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

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capacity in the country. The securitization on SME loans to further SME financing should be initiated after these fundamentals have been completely set up. The government should allow financial institutions to introduce new lending techniques in line with improving lending infrastructures, institutional and market capabilities, and demand- and supply-side conditions. A suggested model of financing SMEs in Myanmar is shown in appendix 3. All of these SME financing programs should be neatly integrated with other SMEs development programs, such as technological and business development services, in order to effectively implement the whole comprehensive SME development strategy for the nation.
Ⅸ. CONCLUSION With an increased economic integration, both competition and cooperation among nations are much more intense than ever, both inside and outside the ASEAN region. In order to take advantage of speedy economic integration to achieve economic progress and to sharpen the nation’s competitiveness, countries rely more on private sector. Since SMEs represent the lion’s share in the private sector in a country, governments focus on promoting their SMEs in all aspects. Their efforts are more apparent in recent years. ASEAN countries also increasingly cooperate as well as compete against one another in many areas, such as export, FDI, technology, as well as product and market development. As the main engine of economic growth, SMEs can determine a country’s competitive position. Weaker SMEs means weaker private sector and consequently, means a weaker competitive position of a nations in the international arena, since no forces can deter the free flow of goods and services in the era of economic integration and globalization. Thus, countries in the ASEAN try to enhance their SMEs’ competitiveness and export potentials. They adopt various forms of SME developments programs as a part of a country’s development strategy. Financing SMEs is one of the most important aspects of SMEs development programs in every ASEAN country. SMEs in Myanmar have long been in existence, and they had survived for a long time even in the era of closed economy during the socialist regime. After 1988, they had the chance to play a bigger role in Myanmar’s economy. The number of SMEs in Myanmar has rapidly increased soon after the economy was opened to private sector. However, they are facing a number of constraints that deter their further growth. Inadequate financing, power shortage, availability of skilled labor, and increasing prices of inputs are only a few of problems SMEs have to hurdle. At the same time, cheaper imported products from neighboring countries squeeze their market shares. This pressure tends to increase in the future due to liberalization of trade and greater economic integration in the region. Free entry of products within the country has to be allowed in the near future. This situation could hamper their survival in future because most of the Myanmar SMEs are traditional: they focus on the local market, they are inefficient producers, they already struggle with many difficulties, they have outdated machineries and technologies, and they lack modern management thinking and skills. So their products cannot effectively compete with the products from other countries in the region. This
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TitleFinancing Small and Medium Ent
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lending infrastructure of the count
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Ⅰ. INTRODUCTION The availability
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inadequate skill to prepare compreh
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following reasons 7 : • SMEs cont
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Ⅲ. BACKGROUND OF SMES IN MYANMAR
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to limit the issuance of licenses t
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Notwithstanding their sheer number,
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Enterprise Law provides for the off
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The timing of this surge in constru
Page 22 and 23: Ⅴ. CURRENT STATE OF SMES IN MYANM
Page 24 and 25: percent in 1999, 94.6 percent in 20
Page 26 and 27: production is limited by power shor
Page 28 and 29: companies. Problems in infrastructu
Page 30 and 31: Figure 1 A Suggested Comprehensive
Page 32 and 33: Moreover, developing countries can
Page 34 and 35: startup and expansion. Most of the
Page 36 and 37: anks with other necessary documents
Page 38 and 39: collateral, but these may go up to
Page 40 and 41: usiness decision making keep them f
Page 42 and 43: SMEs. Limited deposits and unstable
Page 44 and 45: can explain why lending technologie
Page 46 and 47: Figure 2 Present Pattern of Domesti
Page 48 and 49: There are some additional lending p
Page 50 and 51: Figure 4 Regional/Community Funds f
Page 52 and 53: Developmental financial institution
Page 54 and 55: Table 5 Percentages of Secure SME L
Page 56 and 57: (gray or black markets) 79 . In Vie
Page 58 and 59: To provide credit insurance and cre
Page 60 and 61: Figure 6: Three Systems of Financia
Page 62 and 63: Ⅷ . PPROPOSALS AND SUGGESTIONS FO
Page 64 and 65: Policy on financial sector developm
Page 66 and 67: in systematic manner, nationwide an
Page 68 and 69: Myanmar Investment and Commercial B
Page 70 and 71: Legal, judicial, and bankruptcy env
Page 74 and 75: means Myanmar needs to adopt a resc
Page 76 and 77: 7. Htein, Lynn. 2004. “Linkage be
Page 78 and 79: www.myanmar.com/myanmartimes/Myanma
Page 80 and 81: APPENDICES Appendix I- Definitions
Page 82 and 83: The Lao PDR Small Less than 19 Less
Page 84 and 85: Myanmar Agriculture Development Ban
Page 86: from relatives and private money le
Page 89: The Institute of Developing Economi
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