January 17, 2018

Upgrade major driving force of the national economy

  • The Union Government is making preparations for the development of Small and Medium Enterprises. The advanced countries always start small industrial enterprises as their first-ever initiatives, thence changing into medium and larger enterprises step by step. Therefore, making efforts for the development of SMEs can be regarded to be the initiative for the development of the national economy.
    The small and medium-sized enterprises make up 99 per cent of Myanmar’s economic force. Vice-President U Myint Swe, Chairman of the Working Committee for the Development of SMEs stated in his speech, “Being the major driving force of the national economy, policies and objectives are required to be laid down for the development of SMEs. The development of human resources, technology and infra-structures, the acquisition of financial resources, better markets and favorable economic environment, cultivation of innovation spirit and search for reasonable revenues, taxes and strengthened rules, regulations and procedures are to be brought about.”
    Accordingly, difficulties frequently encountered by local entrepreneurs, such as requirements of technical assistance and start-up capital for investment, acquisition of land plots at reasonable prices and streamlining of procedures and relaxation of restrictions imposed by respective ministries and simplification of bank procedures for obtaining loans are likely to be implemented in the near future. Development of SMEs can bring about creation of job opportunities for the people, increase of incomes, high rise of internal consumption, smooth and regular flow of monetary circulation in the country, alleviation of poverty and increased accumulation of national revenue.
    Under the current situation, local SMEs are facing the loss of their internal markets due to lack of capacity to compete with neighboring countries in the sectors of production and service industries. Some are said to be threatened concerning market shares. Our local industries which produce products designed only for local markets went bankrupt because of the systematic attack of foreign industries. These foreign industries exported their products with attractive design and reasonable prices into our Myanmar market after making a careful study of the local market conditions. Moreover, illegal smuggling of horticultural produce into the country is also threatening the agriculture sector.
    As for the SMEs entrepreneurs, they can improve the performance of their individual economic enterprises as well as contribute to the development of the national economy by making their SMEs develop into big ones, while lifting up their capacities for long-lasting survival through their innovations and collective strength.

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