Lowering franchise fees among KPDNHEP strategies to entice young entrepreneurs

Nanta (left) during a Pocket Talk discussion with franchise industry players.

By Nancy Nais

KUCHING, July 3: The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) is working on a strategy to bring down franchise fees to about RM50,000 in order to encourage more young and new entrepreneurs to venture into this business.

KPDNHEP Minister Datuk Alexander Nanta Linggi revealed that this was one of the ministry’s National Franchise Development Master Plan (PIPFN) 2021-2025, which is still under the planning stage.

“We are currently developing PIPFN, which we aim to help boost local and overseas franchise businesses in Malaysia. That is why we are here today to discuss with the industry players.

“The five-year plan is also part of the government’s effort in its recovery strategy to help this industry under post Covid-19,” Nanta said after a Pocket Talk session today.

He acknowledged that the industry has been badly affected by Covid-19 and movement control order (MCO) to curb the pandemic.

“That is why we are coming up with a plan, not just to help this industry but also to encourage more youth to become entrepreneurs.

“We hope we can bring down the threshold to RM50,000 so that our youth or young entrepreneurs can have an entry point to start a franchise business,” he said.

Nanta emphasised that the government needs to create an opportunity for the young generation, regardless of whether they are from urban or rural areas, in opening their own business.

He explained that the government could not absorb everyone into the civil service, nor can the private sector employ everyone, especially now with Covid-19, many businesses were not doing well.

“However, to open a business, a young businessman who has to start from scratch cannot afford to come up with high capital,” he said.

During the Pocket Talk session, Nanta also acknowledged several franchisors who voiced their frustrations especially due to Covid-19.

He also listened and took notes of challenges and issues faced by the franchise industry players.—DayakDaily