Singapore

McDonald's to franchise ops in Singapore

McDonald's Corp said it is seeking franchise partners for its restaurants in Malaysia and Singapore as part of its move away from direct ownership and operation in Asia.

"McDonald's has taken the decision to adopt a development licensee model for the Malaysia and Singapore markets in order to enable focused investment in the brand and speed up growth in these key Asian markets," a Singapore-based spokeswoman at McDonald's said in a statement on Tuesday.

McDonald's said it was negotiating with "suitable candidates" for the Malaysia and Singapore markets, but did not provide any details or a timeline.

Sources told Reuters that some suitors looking at both countries had begun to tap banks for financing options to buy the 20-year franchise rights.

The sources declined to be identified as they were not authorised to speak to the media.

One potential bidder was reportedly in talks with lenders for as much as US$300 million ($408m) in funding.

The company also plans to sell its operations in China, Hong Kong and South Korea.

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