BizFranchise Sabah strengthens entrepreneurship service delivery system

26 November 2023

By AVV

KOTA KINABALU: The BizFranchise Sabah Programme organised by Perbadanan Nasional Berhad (PERNAS) is in line with the 2023 Ministry of Entrepreneur Development and Cooperative's (MEDC) strategic plan in strengthening the entrepreneurship service delivery system.

Datuk Ewon Benedick said this when launching the BizFranchise Sabah here today.

He said the programme enhanced the resilience and competitiveness of entrepreneurs.

He congratulated Pernas, an agency under MEDC for continuously seeking and developing entrepreneurs and new businesses, particularly in the Franchise sector, to be present in the market.

Pernas' role in the development of Franchise entrepreneurs also supports MEDC's mission in providing platforms, support services, assistance, and entrepreneurship capacity building, he said.

"Pernas not only produces many Franchise entrepreneurs but also develops local Franchise brands at domestic and international levels. In addition, Pernas provides a conducive Franchise entrepreneurship ecosystem by offering suitable products and services to entrepreneurs."

The products offered by Pernas are comprehensive and encompass the needs of franchisors, franchisees, and pre-franchisors. Among them are franchising financing schemes, pre-franchise programs, licensing, microfinance, property management, and equity financing.

"Pernas has disbursed a total of RM509 million in financing to 2,200 Franchise entrepreneurs. For the year 2024, a total of RM50 million is allocated for Franchise and pre-franchise financing," Ewon said.

The franchising industry is growing rapidly, and this is a positive sign as more people venture into the franchising business, he said adding that this positive scenario benefits the country as it stimulates the domestic economy.

"As of December 2022, a total of 1,154 brands have been registered as franchised businesses. This year, it is expected that the country's franchising industry will grow by approximately 20% to 30%, with the target economic value for franchised businesses being RM25 billion."

He expressed his hope that More Franchise businesses can be developed in the state of Sabah as well as the potential pre-franchise businesses in this state be identified, developed, and, in turn, contribute to the economic growth of Sabah while increasing the income of entrepreneurs, especially and the general public.

Also present at the event were Datuk Haji Zamri bin Salleh, Deputy Secretary-General (Entrepreneurship Development) of MEDC, Dato' Hazimah Zainuddin, Chairman of Pernas, and Afidah Azwa Abdul Aziz, Executive Committee Member of Pernas.