EASE lending restrictions for local franchise businesses to boost the nation’s economy as many firms are struggling to survive, said the Malaysia Franchise Association (MFA).
In a statement, its chairman Datuk Radzali Hassan said local small- and medium-enterprises (SME), particularly franchise based, are in dire need of support from the Government to keep going.
“They need support to manage rental and paying salaries, especially those in the operations department, to survive in this tough times,” he noted.
Finance Minister Datuk Seri Tengku Zafrul Aziz is scheduled to table Budget 2021 tomorrow. Experts have said the Budget will include measures to revive the economy, ravaged by COVID-19.
To date, the Government had announced six stimulus packages, amounting to over RM300 bil to keep the nation going while doing its best to keep the pandemic in check.
Radzali said while businesses are receiving some support from the Penjana initiative, it is still insufficient for them to keep going.
“I hope the Government can continue with the Wage Subsidy Programme worth RM600 monthly till Dec next year. The loan moratorium should also be extended till June next year.
“This will ease business owners’ burden and help their cash flow,” he added.
Radzali remarked the Government should also impose tax exemption on franchise fee to support and promote local franchise businesses to flourish.
“The tax exemption will help boost our economy and attract those interested to embark on business venture after losing their jobs, especially in the franchise business,” he said.
On that note, Radzali urged the Government to promote non-food and beverage based franchises, so the latter can expand their ventures overseas.
“More than 50% of our food and beverage franchises have penetrated into more than 60 countries. So, it’s fair for us to support other types of franchise businesses to compete in the global market.
“We already have our standard operating procedure and expertise to be competitive. Therefore, if we expand overseas, it will help boost the local economy via inflow of currencies,” he observed. – Nov 5, 2020
