A total of 71 foreign food and beverage (F&B) franchisors were registered to operate in Malaysia as at Dec 31, 2025, accounting for 42% of the 170 F&B franchisors listed on the national register, according to the Ministry of Entrepreneur Development and Cooperatives.
In a written parliamentary reply published on Parliament’s website, the ministry acknowledged the challenges faced by micro, small and medium enterprises (MSMEs), particularly in the franchise sector, amid growing competition from international F&B players offering lower-priced products supported by scale and global supply chains.
The ministry said only foreign franchisors that are properly qualified and able to contribute meaningfully to the national economy are approved for registration.
The response was given to a question by Siti Mastura Muhammad (PN–Kepala Batas) on measures the government plans to implement to safeguard local businesses, especially domestic MSMEs, from intensified competition following the entry of foreign firms.
Separately, the ministry noted that its agencies have introduced initiatives to help MSMEs expand market access, including live-streaming programmes and free studio facilities through a collaboration between Tekun Nasional and TikTok Shop.
It added that these efforts are aimed at boosting entrepreneurs’ sales, alongside Pernas’s MyMall platform, which offers free online marketing space for MSME products and services.
