The franchising business in Singapore continues to be promising with more than 30,000 franchisees operating in the country, said a senior official Thursday.
Speaking at the second franchising and licensing conference of Asia, Lim Hwee Hua, minister of state of finance and transport, said the industry is continuing to grow at a steady rate in the city-state.
"This diverse sector has in excess of 420 franchise systems, with more than 30,000 franchisees operating with an annual turnover of 5.48 billion Singapore dollars (about 3.63 billion U.S. dollars)," she said.
Although a large number of franchised brands are still related to the food and beverages industry, she pointed out, other sectors such as education and childcare are fast catching up.
She added that Singapore's strategic location, with its pro- business circumstances, offers a vantage point for existing and new franchisors, locally and overseas, who are seeking to expand into the fast growing Asian economies such as China, India and Vietnam.
The Singapore government aims to create an ideal platform for potential franchise owners who seek security for their investments, she said.
Franchising is an effective way of multiplying and expanding businesses. Not only does it lower the risks borne by potential franchisees, but also it allows franchisors control over their brand.
Through franchising, a growing number of Singapore companies, like Apex-Pal Holdings Ltd which owns Sakae Sushi, the BreadTalk Group, OSIM International Ltd, have successfully exported their entire business and brand concepts outside of Singapore and built a network of several hundred outlets in many cities across the world.
Source: Xinhua
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