Non-paper-30 August 2017 - SMEs in Myanmar

7 Sep 2017

Myanmar Government Prioritizes the Development of SMEs

 

The Myanmar government is making efforts to transform the political, economic and social environment to be in line with global changes, and to promote sustainable economic growth. This includes promoting small and medium-sized enterprises (SMEs), which play a pivotal role in the economic development of both developing and developed countries.  

Myanmar has a vision to develop SMEs, based on the policy to create regionally innovative and competitive SMEs across all sectors, to stimulate income generation, and contribute to socio-economic development. Various studies estimate that SMEs in Myanmar account for 50-95 percent of employment, and contribute 30-53 percent of the country’s GDP. According to the Small and Medium-Sized Enterprises (SME) Development Bill (SME Bill), which was launched in January 2014, “small enterprises” are defined as those with K50 to K500 million in capital, or with 30-300 employees. “Medium-size” firms are defined as those with K50 million to K 1 billion in capital, or with 60-600 employees. As a result, 99.4 percent of business in Myanmar are approximately classified as SMEs, and there are now 50,694 SMEs altogether in the regions and states on Union territory.  

In Myanmar, SMEs are considered important to the national economy. They create a lot of job opportunities for the population and contribute to employment and income generation, resource utilization, and promotion of investment. For this reason, the Myanmar government has given special attention to the development of SMEs, support for existing SMEs to become larger industries, and creating a conducive business environment for SMEs. The SME Development Central Committee’s Joint Chairperson, State Counsellor Daw Aung San Suu Kyi, stated at one committee meeting that SMEs cannot be ignored, as they make up 99 percent of Myanmar’s economic force.

For further information, please click: Non paper 30 Aug 2017 SMEs in Myanmar.pdf