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 1998 if it carries the essential elements of a franchise.
This is an important issue not just from a legal standpoint, but also from a practical and policy perspective. The intention behind Madani Mart may be good and commendable, particularly in helping to ease the cost of living, but proper legal structuring and compliance remain crucial from the very beginning.
I share the article below for those interested in the intersection between licensing, franchising, public policy, and legal risk in Malaysia.
https://lnkd.in/gUj-WG55 (forget about Damien Teo ya)
Nb: My stand: The business of government is not doing business.