Will micro-franchise programmes benefit more B40 and M40 groups next year?

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Government to Continue Micro and Affordable Franchise Programmes in the Coming Year

The Malaysian government plans to sustain its micro and affordable franchise development programmes into the next year, aiming to extend benefits to a larger segment of the population, particularly individuals from the B40 and M40 income groups. These initiatives, introduced this year, have already shown promising results, processing 144 applications valued at RM22 million and providing assistance to eight franchisors and 29 franchisees. The programmes are designed to facilitate entry into the franchise industry, a sector that contributes significantly to the national economy and job creation.
Continued Support for B40 and M40 Entry

The micro and affordable franchise development programmes were established in the current year with the explicit goal of enabling individuals from the B40 and M40 groups to participate in the franchise business landscape. The positive reception to these programmes has led to the government's decision to continue them in the upcoming year. This ongoing commitment underscores the government's focus on inclusive economic development and empowering lower to middle-income households through entrepreneurship.
Encouraging Response and Financial Allocation

This year's introduction of the micro and affordable franchise development programmes has garnered a highly encouraging response. As of the announcement, 144 applications from both franchisors and prospective franchisees, collectively valued at RM22 million, have been processed. For the current year, an annual allocation of RM4.5 million has been designated, through which eight franchisors and 29 franchisees have already received government assistance. Furthermore, a specific grant package was introduced to support the development of franchise packages valued at RM100,000 and below, specifically to boost participation from the B40 and M40 demographics.
Economic Contribution and Future Outlook

The franchise industry is recognized for its substantial contribution to the nation's economic rehabilitation and its capacity to generate employment opportunities. By the end of November this year, the franchise industry's value had surpassed RM14.6 billion, representing an increase of nearly 10 per cent compared to the previous year, despite the ongoing challenges posed by the Covid-19 pandemic. The government is allocating RM3 million under Budget 2022 to further propel the growth of this industry, anticipating its continued role in stimulating economic activities across various sectors such as food and beverage, retail, education, and services.

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Will micro-franchise programmes benefit more B40 and M40 groups next year?

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