Mawlamyine, February (26)
In Mon State, the military council is seeking to revive the small and medium-sized enterprises (SMEs) that were affected by the military coup and the COVID-19 pandemic, but it did not work, the SME entrepreneurs told Than Lwin Times.
SMEs are finding it difficult to survive in the aftermath of the military coup, as raw material prices have nearly tripled, fuel and transportation costs as well as general costs have skyrocketed.
Meanwhile, small livestock farming, garment factories, construction companies, and most tourism services have also closed their doors.
The military council has held SME seminars in townships in the state to revive SME businesses, and has been offering loans from the National Economic Promotion Fund, but the economy has not yet improved.
An SME entrepreneur says that despite the military council’s loan program, it is not possible to expand because of the country’s economic decline, and he is struggling to keep his current business running.
He added, “The trading market is gone, and the prices of goods have doubled. The number of employees is now only 20–30, down from 50 before. If a country develops, so will our business. If the country’s economy is bad, we will also be in trouble.”
Due to power disruptions and high fuel prices, SMEs already face a significant financial cost, and some companies have had to practically halve their production.
The military council promised to help SMEs, but they have not been able to help effectively, and due to the devaluation of the Myanmar currency and inflation, the businesses are facing challenges, and they have to double the investment to run a business, said an SME entrepreneur.
On the other hand, the military coup leader is meeting with SME entrepreneurs in the country, but the SME entrepreneurs criticize that it is only a show.
However, the military leader directed that each region must produce at least one SME product in order to revive the country’s economy, and he promised to fully support those businesses.
According to a World Bank report published in January, Myanmar’s ongoing conflicts, severe power outages, and policy changes continue to have a negative impact on the country’s economy.
There are hundreds of thousands of SMEs throughout the country, and they are struggling to keep operating as a result of the military coup, with some businesses closing due to losses.
News-Than Lwin Times
Thanlwintimes