Many franchisors in Asia have been establishing their franchise operations in Hong Kong to expand beyond their home country and explore opportunities in Hong Kong and Mainland China. As Hong Kong has a high-income population and a booming tourism industry, they offer a high-value market for certain products. Meanwhile, Macao is a free port and an independent tariff zone. They also have a wide international marketing networking and is a trade platform between China and Portuguese-speaking countries. Hence, Malaysian franchisors should take advantage of the franchise opportunities offered in Hong Kong and Macao.

Hong Kong is the gateway to the Greater Bay Area, Mainland China and the rest of the world. They are Asia’s hub from East to West for global expansion. The Greater Bay Area includes Hong Kong, Macao and the nine cities in Guangdong province. Hong Kong is a prime location for export as their policies and laws are clear and transparent, and have efficient goods clearance. They also offer support system for finance, logistics and more. Meanwhile, Macao is considered the Las Vegas of the East, with a thriving entertainment and hospitality industry.

There are opportunities for Malaysian food and beverage franchisors in Hong Kong and Macao as they have high purchasing power with a sizeable expatriate community. Moreover, a majority of residents in Hong Kong and Macao eat out regularly. There’s also a potential for organic products in Hong Kong, as seven out of ten people have started to consume organic products since 2017. However, Hong Kong is a competitive market, and both Hong Kong and Macao markets would experience the impact from geopolitical tension.

There are three main platforms for franchisors to promote their brands. The first is the Malaysian Chamber of Commerce Hong Kong and Macao (MAYCHAM), who organises more than fifty events annually. The second is the HK International Franchising Show, organized by the Hong Kong Trade Development Council (HKDTC). Lastly, there is the Macao Franchise Show, organized by the Macao Trade and Investment Promotion Institute (IPIM).

Prior to expanding, MATRADE has advised Malaysian businesses to research and gather more information about their target market, export process, market trends and more. Businesses should always have short, medium and long-term exit plans. Those who require more information on setting up their franchise business in Hong Kong or Macao may reach out to MATRADE for enquiries and assistance.

For more enquiries, please contact:

MATRADE Hong Kong
Consulate General of Malaysia Trade Section (MATRADE)
1901, 19th Floor, Malaysia Building
50, Gloucester Road, Wanchai,
Hong Kong, People's Republic of China
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
T: +852-2527 8109

Mr. Yazrin Syakhairi Mahlan
Trade Commissioner
E: This email address is being protected from spambots. You need JavaScript enabled to view it. 

Ms. Wong Yuen Zhan
Marketing Officer
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Sources:
MATRADE Webinar (Bringing Malaysia Franchise Brands to Hong Kong and Macao)