MSMEs in Arakan State report decline in demand

By Admin 20 Sep 2023

DMG Newsroom
20 September 2023, Sittwe
 
Micro, small and medium-sized enterprises (MSMEs) have reported a decline in market share, with concerns about inferior quality prevalent.
 
Some 70 percent of domestically manufactured products produced by MSMEs do not meet quality standards and do not sell on a wide scale, said vice chairman U Soe Win Naing of MSME Association Rakhine.
 
“Producers can’t make packaging attractive. They also can’t produce good quality. Even the producers do not eat their products, and they can’t therefore penetrate the market,” said U Soe Win Naing.
 
MSME business owners lack capital and technology to improve the quality of their products.
 
The Arakan State military council promised nearly one year ago a loan of 10 billion kyats to support MSMEs in Arakan State, but those loans are yet to be given.
 
Daw Hay Mar San from Hein Shwe Yaung Co said: “If the government [regime] effectively provides technology and finance, MSMEs can develop both in terms of quality and quantity. But at present, the existing MSMEs feel discouraged.”
 
MSMEs in Arakan State have complained about the junta’s lack of support for them. With both production and demand in decline, MSMEs say they are having a hard time despite being widely regarded as a business model to create local jobs and boost local economies.
 
“Some people say that food produced domestically is not good, and not up to par. Many people do not eat it at all. The market is limited to a small segment of poor families. We won’t be able to improve the quality of our products unless we have finances,” said Daw Hla Hla Khin from Minbya, whose own MSME produces fruit jam.