Thanlwintimes

SMEs in Yangon likely to cease operations

Yangon, November (10)

The power outage in Yangon, Myanmar’s business hub, is worsening, and most small and medium-sized enterprises (SMEs) are facing the prospect of shutting down, the SME businessmen told Than Lwin Times.

There are frequent power outages in Yangon these days, lasting 4 to 5 hours each time, making it difficult for small and medium-sized enterprises to continue functioning.

Currently, as a result of power outages, increased gasoline prices, and general cost increases, some SMEs have been forced to close their doors.

A small business owner from Shwe Paukkan said, “An hour of electricity was followed by an eight-hour power outage in Yangon. We were selling ice cream and ice pops and when the power went out, everything was lost. If you use a generator, it won’t be cost-effective because of increased oil prices, and the employees who depend on our company’s operations would also lose their jobs”.

The power transmission into the power system is reducing by about (280) MW as a result of a gas leak in the Zotika gas pipeline, which transports gas to power stations in Yangon Region, and damage to towers No. (110) and (111) of the (132) KV Balu Chaung-Teekyit power line.

In order to reduce the electricity load and maintain the stability of the power system, Yangon Electricity Supply Corporation (YESC) announced on November 5 that the electricity supply in some townships in Yangon Region will be temporarily switched off.

A businessman said that if the power outage worsens in the coming months, small businesses may come to a complete halt.

Myanmar’s small and medium-sized enterprises (SMEs) have gradually fallen as a result of the COVID-19 outbreak and the military coup, and are now on the brink of collapse due to the military council’s mismanagement.

According to economists, if the SME industry fails, it may be tougher for the common people who depend on it to make a living.

However, the military leader of the coup, General Min Aung Hlaing, has promised to fully support the development of SME businesses, but in reality, he cannot even help to provide electricity routinely.

There are hundreds of thousands of SMEs across the country, but due to the military coup, some businesses are struggling to continue operating, with some closing due to losses.

News – Than Lwin Times

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