Performances in One-Year Period

March 15, 2017

Ministry of Industry extensively engaged in national and industrial development

The successive governments had made relentless efforts for industrial development and so did the new government. In line with the national policy, the new government initiated research and innovation with aim of manufacturing quality products and items in conformity of market demand, ensuring sales promotion, public-private partnership in the state-own factories and mills, development of SMEs, nurturing skilled workers, a safe use of farm equipment and machinery.

As regards industrial development, Union Minister for Industry U Khin Maung Cho said that the greatest challenges of our ministry is the implementation of No. 1 Steel Mill (Myingyan) and No. 2 Steel Mill (Pinpet) that drew attention of many people, adding that the major project being implemented by the Ministry of Defence was handed over to our ministry in October 2012. As the project calls for huge investment we found it rather difficult to be successfully implemented in time with the annual budgets. Anyhow, we are trying our utmost to complete the project in time.

Invitation of local and foreign investments

As part of industrial development, state-owned factories and mills went into partnership private sector, inviting local and foreign investments in order to secure technology and capital from investors. In the process, priority is being given to private industrial development.

Altogether 59 factories out of 118 under the supervision of the Ministry of Industry are now running in public-private partnership.

Moreover, steps have been taken to invite an expression of interest for private sector to enter partnership with 17 factories. As part of the activities, Cement Plant (Kyaukse) has gone into partnership with Myanmar Conch Cement Co Ltd on a mutually beneficial basis.

As a result, the factory now produces 5000 tons of quality cement meeting the international standard daily and is delivering the products right to worksites at reasonable prices. Various kinds of glass Glass factory (Kyaukse) has gone into partnership with the Myanmar International Glass Co Ltd and is manufacturing a variety of glasses that are used in construction activities. The upgrade factory is now producing quality glass with Myanmar floral designs to be used in making furniture and glass tables. In addition, the ministry is in coordination with relevant individuals for manufacturing buses based on Korean technology for public transport.

Quality maintenance

In order to increase standardization in products, pharmaceutical factories of the Ministry of Industry has introduced Good Storage Practice (GSP) in accordance with the norms and standards of the WHO, and manufacturing of products through Good Manufacturing Process (GMP), controlling its quality. The finished products are stored in line with the set standards and are being directly distributed according to the need of the Ministry of Health.

In the healthcare sector, bogus drugs with trademark of BPI and expired drugs in the market were examined in September 2016 and action was taken against those got involved. The Ministry of Health in cooperation with the Ministry of Home Affairs have been able to expose 44 kinds of bogus drugs and 98 kinds of expired drugs and took action against those involved in the cases.

12 kinds of new drugs

With a view to producing quality medicines the Ministry of Industry is test-producing 12 kinds of new medicines in the time of the new government. The success in the test-producing of anti-venom from the sheep’s serum has led to distribution of the drugs to the market with the permission of the FDA. There are four kinds of drugs in the process of applying for the FDA’s permit with seven kinds of drugs undergoing the stability test. Morphine sulfate syrup and morphine sulfate tablets for cancer patients are not undergoing the stability test, and measures are being taken for producing of Tenofovir (300 mg) for HIV and Hepatitis B patients.

Durable anti-venom

In order to ensure the extended production of drugs to meet the market demand, the Ministry of Industry has been manufacturing more medicines that are being sold at the ministry’s shops and stores. A new anti-venom production centre was opened at the Pharmaceutical Factory (Insein) on 20-5-2016. The durable anti-venoms with fiveyear expired date were distributed to rural areas where there was electricity.

The small volume production plant and cephalporin Injection plant were opened at the Pharmaceutical Factory (Insein) on 18-2-2017 to be able to produce 20 million ampoules of injection in ten categories. The ministry also upgraded looms so as to produce quality fabric that is in high demand. As most of the looms have been upgraded with new eye-catching designs, progress was made in the production of quality garments.

Innovation and invention

With 50 innovated looms, production line was extended to be able to fabric for shirts. Meanwhile, the test-production of 1/40 thread that is in high demand was successful, and it has been distributed to the market since the month of September, 2016.

Apart from that, hospital equipment and operation items were made out of steel to be in line with medical grade and are being delivered to state-owned hospitals whereas hospital beds embedded with locker and medicine cupboards are being produced as a pilot scheme. And steel pipes, steel items for household use, plastic containers and plastic pallet are being produced and distributed. In the agricultural sector, the ministry has innovated farm equipment according to the need of farmers, and changes have been made in hydraulic system and clutch of Zwe tractors along with powered tillers, harvesters and small rice mills in order to attract customers.

K 280.411 million

Agricultural equipment worth K 280.411 million were sold to the farmers from different corners of the country on 2-year hire purchase through delivery system, salerooms and sale representatives in time of the new government. The products manufactured by the Ministry of Industry were displayed at the international technology and industry shows held in Myanmar. The industry has been sewing and producing new uniforms and school uniforms for the nurses and teachers under the Ministry of Health and Sports and Ministry of Education.

When it comes to development of small- and medium-sized enterprises, the ministry is serving as a responsible ministry for the development of the small- and medium-scale enterprises.

The ministry has drawn up Small and Medium Enterprises Development Policy in December 2015, Small and Medium Enterprises Development Law in April 2015 and Small and Medium Enterprises Development Rule in October 2016. The Central Committee for Development of Small and Medium Enterprises was formed with the President as the Chairman and the State Counsellor as the Joint Chairperson in June 2016.

Five-year period loans

In an attempt to develop small- and medium-sized enterprises in Myanmar, the ministry provided 456 entrepreneurs with the loans from the government fund and 189 businessmen with two step loans from Japan. The ministry have been able to provide the entrepreneurs with fiveyear period loans through the government’s special loan and two step loan from Japan as loan repayment period is one year under the Central Bank of Myanmar Law.

As part of effort to introduce Credit Guarantee Insurance (CGI) in Myanmar, the ministry disbursed loans to 12 businesspersons through the CGI in cooperation with CB Bank, Myanma Insurance and Department of Small and Medium Enterprises Development and granted 648 entrepreneurs for ensuring loans. Kanbawza Bank and Small and Medium Industrial Development Bank (SMIDB) are holding discussions with CB Bank to introduce CGI system in Myanmar. Kasikorn Bank from Thailand is seeking ways to cooperate with Myanmar banks for development of small and medium enterprises.

Market Promotion

The ministry has been conducting human resource development courses on SMEs such as technology and market promotion in collaboration with local and international organizations. “The ministry is promoting SMEs to keep abreast of international enterprises.

At the same time, the ministry is planning to control chemical hazards and to expand energy production sector for environmental conservation in joining with respective organizations, he said. Six industrial training centers under the Ministry of Industry have been producing the skilled labors as the driving force for industrial development in Myanmar. Vocational training courses were given to the trainees in cooperation with the foreign experts.

As arrangements are being made to recognize as Testing Centers by National Skill Standards Authority (NSSA), No (1) Industrial Training Center (Hsinde), No (2) Industrial Training Center (Mandalay), and No (4) Industrial Training Center (Pakokku) and No (4) Industrial Training Center (Pakokku) have been designated as Testing Centers of the NSSA.

Technology transfer

Change of curriculums and technology transfer are being carried out as the ministry is upgrading No (1) Industrial Training Center (Hsinde) to a model industrial training one with the assistance of GIZ and KfW from Germany. With a view to improving socioeconomic status of rural people and creating job opportunities for them, mobile industrial training courses were conducted in rural areas. Similar courses were conducted in industrial zones to uplift the proficiency of the workers.

An inspection committee was formed to utilize agricultural equipment, vehicles and ma chineries by the people in a safe and systematic manner. In an effort to use farming equipment and machineries which are sine qua non in transforming from conventional farming to mechanized one by the people, the Directorate of Industrial Supervision and Inspection was formed with the permission of the President Office.

Safety measures

The abovementioned committee checked installation and systematic use of machines and issued the Certificate of Approval to the tractors and vehicles. The ministry engaged in innovations to manufacture marketable products and formed marketing groups to encourage private sector development during one-year period of the new government. The ministry also put emphasis on development of small and medium-sized enterprises and conducting industrial training courses.

Innovation

The Ministry of Industry awarded the civil servants who made utmost efforts for the ministry with deserved promotions and certificates of honour, encouraging their innovation and cooperation. The ministry also settled a long-running dispute over pay and contracts between the employer and employees from Paleik Textile Factory in Mandalay Region in collaboration with line governmental organizations in a peaceful manner.

The Ministry of Industry is making all-out-efforts for development of the industrial sector in accord with economic policy of the country.

Ref; The Global New Light of Myanmar