37 micro franchise package applicants receive grants worth over RM2.9 mln - Nanta

KUALA LUMPUR, Dec 2 -- Thirty-seven successful applicants in the Micro and Affordable Franchise Development Programme today received full and matching grants totalling RM2,956,116. 

Domestic Trade and Consumer Affairs (KPDNHEP) Minister, Datuk Seri Alexander Nanta Linggi said the number involved eight recipients for full grants, worth RM840,000 and 29 recipients for matching grants, worth RM2,116,116.

"The decision to approve the 37 grant applications was based on the criteria and conditions set by KPDNHEP which had been met by the applicants," he said at the full and matching grant presentation ceremony at Menara Suruhanjaya Syarikat Malaysia, here, today.

He said through the full grant initiative, KPDNHEP targeted the development of eight new micro and affordable franchise packages this year, with the grant covering RM20,000 for micro and affordable franchise market research and the accumulated amount not exceeding RM100,000 to develop the packages.

On the matching grant, Nanta said it was aimed at reducing the cost of starting a franchise business that had to be borne by prospective franchisees from the B40 and M40 groups where the financing rate offered was up to a ratio of 90:10 to the potential franchisees.

"The total allocation for this is RM2.5 million in which KPDNHEP targets at least 27 franchise entrepreneurs to be developed by the end of 2021," he added.

Nanta said KPDNHEP hoped the franchisers would be able to develop more affordable franchise business start-up packages worth RM100,000 and below, as well as micro franchise packages worth RM50,000 and below in an effort to attract more franchise entrepreneurs.

-- BERNAMA