‘Pragmatic approach’ needed for SMEs emergence

Naypyitaw December 13

   To develop small and medium enterprises in Myanmar, a “pragmatic approach” should be used and encouragement should be given for the emergence of new businesses focusing on export and innovation, said Vice-President U Myint Swe, Chairman of the SMEs Development work Committee.
     U Myint Swe made the comment at the committee’s meeting 1/2017 held yesterday in the meeting hall of the Ministry of Industry in Nay Pyi Taw.
     Present at the ceremony were the Vice-Chairman, Union Minister U Khin Maung Cho, and committee members — Union Minister U Kyaw win, Dr. Myo Aung, Chairman of the Nay Pyi Taw Council, Chief Ministers of Regions and States, committee members, professional experts, economists, Permanent Secretaries, departmental heads and responsible officials.


     “National economic devel opment includes 99 per cent of SMEs, which play an important role as the main driving engine in upgrading national economic capability. Provided that SMEs develop, employment, income and Union government’s tax revenue will automatically develop. If so, inland currency flow will normally be running smoothly. Out of 12 national economic policies, the second includes “to support SMEs that will help acquisition of jobs and economic development.”
     Accordingly, the tasks of acquiring human resources, technical development, innovation, monetary resources, infrastructure development, acquisition of markets, reasonable tax collection and procedures and favourable economic environment must be implemented by laying down the principles for the development of SMEs”, Vice President U Myint Swe said.
     “As defined by SMEs Development Law, SMEs development central committee held its 1/2017 meeting on 1st March 2017, making 15 resolutions so as to effectively support SMEs, servicing enterprises and trade. Decisions are now being implemented.
    SMEs Central Committee has been formed with the President as Chairman, the State Counsellor as Joint-Chairperson, Vice-Presidents as Vice-Chairmen and 19 Union-level members, five from the private sector, 24 altogether. Out of SMEs Development Central Committee’s 11 responsibilities for bringing about the development of SMEs in accord with the principles of article 6, SMEs Law, formation of steering committee and designation of duties, assignment of duties to agency, fund management committee and other teams are included in sub-section j and k.”
    The SMEs work committee was formed on 29th November in accord with the decision of SMEs central committee under SMEs Law chapter 5, section 7, sub-section A. It was composed of 40 members, with 32 from the government, including Vice-President 1 as chairman, economists, intellectuals, and eight persons knowledgeable about SMEs.
     “Being the first meeting of the work committee, discussions from respective sectors are invited. Under section 8, 14 responsibilities were laid down.
    Our steering committee needs to perform the tasks in a practical way in performing the development of SMEs. It is very important to exploit monetary resources, human resources, intellectual resources and regional resources. In market economy, building up profit margin to survive for some period of time than building up profit margin to reach the highest level is really sustainable development,” said the Vice-President.
     “In performing SMEs development, there are major parts and subordinate parts, concerning SME Development Framework. Major parts are related to low budget deficit, stability of money exchange and interest rate. So, in bringing about SME development, cooperation is needed between related departments and organizations.”
Afterwards, Union Minister U Khin Maung Cho, Union Minister U Kyaw Win and Deputy Minister U Aung Htoo reported on plans for development of SMEs.
     Chief Ministers from regions and states also took part in the discussion, which ended with concluding remarks by Vice President U Myint Swe.