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  • 11 hours ago
Malaysia has the potential to emerge as a leading franchise powerhouse in the region, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

In his speech read out by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali at the opening ceremony of the 33rd International Franchise Exhibition and Seminar (Franchise International Malaysia 2026) on Thursday (May 21), Ahmad Zahid said the sector contributed more than RM36bil to the economy in 2022 and has expanded beyond food and beverage into areas such as education, healthcare, logistics and technology.

The government is targeting RM100bil in franchise sales by 2030 through international expansion, innovation and digital adoption, while also emphasising the role of TVET in developing industry-ready talent.

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Transcript
00:00OIB, all you need to do is that on my car, OIB, and gentlemen on stage, we will like for
00:05all of you, please surprise!
00:10Today's gathering is more than just an exhibition of brands and business opportunities.
00:17It reflects Malaysia's strong commitment to strengthening the franchise ecosystem as a key driver of economic growth, entrepreneurship, and inclusive
00:28prosperity.
00:30The franchise industry has become one of the nation's most resilient and dynamic economic sectors, creating jobs, empowering entrepreneurs, and
00:42enabling local businesses to grow through structured and scalable business models.
00:48In fact, Malaysia's franchise industry contributed more than RM36 billion to the national economy in 2022, reflecting its growing economic
01:02significance and resilience amid an increasingly competitive global economy.
01:09Ladies and gentlemen, today's business environment is evolving at an unprecedented pace.
01:18Rising operating costs, changing consumer expectations, digital disruption, and global economic uncertainties are reshaping industries across the world.
01:31In facing these realities, we must continue to adapt, innovate, and strengthen its resilience.
01:39Despite these challenges, franchising remains one of the most structured and resilient business models within the modern economy.
01:50Franchising today is no longer confined to food and beverage businesses alone.
01:57The industry has successfully expanded into sectors such as healthcare, education, retail, logistics, wellness, automotive services, tourism, technology, and professional
02:13services, reflecting its growing relevance in a diversified economy.
02:19What makes franchising unique is its ability to accelerate entrepreneurship while reducing business risk.
02:28It allows aspiring entrepreneurs to participate in established business systems with structured guidance and operational support.
02:38Beyond business expansion, franchising strengthens local supply chains, drives innovation, and enhances the competitiveness of Malaysian brands in regional and
02:52global markets.
02:53Every successful franchise ecosystem also creates multifamily effects across the economy from suppliers and logistic providers to marketing, training, digital
03:08services, and local SMEs supporting franchise operations.
03:12On behalf of the government, our aspiration is clear.
03:17We want Malaysia not only to become a strong franchise market but also a recognized exporter of franchise brands, business
03:26systems, and entrepreneurial expertise to the regional and global economy.
03:32Looking ahead, the government has also set an ambitious aspiration for Malaysia's franchise industry to achieve 100 billion ringgit in
03:44sales by 2030.
03:47This will require stronger international expansion, greater innovation, digital adoption, and the continuous strengthening of Malaysia's franchise ecosystem.
04:00In this regard, I encourage KPDN, Pernas, MFA, and all industry stakeholders to continue strengthening the franchise ecosystem through financial
04:12support, market access initiatives, talent development, and international collaboration.
04:21Ladies and gentlemen, ladies and gentlemen, as the franchise industry continues to grow, the development of skill and professional talent
04:31will be essential to ensure its long-term sustainability.
04:36Beyond strong brands and business systems, successful franchises rely on capable workforce that can maintain quality, consistency, and operational excellence.
04:52In this regard, technical and vocational education training, TVET, have an important role to play in preparing industry-ready talent.
05:07Through practical and hands-on learning, TVET can equip individuals with technical, digital, and consumer service skills required by today's
05:21franchise businesses.
05:22A strong collaboration between the franchise industry and TVET institutions can also help address workforce shortages, improve productivity, and strengthen
05:36service standards across the sector.
05:38As part of the government's aspiration to strengthen the nation's talent ecosystem, Malaysia would greatly benefit from a dedicated training
05:49institution that aligns TVET programs with the operational and industry needs of franchise businesses.
05:59An initiative, an initiative I understand the ministry and MFA are currently working towards.
06:06Ultimately, these efforts will strengthen industry competitiveness and support the sustainable expansion of both local and international franchise brands.
06:29An initiative, with systematically companies, the knowledge of community are being built made for applications of ciento-pingбільs.
06:31To be founded as an initiative, which has been judged by the national Ll
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