Central Committee for Development of MSMEs holds meeting 1/2023; Chairman of the central committee Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing delivers address

Central Committee for Development of MSMEs holds meeting 1/2023; Chairman of the central committee Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing delivers address


    Ctentral Committee for Development of MSMEs held meeting 1/2023 at State Administration Council Chairman’s Office this afternoon addressed by Chairman of the central committee Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing.

Also present were Vice Chairman of the central committee SAC Vice Chairman Deputy Prime Minister Vice-Senior General Soe Win, Deputy Prime Minister Union Minister U Win Shein, union ministers, the Nay Pyi Taw Council chair, the governor of Central Bank of Myanmar, deputy ministers, the Myanmar Banks Association chair, the patron of Federation of Myanmar Engineering Societies, the general secretary of Union of Myanmar Federation of Chambers of Commerce and Industry and officials. Chief ministers of regions and states took part in it through video conferencing.

In his opening address, the Senior General said by supporting MSMEs, which is the core of national and economic development and which ensures quick benefits, will enhance the driving force of economy, as majority of businesses in Myanmar are at MSME level. Increase in imports leads to a deficit in the country’s budget. Raw materials, inputs, capital and human resources are the main requirements of MSMEs. Production business needs raw materials. Quality control of products will significantly increase local sales and exports. Moreover, MSMEs are the core of production industry.

Over 70 percent of nation’s population is rural people, and majority of them are engaged in agriculture. The second largest portion of the rural people is in the breeding industry. So, products of the farming industry are the raw materials of MSMEs.

Essential goods must be imported, but goods, especially foodstuff, that are also being manufactured in the country should not be imported. Due to the weaknesses, the country can produce fewer amount of exportable goods, and it is one of the undesirable reasons behind the country’s low export volume. Promotion of the production industry or the local economy, manufacturing of import substitute goods and export growth are the basic factors to support MSMEs.

Hence, MSMEs that rely on promising raw materials should be mainly encouraged. They include businesses that produce edible oil, goods based on rice and broken rice, tapioca, rubber, cotton, coffee and tea, wood, rattan, bamboo, and meat and fish, and feed industry. There are other multiple production fields and region wise unique products. Effectiveness of the said businesses will generate job opportunities and increase nation’s earnings by developing the production sector.

The country will be able to import more fuel and chemical fertilizers if it can increase exports.

There were reports on electricity requirements at the visited places. As regards electricity, the successive governments have adopted plans. Electricity production sector is facing delays due to the abolishment and postponement of the plans under various reasons. So, bold action must be taken and short, medium  and long term projects must be adopted.

Production and distribution of foodstuff and personal goods locally at fair prices will benefit the country a lot and help reduce foreign exchange expenditure.

The quality of some of the MSME goods coming into the country from neighbours is not so high.

They can be manufactured locally.

More jobs will appear and technology can be acquired by linking MSMEs with heavy industries, inviting foreign investments, especially for the production industry, encouraging farming-based production businesses, and textile and garment businesses. Labour intensive businesses like CMP garment factories will generate job opportunities and increase per capita income. MSMEs will be able to provide the required raw materials and some parts for production industries set up with foreign investment.

During regional visits, there were reports about land availability.

The reply is that there is no reason to grant land when regional administrative bodies concerned inform about it as the instruction has been given to use land for farming, not for other purposes. The region and state chief ministers need to invite ethnic entrepreneurs to engage in manufacturing goods by establishing livestock breeding and industrial zones.

When it comes to capital and investment, it is necessary to give MSME loans in accord with the management and financial procedures, avoid giving repeated loans to same businesspersons, ensure the loans are settled in due course, use the loans effectively and prevent any loss and waste.

Meanwhile, loan policies should be considered. To help improve the national economy, Ks-400 billion has been allotted to the regions and states for their regional development measures.

They are also found to be engaging in infrastructural development, manufacturing activities and MSME businesses. They are therefore urged to continue their efforts with added momentum.

MSMEs have their strong points as well as weak points. Barriers are lack of sound business environs and enough modern infrastructures, hésitant entrepreneurship, insufficient investment, use of traditional technology, lack of research development, innovation and aid, and inability to efficiently use research results.

For MSME development, there are four major economic conditions: reduction in difficulties and barriers, easy and smooth investment flow, improving education and entrepreneurship, reaching a status of international supply chain through good news networks and information networks.

Moreover, digital transformation plays an import role in MSME development. To catch up with the ASEAN countries, our country, based on the prevailing conditions, need to act a quick and correct manner.

The central committee itself will render assistance for the emergence of digital economy.

Committee Vice Chairman SAC Vice Chairman Deputy Prime Minister Vice-Senior General Soe Win explained the formation of the central committee and work committees and measures for MSME development.

Next, Committee Secretary Union Minister for Industry Dr Charlie Than reported progress in implementation of the resolutions of the committee’s meeting (1/2022) and ongoing and continued tasks.

Then, committee member Deputy Prime Minister Union Minister U Win Shein, union ministers, region and state chief ministers, Nay Pyi Taw Council chairman, the governor of Central Bank of Myanmar, deputy ministers, the chairman of Myanmar Banks Association, the patron of Myanmar Engineers Federation, and the secretary general of the Union of Myanmar Federation of Chambers of Commerce and Industry reported respective tasks by relevant ministries and organizations and thier future plans.

Then, the Senior General called for cooperation between relevant ministries, respective regions and states and partner organizations in the efforts for encouraging production of domestic goods, encouraging MSMEs for import substitute, boosting production of export items, ensuring strong land policy, ensuring that farmlands are efficiently used and not used for other purposes,forming manufacturing cooperative associations as quickly as possible, systematically managing and tapping aboveground and underground and under water resources, improving communication system for public information, operating more trains and vessels smoothly and safely which are a major transport mode, publishing news that are easy for public understanding and encouraging domestic production to help improve the national economy.

Success in business will enable the country to effectively carry out other tasks as economy is the main driving force for national development.

The reports presented at the meeting indicate advantages and disadvantages. Advice has been given to solve some the issues immediately, but others need time and future coordination.

Powers are shared with region and state governments in accord with the Constitution.

Powers are entrusted in accord with the tables 1, 2 and 3. The Union ensures equality among all regions and states. Region/ state governments should set up businesses that are suitable with their situation. As geographical conditions are different from one another, different areas produce different raw materials. The decision of the local governments is required to use area-wise raw materials and carry out area wise production businesses.

The main duty of Union for the production industry is to narrow the education gap and to develop human resources.

Regions and states must also do the same. High education gap can hurt MSMEs as well as national development. Hence, education level and technological knowledge must be enhanced.

Human resources must be developed alongside production technology. The combination of technology and skill will accelerate national development.

All the places are requesting loan for financing, but it must be effectively used. The country may face losses if the loans are misused. Hence, inclusive supervision is required to systematically and correctly use the loans.

Cargo transport as well as correct information is important in trade. So, swifter logistics services and correct and timely information must be ensured.

In this way transport cost can be reduced and competitive power can be enhanced.

Energy is an essential input for production industry. As the State is implementing power generation projects, regions and states should also generate electricity through bio gasifiers and solar power. The meeting has identified a lot of remaining tasks. In this regard, the energetic and collective efforts of committee members will be supportive of the practical endeavours for national development.