Nationwide support required for production business based on local goods
NAY PYI TAW October 22
Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing met MSME entrepreneurs of Nay Pyi Taw Council Area at Zabuthiri Hall, Nay Pyi Taw Council Office compound, this afternoon and discussed region development.
Present together with the Senior General were SAC Vice Chairman Deputy Prime Minister Vice-Senior General Soe Win, SAC members, the Secretary and the Joint Secretary, Union ministers, the Nay Pyi Taw Council chairman, the Chief of General Staff (Army, Navy and Air), senior military officers from the Office of the Commander-in-Chief, the Nay Pyi Taw Command commander, Nay Pyi Taw Council members, departmental officials.
Requirements for MSME development
Nay Pyi Taw Council Chairman U Tin Oo Lwin reported onpoints of the Nay Pyi Taw Council Area, agriculture undertakings, industrial zones and value-added goods production, financial and technical aid for MSME development and future programs, rice-husk-fired power generation, support for development of industrial productions.
Chairman of Nay Pyi Taw MSME Association U Kyaw Swa Win and MSME entrepreneurspresented a report on undertakings for MSME development and agriculture development, provision of knowledge, technology and techniques for MSMEs, land and building needs of local MSMEs, dried bamboo shoots exports and land requirement for extending bamboo sown acreage and exports, export of value-added noni fruit products and State’s support for the development of the business, soft loans for businesses, marketing difficulties MSME are facing in distributing value-added goods, production difficulties arising out of a surge in the prices of raw materials and transport charges, installation payment system for purchasing required machines, land, capital, technology, machines and human resources for MSME development, extension of payment period for loans taken during COVID-19 infection was high, Nay Pyi Taw industrial association and land for office, farm machinery requirement.
Discussions in response to the presentations
In response, the Senior General said soft loan arrangements for MSMEs are underway. Land and building for Nay Pyi Taw MSME association and commerce and industry association will be allowed at a suitable place. The State never allows use of farmland for other purposes to prevent a drop in the sown acreage. Hence, allocation of land will be according to the prescriptions and there will be a proper scrutiny process.
Once, Pyinmana area produced bamboo-based goods as it had an abundant supply for bamboo. But overused led to the depletion of bamboo forests. Hence, bamboo conservation is required. It will be more beneficial for the area if bamboo can be turned into pulp and other advanced consumer goods, instead of using it only as food. If compared with that of the regional countries, Myanmar’s tax rate is fair. So, entrepreneurs should be dutiful in paying taxes.
Union ministers and responsible officials report on respective sectors
Then union ministers responded to the reports of individual entrepreneurs and reported on implementation of task by respective ministries, establishing MSME as well as industrial zones, smooth flow of commodities due to facilitation of transportation in the Nay Pyi Taw Council Area, tasks for economic development, offering loans at cheaper interest rates for MSMEs and agricultural farms, the expansion of repayment terms on COVID-19 loans, measures taken for technologies and land for cotton plantations, the needs to carry out locally suitable livestock breeding tasks to boost the production, offering assistance for manufacturing value-added products from raw materials available locally and other assistance to benefit respective regions, offering technologies and assistance as well as other necessary assistance by respective ministries for the development of MSMEs, increasing the earning of local people in respective areas, offering assistance by cooperative societies for regional development, resupplying inputs for agriculture, the endeavours of the SAC to offer assistance to MSME for the development of the economy as the development of it is essential in other countries, exhibition of Myanmar products at local and foreign trade fairs, measures taken for availability of raw material and market penetration and others.
Then, the vice governor of the Central Bank of Myanmar reported on offering capital loans for MSME business and respective businesses, repayment of them and arrears, measures taken for extension of payment terms and granting further loans in accordance with the rules and regulations and the vice chairman of the Nay Pyi Taw Council reported on measures that can be taken by the council based on reports of the entrepreneurs.
State responsibilities had to be assumed as required by the needs of the country and strives for economic development of the country despite challenges
Then, the Senior General delivered a speech saying, The SAC had to assume the responsibilities of the country while it was facing a COVID-19 crisis and protests caused by political differences. The economy of the country was deteriorating due to the pandemic. The economic slowdown was faced not only by Myanmar but also by other countries. According to the economic slowdown in Myanmar, the economy had slumped since the 2018-2019 fiscal year. The economic slump must be attributed to lack of encouragement to local businesses and manufacturing businesses. As the import is larger than the export, there were trade deficits, according to records. It was found that the economic downturn was caused by lack of encouragement to local businesses. Due to importing more goods than the exports, there were trade deficits, according to statistics.
During the terms of the first and second democratic governments, trade deficits stood at more than US$-24 billion. The deficits were settled by foreign loans, grants and other payments.
When the country is able to reduce the deficits, the economy of the country will recover.
As a developing country, Myanmar has to rely not only on trade but also on investment.
The government has been repaying not only development loans but also all foreign loans as much as possible. Some countries received foreign loans but encountered economic downturns.
During our tenure, measures are being taken to seek least foreign loans. Manufacturing goods from our agriculture and livestock breeding as well as aboveground and underground natural resources for export purposes will generate foreign exchange income. In extracting and selling such resources, illegal trading in some places cause great impact on the State. Extraction and sale of natural resources can also cause difficulties in future. With the 70 percent of population in rural areas, our country has to run businesses based on agriculture and livestock breeding.
As agriculture and livestock breeding are most fundamental to our economy, encouragement is being given to produce goods based on them.
Development of Nay PyiTaw Council Area Nay Pyi Taw is our capital while Yangon is an old capital city and a commercial capital.
Nay Pyi Taw has been founded for about 16 years, construction tasks faced difficulties. Since the founding of the council area, agricultural and livestock zones and industrial zones have been designated for development efforts. Residential areas are found in the industrial zones and agricultural and livestock zones of some towns, which is not in conformity with the prescribed rules and disciplines.
And this causes difficulties making efforts for production for economic progress. We are taking measures for the development of the Nay Pyi Taw Council Area. There will be benefits from producing goods from raw materials in Nay Pyi Taw. It is a region that can grow paddy, beans and peas and oil crops and engage in agricultural and livestock breeding activities. Efforts for economic growth can be made by successfully manufacturing agriculture and livestock-based goods.
Try to boost production by effectively using agricultural and livestock products and natural resources
MSME involves production, trade, service and others. Trading comes only after manufacturing.
High prices result from high production cost and imbalanced supply and demand. Commodity price hikes can cause insecurity and instability of the State. Rice scarcity and price hikes led to political chaos in our country in the past. The country must have an enough supply of goods, so manufacturing must be prioritized. Our country exports rice yearly.
Monsoon paddy, summer paddy,various kinds of beans and peas and oil crops are grown in the form of double and mixed cropping. No farming is found in some cultivable land plots.
Doubling cropping in seasonal crops growing seasons will boost the production of agriculturalgoods. That will ensure domestic sufficiency as well as surpluses for export purposes. So, farmlands must be effectively used and quality strains needs to be grown. With boosting agricultural production, MSMEs will get raw agricultural materials.
Quality production and modern packaging will attract both local and international markets. It is necessary to boost manufacturing by using raw materials regionally and domestically produced. If consumer goods that has a high demand in the country can be sufficiently manufactured inside the country, imports can be reduced.
Our country has enough animal feedstuffs. Production of value-added goods through systematic livestock breeding and their exports will earn foreign exchange income. Leather production can be engaged in from meat production in the livestock sector. Therefore, Nay Pyi Taw Council Area should implement livestock breeding tasks successfully.
It is also necessary to effectively use forest products, an aboveground resource. Much income can be earned from such resources. When it comes to bamboo, some countries are manufacturing value-added consumer goods based on bamboo technology. We need to maintain the already existing bamboo plantations and establish more. Land plots will be allotted in accord with the requirements for growing bamboo and wood. But, real operation is necessary.
Collective efforts to be made for adequate main inputs
The inputs that are raw materials, water, electricity, fuel oil, insecticide and fertilizer are required to carry out agricultural, livestock farming and commodity production tasks.
Some inputs are imported. The State is making efforts to have enough chemical fertilizer domestically and on the other hand, it is necessary to use natural fertilizer. Tasks of generating solar power are to be carried out for electricity to be used in operating factories and workshops. The State is implementing tasks of generating solar and hydroelectric power to ensure adequate electricity. Water is to be used beneficially. It is necessary to use it beneficially not only in personal consumption but in the tasks of agriculture and livestock farming. If water and land is used beneficially, successes will bedefinitely achieved.
Regarding the capital investment, loans were disbursed to businesses battered by the COVID-19 to ensure economic recovery of the State. Entrepreneurs are to make efforts to be successful in their businesses.
It is necessary for them to repay the loans that are due for repayment to the State. The term to repay the loans under COVID-19 Fund will be extended to a certain period. Capital loans will be disbursed in accordance with the rules and regulations for development of MSMEs.
All are to be in cooperation for economic development of thenation and it is necessary to be strong in monetary flow within the country.
Government and entire people must encourage development of good human resources,future of the nation
Regarding the need of human resources, it is necessary to have basic human resources and the resources of skillfulness in technology as well. According to the census, it is learned that our nation has a weakness in education. Therefore, tasks are being taken to open agricultural,
livestock farming and technical high schools in all districts of regions and states.
In Nay Pyi Taw, Naypyitaw State Academy will be launched soon. It is for enabling students in Nay Pyi Taw including the children of civil servants to attend.
Despite reopening schools last year, there were a small number of school enrolments. All need to work together for education. Entrepreneurs are to conduct on-job training courses for improvement of job skills of employees. Within the Nay Pyi Taw Territory, private schools are allowed to open and all are to work together for the capital to become a city of education.
There are many places to visit in the tourism industry in the Nay Pyi Taw Territory. Hotel business will become more developed in the future. It is necessary to make preparations for selling local souvenirs. It is to give encouragement to manufacturing electronics and the State will help provide the needs for it. Plans have been made for the development of trade. Only if there is a large volume of products in quantity,will the trade be operated.
Therefore, priority is to be given to industries based on local enterprises of agriculture and livestock farming.
Afterwards, the Senior General and attendees took a tour of the exhibits on products of the MSMEs in the Nay Pyi TawTerritory.