Title Financing Small and Medium Enterprises in Myanmar Author(s ...

Table 4 Distributions of Loans by Duration in ASEAN Banks
SME Loans ASEAN-6
Brunei Philippines Malaysia Singapore Indonesia Thailand
Overdraft/
-
-
19.0%
-
-
28%
Revolving
-
41%
13.3%
-
16.46%
13%
Short-term
-
46%
36.0%
-
79.39%
24%
Medium-term
-
13%
33.0%
-
7.15%
31%
Long-term
-
-
-
-
-
4%
SME Loans
CLMV
Cambodia Lao PDR Myanmar Vietnam
Overdraft/
-
-
-
-
Revolving
-
-
-
-
Short-term
20%
77%
100%
55%
Medium-term
80%
18%
-
22%
Long-term
-
5%
-
15%
Source: RAM Consultancy Service, 2004 (Myanmar data were supplied by author) 75
Collateral-based lending is the most common method adopted by banks in CLMV,
while other transactional lending methods prevail in the ASEAN-6. On average, 85
percent if SME loans were secured throughout ASEAN in 2004. The most common form
of security is plant and property, followed by home mortgage. Factoring, trade credit,
and other forms of financing are available for SMEs in ASEAN. In Myanmar, the most
common form of security is home mortgage, followed by plant and equipment. Table 5
shows percentage of secure and unsecure SME loans in ASEAN banks.
75 RAM Consultancy Service Ltd made survey and analysis SME financing of ASEAN countries
between 5 Dec 2004 and 22 Jan 2005. However, their study could not cover Myanmar, So Myanmar data
in the tables are those provided by author.