MyFEX Records 3,681 Franchise Registrations in Malaysia

A total of 3,681 franchise registrations had been recorded across Malaysia through the MyFEX 2.0 system as at 27 October 2026. Announced by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, the figure reflects strong participation by local brands as the government focuses on the franchise sector’s long-term viability and ability to expand internationally.

Local franchisors form the majority

According to a Bernama report on 5 November, Armizan said the total comprised 489 franchisor and master franchisor registrations, alongside 3,192 franchisee registrations. Of those 489 registrations, 304 were local franchisors, representing 62.2%.

These categories are important when interpreting the figures. The 62.2% share refers to all franchisor and master franchisor registrations, not the full 3,681 registrations in MyFEX 2.0. Franchisee registrations account for the bulk of the overall total announced.

The figures provide a snapshot of participation in Malaysia’s franchise sector based on registration records. They should be read by category rather than treated as a count of brands or business outlets nationwide.

For Armizan, local franchise participation is already established, and the next priority should be to strengthen long-term viability and competitiveness. He also highlighted the need to develop local franchise businesses’ ability to expand into international markets.

The sector’s development is therefore about more than increasing registrations. The stated priority is to ensure that participation is backed by businesses’ ability to survive, compete and reach new markets.

Capacity building for MSMEs continues

Armizan said the Ministry of Domestic Trade and Cost of Living (KPDN), through Perbadanan Nasional Berhad (PERNAS), would continue to step up capacity building for local franchise businesses. Particular attention is being given to micro, small and medium-sized enterprises (MSMEs), with the aim of improving their competitiveness and expanding their markets.

This focus on MSMEs places business capability development at the heart of efforts to strengthen the franchise sector. In the statement, government support extended beyond encouraging new entrants to helping existing local businesses broaden their market reach.

He also linked positive year-on-year growth in franchise registrations to government efforts to expand the market for local products through the Jom Beli Produk Malaysia (JOM MALAYSIA), or ‘Let’s Buy Malaysian Products’, campaign. The campaign is being delivered in collaboration with various stakeholders.

Capacity building and market expansion are the two main priorities in the direction outlined. For local franchisors, both relate to Armizan’s stated goal: strengthening competitiveness while building the ability to grow beyond existing markets.

Funding and guidance support participation

Under Budget 2027, the government allocated RM20 million to implement the PERNAS SME & Franchisor Financing Scheme (PSFS). According to Armizan, the scheme is intended to help develop local franchise businesses by providing start-up and working capital finance.

The stated uses of the funding include opening outlets, refurbishing premises, purchasing equipment and securing initial stock. This covers several requirements for preparing premises and starting business operations.

A further RM9 million was allocated to the Be Your Own Boss (BYOB) programme. It aims to increase the number of franchise entrepreneurs among Bumiputera women and young people through structured training, business matching and financing assistance. Bumiputera refers to Malaysia’s Malays and other indigenous peoples.

BYOB support also includes monitoring for six months after participants start their businesses. This monitoring period forms part of the announced assistance, alongside preparatory training and business matching.

The two initiatives have different emphases. PSFS addresses the capital requirements of developing local franchise businesses, while BYOB focuses on participation by its target groups through a combination of guidance, matching, financing and monitoring after businesses begin operating.

Tealive offers an example of international expansion

Armizan also highlighted Tealive as an example of a local brand’s ability to grow and compete internationally. As at October 2026, the brand had 800 outlets in Malaysia and 82 franchise outlets across nine countries.

This breakdown distinguishes its Malaysian outlet network from the international franchise outlets cited. Armizan used Tealive’s achievements to illustrate local brands’ ability to establish a presence overseas.

At the same event, Tealive introduced four new varieties of ready-to-drink beverages based on tea and fruit. The product announcement accompanied an update on its network’s growth, as strengthening local franchises remained the focus of the minister’s statement.

Practical takeaway: Prospective franchisees and brand owners should interpret registration figures by category and assess their own capital and guidance needs. Those considering PSFS or BYOB should check eligibility requirements and programme suitability with PERNAS before planning to participate.