KUALA LUMPUR (Sept 3): Diversified property development, real estate, investment management and hospitality company Sheng Tai International Sdn Bhd has launched its RM10 million fund to support the growth of the franchise industry in Malaysia.

In a statement today, Sheng Tai said the fund is accessible to the entire franchise community who are members of the Malaysian Franchise Association (MFA).

It said these include franchisors, would-be franchisors, master franchisees, would-be master franchisees as well as suppliers and vendors of franchises.

Sheng Tai founder and chairman Datuk Leong Sir Ley said the current operating landscape presents multiple challenges for local entrepreneurs and businesses.

“Sheng Tai is in a unique position to provide support for the local business community as we are able to leverage on our strategically located property assets, our presence in Greater China and other countries, our experience in sales and marketing as well as our extensive network of vendors and suppliers in Malaysia and overseas.”

“This fund is aimed to provide financial assistance to the franchise industry so that these businesses can overcome the difficulties caused by the Covid-19 pandemic while seizing the opportunities to expand their business further, even beyond Malaysian shores,” she said.

Leong said members of MFA will have access to up to RM200,000 interest-free financial aid upon terms when they open an outlet at one of Sheng Tai’s projects in Malaysia, namely “The Sail” and “Metrasquare”, Melaka.

She said rental fees for the first six months will be waived and subsequently a rental rebate for another six months based on revenue sharing or base rent, whichever is lower.

She said in terms of marketing assistance, members will get to market their products at Sheng Tai’s one-stop centres located at Kuala Lumpur, Japan, Hong Kong and Shanghai, and media partners for a period of time as well as be part of the growing membership programme, Sheng Tai World Card Membership, which has over 50,000 members currently.

Meanwhile, MFA chairman Datuk Dr Radzali Hassan said 2020 has been a tough year for all, especially for the retail and franchise industry.

“Many businesses suffered great challenges during the Movement Control Order and Enhanced Movement Control Order,” he said.