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PNS in talks with four GLCs to spearhead new franchise model

Last update: 03/06/2019
By Nurul Jannah Kamaruddin

KUALA LUMPUR, June 3 (Bernama) -- Perbadanan Nasional Bhd (PNS) is developing a franchise business model to transform employees of government-linked companies (GLCs) into entrepreneurs.

Chief operating officer Azlina Juliani Abd Jalil said the agency was in discussion with four GLCs to get them to pioneer the new franchise model and the partnership was expected to be signed in November in conjunction with PNS’s 50th anniversary.

“The business module will involve the transition from being skilled employees to franchise entrepreneurs under the umbrella of the GLCs, which will take on the role of franchisor.

“We view this initiative as a ‘win-win’ for both employer and employee, as well as being relevant for the continuity and sustainability of the GLCs which are facing challenges such as rising capital and operational expenditures,” she told Bernama in an interview.

In addition to the employees, vendors under the GLCs will benefit from the model being developed.

Citing Amazon as an example, Azlina Juliani said the e-commerce giant recently offered incentives to help existing employees quit their job and join its Delivery Service Partners programme, which allowed them to become “entrepreneurs” by starting their own package delivery businesses. These potential business owners were promised “consistent delivery volume from Amazon.”

Through these small businesses, more job opportunities could be created in the country, Azlina noted, adding that the model would be expanded to include interested parties in the private sector in the future.

PNS, which is mandated to lead the development of Malaysia's franchise industry, is also working to modernise the existing franchise models.

“We will undertake an aggressive rebranding in line with PNS’ 50th anniversary this year. Models that may not be very systematic or structured will be enhanced into more sound business systems in line with the country's aspiration to have an internationally-competitive franchise industry,” she said.

PNS is also striving to strengthen local franchisors so that they can spread their wings abroad.

She said there were currently 877 active franchise companies involved in food and beverages, apparel and accessories, service and maintenance, learning and childcare centres, beauty and health treatment, as well as convenience store and supermarket.

So far, 66 of these franchise companies have succeeded in penetrating 65 foreign markets.

“The slower economic growth has not affected the current franchise market which is showing positive growth. The industry is expected to contribute RM35 billion to the country's gross domestic product (GDP) by 2020,” Azlina Juliani said.

Last year, the franchise industry contributed RM30.3 billion to the GDP, up 8.5 per cent from RM27.7 billion in 2017.


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