Thursday, 24 July 2014

Financial assistance needed for SMEs

Small and medium-sized enterprises have a critical role in driving the country’s economic growth, said Brigadier General KyawOoLwin, MP of the upper house, calling for financial assistance to the SMEs.

He was speaking at the upper house on Friday while submitting his committee’s report on the SMEs Development Bill.

“The SMEs account for 90 percent of the country’s total economy. They need to boost competitiveness at local and international markets. Giving the encouragement to the SMEs is aimed at helping support the country’s socio-economic development. The SMEs provide the most job opportunities and account for workforce ratio,” he said.

The SMEs should have an easy access to information, technical support and cash assistance. The committee has made necessary preparations to create new employment opportunity and income-increasing scheme.

For the development of the SMEs and scaling down the difficulties they face, there should be financial aids, legal advices, production of quality products and registrations at local and international markets, the Bill said.

The SMEs development fund can be set up from the contributions from the State, aids by local and foreign monetary organisations and investors, interest-free and soft loansand assistance from the banks and sale of treasury bonds.

The bill defines small enterprises as those having up to Ks 500 million in capital and having the staff of between 50 to 300 workers.

Medium enterprises are those having capital up to Ks 1 billion and with the staff of 300 to 600 workers in the labour-intensive industry.

source: Eleven Myanmar
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