SAC Vice Chairman Deputy Prime Minister Vice-Senior General Soe Win delivers speech at meeting 2/2023 of MSME Development Work Committee
Nay Pyi Taw October 25
The meeting 2/2023 of the micro-, small- and medium-sized industries development work committee took place at the meeting hall of the Ministry of Industry in Nay Pyi Taw this afternoon, with an address by Chairman of the Work Committee Vice Chairman of the State Administration Council Deputy Prime Minister Vice-Senior General Soe Win.
The meeting was participated by Union ministers U Win Shein, Dr Kan Zaw, Dr Charlie Than, U Tun Ohn and Dr Myo Thein Kyaw, the chairman of Nay Pyi Taw Council, deputy ministers, work committee members and officials from organizations together with chief ministers of regions and states through video conferencing.
First, the Vice-Senior General made a speech, saying that the first meeting of the work committee was held on 15 November 2022 and the second meeting (1/2023) took place on 8 June 2023. These meetings adopted important decisions for development of the MSME businesses, and relevant ministries, organizations and regional agencies are implementing these decisions in joining hands with each other.
This meeting was the third one of the work committee. In accord with the guidance of the Prime Minister, this meeting aimed to give advice and solve the difficulties in encouraging the operation of agricultural manufacturing based on edible oil, broke rice, rice, tapioca, rubber, cotton, coffee, tea, timber, rattan and bamboo, and other industries based on livestock, meat and fish using the domestic raw materials. Moreover, the meeting focused on pushing relevant ministries, departments, organizations and regional agencies to accomplish the decisions of the work committee and arrangements to adopt the future plans.
Economic development of a country is interrelated with geographical conditions of the country, playing a key role in building a peaceful, prosperous, modern developed nation to ensure socioeconomic development.
Among many prioritized sectors for surge of State economy it is necessary to encourage MSME businesses. As MSMEs are of great importance in the businesses, encouraging the MSMEs will help develop the State economy, creating job opportunities for the citizens. The policy for development of MSME industries in Myanmar in 2015 emphasizes the important role of MSME sector. If MSME develops, it can contribute to the development of the State whenever the State economy is instable.
The State Administration Council is implementing two political visions: strengthening a genuine, disciplined democratic system and building the Union based on democratic and federal systems in addition to two national visions: ensuring prosperity of the nation and ensuring food security, as the State visions.
In order to the meet these visions, the government is implementing the five-point roadmap and nine objectives. In the three economic objectives, the points “to enhance agriculture and livestock production with modern technologies for the benefit of all National people and to promote growth in other sectors of the economy for achieving national prosperity and food security” and “to invigorate Micro-, Small- and Medium-Sized Enterprises (MSMEs) for elevating the export sector, leveraging the momentum for sustained economic growth” are included in the economic objectives.
In line with these economic objectives, it is necessary to encourage MSME businesses for having further development and long term guarantees in order to uplift the State economy, and it is necessary to increase the State GDP by manufacturing products for the people from relevant regions. As such, MSME businesspersons need to emphasize manufacturing the products based on agriculture and livestock farms for ensuring food security of the country and then strive for all-round development of local and international trading and service sectors.
The Chairman of the Central Committee for Development of MSME Prime Minister held meetings with MSME businesspersons in regions and states in order to encourage MSME businesses. Likewise, the Vice-Senior General recounted that he also met with MSME businesspersons four times. At the meeting, businesspersons reported on their requirements.
In reviewing the reports, most of the businesspersons submitted their needs related to technology, monetary capital, market raw materials, machinery and land plots. Internationally, MSME also faces monetary capital, technology, market share and shortage of skilled workers.
MSMEs in Myanmar have to overcome difficulties and challenges they face through the collaborative efforts. They have to take possible advantages in implementing their projects.
They have to manufacture personal goods instead importing them to meet the target and then export these products abroad.
I would like to further say that production can be carried out as quickly as possible only if the raw materials enter the market on a timely basis to produce basic consumer goods until the domestic demand is met. So, I would like to call for the use of local raw materials available for production.
Today’s world economic patterns have changed, technologies, innovations, and digital transition technologies have also evolved, and they have played an important role in economic development, especially the development of MSMEs.
To develop MSMEs, necessary assistance must be provided to establish incubation centers and businesses and encourage entrepreneurship, innovation and competitiveness. Market connectivity and market development are also so important as the lifeblood in the market economy that markets and wholesalers can develop for the survival of MSMEs in various regions. Measures must be taken for the local products to penetrate the international market.
In practical links, MSME agencies headed by the chief ministers of Yangon and Mandalay regions cooperated with the Thilawa Special Economic Zone Management Committee. As a result, local MSME businesses exported domestic products as ordered by 28 companies and businesses from the Free Zone and the Promotion Zone. From January to August 2023, 36 MSMEs covered 33 varieties of raw materials at a current value of Ks-6.562 billion and over US$-28.4 million. I would like to say that it is a step towards the success of MSMEs. Similarly, the rest of the region and state MSME agencies should follow in the footsteps of Yangon and Mandalay MSME agencies.
They need to set an aim to penetrate the international market and engage in market competitiveness.
In addition to the items of goods going to the international market, regions and states need to expand export items and replace imports by considering domestic needs, while it is necessary for regional agencies to interact with one another. It also creates good economic environments to develop trade activities in the country and improve competition and trade in foreign markets. Additionally, the State will be able to provide as many financial resources as possible so that MSMEs can be established and expanded.
Since February 8, 2023 for the provision of Ks-170 billion in loans from the State fund, the MSME development fund management committee has made a draft plan in accord with the norms and SOPs based on the eight major tasks of value-added commodities, businesses to improve the country’s export income, maintaining wastewater in the workplace, and avoiding environmental hazards, energy security, the creation of job opportunities, the import substitute industry, the manufacturing industry based on local raw materials, and the protection of public health. Therefore, inclusive discussion of the draft plan is required at this meeting, and continued measures must be taken to seek approval from the MSME Central Committee chair. Currently, the provision of Ks-152 billion to 14 regions and states, five self-administered zones and one self-administered region as guided by the Prime Minister as a national economic promotion fund is being managed by respective chief ministers and regional chairmen to provide necessary loans to MSMEs after scrutiny.
Previous Working Committee meetings have been ordered to develop business measures to designate and promote potential products as one region one product (OROP). Local governments also need to discuss at this meeting the difficulties, strengths and weaknesses of their OROP programs and implementation. Industrial Linkage Promotion Plans are linked to MSME promotion programs aimed at the three points: “promoting domestic product, substituting imports, and obtaining exports”. And there will be benefits such as establishing more MSMEs in Myanmar, reducing foreign exchange spending,
increasing exports, and generating more foreign income. These three points are based on the raw materials, the necessary input, technology, financial support, and the development of human resources. The MSMEs agencies from the remaining three regions and two states also need to submit their plans to be implemented as quickly as possible. MSME operations will be difficult if human resources are weak, no matter how comprehensive raw materials, technology, and capital are provided. It will be difficult to achieve success, so agencies, which are the main driver of human resources, must provide care and support.
Developing human resources also requires the birth and modernization of skilled workers MSMEs really need. Relevant ministries must always be providing programmers to turn out skilled workers.
Thus, to ensure that MSME entrepreneurs are able to more apply digital technology that is essential for them, MSME industry and related 10 ministries -- Ministry of Transport and Communications, Ministry of Agriculture, Livestock and Irrigation, Ministry of Cooperative and Rural Development, Ministry of Natural Resources and Environmental Conservation, Ministry of Industry, Ministry of Labor, Ministry of Science and Technology, Ministry of Construction, Ministry of Social Welfare, Relief and Resettlement, Ministry of Hotels and Tourism --- have conducted 260 types of courses 3,675 times under the Mekong-Lancing Cooperation programmer. The courses include MSMEs Upskilling and Reskilling Digital Capacity Development Forum and 5 Days Hybrid Training Program of Digital Upskilling and Reskilling for Mekong-Lancing. A total of 198,460 people have been trained through those courses and 941 are still participating in those courses. Doing so is that the MSME working committee is taking measures to achieve development of human resources.
Moreover, under the on-job training programmer for skill, the agency of the working committee led in conducting courses on edible oil refining technology and workshops on fabric softening technology for seven times. A total of 730 people were trained at those courses conducted seven times. Similarly, 51 schools on agriculture, livestock and technology have been opened starting this year in 51 districts across the country for the youths who are not able or have no chance to further study advanced subjects in order that they will be skillful in the work environment. A total of 4,884 students – 3,055 for mechanical subject, 1,074 for agricultural subject and 755 for livestock subject-- are attending those schools now. All are urged to make efforts to be able to conduct more courses.
As the country exercises the market economy system, it is necessary to help fulfill the need of the private industry to be able to fully manufacture the products necessary for the nation. The State is supporting and encouraging the MSMEs for improvement of the private industry. The ministries concerned, regional governments and agencies and private organizations are urged to make efforts by taking effective measures for speedy improvement of the MSME sector through taking responsibility and accountability over the guidelines of the Central Committee and the working committee.
Then, Secretary of the Working Committee Deputy Minister for Industry U Yin Maung Nyunt briefed on measures being taken over the decision made at the 1/2023 Meeting and measures being taken by the Working Committee.
Afterwards, the proposals to be submitted to the Working Committee were read by U Yin Maung Nyunt, secretary of the working committee and chairman of the agency, Deputy Minister for Planning and Finance Daw Than Than Lin, head of the team for reporting on reviewing tasks, and Deputy Minister for Planning and Finance U Maung Maung Win, head of the team for managing the funds.
Then, Union Minister for Planning and Finance U Win Shein, secretary of the working committee, briefed on financial facts on the loans disbursed to MSMEs and rules and regulations on the loans.
Afterwards, Union Minister for Industry Dr Charlie Than reported on state of the measures being taken by the ministries concerned, agencies and private organizations to implement the policy guidelines on forming committees to take measures more widely for development of MSME industry, state of the measures being taken to fulfill the need of raw material, input, capital and human resources that are mainly necessary for the entire MSME industry, state of making support to be able to manufacture quality products with the use of advanced digital technology, state of establishing E-Market Place for Myanmar Products Platform to be able to sell the MSME products online, state of making necessary preparation for the regional agencies to be able to work in the digital transformation, and posting information and current activities on the MSME industry at the MSME Web portal.
Then, Union Ministers Dr Kan Zaw, U Tun Ohn and Dr Myo Thein Kyaw, Chairman of Nay Pyi Taw Council U Than Tun Oo, chief ministers of regions and states, deputy ministers and experts of associations and organizations participated in sector-wise discussions on measures being taken for development of the MSME industry.
Later, the Vice-Senior General made coordination on the discussions and gave concluding remarks.