Prepared by: Mr. Myint Wai Mr. Myint Wai Ms. Khin Pa Pa Myo Ms. Khin Pa Pa Myo 9 Aug 2010 - 3 Sep 2010, Thailand 9 Aug 2010 - 3 Sep 2010, Thailand TICA

Prepared by:

Mr. Myint Wai

Ms. Khin Pa Pa Myo 9 Aug 2010 - 3 Sep 2010, Thailand

TICA Training Programme

Training course on

Enhancing Entrepreneurship in SME Development and Export Consortia

9 Aug 2010 - 3 Sep 2010, Thailand

Country Report

Union of Myanmar

1

General Introduction to SMEs

• In any countries in the world, even in the well developed

countries, SMEs are considered as important elements in the

national economies.

• They constitute a large number of businesses to the Gross

National Product or Gross National Income.

• SMEs play main economic role and backbone of the national

economies.

2

General Introduction to SMEs

• In East Asia , those SMEs are receiving close attention by

respective countries as their development will no doubt lead to the

overall economic development of the East Asian countries as a

whole.

• Encouragement and promotion of competitiveness and innovation

of SMEs is necessary.

3

Country Profile : MyanmarCountry Profile : Myanmar

• Myanmar is the largest country in South-East Asia with a total land area of 677,000 sq.km

• 936 km from east to west• 2,051 km from north to south • Total coastline : 2,832 km. • Population : 57.5 million (2008 est.)• Climate : Tropical monsoon• Religion : Buddhism(90%),

Islam,Christian, Hindus

• National Races : 135

4

POPULATION

• 2008-2009 - 57.5 million• Growth rate - 1.75%• Male 28.58 - Female 28.92

RACES• Burma 69%• Indigenous Races 25%• Indians & Pakistanis 1.3%• Chinese 0.7%• European & Other Race 3.3%

RELIGION• Buddhist 89.4%• Animist 1.2%• Hindu 0.5%• Muslim 3.9%• Christian 4.9%• Other 0.1%

SEASON Hotseason, Rainy season, Cold season5

Indigenous Races

• Kachin (1.4%)

• Kayah (0.4%)

• Kayin (6.2%)

• Chin (2.2%)

• Bamar (69%)

• Mon (2.4%)

• Rakhine (4.5%)

• Shan (8.5%)

6

Myanmar Arts

Panpu (sculpture) Panchi (painting)

Pandain (Gold & Selversmith)

Panput (Turning Design on the lathe)

Panyan (Masonary)7

Musical Instruments in Myanmar

Flute Conch Shell

Royal Drum Brass Gong Circle(Kyei Waing)

8

Myanmar Famous Dance

U Shwe Yoe and Daw Moe

Golden Harp Music and Dance Portraiture

Marionette dance duet or puppet style duet

dance

Modern Style of Stick Drum Dance

9

Myanmar Famous Festival

• Kason Watering Festival

• Matho Thingan (Yellow Robe) Weaving

Festival

• Thangyan Water Festival

10

Wonderful Place the Shwedagon Pagoda

The Shwedagon Pagoda is one of the wonders of the world, it was believed to have been built over 2500 years ago where the four Buddhas' relics were enshrined.Successive kings has embellished the pagoda during the 15th century and Queen Shin Saw Pu raised it to its present heigh.

11

KYAIK HTEE YOE PAGODA

The Kyaik Htee Yoe Pagoda is the highly refreshing and exhilarating climb itself which must be a never to most comes comers.

12

View Over Bagan Plain

Bagan has become our chief tourist attraction. It is also one of the richest archaeological sites in Asia. There so many pagodas in Bagan as it was the capital of the first Myanmar Empire. 13

BEACHES

Ngapali Beach

Chaungtha Beach

Ngwe Saung Beach

14

15

Macroeconomic Policy

The Government has been formulating and implementing national development plan to attain all-round development of national economy in accordance with four economic objectives:

Four Economic Objectives1. Development of Agricultural as the base and all-round

development of other sectors of the economy as well.

2. Proper evolution of the market-oriented economic system.

3. Development of economy inviting participation in terms of technical know-how and investments from sources inside the country and abroad.

4. The Initiative to shape the national economy must be kept in the hands of the State and the National People.

15

Macroeconomic Environment

• Total Area : 676,577 km2

• Population : 57.5 millions (2008 cso.)• Type of land

- reserved forest : 41404 thousand acres- net area sown : 28930 "- occupied area : 29583 "- cultural able waste other : 14304 " than fallows- Other wood land : 40891 "

• GDP : 18943 billion kyats (2009 – 2010)

• GDP growth rate : 10.4%• Structure of GDP

– Production : 62.5%– Services : 16.1%– Trading : 21.4% 16

Volume of Export

US$ (million)

Sr. Category 2008-2009 2009-2010

1. Industrial Product 2679.8 3233.8

2. Agricultural Product 1436.2 1678.4

3. Metals and Minerals 708.1 1017.6

4. Forest Product 483.1 561.6

5. Livestock and Fishery 474.7 491.0

6. Others 997.2 604.5

Total 6779.1 7586.917

Volume of Import

US$ (million)

Sr. Category 2008-2009 2009-2010

1. Inter-industry use 1591.6

1636.0

2. Capital goods 1833.7

1530.5

3. Consumer goods 1118.0

1014.9

Total 4543.3 4181.418

19

20

21

22

Top Export-Import Commodities(2009 – 2010)

1. Natural Gas 2926.69

2. Jade 964.82

3. Black Gram 464.26

4. Green Gram 285.76

5. Fish 285.07

6. Readymade Cloth 283.32

7. Rice 279.68

8. Hard-wood 278.15

9. Teak Round Log 211.72

10.Pigeon Pea 142.43

Export Commodities

1. Crude Related Products

726.57

2. Machineries & spare parts

445.68

3. Construction materials

254.54

(Iron & Steel)

4. Automobiles & spare parts 242.54

5. Ship and accessories 204.00

6. Edible oil 178.29

7. Pharmaceuticals 152.74

8.Fertilizers 139.21

9. Plastic raw materials 135.24

10. Chemical 98.67

Import GoodsUS$ (million) US$ (million)

Source: c.s.o 22

23

1. Thailand 3197.87

2. China 1582.67

3. India 1013.14

4. Singapore 670.41

5. Japan 177.35

6. Malaysia 152.61

7. Korea 75.58

8. Bangladesh 69.34

9. Vietnam 54.75

10.Germany 40.89

Export Country

1. China

1268.97

2. Singapore

1202.19

3. Thailand

378.68

4. Japan

259.11

5. Korea

224.06

6. India

193.52

7. Malaysia

159.52

8. Indonesia

140.07

9. French

35.88

10. Germany

33.38

Import CountryUS$ (million) US$ (million)

Major Trade Partners(2009 – 2010)

Source: c.s.o 23

Foreign Investment of Permitted Enterprise under the Foreign Investment Law (2009 – 2010)

Sr. Country Type of Enterprise No US$ (million)

1. UAE Oil & Gas 1 41.00

2. Hongkong Len manufacturing 1 6.08

3. Thailand Hotel & Tourism 1 15.25

4. China Mining 1 2.50

5. Singapore Brewery industrial - 27.23

6. Malaysia Oil & Gas 3 237.68

Total 7 329.58

24Source: c.s.o

Definition of SMEs

• In the " World Bank Group's SME Strategy" (a) , the following is written about

the SME definition :-

" What is an SME ? There is no universal definition. Some analysts use

objective standards, classifying firms with fewer than 10 employees as "

micro enterprise ", those with 10 to 100 employees as " small " and those with

100 to 500 as " medium " – even listing any company with annual turnover

below 10 million as an SME.

(a) SME Facts – World Bank

25

Definition of SMEs

• Other prefers to rank companies by their relative size within the local

economy. Since a large company in Macedonia would be considered small

in Brazil. Whatever the case, SMEs are vital to the emergence of healthy

private sectors, especially in poorer countries. Overall SMEs must be

considered the only realistic employment opportunity for million of poor

people through the world ".

(a) SME Facts – World Bank

26

No. Category Small Medium Large

1. Power (HP) used(1HP=746 watt)

3 to 25 Over 25 to 50 Over 50

2. No. of workers 10 to 50 Over 50 to 100

Over 100

3 Capital Investment (Kyat million)

Up to 1 Over 1 to 5 Over 5

4. Production value per year (Kyat million)

Up to 2.5

Over 2.5 to 10 Over 10

The Private Industrial Enterprises Law of 1990, classified the industries as in the following table :-

Definition of SMEs in Myanmar

Source : Ministry of Industry 127

• Major driving force for the development of economy

• Provide opportunities for entrepreneurs, workforce and utilization

of natural resources

• Agricultural product, forestry product, garment and food &

beverages product are major output

Overview of SMEs Development in Myanmar

28

• Private sector significantly contribute the industrial production

• Establishment of SMEs in Mining, manufacturing, construction,

trade and services was estimated 99%.

• Critical factors limiting the growth: Financing, Human resource

capacity building, Technology, Market access, ICT, energy,

infrastructure etc…


29

CategoryEmployment

(%)Output

(%)Investment

(%)

Large 20 31 32

Medium 19 28 23

Small 61 41 45

Total 100 100 100

Share by Employment, Output and Investment (2004)


Source : Ministry of Industry 1 30

20 19

61

3128

41

32

23

45

0

10

20

30

40

50

60

70

Employment Output Investment

Large Medium Small

Share by Employment absorption, Output and Investment (2004)


Source : Ministry of Industry 131

(a) State Level

Although there is no agency nor organization specifically assigned on

SMIs development, agencies or organizations currently involve in

SMIs business such as;

- Industrial Development Committee (IDC)

- Myanma Industrial Development Committee (MIDC)

- Myanma Industrial Development Working Committee

(MIDWC)

Key SME Support Agencies and Services in Myanmar

32

The Objective of MIDC

(a) To develop agro- based industries

(b) To enhance industrial production both quantitatively and qualitatively.

(c) To encourage production of new type of industrial machinery and equipment

(d) To encourage production of machinery and equipment essential for the manufacturing and processing industries.

(e) To create suitable conditions for change over to an industrialized state.

33

Function of the MIDWC

Function of the Myanma Industrial Development Working Committee (MIDWC) is to implement the policy and programmes for the development of private industries such as:-

(a) Development of Industrial Zones

(b) Human Resource Development for private industries.

(c) Transfer of technologies to SMI (Small and Medium Industries)

(d) Financial Assistance to specific industry located at Industrial Zones etc..

34

Under the Working Committee there are 10- Subcommittees and 18 industrial Zones Supervision

Committees to assist SMEs, namely:-

(i) Production of Agricultural Machinery & Equipment(ii) Standardization and Quality Control(iii) Formulation and drafting of Industrial Law, Regulation and

Procedure(iv) SMEs Promotion(v) Promotion of industrial R & D and Technology Transfer(vi) Industrial Information Dissemination and Publication(vii) Human Resource Development(viii) Promotion of Automobile and Parts Industry(ix) Promotion of Iron and Steel Industry(x) Promotion of Rubber Product Industry

35

36

Laws

– Private Industrial Enterprise Law1990

– Promotion of Cottage Industries Law1991

– Myanmar Citizen Investment Law1994

Following laws are to encourage, promote and foster the

establishment of private SMEs.

36

37

Business Registration• Myanmar Citizen Investment Law, MCIL (1994)

With a view to promote investment of Myanmar citizen and to provide equal treatment as foreign investors by granting them the right to enjoy to tax incentives, the MCIL was promulgated on 31st March 1994 and its procedures were prescribed on 3rd August 1994.

Partnership Act (1932), Myanmar Company Act (1914)

Company limited by shares is required to register. There are two types of companies, privated limited company and public limited company. The number of shareholders must be at least seven. The company, after registeration, must apply for a Certificate of Commencement of Business.

37

38

Employment Regulations

• Labor Act and Social Security Act (1954)

Working hours for employees are 8 hours per day, 48 hours per week.

Private enterprises employing at least five persons are covered by the Social Security Act 1954. The contribution to the scheme is approx. 4% of the insured wage and the ratio of contribution is 2.5% by employer and 1.5% by employee.

The selection of the worker should be made only those who registered at the Myanmar Labor Department.

38

Basic Principles of Private Industrial Enterprise Law (1990)

(1)To enhance the higher proportion of the manufacturing value added in the gross of domestic product, and to increase the production of the respective economic enterprises which are related to the industrial enterprise;

(2)To acquire modern technical know-how for raising the efficiency of industrial enterprises and to establish the sale of finished goods produced by the industrial enterprise not only in the local market, but also in the market abroad.

3939


(3)To cause utilization by relying mainly on local natural resources;

(4)To cause narrowing down of the gap between rural development and urban development by causing the development and improvement of industrial enterprises;

(5)To cause opening up of more employment opportunities;

4040


(6)To cause avoidance of or reduction of the use of technical know-how which cause environmental pollution;

(7)To cause the use of energy in the most economical manner.

4141

(b) Ministry / Institutional Level

- Directorate of Industrial Supervision and Inspection

(Ministry of Industry 1)

- Science and Technological Research Department (MSTRD)

- Sub-Committee related to the ASEAN SMEs Agencies Working

Group (Ministry of Industry 2)

- Cottage Industries Department (Ministry of Cooperative)

- Directorate of Labour

- Myanma Agricultural Produce Trading (Ministry of Commerce)

Key SME Support Agencies and Services in Myanmar

42

• Union of Myanmar Federation of Chambers of Commerce & Industry (UMFCCI)

• Myanmar Industries Association (MIA)• Myanmar Agro-based Food Processors & Exporters Associations

(MAFPEA)• Myanmar Women Entrepreneurs Association (MWEA)• Myanmar Computer Industry Association (MCIA)• Myanmar Construction Entrepreneurs Association• Myanmar Engineers Society (MES)• Myanmar Forest Products & Timber Merchants Association• Myanmar Garment Manufacturers Association• Myanmar Pulses, and Beans & Sesame Seed Merchants Association• Myanmar Pharmaceutical & Medical Association • etc…

(c) Non Government Organizations

Key SMEs Support Agencies and Services in Myanmar

43

Role of MIDB : Financial assistant to SMEsMyanmar's financial structure includes state and private banks

and state insurance institution. To assist the SMEs in finance, Myanma Industrial Development Bank (MIDB) had been formed in 1997 under MIDC. Loans are provided mostly on the recommendation of the Industrial Zones Supervision Committees. Up to September 2009, Loans amount Kyat 21,715.379 Million were granted to 265 no. of SMEs (in which 166 Nos are SMEs and loan amount is Kyat 10,203.786 million). The interest rate is 15% for SMEs established at Industrial Zones. MIDB has 5 branches, they are : - Yangon, Head Office and BayinNaung Branch

- Mandalay Branch- Monywa Branch- Meikhtila Branch- Nay Pyi Taw Branch 44

45

Activities and Services

Activities and services of Myanmar Industries Association (MIA) are:1. Consultancy services in project formulation and

implementation.

2. Conducting seminars, workshops and trainings on topics of commercial. industrial and managerial interests.

3. Publication and distribution of industrial information bulletins and newsletters.

4. Organizing member’s company to participate in local and overseas trade fairs and exhibition.

5. Organizing and making arrangement for the exchange of information and views among local and foreign industralists.

45

• Activities and Services of (MIA)

6. Organizing and arranging business opportunities

networking between local and foreign enterprises.

7. Organizing and making arrangements for factory visists,

study tours and sending business mission overseas.

8. Acting as representative of the member’s companies in

advising government in matters affecting businesses and

the economy.

9. Facilitating networking through a variety of

Chambers/Associations activities.46

47

Myanmar Agro-based Food Processors and Exporters Association

The government of Myanmar realizes that due to the geographic location, demand potential, availability of raw materials and human resources, the food sector is seen as one of the most promising sectors for not only domestic industrial development but also export growth. Therefore, under the auspices of the Industrial Development Committee headed by the Prime Minister and the support of the Ministry of Commerce, the Myanmar Agro-based Food Processors & Exporters Association was founded on 21st August 2006 with the aim of developing the food

industry of the country.

Objectives 1. Achieve all round productivity increase through systematic

development of production capabilities of local agro-based food processors.

2. Work towards the improvement of local quality standard in line with international levels leading to the development of wide spread value added quality products which can effectively compete in the local and international markets.

48

6. Increase the contribution of agro-based processed foods sector in export promotion and import substitution through development of international level high quality value added products.

5. Aid local-based food industries in penetration, sales, marketing and expansion of international markets.

6. Aid local-based food processors in new product development through knowledge, technology, quality and market competencies.

7. Improve supply chain management of raw material suppliers, finished goods manufacturers and buyers for faster and easier linkages.

8. Undertake human resource development and information dissemination activities to improve the information and knowledge based of agro-based food processors.

9. To work towards the growth of new enterprise in the agro-based food industry for increased business opportunities an skilled work force.

10. To establish market linkages with local and foreign business organizations and associations for cooperation in the areas of knowledge and market access development.

Activities of MAFPEA Sr.No. Activities

No of times

Sept; 2006 to Oct; 2008

Oct; 2008 toDec; 2009

1 Holding meetings 21 31

2 Participating in local meetings and activities 49 73

3 Participating in business meetings, seminars etc..Organized by overseas Associations

14 17

4 Participating in working committees organized by the state as a representative of member companies and contributing information and suggestions for enhancing business and national economy.

6 7

5 Active participation in Non Government organizations (NGOs)

13 17

6 Organizing and conducting seminars, workshops and trainings related to topics of commercial industrial and managerial interests.

55 43

7 Organizing member companies to participate in local and overseas trade fairs and exhibitions.

2 1

8 Publication and distribution of industrial information bulletins and news letters.

1 1

49

50

Regional Co-operation

ASEAN Countries

- Indonesia (8-8-67)

- Malaysia (8-8-67)

- Philippines (8-8-67)

- Singapore (8-8-67)

- Thailand (8-8-67)

- Brue nine (8-1-84)

- Vietnam (28-7-95)

- Myanmar (23-7-97)

- Laos (23-7-97)

- Cambodia (30-4-99) 50

Regional Co-operation- ASEAN Free Trade Area (AFTA)

- ASEAN Free Trade Area (AFTA)

- Working Group on Industrial Co-operation (WGIC)

- ASEAN Industrial Co-operation Scheme (AICO Scheme)

- ASEAN Regional Efforts (Hanoi Plan of Action)

- GMS (Greater Mekong Sub-Region)

- BIMST-EC

- ASEAN+3+1 (China, Japan, Korea and India)

- ACMECS (Ayewarwady Chaophya Economic Cooperation Strategy)

- GMS – BF (Greater Mekong Sub-Region Business Forum

- Working Group on Industrial Co-operation (WGIC)

- ASEAN Industrial Co-operation Scheme (AICO Scheme)51

Regional Co-operation

BIMST-EC - Bay of Bengal Initiative for Multi-Sectoral Technical

and Economic Co-operation- Myanmar joined the organization as a full member at

a Special Ministerial Meeting held in Bangkok on 22 December 1997.

Member States of BIMST-ECPeople's Republic of Bangladesh, the Republic of India, the Union of Myanmar, the Democratic Socialist Republic of Sri Lanka, the Kingdom of Thailand, the Kingdom of Bhutan and the Kingdom of Nepal.

I.E.A.T (Industrial Estate Authority of Thailand (IEAT)

52

Since the adoption of market economy in 2000 private industries have grown progressively that can be seen in table shown below:-

Growth of SMEs (Table type)


Source : Ministry of Industry 1 ( September, 2009)

Category

2002 2003 2004 2005 2006 2007 2008 2009

Large

2,304 2,304 3,135 3,194 3,438 3,483 3590 3,610

(6.0%) (6.4%) (7.3%) (7.63%) (7.94%) (8.01%) (8.2%) (8.24%)

Medium

4,342 5,052 6,215 6,149 6,430 6,516 6,722 6,741

(11.3%) (12.8%) (14.5%) (14.68%) (14.84%) (14.98%) (15.35%) (15.4%)

Small

31,852 32,016 33,454 32,534 33,456 33,504 33,472 33,438

(82.7%) (80.8%) (78.2%) (77.69%) (77.22%) (77.01%) (76.45%) (76.36%)

Total38,498 39,372 42,804 41,877 43,324 43,503 43,784 43,789

(100%) (100%) (100%) (100%) (100%) (100%) (100%) (100%)

53

Growth of Registered Private Industries (Column Type)


Source : Ministry of Industry 1 (September 2009)

0

5000

10000

15000

20000

25000

30000

35000

40000

2002 2003 2004 2005 2006 2007 2008 2009

Large

Medium

Small

54

Sectoral Distribution of SMEs(Registered as of September, 2009) (Table Type)

No.

Sub-sector Small Medium Total %

1 Food and Beverages 23,061 3,936 26,997 67.19

2 Clothing & Wearing Apparel

1,244 369 1,613 4.01

3 Construction Materials 2,116 498 2,614 6.51

4 Personal Goods 455 297 752 1.87

5 Household Goods 125 69 194 0.48

6 Printing & Publishing 191 69 260 0.65

7 Industrial Raw Material 406 254 660 1.64

8 Mineral & Petroleum 1,206 307 1,513 3.77

9 Agricultural Equipment 45 27 72 0.18

10 Machinery & Equipment 170 82 252 0.63

11 Transport Vehicles 78 14 92 0.23

12 Electrical Goods 21 10 31 0.08

13 Miscellaneous 4,319 809 5,128 12.76

Total 33,437 6,741 40,178 100.0055

Food & Beverages67.19%

Miscellaneous12.76%

Electrical goods0.08%

Machinery & equipment0.63%

Agricultural equipment0.18%

Transport vehicles0.23%

Clothing & wearingapparel

4.01%

Construction materials6.51%

Printing & publishing0.65%

Industrial raw material

Household goods0.48%

Personal goods1.87%

Mineral & petroleum3.77%

1.64%

Sector Distribution of SMEs (As of September, 2009) (Pie chart)

56

18 Industrial Zones through Myanmar

1 Yangon Division 4 Eastern,Western,Northern and Southern townships of Yangon

2 Mandalay Division 3 Mandalay, Meiktila,Myingyan3 Magway Division 2 Yananchaung, Pakokku4 Bago Division 1 Pyay,5 Ayeyawady Division 3 Hinthada, Myaungmya, Pathein

6 Sagaing Division 2 Monywa, Kalay7 Mon State 1 Mawlamyine8 Thaninthayi Division 1 Myeik9 Shan State

Total118

Taunggyi

No. State/Division Nos Location(townships)

(Ayethaya)

57

Yangon East District Ind. Zone

Yangon West District Ind. Zone

Yangon North District Ind. Zone

Yangon South District Ind. Zone

Industrial Zones

Mandalay Ind. Zone

Myingyan Ind. Zone

Meiktila Ind. Zone

Monywa Ind. Zone

Kalay Ind. Zone

Pakokku Ind. Zone

Yenangyaung Ind. Zone

Pyay Ind. Zone

Pathein Ind. Zone

Myaungmya Ind. Zone

Hinthada Ind. Zone

Taunggyi Ind.

Zone

Mawlamyine Ind.

Zone

Myeik Ind.

Zone

18 Industrial Zones58

1. Mandalay (1109)

2. Myingyan (330)

3. Meiktila (349)

5. West Yangon (1034)

6. South Yangon (899)

15. Pakokku (273)

13. Pyay (190)

14. Yanan Chaung (88)

8. Myaungmya (364)

9. Hin Tha Da (443)

11. Monywa (895)

Monywa 598

Shwebo 297

12. Kalay (254)

16. Mawlamyine (209)

17. Taungyi (750)

18. Myeik (26)

10. Pathein (355)4. East Yangon (1316)

S. Dagon (1)

131

S. Dagon (2)

532

S. Dagon (3)

133

Shwepoukan

122

North Okkalapa

65

South Okkalapa

114

Tharkayta

48

Dagon Seikkan

91

Dagon East

80

7. North Yangon (705)

Hlaing Thar Yar

388

Shwe Pyi Thar

181

Mingalardone

136

TOTAL – 9,589

No. of SMEs in industrial zones, (as of 30.9.2009)

59

Problems and Constraints of SMEs Inadequate level of technologies and managerial skill

Shortage of Electrical Power Supply

The rising costs of inputs and imported materials

The shortage in skilled workers

Not well developed inter-firm linkages either among

SMEs or SMEs with large businesses in the form of

Supplier and customer relationship

Shortage of financing

Lack of access to bank financing 60

Problems and Constraints of SMEs

SMEs Development Policy

There is no specific SMEs' policy or law yet.

The objectives of Industrial Development Committee,

Myanma Industrial Development Committee (MIDC) and Myanma

Industrial Development Working Committee (MIDWC) could be

referred to as the policy guidelines for development of SMEs.

Laws and regulations that determined standards for environmental

protection and consumer safety are still not well established.

61

In order to overcome these problems and constraints, some of the needs are;


1. To adopt a sound SMEs development policy and a basis law which

could provide comprehensive and clear guidelines.

2. To draw comprehensive SMEs development master plans or

blueprint.

3. To establish financing institution such as SMEs development bank

and accessibility.

4. To upgrade the industrial infrastructure.

5. To upgrade technology and managerial skill through technical

cooperation and transfer. 62

Needs of Technology for Capacity Building of SME Sector in Myanmar

Currently, most of the technologies and machineries used in SMEs are outdated and

which cause poor productivities and products.

To replace or upgrade with appropriate technologies and machineries, and it may be by

developing regionally or through imported.

Issue

To overcome this issue


63

Conclusion

• SMEs are backbone of national economies in Asia

• Creation of necessary business environment, the formation of industrial clusters and the solution of the problems faced by SMEs are essential to the growth of the country's economy

• It is difficult to achieve an effective cooperation and exchange between SMEs in East Asia in a short time period.

• The greater cooperation between member countries of Asia on SMEs development for technology transfer, marketing network and financing schemes should be initiated

64

65

THANK YOU

Documents

Prepared by: Mr. Myint Wai Mr. Myint Wai Ms. Khin Pa Pa Myo Ms. Khin Pa Pa Myo 9 Aug 2010 - 3 Sep 2010, Thailand 9 Aug 2010 - 3 Sep 2010, Thailand TICA