Malaysia targets RM100 billion in franchise sales by 2030 – Ahmad Zahid
KUALA LUMPUR: Malaysia has set a lofty target to achieve RM100 billion in national franchise sales by 2030, said Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi.
Ahmad Zahid, who is also the Minister of Rural and Regional Development, said the target could be achieved if the franchise industry maintained an annual growth rate of between eight and 10 percent, in addition to actively expanding its business into the international market.
“More Malaysian brands need to explore the global market, by establishing a presence in at least 25 countries in the next five years,” he said when speaking at the Malaysian Franchise Association (MFA) Awards ceremony here tonight.
He said Malaysia planned to drive this expansion through the proposed establishment of the ASEAN Franchise Gateway, a strategic initiative aimed at positioning the country as a platform for franchise growth across Southeast Asia.
Ahmad Zahid said ASEAN, with its combined population of over 680 million consumers and a rapidly growing middle class, offers vast opportunities for Malaysian brands looking to penetrate regional and global markets.
Ahmad Zahid said through the gateway, Malaysia could become a one-stop centre for franchise internationalisation by offering streamlined regulations, legal support and intellectual property.
“In addition, (the country can offer) coordination of halal certification, facilitating integrated logistics, workforce development based on Technical and Vocational Education and Training (TVET) and faster market entry routes,” he said.
Complementing the initiative, he said the internationalisation programme under the Enhanced Franchise Development Programme (EFDP) would be strengthened through trade missions that were more targeted to priority markets.
Ahmad Zahid said this effort will help Malaysian franchises forge strategic partnerships, increase brand visibility and strengthen their presence overseas.
“With strong regulatory coordination, ecosystem integration and proactive international outreach, Malaysia can strengthen its position as ASEAN’s leading franchise hub and a gateway for global and regional brands to Southeast Asia,” he said.
He also proposed the establishment of a National Franchise Academy integrated with TVET to focus on developing a workforce ready for the franchise field, standardizing service excellence and enhancing the professionalism of frontline talent to support consistent brand delivery.
“By producing customer-oriented and globally capable employees, this initiative will strengthen the foundation of the country’s franchise ecosystem and accelerate the expansion of the Malaysian brand domestically and internationally,” he said.
Ahmad Zahid also emphasized the great potential of halal franchises, stating that Malaysia has been ranked first in the Global Islamic Economic Indicators for 10 consecutive years.
He said the global halal economy, which is currently worth over US$3 trillion, is projected to reach US$5 trillion by 2030, thus opening up transformational opportunities for Malaysian franchise brands ready to expand internationally.
He said the tourism industry, which contributes 15.1 percent to the country’s Gross Domestic Product, was another major sector that had the potential to benefit from franchising.
“Travelers are looking for familiar and quality-assured services, franchise brands often offer the reliability, consistency and value they expect.
“As Malaysia’s tourism momentum continues to recover and enters Visit Malaysia Year 2026, demand for franchise products and services spanning food, retail, wellness and hospitality is expected to increase even more strongly,” he said.
— BERNAMA
