PENAMPANG: Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick said RM50 million has been allocated for franchise and pre-franchise financing this year.
He said last year Perbadanan Nasional Berhad (Pernas) channelled RM423 million in franchise financing to 2,612 entrepreneurs nationwide.
“I hope more franchise businesses will be opened in Sabah to accelerate economic growth,” he said, adding local franchise brands such as Kak Nong, Al-Hadanah, Sinar Suria, Nuvis, Fook Yuen, Daily Electronic Centre (DEC) and Mok Corner have boosted the industry.
Ewon said franchise entrepreneurs should adopt and adapt to new business practices in tandem with the current dynamic and rapidly changing economy.
He added that the current business environment is no longer the same as before, as it is now more focused on the digital economy, and businesses should keep themselves up-to-date to remain competitive.
“Entrepreneurs should be aware of the latest demands and trends in their target market,” he told reporters after officiating the rebranding of the local ice-blended drinks franchise, Mok Corner, here, Sunday.
Following its launch in 2008 in Beaufort, Sabah, Mok Corner currently has 39 outlets, 18 of which are operated by franchisors while the rest are corporate branches owned by Mok Corner Sdn Bhd.
Under the guidance of Perbadanan Nasional Bhd (Pernas), an agency under the Ministry, the company successfully obtained its franchising licence in 2016.
Ewon said Mok Corner’s growth proves that local brands can compete with international franchises.
“These positive developments should be the benchmark for future entrepreneurs in Sabah to venture into the franchise business,” he said.
At the same time, the Minister highlighted the rapid growth of the franchise industry, noting that more entrepreneurs are venturing into the franchise business sector, consequently boosting the domestic economy.
Citing the Franchise Business Annual Report, he said the sales value recorded by the franchise industry had increased by 71 per cent to RM26 billion in 2021 from RM14 billion in 2020.
He was confident that continuous efforts from Pernas can produce more local franchise entrepreneurs, adding that other ministry agencies such as Tekun, SME Corp, SME Bank and the Malaysian Cooperative Commission are able to provide a complete and comprehensive entrepreneurial ecosystem.
