Local businesses expand in Arakan despite supply and security challenges

By Admin 07 Nov 2026

DMG Newsroom

7 November 2026, Kyauktaw

Micro, Small and Medium Enterprises (MSMEs) are expanding in conflict-affected Arakan State as local entrepreneurs strive to meet regional demand for goods, address job shortages and generate income.

MSMEs operating in livestock farming, agriculture, food production and consumer goods are growing across Arakan State, with their products mainly distributed within the state.

In Kyauktaw Township, the owner of a small-scale detergent factory said the business was operating smoothly, citing strong market demand for locally packaged detergent powder.

"Purchasing the detergent manufacturing machinery cost over K100 million. Sales have been strong since production began, which is encouraging. However, because the raw materials are not available locally, we have to import them from abroad. This creates many difficulties," the business owner said.

The raw materials needed for detergent production are mainly imported from Bangladesh and India. However, ordering and transporting these materials remain difficult because of travel restrictions and high transportation costs.

The growth of small businesses is helping strengthen the regional economy while creating employment opportunities for local residents.

"Most villagers have few employment opportunities. The emergence of small factories like this provides daily wage workers like us with a modest income. Although the earnings are not high, having a regular income helps us meet our families' basic daily needs," said a worker at the detergent factory.

Despite the growth of small-scale businesses in Arakan State, business owners said shortages of raw materials and rising tax rates remain major challenges.

Entrepreneurs expressed hope that local authorities would provide greater support to encourage the growth of small-scale enterprises across Arakan State.

Meanwhile, ongoing airstrikes by the military junta across Arakan State pose another major obstacle to the expansion of local businesses.

"If there were no threat of air attacks, Arakanese people would expand their businesses even further. Whatever we do, the junta's airstrikes remain a major concern. Still, we have to keep working to earn a living," said a rice mill owner in Arakan State.

Fighting has continued in Arakan State for nearly three years, since November 2023. Since the conflict began, military junta blockades have disrupted the flow of goods and severely affected the regional economy.