Jan 18, 2013

Myanmar puts emphasis on development of SMEs

Myanmar government is putting emphasis on development of small and medium enterprises (SMEs) and has recently formed a central committee for further development of the SMEs, pivotal for national economic development and promotion of social-economic status of people.

The 27-member Central Committee for SME Development is chaired by President U Thein Sein with two vice presidents Dr. Sa Mauk Kham and U Nyan Tun being the vice chairman.The committee also has 20 ministers as members.

The central committee is tasked to formulate and promulgate laws, regulations and procedures for SME development, ensure that the government and private banks effectively provide financial capital for SME development, establish a network with local and foreign organizations to meet technical requirement, encourage market development of SME from rural to urban areas, make SME supporting industries for local and foreign investment to promote healthy development of market chains and to plan for nurturing human resources for SME development.

Along with the setting up of the central committee for SME development, a 15-member work committee was also set up.

Shortly after the establishment, President U Thein Sein convened the first meeting of the committee, calling for developing and protecting domestic SMEs.

He urged increased competitiveness of small and medium business at home through enhancing capacity and productivity.

The president warned against the challenges of foreign investment influx and free trade agreement of ASEAN Economic Community.

He stressed the need for accuracy of facts and figures, proper assessment of the success and failure of business to offer assistance, effective reduction of transaction costs in face of commodity influx under ASEAN Free Trade Agreement, high quality of products formation of task forces, cooperation with local and foreign organizations and effective government-private partnership for continuous development.

There are 126,237 registered SMEs in Myanmar, accounting for 99. 4 percent of overall industries across the country.

In its efforts for industrial development, Myanmar is working to enhance the role of private and public sectors.

"Only with industrial development will there be technological development, poverty alleviation, more and more job opportunities, and national economic development", the Ministry of Industry has said.

Cooperation between regional governments and private associations is also called for to fulfill the task of industrialization through agricultural development.

The ministry stressed the importance of capitals for small- and medium-scale industries and set up ISO standard in a bid to improve the quality of its products.

Myanmar's industrial sector contributes about 20 percent to the gross domestic product and private sector 92.36 percent, statistics show.

Source: Xinhua