SMEs should tap govt resources to launch franchises overseas

Malaysia's small and medium enterprises (SMEs) should take advantage of government assistance to take their brands overseas.

"Many SMEs don't realise the potential of franchising and how they can make use of the available resources," said Malaysian Franchise Association (MFA)chairman Dr Mohd Hizam Hanafiah at a press conference, Tuesday to announce the finalists of the Malaysia Franchise Awards 2013.

Malaysia had a structured franchising system, whereby there were government grants, subsidies and even the Franchise Act in place to protect rights of both franchisors and franchisees, which would play to the SMEs' advantage when they venture overseas, he said.

Malaysia External Trade Development Corp (Matrade) also offered assistance in organising trade fairs abroad to increase brand exposure, he added.

"SMEs can't just focus only on Malaysian market. Embarking on overseas franchising not only involves the export of raw materials, but also the export of know-how and trade mark that will increase the country's competitiveness," he said.

For a start, Hizam advised SMEs not to venture too far, but instead tap the Asean market in the wake of the formation of the Asean Economic Community (AEC) by 2015.

The AEC will help transform Asean into a single market of 600 million people and a production base with a free flow of goods, services, investment and skilled labour.

Organised by the MFA, this year's franchise awards will see 14 local and international brands competing in 10 categories on December 13 in Kuala Lumpur.

The finalists include Marrybrown, Hot & Roll, Gloria Jean's Coffees, Senheng, Smart Reader Kids, Tutti Frutti and McDonald's.