Vice Chairman of State Administration Council Deputy Prime Minister Vice-Senior General Soe Win addresses MSME Development Work Committee meeting 1/2025
Nay Pyi Taw July 25
MSME Development Work Committee held its meeting 1/2025 at the Ministry of Industry here this afternoon, addressed by Chairman of the Work Committee Vice Chairman of State Administration Council Deputy Prime Minister Vice-Senior General Soe Win.
Also present were union ministers, U Win Shein, Dr Kan Zaw, U Hla Moe, Dr Charlie Than, U Tun Ohn and Dr Myo Thein Kyaw, the Nay Pyi Taw Council chair, deputy ministers, work committee members, and officials of associations. Region/state chief ministers attended the meeting through video conferencing.
The Vice-Senior General said it is the 5th meeting of the work committee, and sector-wise vital decisions are being implemented with the involvement of the relevant ministries/organizations, local governments and agencies through bilateral connections. The meeting will seek means for greater systematization and progress of MSMEs as per the directives of the Prime Minister. Agriculture is the main business of the country. Experts of the relevant departments must continue their research for ex-porting value-added agriculture goods and hitting the targets. Serious research on feed, medicine, veterinary care and nurturing is needed for meat and fish and dairy products to meet the quality target.
On behalf of the State, the relevant bodies including the work committee must provide the needs for development of MSMEs, which are helping to promote national economic growth in a way. The relevant ministries must disseminate technology and knowledge through multilateral cooperation to ensure adequacy of technology and human resources for entrepreneurs. Moreover, it is the duty of the work committee to provide financial investment, ensure access to foreign markets that are reliable. Entrepreneurs can acquire technology and human resources for business development at the technological courses and forums jointly conducted by the Industry Ministry and agencies. Moreover, the respective ministries are opening training sessions that are related to the MSMEs. Hence, entrepreneurs must train their workers to become skilled workers and technicians. The State is opening technological, agricultural high schools for students who passed KG+9 for providing workers with dee-per knowledge of their profession and enabling them to stand on their feet. This part needs harmonious actions of the government and entrepreneurs. As regards financial investments, MSMEs should take loans through the proper procedures and financial rules. Entrepreneurs who face natural disasters need financial capital for business reestablishment. There are regulations in connection with loans and financial matters. The State is making necessary relaxing of some regulations. Of the Ks-170 billion funds for MSMEs, Ks- 150 billion was distributed as loans and the remaining Ks-20 billion for MSME development. The Prime Minister has given a directive to disburse loans in accord with the financial regulations. In the past, private banks stayed aloof from MSMEs. Thanks to the coordinated acts of the financial management committee 18 private banks will take part in disbursing loans to MSMEs. The initial available amount from the insurance business was Ks-20 million. But now insurance companies are drawing a SOP to raise the amount to Ks-50 million. Those developments formed a part for national economic growth. In view of the national interest, private bankers are now joining hands for further progress of MSMEs.
Business owners must make the most effective use of the loans they have received to ensure the development of their MSME businesses. Furthermore, they should aim to produce their pro-ducts not only for the domestic market but also for international markets. To support this, agencies in states and regions should provide knowledge and encouragement to business owners. As this is the digital era, online trading is already being practiced. Therefore, entrepreneurs must produce high-quality, value-added products that meet export standards and establish market linkages. To support such international market connectivity, respective business committees and agencies must provide necessary assistance. In previous MSME expos and competitions, One-Stop Service facilities were also provided to business owners who wished to export, connecting them through the country's commercial attachés. As a result of these connections, businesses have been able to engage with international companies and trade banks regarding exports. Hence, it is essential that business owners become proficient in utilizing Interact services, digital technologies, and other economically beneficial technological tools to support their business operations effectively.
Business owners must be supported by professionals who can train them in the necessary technologies so they can produce quality products that meet established standards using skilled labour. Those providing technical training must also deliver content that is easy to understand and easy to apply, combining practical instruction with interactive discussions. A key factor in the development of human resources is the production of skilled workers. Relevant ministries are already conducting various training programmes for business owners and workers to improve technical know-how, management skills, and market access capabilities. Currently, 441 types of training courses are being conducted, and further information can be accessed on the respective ministry websites. A total of 7,273 training sessions have been conducted so far, attended by 150,819 trainees. In addition to these training sessions, further efforts should be made to enhance the necessary capabilities required in the MSME sector. It was also emphasized that, since the number of registered MSMEs in the country is currently low, responsible authorities must take steps to ensure proper supervision and oversight.
Due to the major Mandalay earth-quake, it was agreed to promptly provide loans for the reconstruction of MSME businesses, MSME-related factories, workshops, and private industrial enterprises in Nay Pyi Taw Council area, Mandalay Region, Sagaing Region, and the eastern part of Bago Region, based on detailed lists of the types of damages submitted to the Head of State. The loan provision consists of two parts. These are the first part is MSME loans amounting to Ks-150 billion and the second part includes reconstruction funds totaling Ks-500 billion from the State economic promotion fund and natural disaster management fund, along with Ks-200 billion from the Central Ban of Myanmar, all designated as earthquake reconstruction funds. A Standard Operating Procedure (SOP) is being drafted for this. The challenges faced by MSMEs damaged by the earthquake relate to loans, with some borrowers repaying loans irregularly, some unable to repay at all, and some business owners under investigation for borrowing money from various sources. Regardless, if business owners encounter difficulties in rebuilding their capital, they are encouraged to report to the business committee through relevant agencies. Following the guidance of the Prime Minister, efforts must be made to produce high-value products based on the local raw materials from their businesses and regions, aiming to increase the production of quality goods for domestic consumption and export.
The State Administration Council is implementing two national missions, namely “peace and stability of the country and food security,” by linking these goals with economic objectives. Emphasis is placed on supporting MS-
ME economic enterprises to promote domestic products, substitute imports, and expand export markets. To strengthen and uplift MSME businesses, policies, technical support, and financial capital must be provided, creating a favourable economic environment. For the development of agriculture-based basic products, the states and regions will consolidate similar types of products according to their respective product categories, enabling the calculation of the nationwide annual production capacity. Based on these factors, export planning can be arranged according to the needs and specifications of international markets for respective export commodities. By carrying out such systematic efforts, trust can be built with international markets and consumers. To reach this stage of assured market access, committee members, state and regional chief ministers, and agencies must support MSME entrepreneurs. Everyone must collectively strive systematically for further growth and development of MSME enterprises. The State will provide its support, and business owners are expected to reciprocate accordingly without delay, working collaboratively in a step-by-step manner within the established framework and in a timely fashion.
Following this, U Yin Maung Nyunt, Secretary of the Working Committee and Deputy Minister for Industry, presented the implementation status of the resolutions from the Working Committee Meeting (2/2024) and the progress of the committee's activities.
Subsequently, the review team's chair-person, Deputy Minister for Planning and Finance Daw Than Than Lin, along with the Secretary of the Working Committee and Chairman of the Agency Deputy Minister of for Industry U Yin Maung Nyunt, the Fund Management Committee Chairman Deputy Minister U Min Htut, and Deputy Minister for Labour U Win Shein read out and presented the statements to be submitted to the MSME Development Working Committee.
Vice-Chairmen of the Working Committee Union Ministers U Win Shein and Dr. Charlie Than elaborated on the state's efforts for MSME development, the formation and functioning of relevant committees, MSME loan-related matters, the implementation status of the 14 MSME responsibilities, and collaborative efforts with relevant ministries and organizations to accelerate MSME growth.
Afterward, members of the Working Committee, including Union Ministers, the Chairman of the Nay Pyi Taw Council, Chief Ministers of regions and states, Deputy Ministers, and experts from associations, discussed the progress and ongoing implementation of previous meeting resolutions and guidelines. They covered topics such as MSME product exhibitions in international trade fairs, training programs, domestic and international market research initiatives, support for MSMEs affected by the Mandalay earthquake, and policies and frameworks for MSME development.
Following this, Vice-Senior General Soe Win summarized and coordinated the discussions, delivered concluding remarks, and adjourned the meeting.
After the meeting, Vice-Senior General Soe Win, along with attendees, vie-wed locally produced MSME goods from the Nay Pyi Taw Council area and high-value MSME export products on display, offering encouragement.