Franchise sector is growing in Sabah
Published on: Saturday, September 21, 2019
By: Anthea Peter
Azhar (fourth left) in a group photo with the mock cheque recipients.
Kota Kinabalu: State Trade and Industry Assistant Minister Azhar Datuk Matussin said the franchise industry in Sabah is growing, as evidenced by the increasing number of franchise outlets emerging in the market.“This positive scenario is beneficial to the country as it also stimulates the domestic economy,” he said, when launching the BizFranchise Program 2019 at The Klagan Regency, Thursday.ADVERTISEMENT
He said the development of the nation’s franchise industry can be interpreted with its contribution of RM30.3 billion to the country’s GDP in 2018, which is an 8.5 per cent increase from its previous contribution of RM27.7 billion in 2017.
“In light of these statistics, I hope more franchise businesses can be opened in Sabah.
“I also hope potential pre-franchise businesses in the state can be identified and developed and at the same time boost the State’s economic growth as well as income of entrepreneurs,” he said.
He added that entrepreneurs must have the creativity to sustain its business and maintain its survival due to the current economy’s unpredictability.ADVERTISEMENT
“It doesn’t matter how small or big the business is, innovation must be integrated into the business so that it corresponds to the market’s current needs.
“Entrepreneurs need to work hard to ensure their business is continually competitive so it can meet every challenge, while not relying solely on the Government’s assistance,” he said.
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Some 400 local entrepreneurs and aspiring business-owners attended the BizFranchise Program which returned to Kota Kinabalu for the second time this year.
Jointly organised by Sabah Economic Development (Sedco) and Perbadanan Nasional Berhad (PNS), it is an initiative to promote entrepreneurship particularly in the franchise industry.
“This collaboration between Sedco and PNS demonstrates the synergy between the State Government and Federal Government agencies which creates a network of partnerships and new entrepreneurs.
“I am confident that the effort of governmental agencies such as Sedco, PNS, Suruhanjaya Malaysia (SSM) and franchise brands present today to provide information and success tips, will inspire and provide entrepreneurs with fresh ideas,” he said.
Azhar said entrepreneur development programs such as the BizFranchise is necessary to realize the efforts of promoting a career in entrepreneurship which is in line with the Government’s aspiration to strengthen entrepreneurship by 2020.
When asked about risks involved in taking up a franchise, Azhar told reporters that risks are usually minimised due to a fixed business blueprint and Standard Operating Procedures.
However, he said, incurring loss is a normal part of business. “If we think too much about risks and loss, then we will never start that business.”Stay up-to-date by following Daily Express’s Telegram channel.
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During the event, PNS presented three businesses a cumulative financing scheme of RM696,510 in the form of mock cheques.
The financing schemes are the Franchisor Financing Scheme (RM500,000), Business in Transformation (B.I.T) Pre-franchisor Financing Scheme (RM104,000) and Food Truck Ijarah Scheme (RM92,510).