InsiderTAPS (March 2007)
Insider TAPS Issue 04 - Amendments to the Franchise Laws in Malaysia
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The Entrepreneur Development and Cooperatives Ministry is drafting changes to the Franchising Regulations 1999 to make it easier for foreign franchisors to register their franchises in Malaysia. Under the current regulations, franchisors need to submit their latest three years’ audited financial statements when applying to register their franchises. Once the amendments are made, they would only be required to submit two years’ audited financial statements, and one year for franchisors operating in Malaysia.
The Ministry is also in the process of securing approval from the Finance Ministry to appoint a foreign mediation expert to settle disputes among the industry players. If this is approved, the Franchise Industry Act 1998 will be amended to facilitate the use of a mediator to settle industry disputes.