The Enhanced Franchise Development Programme (EFDP) was first launched in 2015 and offered more than 20 sub-programmes for Malaysian Franchise Association (MFA).
The most significant chunk of the activities would be a reimbursable grant for franchisors such as Trade Mission to Adv. Country, Development of Second Franchise Product, Lab Testing for Food & Cosmetics Products, Translation of Marketing Materials, Manual & SOPs Enhancement to International Standards among others.
As part of the continuing efforts to increase the services sector’s contribution to the country’s Growth Domestic Product (GDP), MFA has been given the mandate in the EFDP programme to encourage and equip more Malaysian franchisors to penetrate the international market.
Recently, Putrajaya had allocated RM8 million to Ministry of Domestic Trade and Consumer Affairs (MDTCA) and MFA to continue with the EFDP programme. The allocation this time around aims to reimburse all costs related to international business expansion such as intellectual property investment, marketing materials during trade mission, as well as trade missions to developed and ASEAN countries.
“MFA and the Ministry of Domestic Trade and Consumer Affairs (MDTCA), and all agencies under the franchise export committee will continuously work together. Our focus is to bring the industry to a much greater height. We must lead the way together for our industry players to grow,” says Datuk Dr. Radzali Hassan, MFA Chairman.
Achieving Key Targets
As the EFDP is a joint programme run by both MFA and MDTCA, the role by each stakeholder differs in achieving the key targets the programmes hope to accomplish. MFA will be managing all grants application matters from applicants, including reviewing, confirming, and distributing grants to applicants.
In addition, MFA plays a role in implementing the activities that have been agreed upon by the FRANEX Committee and ensuring that there are no irregularities in the implementation of the programme.
FRANEX is a committee set up under the EFDP programme and comprises of members from six organisations which are MDTCA, Ministry of Finance (MoF), Economic Planning Unit (EPU), Malaysia External Trade Development Corporation (MATRADE), and Intellectual Property Corporation of Malaysia (MYIPO) and aims to plan and develop future directions as well as monitor the programme’s performance.
On the other hand, MDTCA will be regulating, monitoring and evaluating the performance of MFA in implementing programmes and managing grants.
Both agencies involved aims to intensify the International Trade Mission and EFDP programme to promote local franchises to the ASEAN and Middle Eastern markets.
“These trade and study mission will be continuously carried out. This year, this programme aims to bring a local franchise brand to 15 new countries, and we will be organising a series of international trade missions to the United States, Saudi Arabia, the Philippines, China, Indonesia, and Thailand. MFA also plan to penetrate in South America by end of 2025. I encourage all homegrown franchise players to participate in these trade missions,” says Datuk Dr. Radzali Hassan, MFA Chairman.
“For now, in the ASEAN region, Malaysia is the biggest exporter with 48 of our members expanded into 74 countries. The reason being is because we had a franchise friendly government since 1994 and the government has never given up on the franchise industry. With that I thank and hope the continuous involvement and support will carry on for years to come,” he added.
Since its establishment in 2015, the EFDP has achieved a range of milestones and these included Marrybrown’s penetration into the Japanese and Swedish markets, Global Art & Creative entering Morocco, Poney penetrating to Qatar, Manhattan Fish Market opening outlets in Jordan and Mauritius, and Kenny Rogers Roaster in Nigeria.
“The Malaysian market for franchising is still a work in progress, meaning there are opportunities available for all kinds of businesses to venture into franchising, although 40% of Malaysian franchises comprise F&B and followed by the learning center and nursery sector with 11%.
“So, there will be room for other sectors such as logistical companies, colleges, accounting firms, and others,” concludes Datuk Dr. Radzali Hassan, MFA Chairman.
“I also would like to add another staunch supporter is MATRADE. Without their support, we could not carry out some of the activities such as International Market Update Session (IMUS)” he added.