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All for joint ventures with franchise firms
Published on: Monday, August 28, 2023
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All for joint ventures with franchise firms
Hajiji (second right, standing) witnessing the signing of the MoU between McDonald’s Malaysia and KKIP.
CHIEF Minister Datuk Seri Hajiji Noor said the Sabah Government is always open to establishing joint ventures with franchise companies such as McDonald’s to explore business opportunities in the State.

He said the State Government has many government-related companies that can play a role in realising such collaborations, which will benefit the people and the State’s economy.

“However, it is up to the entities (franchise companies) with whom they want to work with. In this business, there must be confidence and trust in each other.

“We have initiated the idea so that what is implemented will last and benefit the people and the State,” he said.

The Chief Minister said this after witnessing the signing ceremony of a Memorandum of Understanding (MoU) between McDonald’s Malaysia and Kota Kinabalu Industrial Park (KKIP) and a zakat contribution of RM100,000 to the Sabah Islamic Board. (MUIS) at McDonald’s Jalan Sulaman drive-thru restaurant in Kota Kinabalu on Aug 18. Earlier he also did the ribbon-cutting to mark the official opening of the said restaurant.

McDonald’s Malaysia is targeting to open 36 new restaurants in Sabah by 2030, which is expected to involve an investment of more than RM200 million.

Azmir said there are 16 McDonald’s outlets in Sabah at present that have provided job opportunities for 1,600 people.

He said the opening of the new outlets will create 5,000 job opportunities for the entire State, including Kota Kinabalu as well as in small towns such as Kudat, Tuaran, Telupid, Putatan and Kota Belud.

“Besides that, two more new restaurants will be opened in Tawau,” he said.

On the MoU, Azmir said it involves the collaboration with KKIP Sdn Bhd for the acquisition of 1.6 hectares owned by KKIP for the construction of manufacturing facilities, warehouses and delivery centres that function as a comprehensive food hub that caters to the operations of the quick service restaurant in East Malaysia.

He said the prominent suppliers involved included Bimbo QSR for bun and bread supplies, Tyson Foods for food supplies such as vegetables and protein products like nuggets and meat slices, and HAVI Logistics as the main distribution company, providing facilities for supply delivery.

“The three suppliers have been partners of McDonald’s Malaysia and McDonald’s at the global level,” said Azmi. Also present were Industrial Development and Entrepreneurship Minister Phoong Jin Zhe, State Secretary Datuk Seri Sr Safar Untong, McDonald’s Malaysia Managing Director and local operations partner Datuk Azmir Jaafar and Kota Kinabalu Industrial Park Sdn Bhd (KKIP) Chief Executive Officer Laurence Kimkuan. 

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