The Entrepreneur Development and Cooperatives Ministry is drafting changes to the Franchising Regulations 1999 to make it easier for foreign franchisors to register their franchises in Malaysia.
Under the current regulations, these franchisors need to submit their latest three years’ audited financial statements when applying to register their franchises.
Its minister Datuk Seri Mohamed Khaled Nordin said that once the amendments were made, they would only be required to submit two years’ audited financial statements, and one year for franchisors operating in Malaysia.
He said that the draft amendments would be submitted to the Attorney-General’s Chamber at the latest by April.
“Why should we demand them to be successful for three years in Malaysia when they are already successful abroad. This is why we decided to reduce the reporting period,” he told reporters after launching the 2006 Franchise Directory at his ministry, here Wednesday.
At the launch, the minister also presented certificates of recognition to 28 franchisors and 52 franchisees for their contributions to the country’s franchise industry.
Khaled also said that the ministry was in the process of securing approval from the Finance Ministry to appoint a foreign mediation expert to settle disputes among the industry players.
“If this is approved, we will amend the Franchise Industry Act 1998 to facilitate the use of a mediator to settle industry disputes,” he said.
On the proposed ban on fast food advertisements, Khaled said the real issue was that the public was not given proper exposure on healthy nutrition. He said that advertisements were crucial to sell or promote products and services.
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