Kuala lumpur: Malaysia has set an ambitious target to achieve RM100 billion in national franchise sales by 2030, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced. Ahmad Zahid, who also serves as the Rural and Regional Development Minister, stated that this target is attainable with an annual industry growth rate between eight and 10 percent, along with aggressive international market expansion.
According to BERNAMA News Agency, Ahmad Zahid emphasized the importance of Malaysian brands expanding globally, aiming to establish a presence in at least 25 countries within the next five years. He highlighted this goal during his speech at the Malaysian Franchise Association (MFA) Awards. Malaysia plans to support this expansion through the proposed 'ASEAN Franchise Gateway,' a strategic initiative positioning the country as a launchpad for franchise growth across Southeast Asia.
Ahmad Zahid noted that ASEAN, with a population of over 680 million consumers and a growing middle class, offers significant opportunities for Malaysian brands seeking regional and global expansion. Through the gateway, Malaysia aims to serve as a one-stop center for franchise internationalization by providing streamlined regulations and support in areas such as legal, intellectual property, halal certification alignment, logistics facilitation, and workforce development.
Complementing this initiative, Ahmad Zahid mentioned that the Enhanced Franchise Development Programme (EFDP) will be bolstered with more targeted trade missions to priority markets. These efforts are intended to help Malaysian franchises form strategic partnerships, enhance brand visibility, and deepen their international presence.
He also proposed establishing a National Franchise Academy integrated with Technical and Vocational Education and Training (TVET), focusing on developing franchise-ready workers and standardizing service excellence. This initiative aims to strengthen Malaysia's franchise ecosystem by producing globally competent workers, thus accelerating the expansion of Malaysian brands domestically and internationally.
Ahmad Zahid underscored the potential of halal franchising, noting Malaysia's top ranking in the Global Islamic Economy Indicator for a decade. With the global halal economy valued at over US$3 trillion and projected to reach US$5 trillion by 2030, Malaysian franchise brands have a transformative opportunity to scale internationally. Additionally, he pointed to the tourism sector, contributing 15.1 percent to Malaysia's GDP, as another key area benefiting from franchising due to tourists' demand for reliable and consistent service quality.