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Franchise Industry Still Untapped

The franchise industry, which makes up only five percent of the retail business, is still untapped in Malaysia, said Awalan, the secreary-general of the Malaysian Franchise Association (MFA). There is room for growth in the relatively young industry, especially as the country works toward achieving its goal of becoming the center for franchising in Southeast Asia. Awalan was a member of an official Malaysian group attending an annual franchise exhibition and convention in Washington. Other members of the delegation included top officials from the Ministry of Entrepreneur Development and senior executives from Perbadanan Nasional Berhad (PNS). There are currently 268 franchise systems in Malaysia compared with 450 in the Philippines, 300 in New Zealand and 747 in Australia. In comparison, there are an estimated 1,500 franchise companies operating in the United States doing business through more than 320,000 retail units. According to the International Franchise Association, which is based in New York, 75 industries use franchising to distribute goods and services.

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