A total collective loan amount of 65 billion Kyats has been meted to local small and medium enterprises (SMEs), according to the Department of Industrial Supervision and Inspection, which is under the Ministry of Industry. The government plans to be able to continue loan aid for the development and sustainability of SMEs, said Aye Aye Win, director-general at the Department of Industrial Supervision and Inspection.
The Japan International Cooperation Agency (JICA), which has assisted in several development aspects of Myanmar, contributed 35 billion Kyats to the credit amount and another 30 billion Kyats came from government’s budget. The loan from JICA was given out through local banks while the government loan was managed under the allocation plans of Regions and States, according to Aye Aye Win.
More than 95 per cent of all businesses in Myanmar are classified as SMEs, according to an international business research group. The Myanmar government has recognised that SMEs development has an important role in national progress. The parliament enacted a SMEs development law in 2015. In order to discharge functions and duties contained in the 2015 Small and Medium Enterprises Development Law the Myanmar government has formed a Central Committee of Small and Medium Enterprises to boost the development of small and medium enterprises. Led by the President, the committee comprises the Vice-Presidents, Union Ministers from respective ministries and suitable representatives from business associations.
