CNI News
4 July 2023
Local manufacturing industries need to be increased in order to substitute imports with manufacturers producing finished products from raw materials produced by agricultural and livestock industries, said Sr-Gen Min Aung Hlaing, chairman of the State Administration Council (SAC).
He sad as above while he was meeting businesspeople from the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) in Yangon on 2nd July, 2023.
To produce high quality and value-added products in local, just issueing loans by the government was not enough, said U Aung Pyae Sone, a businessman to CNI News, adding that not only manufacturing policies but also economic policies needed to change.
products of Myanmar are being looked
"Whether you import a product from abroad or produce the product locally, only if consumers buy it, you can go on producing and sell it as a businessman.You are manufacturing a product in local because you love your race and religion too much, but if nobody buys it, you won't be able to stand for long. The government didn't give you the money free of charge. Small and medium enterprise (SME) businesspeople must be encouraged, but talking of encouragement, Just lending money is not enough. Manufacturing and economic policies need to change. Products that can keep abreast of the products from abroad must be produced in local such as value-added products. For example, peanut coming from Thailand is being sold at 2,000, but if local peanut can't overcome the level of salted peanut, our economy will surely be salted peanut economy" he said.
Moreover, he added that the government should connect foreign investors with local businesspeople so that qualified products can be produced and needed to open business opportunities for joint-ventures.
Myanmar is a country that relies on imports without manufacturing products and should increase domestic production. So, SAC is planning and carrying out to be able to export the excess after producing to meet the domestic need, said Sr-Gen Min Aung Hlaing.
Although the government issued loans for SMEs, because they were not long term loans, it was just a little help.So, it was needed to review, said U Thet Zaw, an economic analyst to CNI News.
a businessperson asking some questions at the meeting with Sr-Gen Min Aung Hlaing
" No.1 is that we can't compete with imports at price, and local products can't compete with imports at composition and quality. So, domestic Industrial businesspeople had to stop their businesses.And technolgy is so much progressing abroad. We need money badly to buy machines. With the money an entrepreneur has and loan, it's difficult for an entrepreneur who wants to start a business. If someone in a foreigne country can show a product, everything can be arranged about it, including a sufficient loan. So, we need sufficient loans. We are largely issued one year loans or two year loans. There are rarely long term loans here in Myanmar. We need to review if an entrepreneur can operate his business during a short ternm like that." he said.
The businesspeople who have borrowed loans need to spend correctly so that their businesses can improve and they can repay the loans, said businessmen and economic analysts.
When products are manufactured in local, manufacturers need help from the ministry of commerce, including machines and technologies, said businesspeople.
