Franchising in Malaysia is still at an infancy stage, with the growth of the local franchise industry being more noticeable some 15 years ago, since the Government recognized franchising as one of the potential high growth areas. In the early days, franchising in Malaysia was dominated by foreign brands like McDonald’s and KFC; but of late home-grown franchises are starting to emerge and are attempting to fast-track their growth into adulthood and maturity. The Government, through the Ministry of Entrepreneur and Cooperative Development and its agency Perbadanan Nasional Berhad, plays an important supporting role in nurturing the local franchise industry with the provision of various programmes, assistance and training. Various programmes have been rolled out since the early 90s to stimulate the franchise industry, and in 1992 a Franchise Development Division was established within the Prime Minister’s Department to administer the franchise development programme. This division was later transferred to MECD in 1995. Due to the encouraging growth of the franchise industry, the Franchise Act 1998 was introduced to regulate the industry. Foreign franchises were also encouraged to set up operations in Malaysia so that local businesses can learn from foreign franchises with proven business models and track records. Thanks to the Government’s franchise-friendly policy, the local franchise industry grew at an average of 10 percent per annum between 1992 and 2002. To date, there are 311 franchise systems registered under the Registrar of Franchise; of which 197 are home-grown brands and 114 are foreign franchises. Food and beverage still make up a majority of the franchise sector in Malaysia, making up 29 percent of the total; however the trend has been shifting towards non-food sectors such as services, education, retail, healthcare and beauty. Key home-grown franchise brands include Secret Recipe, 1901 Hotdog and Smart Reader. The Malaysian Franchise Association (MFA) was formed in 1994 to support the implementation of the Malaysian Government's program to promote entrepreneurship through franchising. The formation of MFA was indeed timely to promote the development of franchising in Malaysia. MFA has a unique membership composition; consisting of franchisors, would-be franchisors, master franchisees, franchisees, and support institutions such as government agencies, franchise consultants, law and accounting firms, and financial institutions. MFA organizes a variety of events focused on franchising, from training and education programs to activities such as an annual franchise exhibition and conference, franchise talks, franchise awards and trade and study missions to promote the franchise industry and to enable the public and industry players to network. MFA also serves as a resource centre for both current and prospective franchisors and franchisees, as well as for the media and public.