Myanmar

MYANMAR BUSINESS SURVEY: DATA ANALYSIS AND POLICY IMPLICATIONS
Figure 3.51. Share of financing, for the average firm
1% 1% 5%
3%
10%
10%
71%
Personal saving
Retained earnings
Loans from state development banks
Others
Personal loans from family\relatives\friends
Loans from private banks
Money lenders
Source: ESCAP-OECD-UMFCCI Myanmar Business Survey Database.
banks in Myanmar, with 27 per cent not using banking
services at all, although 50 per cent reported having a
current account. This figure is much higher than that
shown by the World Bank Enterprise Survey, which
found that only 30 per cent of firms had a current
or cheque account (World Bank, 2014a).
Micro and small-sized firms appear to rely much
more on informal sources, such as personal savings
and loans from family/friends, in their financing mix
compared with medium and large- sized firms (figure
3.52). Firms of all sizes utilize retained earnings to
the same degree, as they make up 9 per cent to
14 per cent of financing. Loans from private banks
account to medium and large-sized firms account for
6 per cent and 7 per cent of financing, respectively,
compared with 3 per cent for small-sized firms and
less than 1 per cent for micro firms. This may be
due to the prevailing stringent collateral requirements,
which micro and small sized firms are unable to
meet. Medium and large-sized firms also have access
to other sources of finance such as stocks/equity
and corporate bonds, thus showing more diversified
financial structures.
The results of the present survey clearly suggest
that immediate and massive interventions by the
Government will be necessary to upgrade the banking
sector in order to meet the funding needs of firms in
Myanmar. The commercial banks, often collaborating
Figure 3.52. Share of financing, by size of firm
Micro
1%1%
3%
9%
10%
76%
Small
1%
1%
5%
3%
9%
12%
69%
Medium
Large
2% 1% 8%
7%
1%
1%
12%
6%
13%
60%
14%
61%
9%
6%
Personal saving
Retained earnings
Loans from state development banks
Others
Personal loans from family\relatives\friends
Loans from private banks
Money lenders
Source: ESCAP-OECD-UMFCCI Myanmar Business Survey Database.
50