Budget 2021: MFA urges govt to provide allocations to develop franchise industry
KUALA LUMPUR,. The Malaysian Franchise Association (MFA) has urged the government to focus on and provide allocations to the local franchise industry to enable it to drive the nation’s economic growth amid the adverse impact of the COVID-19 pandemic.
Chairman Datuk Dr Radzali Hassan said the local franchise companies or franchisors especially the Small and Medium Enterprises (SMEs) were really in need of financial assistance particularly for rental of business premises and workers’ salary.
“Even though the franchise entrepreneurs can get part of the financial assistance from the PENJANA (National Economic Recovery Plan) programme now, this is not able to ease the challenges they are facing in enabling them to survive in the business,” he said in a statement to highlight the association’s Budget 2021 wishlist.
He said the MFA was confident that if the government is able to continue with the Wage Subsidy Programme under PENJANA as well as extend the moratorium for business loan and financing repayment until June 2021, it could give the businesses some relief and help in reducing their cash flow burden.
Elaborating further, Radzali said the MFA also hoped for the government to loosen the business loan and financing terms for working capital at any of the related agencies.
Besides that, the government is also urged to encourage more banks to offer franchise financing scheme to entrepreneurs who changed their existing business models to a franchise business model or franchisors.
“(The other proposal) is that the franchise fees that are borne by the franchisees be allowed for tax deduction in an effort to support the development of the local franchise industry as well as empower the Malaysian brand,” he said.
Meanwhile, Radzali said the government should also provide allocation for educational purposes for target groups such as entrepreneurs, youths, single mothers, as well as people with disabilities to generate income through the franchise business.