3/11/2009 — Press Release
The East Coast Economic Region Development Council (ECERDC) is collaborating with Perbadanan Nasional Berhad (PNS) to introduce the franchise development programme to this region.
The partnership will help the ECER produce more franchise entrepreneurs, in line with the 9th Malaysia Plan’s projection of creating 1,000 new franchisees.
The collaboration was sealed in a signing ceremony between ECERDC’s chief executive, Dato’ Jebasingam Issace John and PNS’ managing director, Syed Kamarulzaman Syed Shahabudin, witnessed by PNS’ chairman, Datuk Dr Awang Adek Hussin.
The MOU outlines the role of ECERDC as principal coordinator in this scheme, PNS as the main capital provider and implementer, while franchisors offer the branding and trademark.
“This franchise programme is very timely as it not only generates additional income for both the franchisors and franchisees, it also generates an economic multiplier effect for the local population through the creation of more jobs and entrepreneurship opportunities from the Bumiputera Commercial and Industrial Community programme,” said Issace John.
“This is essentially what ECER is about – a 12-year people centric development plan that aims to bring benefit to the local population in all of our projects,” he said.
According to Franchising in the Economy, a study done by the University of Louisville, franchising helped to lead America out of its economic downturn in the 1990s.
Franchising is a business model used in more than 70 industries, generating more than US$1 trillion in U.S. sales annually.
“Franchise creates opportunities for people to participate in businesses that they are comfortable with and has a proven track record during rough times,” said PNS’ Syed Kamarulzaman.
“The development will be positive because if industry players are doing well, others would jump onto the bandwagon to create a niche industry.”
PNS added that it will be more aggressive in its efforts to produce more franchise brands in Malaysia this year.
“It is a win-win formula,” said Issace John. “Franchisees get the opportunity to try out their hand in business and gain experience in managing a business first hand.
“With PNS’ scheme, the way the programme is organized, with funding pre-arranged, is a quick step up to entrepreneurship which some franchisees cannot afford, if left on their own.
“Successful franchisees also act as an economic anchor. Through their businesses, the franchisees will create jobs through hiring and getting services such cleaning, transportation and insurance.
“The success stories also inspire other unemployed graduates to try doing business while enhancing human capital and new skills among the ECER residents.”
“For franchisors, the system offers them fast expansion. They do not need to wait for organic growth by expanding their business themselves. At the same time, these franchisors require less capital for expansion.
“In addition, the stringent vetting via MECD and PNS’ methodology helps eliminate the risk of failure,” he said.
ECER-PNS Partner To Create Entrepreneurs
3/11/2009 — Press Release