunities.

Last year during his 2015 Budget Speech Malaysian Prime Minister Najib Razak announced the Enhanced Franchise Development Program (EFDP) that would be administered by the MDTCC as an initiative to support and encourage the growth and international expansion of the country’s franchises.

Ms Hayati continued “Malaysian franchise brands have been growing rapidly and through the encouragement and support of the Government’s EFDP broadening their horizons into overseas marketplaces. To date, 61 Malaysian franchisors now operate in more than 55 countries, with a total of 2,400 outlets.”

Australia and fellow ANZAC neighbour New Zealand have also been the beneficiaries of Malaysian franchises and some of these well-known brands include:

  •  Papparich (Food Service) – 21 (VIC (8), SA (1), QLD (1), NT (1), NSW (6), ACT (1), WA (1)); 3 (Auckland (2), Wellington (1)
  • Snip – 1 (NSW) 
  •  Sugarbun (Food Service) -1 (VIC) 
  •  Royal Selangor (Premium items and jewellery) – 2 (VIC & NSW) & 349 stockists in Australia
  •  Old Town Kopitiam (Food Service) – 1 (VIC)
  • GlobalArt (Education – Early Childhood learning) – 2 (NSW & VIC)
  • D’Tandoor (Food Service) – 2 (WA and NSW) *1 in NZ (Auckland)

In conjunction with the trade mission, on Saturday August 27 the Deputy Minister will open the first franchise in Melbourne of Smart Reader that will be branded the International Language and Enrichment Centre at 99 Whitehorse Road, Deepdene.

The centre started its operations last November and offers English and Mandarin programs and franchisee Ms Ashley Ong is confident the programs will enhance the communication and language skills of Victorians – especially those keen to learn Mandarin.

Ms Hayati concluded, “Malaysia’s economy supports a vibrant SME sector and the domestic franchise sector has been growing rapidly over the years as an attractive option for Malaysians seeking to start and manage their own businesses. I am confident that Australians attending the upcoming franchise expo will be very impressed by the diversity, professionalism and opportunities on display by the Malaysian delegation.”