Perbadanan Nasional Bhd (PNS) aims to target a minimum of 5,000 financing approval to entrepreneurs in its five-year plan strategy. This is expected to expand the franchise portfolio by 400 percent from RM178 million to RM700 million.
The move is also expected to create 18,000 jobs and contribute RM4.4 billion towards the Gross Domestic Product (GDP). While PNS gears its goals towards building an effective franchise ecosystem with a comprehensive value chain supported by digital technology, it will also empower the socio-economic development of Bumiputera through entrepreneurship.
PNS Chief Executive Officer, Mohd Hilaluddin Abd Shukor said the local franchise industry still has vast potential to be explored, and entrepreneurs, especially micro entrepreneurs, need to be bold in taking proactive steps to participate in the franchise industry to grow their business particularly in adapting digitalisation.
He said PNS, through the Business-In-Transformation (BIT) programme, is focused on the development of the micro businesses in order for them to expand through the franchise methodology.
“BIT programme can facilitate potential entrepreneurs to widen their source of income and help boost the economic growth of the franchise industry post-Covid-19.”
“For this year, PNS will roll out 2 new project initiatives namely ‘Project Xcelerator’ and ‘Project Be Your Own Boss’ that aims to produce five (5) local franchise entrepreneurs and 1,000 franchisees in 2021. PNS is allocating RM35 million for these projects that are designed to strengthen the participation of Bumiputera entrepreneurs, youth, women and graduates by offering comprehensive trainings, guidance, financing, and market access,” he said.
“Under the Be Your Own Boss project, PNS offers two special programmes targeting women and youth known as Successful Women Entrepreneurship Engagement Talent (SWEET) and Young Entrepreneurship Engagement Talent (YOUNITY),” Hilaluddin added.
Since 2005, PNS has disbursed total franchise financing of RM463 million to 2,529 entrepreneurs.
MEDAC Minister, Wan Junaidi B Tuanku Jaafar said, franchising could help Bumiputera entrepreneurs in improving their socio-economic position, especially through PNS’s Business-In-Transformation (BIT) programme that encourage entrepreneurs to expand their business through franchising.
“The cooperation between MEDAC and PNS proves that ministries and agencies are able to create a network of cooperation which, in turn, produces more entrepreneurs adopting this business concept.”
“This effort encourages economic growth, especially for Bumiputera entities to venture into franchise business,” he said in a statement.