Pernas to Provide RM300 Million in Franchise Financing for 2027

Perbadanan Nasional Berhad (Pernas) will make RM300 million (Malaysian ringgit) in financing available for 2027 to support the development of Malaysia’s franchise sector, with most of the funding allocated to franchisees. The announcement puts renewed emphasis on access to capital for entrepreneurs looking to join franchise networks, while also supporting brand owners in expanding their businesses.

Franchisees receive the largest share

Deputy Minister of Domestic Trade and Cost of Living Datuk Dr Fuziah Salleh said 70 per cent of the financing would be allocated to franchisees, with the remaining 30 per cent going to franchisors or brand owners. She made the announcement while opening the southern regional Road to FIM2027 event at Paradigm Mall Convention Centre in Johor Bahru on 16 October 2026, according to Bernama.

This split makes franchisees the largest recipient group under Pernas’s financing plans for the coming year. Meanwhile, the allocation for franchisors ensures that the support also covers those who develop and manage franchise brands.

Prospective entrepreneurs should understand that RM300 million is the total financing to be made available for 2027, not an amount already disbursed to applicants. Nor should the announcement be interpreted as a guarantee that every application will receive financing.

Fuziah also said the effort was supported by business financing and microfinancing facilities totalling RM6.6 billion through Budget initiatives. These facilities aim to help entrepreneurs obtain capital and expand their operations. They were cited as broader support for entrepreneurship, rather than additional funding dedicated entirely to the franchise sector.

Opportunities extend beyond food and drink

The financing announcement comes alongside government efforts to make the franchise model more accessible to micro, small and medium-sized enterprises (MSMEs). According to Fuziah, this approach also aims to change the perception that franchising is only open to large companies.

She said franchise opportunities were not limited to food and drink. In education, for example, opportunities were available with start-up capital as low as RM15,000. This figure refers to the opportunities she highlighted, rather than a standard start-up cost for all education brands or franchise offers.

That distinction matters when prospective franchisees assess their capital requirements. Even low-cost opportunities need to be evaluated against what the package includes, the operator’s responsibilities and the specific operational requirements. Comparisons should be based on the details of the actual offer, not simply the advertised starting figure.

Alongside education and food and drink, the opportunities showcased at the Johor Bahru event included services, health and beauty. This variety allows entrepreneurs to assess which businesses suit their resources and interests, rather than limiting their consideration to one type of operation.

New registrations and sales projections

At the same event, 16 franchise registration certificates were presented to new franchisors. Fuziah said this reflected the franchise sector’s expansion across a growing range of business areas.

She also said domestic franchise sales were projected to reach RM100 billion by 2030, compared with RM46 billion in 2025. The 2030 figure is a projection, not a current achievement or a guarantee of results for any individual brand.

In the context of Pernas’s financing plans, these developments indicate the direction of the sector: the entry of new brand owners and ambitions to increase domestic sales. However, national prospects must be distinguished from the viability of an individual outlet.

Prospective franchisees still need to assess each offer on its own merits. National sales projections are no substitute for scrutiny of operating costs, location suitability and the support offered by the brand owner. Equally, a registration certificate should not be treated as a guarantee of business returns.

Use consultations to clarify capital requirements

Malaysian Franchise Association (MFA) Vice-Chairman Khalek Awang said visitors to the event could obtain consultations, financing information and business guidance directly from franchise operators and relevant agencies.

He also explained that the franchise model offers support from brand owners, including operational training, marketing, the transfer of expertise and guidance on compliance with standards. Entrepreneurs considering financing can use these areas to frame their questions when comparing offers: what training is provided, how is marketing supported, and what operational responsibilities fall to the franchisee?

Practical next steps are to prepare your own estimate of capital requirements, obtain a cost breakdown from the brand owner and check financing terms with Pernas before making a commitment. The 2027 allocation creates opportunities worth exploring, but any decision to join a franchise should be guided by financial capacity and a clear understanding of how the business operates in practice.