Franchising in Malaysia: Government Policy, Ministry Restructuring, Legal Regulation & MyFex 2.0
The history of government policy on franchising in Malaysia began to take shape in the 1990s, when franchising was increasingly viewed as a tool for entrepreneur development, SME growth, Bumiputera commercial participation and the creation of homegrown Malaysian brands. At that stage, franchising was still relatively new in Malaysia, although certain businesses such as petrol […]
Madani Mart: The Government’s Business Is Not To Do Business (Part 4)
My concern about Madani Mart is not merely about whether one shop can sell cheaper goods. This article is written in light of Datuk Ameer Ali Mydin’s interview in BFM last week. It is certainly a much bigger issue on what I heard on snippets of the said interview and that reminds me on the […]
Trademark Squatters in Malaysia: A stumbling Block!
It recently came to my attention when a well-known client from Thailand appointed us to file its trademark in Malaysia. What should ordinarily have been a straightforward brand-protection exercise turned into a more difficult question: the trademark had already been registered locally in the name of an individual. In commercial language, many would describe this […]
Madani Mart: Tiada Royalti Bukan Bermaksud Bukan Francais (Part 3)
Sedikit pandangan perundangan saya mengenai isu Madani Mart dan menjawab kepada artikel yang dinyatakan dalam Berita Harian dalam tajuk “MADANI Mart tak kutip royalti, bukan francais – Fuziah” https://www.bharian.com.my/berita/nasional/2026/04/1530982/madani-mart-tak-kutip-royalti-bukan-francais-fuziah?fbclid=IwY2xjawRC_Q5leHRuA2FlbQIxMQBzcnRjBmFwcF9pZBAyMjIwMzkxNzg4MjAwODkyAAEe6PZGm4_vTA-ceIcyOHJu4eZF5SWLdvGhZZ0nEckS_5_E06TIIrx_g1-nSas_aem_RNnWubszSZUr8oGo2pXEow Pandangan undang-undang saya pada kenyataan “tidak ada royalti, maka ia bukan francais” adalah terlalu sempit dari sudut Akta Francais 1998. Seksyen 4 tidak menghadkan balasan hanya […]
On the Madani Mart (Part 2)
Malaysiakini posted my comment today on the Madani Mart model and its implications under Malaysian franchise law. My central point is a simple one: in Malaysia, the law looks at the substance of an arrangement, not merely the label attached to it. A structure described as a licence may still fall within the Franchise Act […]
Madani Mart, Licensing and Franchising in Malaysia: Substance Over Label
A recurring question in Malaysian franchise law is whether a business arrangement described as a licensing model may nevertheless amount, in substance, to a franchise under the Franchise Act 1998. That question arises squarely in the context of Madani Mart. The publicly circulated FAQ states that Madani Mart is not using the franchise concept “buat […]
The 10 Steps in Franchise Recruitment and Onboarding
A client recently sent me a WhatsApp message asking for my thoughts on franchise recruitment and onboarding. In my view, franchise recruitment is not merely about finding someone with the financial capacity to take up an outlet. It is a structured process of identifying the right franchisee, assessing suitability, aligning expectations, and ensuring that the […]
The Musang King is OURS
I remember reading a news report some time ago declaring that “Musang King is ours until 2034.” (news report: https://www.thestar.com.my/news/nation/2024/09/20/musang-king-is-ours-until-2034-says-mat-sabu). That headline has resurfaced recently amid reports that import durians from other countries have appeared in China, marketed as Musang King. In Parliament, today, our Agriculture and Food Security Minister, YB Datuk Seri Haji Mohamad […]
Wrongful Termination or Simply an Effluxion of Time
Introduction I represented a franchisor recently as the defendant in a franchise litigation where the plaintiff’s central claim was one of “wrongful termination” of the franchise agreement. The allegation was framed in familiar terms: the franchisor had issued a document described as a notice of termination, and the franchisee contended that this amounted to an […]
Operation Manual versus Training Manual
In the Malaysian franchise registration system, the application for a franchise licence is governed under Section 7 of the Franchise Act 1998. For ease of reference, allow me to reproduce Section 7 as follows: Application for registration 7. (1) A franchisor shall make an application to register his franchise by submitting to the Registrar the […]