How did the industry’s RM23.6 billion contribution last year compare?

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The Franchise Industry's Contribution Last Year Was Significant and Aligned with National Economic Goals

The franchise industry made a substantial contribution of RM23.6 billion to Malaysia's Gross Domestic Product (GDP) in the previous year, representing 2.7 per cent of the nation's total economic output. This figure underscores the sector's growing importance and its potential to further drive GDP growth in the coming years. The industry is actively pursuing strategic directions, including the promotion of domestic brands internationally, with the aim of establishing Malaysia as a regional franchise hub.
Substantial Economic Impact Achieved

In the preceding year, the franchise industry's economic input reached RM23.6 billion. This figure constituted 2.7 per cent of Malaysia's overall GDP, highlighting the sector's significant role in the national economy. The Domestic Trade, Cooperatives and Consumerism Ministry has indicated that the industry has considerable potential for future expansion and will be a key contributor to economic growth.
Strategic Framework for Growth

The introduction of the National Franchise Development Blueprint in the prior year has played a role in regulating the industry and establishing a clear strategic path. This blueprint is intended to guide the nation towards becoming a leading franchise hub within Southeast Asia by 2020. A key objective of this initiative is to foster and support the expansion of Malaysian-origin franchise brands into international markets.
Global Reach of Local Brands

Currently, there are 49 Malaysian franchisors operating in 51 countries, with a total of 1,494 outlets. Beyond the food and beverage sector, there is also emerging interest in areas such as educational services, including English language learning applications. This international presence demonstrates the global competitiveness and appeal of local franchise concepts.
Contribution to High-Income Nation Status

The increasing significance of franchising aligns with Malaysia's broader national aspirations to achieve high-income nation status by 2020. The sector's development is seen as integral to this economic transformation. Presently, Malaysia hosts 676 franchisors across a diverse range of industries and services, indicating a robust and varied domestic franchise landscape.

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How did the industry’s RM23.6 billion contribution last year compare?

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