BYOB Allocated RM9 Million, with Six Months of Support for Franchise Entrepreneurs

The Be Your Own Boss (BYOB) programme has been allocated RM9 million (Malaysian ringgit) under Budget 2027 to help Bumiputera women and young people enter the franchise sector. Bumiputera refers to Malaysia’s Malays and other indigenous peoples. Support includes structured training, business matching, financing assistance and six months of monitoring after participants start trading, according to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

BYOB support goes beyond start-up capital

Armizan explained the programme’s role at a press conference following the launch of Tealive Sparkling Prebiotic Tea Soda in Kuala Lumpur on 5 November. According to a report by RTM, the BYOB allocation forms part of the RM29 million provided in Budget 2027 to strengthen Malaysia’s franchise sector.

BYOB focuses on Bumiputera women and young people. The support announced is not limited to financing: it also covers preparation before a business starts trading and monitoring after it opens.

Structured training and business matching form part of that preparation. Once participants start their businesses, monitoring continues for six months. The minister described this period as a specific element of BYOB’s support, alongside assistance to help participants take their first steps as entrepreneurs.

For prospective participants, the key consideration is the full package of guidance, rather than the funding allocation alone. The programme combines training, the selection of opportunities through business matching, financing and operational follow-up. Preparing to join should therefore involve assessing readiness to run a business and engage with the guidance process, not simply the need to raise capital.

A further RM20 million for PSFS financing

Of the total RM29 million, RM20 million has been allocated to the PERNAS SME & Franchisor Financing Scheme (PSFS). This complements BYOB as part of the government’s efforts to build the capacity of micro, small and medium-sized enterprises (MSMEs) to develop Malaysian franchise brands.

Armizan said PSFS financing covers start-up and working capital. It can be used to support branch openings, premises refurbishment, equipment purchases and initial stock.

These details highlight several operational needs addressed by the financing: preparing business premises, equipping them and ensuring initial supplies are available. The inclusion of working capital also shows that the stated needs extend beyond the physical preparation of premises.

The two programmes have different stated emphases. BYOB targets specific groups of participants through a combination of training, business matching, financing and monitoring. PSFS, meanwhile, is described in terms of financing that supports business set-up and operations. Entrepreneurs should understand this distinction when assessing which support to explore.

Sustainability is central to development

According to Armizan, the Ministry of Domestic Trade and Cost of Living (KPDN), through Perbadanan Nasional Berhad (PERNAS), will continue stepping up efforts to build the capacity of Malaysian franchises. The aim is to ensure that the brands developed can not only expand but also have robust, sustainable business models and operating systems.

He also stressed the need to strengthen the competitiveness of Malaysian brands, including their ability to enter international markets. This places business capability at the centre of development efforts, alongside broader participation in the franchise sector.

According to the figures announced, Malaysian franchisors account for 304 of the 489 franchisor and master franchisor registrations, or 62.2 per cent. This provides context for the government’s emphasis on strengthening domestic brands: they already have an established presence, while their sustainability and competitiveness need further development.

Within this framework, BYOB’s training and monitoring support and PSFS financing for business needs are two forms of assistance announced together. KPDN’s stated focus on capacity building also links this assistance to the need for well-organised operations, rather than simply increasing the number of new openings.

Practical preparation for prospective entrepreneurs

Prospective entrepreneurs considering BYOB should prepare a clear outline of their experience, ability to manage operations and training needs. This can serve as a basis for questions when seeking further information from PERNAS about joining the programme.

For financing needs, break down estimated expenditure into start-up capital, working capital, refurbishment, equipment and initial stock. This breakdown aligns with the uses of PSFS financing described by Armizan and can help guide discussions about a business’s actual needs.

Quick guide: Assess support against operational and guidance needs, not just the amount of funding available. Check the current requirements directly with PERNAS before making financial commitments or choosing a franchise opportunity.