Authorities seek solution to develop SMEs in Arakan State

24 Jul 2019

Khin Tharaphy Oo | DMG

24 July, Sittwe   

Business people from small and medium-sized enterprises in Arakan State face obstacles to get loans they require, according to an official from Myanma Economic Bank (MEB).

Since SME business owners could not offer a guarantee, the bank could not disburse the loans they need, said U Kyaw Zin Oo, deputy general manager of MEB.

“The main challenge for SMEs owners in Arakan State is that they could not easily get their title-deed to prove their ownership. So, we cannot pay out sufficient loans they need to run their business well,” he said.

The SMEs loans have been issued for up to K20 million (USD 133333) without collateral. If SMEs owners offer collateral, the bank can lend over K20 million.

For the development of SMEs in Arakan State, proper officials held a two-day meeting and discussed eight topics. The meeting was held in Sittwe’s Khaign Thazin Hall on 23 and 24 July.

Their discussion included law, procedures and tax on SMEs; productivity, technology and creativity; encouragement of women and young entrepreneurs; availability of loan access, increasing market shares, meeting international standards, eco-friendly SMEs, socially responsible SMEs and all-inclusive SMEs.

“We discussed how we can help a SME owner to operate their business as well. For instance, if a woman entrepreneur wants to start a business, we provide training or conduct consultation. Then, they could establish their business. This program has been initiated in other regions so we wanted to try it here. So far we’ve had good results in other areas. So, we hope we will get similar results in Arakan State if we make effective attempts here,” said Dr Phyu Phyu Win, deputy director of the SME Development Agency.

A small enterprise means a business operates with a minimum of 50 people and invests at least K500 million while the medium-sized enterprise is defined as a business with at least 300 staff members and capital between K500 million (USD 333333) and one billion (USD 666666).