NAY PYI TAW October 3
Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing met entrepreneurs of Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and MSMEs of Yangon Region at Zeyathiri Villa in Yangon this morning and discussed economic development.
Also present at the meeting together with the Senior General were SAC Joint Secretary Lt-Gen Ye Win Oo, Union ministers U Win Shein, U Aung Naing Oo, U Tin Htut Oo, U Hla Moe, Dr Charlie Than, Dr Kan Zaw, Yangon Region Chief Minister U Soe Thein, Chief of General Staff (Army, Navy and Air) General Maung Maung Aye, senior military officers from the Office of the Commander-in-Chief, the Yangon Command commander, officials, members of region government, members of UMFCCI and associates, and MSME entrepreneurs.
Discussions on economic development UMFCCI President U Zaw Min Win, Myanmar Rice Merchants Association Chairman U Ye Min Aung, Myanmar Oil Traders and Entrepreneurs Association Chairman U Hsan Lin, Daw Thi Thi Win, U Win Myint Aung, Daw Yin Yin Moe on behalf of MSME businesspersons, and other participants reported on MSMEs in Yangon soft loans to ensure quick win for farm producers and related businesses, technology and other supports, import permission for raw materials and machines, effective action against illegal trade to increase domestic production, UMFCCI involvement in the enactment of laws and bylaws for production and trade businesses, the need to increase summer paddy yield as output of monsoon paddy is likely to fall due to less rainfall, State’s provision of investment that helped increase summer paddy yield, production growth due to State’s support for rice exports, loans from private sector in addition to the government for further increase in paddy output, development of brokerages for stabilizing domestic markets.
As regards the edible oil production, they reported on domestic production of healthy edible oil to meet the local demand, oil imports caused by low domestic production, efforts to boost oil crop sown acreage, adoption of a precise policy for production healthy edible crops. Reports also focused on production of MSMEs’ production of foodstuff and personal goods from local raw materials, certain difficulties, extension of repayment period as MSMEs that took loans from the government are facing hardships caused by COVID-19, provision of capital, more investments for MSMEs in Yangon Region as their products has the actual demand, electricity needs, land requirements for business extension, training centres to produce skilled workers, means to facilitate commodity flow and ensure success of tourism, practical programs for development of traditional medicine and garment industries, dairy industries and local feed supply, effective support for rubber sector development, inputs for agriculture Sector-wise clarifications Union ministers U Win Shein, Dr Kan Zaw, U Tin Htut Oo, U Hla Moe, Dr Charlie Than and U Aung Naing Oo and the region chief minister explained ministry-wise achievements, economic growth achieved through the efforts made in accord with the guidance and policies of the Head of State, disbursement of loans, success of industries and the need to pay back loans within the fixed period, permission of local and foreign investments and the State’s involvement to facilitate investments, programs to earn foreign currency for the State, rules awareness programs for ensuring investment for MSMEs, sector-wise training programs for small enterprises, Myaseinyaung regional development project, legal registration of industries in the region and drawing of rules, proper MSME regulations, systematic issuance of import and export licenses, and MSMEs in Yangon Region.
Giving additional discussions over reports Regarding the report of businesspersons, the Senior General said in cultivation of oil crops, the country has land, man and human resources, and it is necessary to be actually workable for all. Among oil crops, just groundnut secures high per-acre yield and other oil crops cannot meet the target production. If oil crops can meet the target production, domestic oil production will increase. In cultivation of oil palm, oil from oil palm can be used as consumption and industries. As oil palm cannot be grown fully, palm oil production is still down.
As the government will fulfill the needs for local oil sufficiency, oil crop growers and businesspersons need to ctually work. If growers, businesspersons and the government join hands, they will be able to meet the local oil demand in the future.
So, they will have to change their positions from the oil importer to the oil exporter in production of oil to have surplus one.
MSME industries are established with the aim of meeting the local demands. The Senior General said he will continue discussions to seek the export opportunities. The loans in COVID-19 period will be set under a period to pay back it to the State for their difficulties, and arrangements will be made for them to deliver the capitals.
But, as the government’s efforts is to disburse loans as capital for development of their businesses, businesspersons must strive for achieving success in their businesses and to pay back the loans as well as taxes to the State in the set period. The forthcoming budgets will comprise the State economic promotion fund. If the government will have to take back the remaining loans, it will disburse larger loans to them. The government manages local monetary circular and will deliver necessary loans for businesses as much as possible.
The government is striving for fully electrifying the MSMEs whereas private sector need to strive for supply of electricity as well. It needs to generate electricity by solar power and wind power and arrangements are being made to sell diesel to them at fair prices for generating electricity. At present, the government is exercising the market economic system and multiparty democracy in adopting the policies and businesspersons need to strive for fulfilling themselves. The government will fulfill the basis needs as much as it can. The government will allot land plots for MSME businesses. If industries are operated on the cultivable lands, production of crops will decline.
Hence, the government allows land plots for industries on the vacant and virgin lands, but on the cultivable lands.
With regard to livestock sector, although the country is engaging in livestock farms but these farms are not in a systematic manner. Livestock product is high demand at home and it is exported abroad.
All raw materials for livestock farms are sufficient at home but there needs quality. It must be systematic farm rather than the traditional farm.
Efforts are being made for seek quality strains and inputs for agriculture sector. Some of them are imported and businesspersons need to strive for production of inputs and quality strains at home. The government is systematically arranging the availability of quality strains of crops. It needs to conduct the researches for quality strains suitable for the regions. Water sufficiency as well as inputs such as pests and fertilizers need for the agriculture sector. The government is trying hard to obtain necessary fertilizers for the farms.
Development of rubber sector depends on good per-acre yield of rubber latex and quality latex through modern techniques.
The import of rubber will be restricted effectively.
Then, the Senior General gave instructions on economic development, saying that the meeting is to seek the solutions through exchange of views over development of MSME industries in Yangon Region and economic development of the State. Reports of businesspersons have been responded and Union ministers have discussed respective sectors.
Encouragement for human resource development With regard to reports on human resource development, the 2014 census showed lesser number of educated persons in higher education sector.
Emphasis is being placed on education for turning out a large number of educated persons.
As schools have been opened by the State for enabling students to learn education, students and parents are responsible to learn. Only when the students have completed school learning will they have easy access to vocational education and have higher living standard.
On-job training courses are being conducted for respective subjects in order to turn out the educated persons. Only when they have higher education will they have capability to apply modern technology. As education is essential for living standing, it is necessary to encourage education. Teaching must be given to the youths in line with their age. Technical and agricultural courses are being conducted at basic education schools. Private schools also conduct the courses as much as they can.
Emphasis being placed on economic strength Myanmar is based on agriculture and livestock. Both developed and developing countries need to rely on SME industries.
Hence, efforts are being made for development of MSME so as to re-surge State economy. In 2021 the country faced political crises and difficulties triggered by COVID-19. It faced various disturbances for declining the economy. The increase of currency value is based on larger gap between supply and demand, hiking prices of commodities.
A government needs to consider economic development of the country. If State economy is down, it will reflect political instability. A country needs political, economic and defence driving forces. Only when economy improves will the State be stable.
Fuel, edible oil and electricity Regarding disbursement of loans necessary for investment, there were political and COVID-19-related difficulties last year and at that time there were acts of sabotage aiming at causing deterioration in the economy of the nation too. Such acts were taken to stop operation of factories and workplaces and cause threats and fears to people blocking them from going to work places. Despite the attacks in various ways to make the banking system collapse, priority was given to taking measures in order that such collapse will not happen. There were destructive acts of disrupting the financial flows. Due to monetary manipulators, the currency has been weaker causing a surge in prices of imported goods. Therefore, the Foreign Exchange Supervisory Committee was formed to take measures to scrutinize the foreign exchange expenditures.
Since 2021, supervisory measures have been taken in importing edible oil from.
As there is considerable consumption of edible oil and less domestic edible oil production in the country, the domestic demand for edible oil is high.
Regarding the fuels, there has been a requirement and restriction in foreign exchange as fuels are imported yearly.
Electric public transportation systems must be developed to reduce consumption of fuels.
Such systems could not be immediately implemented and it needs to take time. In generating electricity, tasks to generate solar energy and wind energy are to be taken rather than using fuel and gas. It is necessary to change and use LED lights in electric lights for energy efficiency. As hydroelectric power projects were delayed in the previous government’s term, losses were caused to the State. The Government is making efforts to be able to generate more hydroelectric power and carry out construction tasks to generate solar power as well. Efforts are also being made to be able to generate nuclear powered electricity.
Coordination is being carried out to use nuclear powered electricity in agriculture, health and education sectors.
Commodity production based on agriculture Commodity production industry needs raw materials, energy, capital and human resources.
If commodity production is carried out with the use of raw materials produced in agriculture and livestock industries and regions, it will be more beneficial. It will be taken into consideration of granting permission to import necessary raw materials with foreign exchange money earned through export items. Arrangement will be made by the State to have investment money for acquiring raw materials. The State is making efforts to acquire chemical fertilizer necessary for agricultural projects.
Bio-fertilizer made from the livestock industry could be used in agriculture and there will be chemical clean in products through using natural fertilizer.
It is necessary to encourage livestock and agricultural products more to have natural fertilizer.
There are poultry, pig, goat, cattle and fish farming businesses in the livestock industry.
As duck farming is more widely seen in the country, more success is to be achieved in such farming. It is more beneficial in the livestock industry through breeding good species. Efforts are to be made to achieve more successes in fish farming.
Livestock products should be upgraded as value-added items to be exported. The nation has raw materials enough for animal-feeds and it is necessary to run farming businesses with the use of locally-produced animal feeds.
In agriculture, capital loans were disbursed from the funds to promote the State’s economy for cultivation of summer paddy and Mung bean. Measures are being taken to be able to disburse capital loans for other agricultural businesses in the years to come. It is to achieve more successes in agricultural businesses.
In selling products, measures are to be taken to be able to sell the products at the low rate of profit as much as possible.
Doing so will be more helpful to the markets’ flow. Our policy is that it must be cheap if the products are the same and that if the price is the same, the quality is better. Efforts must be made to promote marketing.
Sales need to be strong for more income. Commercial attaché are being appointed for trade with foreign countries.
Food and clothing is essential for a man. Therefore, economic measures based on food and clothing are being promoted.
It is to encourage commodity production businesses based on locally produced raw materials.
The nation has more services than manufacturing businesses. Only if there is a big volume in production, will the supply and demand be balanced, which means products could be exported. Therefore, encouragement must be given to the commodity production industry. To do so, those who are present at this meeting are urged to give priority to commodity production as they operate businesses in the industry.
Regarding the tax collection, internationally, our rate of collecting tax is the lowest as well as among ASEAN nations.
Depending on tax, the government is carrying out tasks for the development of the nation. If our rate of collecting tax is bigger than other foreign nations, it is to inform of that.
Scrutiny measures are taken not to have tax evaders and tax must be paid properly. Economic entrepreneurs are to cooperate with the State for economic development of the nation.
Afterwards, the Senior General cordially greeted entrepreneurs of UMFCCI and micro, small and medium enterprises in Yangon Region.
Later, the Senior General viewed photos showing MSME entrepreneurs’ activities and exhibits of products including foodstuff, personal goods, industrial products, Myanmar traditional handicraft items, gem products, clothes and traditional medicines and had queries on market availability.
Officials briefed on sector-wise enterprises.
