Micro franchise business good for low income group

People in the low- and medium-income categories can engage in the micro franchise business because it requires low capital, as little as RM16,000, said Deputy Domestic Trade, Cooperatives and Consumerism Minister Datuk Rohani Abdul Karim.

She said the ministry is holding exhibitions nationwide to entice people in these categories to engage in the business.

"The ministry chooses franchises which require capital of RM50,000 and below to introduce the business to the target groups and change their perception of franchise business requiring millions of ringgit as capital," she said when replying to a supplementary question from Datuk Saifudin Nasution Ismail (PKR-Machang) in the Dewan Rakyat.

Saifudin had wanted to know the number of bumiputera franchisors who had penetrated the international market out of the 46 local companies which had ventured abroad.

Rohani said that of the 46 franchisors, nine or 20 per cent were bumiputera-owned.

"We encourage the growth of more such companies. We also encourage the merging of conventional business with the franchise business," she said.

She also said that the number of registered franchise businesses was 631, with 435 local-owned and of which 143 were bumiputera-owned.