Developing MSMEs can create job opportunities

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  • Myanmar’s economic sector is said to be made up of 1 per cent large companies and the remaining per cent small and medium enterprises spread across the country. Despite the widespread production from local SMEs, the majority of people in the country purchase imported commodities from foreign SMEs.
    The main reason for this is that most, if not all, international businesses have a quality assurance mechanism that ensures all of their exports are of high quality and fit for distribution around the world. In a way, their production system transforms raw materials into high-valued end products that appeal to the customer. Because of this, the demand for locally produced commodities is low and the economy cannot create enough jobs for its people.
    Even though Myanmar is a country rich in all kinds of natural resources, it does not have the means to transform these into high-end products and so simply imports it in its raw state. This lowers GDP of the economy and slows its development.
    In recent years, there has been much effort to empower SMEs and just a week ago, the Small and Medium Enterprises Development Committee (SMEDC) held its second meeting in Nay Pyi Taw. During the meeting, Vice President U Myint Swe, who is also the chairman of SMEDC, announced that regional competitions for micro, small and medium enterprises (MSMEs) will be held in nine regions and states across Myanmar. This will give a chance for the MSMEs to exhibit their products and attract potential customers or investors.
    “Following the exhibitions in nine regions and states, Nay Pyi Taw will host the national level exhibition,” said Vice President U Myint Swe at the meeting. The first MSMEs regional competition will be held in Mandalay Region from 23 to 25 February.
    The Vice President said an announcement was sent on 19 January to the Nay Pyi Taw Council, the various regions and states, and self-administered Division and zones to send feedback on forming their own local SME Development Agency. These local agencies are urged to be formed with 7 to 11 members. As each region and state slowly develops a system to review the quality of their local products, they can collaborate with experts and local or foreign organizations to improve their quality or acquire the necessary technology to produce high-end products that can penetrate into the international market.
    In this endeavour, the State will give continuous support to its MSMEs to develop and strengthen the economy.
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