Malaysia targets Mid East for franchise growth at FME

Speaking at the opening of Malaysia's national pavilion at the inaugural Franchise Middle East exhibition being held at the Dubai International Exhibition Centre (DIEC), Hashim said Malaysia is keen to develop its franchise industry which was worth US $2.8 million in 2003.

'We want that figure to increase substantially this year,' she said. 'But that cannot be achieved without the support of other franchisers from around the world. Although we are actively pursuing franchise opportunities here in the Middle East, it is not all one sided. We are in Dubai to encourage franchisers from the region and further a field to consider setting up in Malaysia.'

According to Hashim, Malaysia has over 200 franchises, with 117 being homegrown. 'There is a big government drive in Malaysia to encourage franchising, something that is mirrored by the government of Dubai,' she said. 'The potential here is massive. We know the market is growing at over 25% annually and we feel that we would very much like to be part of that growth.'

Organised by International Expo Consults (IEC) on behalf of the Mohammed bin Rashid Establishment For Young Business Leaders, Franchise Middle East features over 50 exhibitors from more than 18 countries.

'The exhibition is a credit not only to the organisers but also to the Middle East market. It marks the beginning of a new chapter for the region. It offers everyone involved a platform, not only to promote their goods but also to meet and learn from some of the most successful people in the industry,' said Hashim.

'The seminars that are taking place, of which we are involved in two, means that this event goes beyond just business deals by providing an education, something which is especially important to this relatively young market.'

Franchise Middle East 2004 has the support of the US-headquartered International Franchise Association (IFA), which boasts over 30,000 members and represents over 800 brands.

Marcel Portman, IFA's Vice President of Emerging Markets and Global Development, said the organisation would work with Middle East governments and industry bodies, such as the Mohammed Bin Rashid Establishment for Young Business Leaders and the UAE Franchise Association, to encourage national entrepreneurs to start their own business.

Speaking at an IFA seminar Portman said franchising offers a number of advantages to investors. 'It allows people to investigate and select an industry of their choosing, while at the same time providing the security of being part of a 'proven' business system. There is also the advantage that, in many cases, previous experience in the industry of choice is not necessary.'

However, Portman warned, franchising is not a guarantee of success. 'Like any business it has it risks,' Portman said. 'The key to being successful is to thoroughly research the opportunities available and develop a viable business plan.'

In a related seminar at the exhibition, Michael Jowett, President and CEO of Focus Hospitality, which specialises in providing operational advice to entrepreneurs, also stressed the need for extensive research. 'Potential franchisees should identify local market needs and demands and review concepts and ideas which appear to work elsewhere,' he advised.

Jowett, whose company has opened over 200 franchised stores worldwide since it was established in 1987, warned that securing a franchise can take time. 'Expect a minimum of 6 months but it could be longer. Tony Roma's A Place for Ribs took over 2 years and cost US $500,000. A great deal depends on the franchise and structure of the franchisee.'

Franchise Middle East 2004 supports the work being done by the Sheikh Mohammed bin Rashid Establishment For Young Business Leaders to nurture the entrepreneurial spirit in Dubai and to encourage and facilitate the development of businesses and entrepreneurial activity among UAE nationals.