Malaysia Has Potential To Become Regional Franchise Powerhouse - DPM Ahmad Zahid
KUALA LUMPUR, May 21 (Bernama) -- Malaysia has the potential to emerge as a leading franchise powerhouse in the region, Deputy Prime Minister Dr Ahmad Zahid Hamidi said.
He said this is because the franchise industry remained one of the country’s most resilient and dynamic economic sectors with strong growth prospects.
“With the right ecosystem, skilled workforce, strong policy support, and bold entrepreneurial spirit, Malaysia has the potential to emerge as a leading franchise powerhouse in the region,” he said 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) here Thursday.
Ahmad Zahid, who is also the Rural and Regional Development Minister, said the franchise sector continues to create employment opportunities, empower entrepreneurs and enable local businesses to expand through structured and scalable business models.
In fact, he said the industry contributed more than RM36 billion to the national economy in 2022, underlining its growing significance and resilience amid an increasingly competitive global economy.
According to Ahmad Zahid, franchising has evolved beyond the food and beverage business segment into sectors such as education, healthcare, retail, logistics, wellness, automotive services, tourism, technology and professional services.
He said the diversification demonstrated how franchising was moving into higher value-added industries that support services, skills development and innovation-driven growth, in line with the government’s aspiration to position Malaysia as a recognised exporter of franchise brands, business systems and entrepreneurial expertise to regional and global markets.
“Today, many Malaysian franchise brands have successfully expanded into international markets, reflecting the strength, quality and innovation of our homegrown businesses. These achievements stand as a testament to the global competitiveness and growing influence of Malaysian franchises on the international stage,” he said.
He noted that the government had also set a target for Malaysia’s franchise industry to achieve RM100 billion in franchise sales by 2030 through stronger international expansion, innovation, digital adoption and continuous ecosystem enhancement.
“In this regard, I encourage KPDN (Ministry of Domestic Trade and Cost of Living), PERNAS (Perbadanan Nasional Bhd), MFA (Malaysian Franchise Association) and all industry stakeholders to continue strengthening the franchise ecosystem through financing support, market access initiatives, talent development and international collaboration,” he said.
Meanwhile, Ahmad Zahid also underscored the importance of Technical and Vocational Education and Training (TVET) in producing industry-ready talent to support the sector’s long-term sustainability.
“Through practical and hands-on learning, TVET can equip individuals with the technical, digital and customer service skills required by today’s franchise businesses,” he said.
He added that stronger collaboration between government agencies, industry associations, educational institutions, and private sector players would be critical in ensuring Malaysia’s franchise industry continues to grow and gain greater international recognition.
The exhibition, which runs from today until May 23, is organised by MFA in collaboration with KPDN as well as Pernas and supported by various international agencies and strategic partners from ASEAN countries.
It is also the only franchise exhibition in Malaysia to be recognised by the World Franchise Council (WFC), Asia Pacific Franchise Confederation (APFC) and Malaysia External Trade Development Corporation (MATRADE).
-- BERNAMA
