MSME support aims to boost national economy and exports

Chairman of the State Administration Council Prime Minister Senior General Min Aung Hlaing delivered a speech at the National Economic Development Coordination Meeting held yesterday afternoon at the meeting hall of the State Administration Council Chairman’s Office in Nay Pyi Taw.

The Chairman of the State Administration Council and Prime Minister began the meeting with opening remarks, emphasizing that agriculture and livestock are the backbone of the country’s economy. He stressed the importance of increasing the production of staple food items such as rice, cooking oil, meat, and fish to ensure stable and affordable food prices.

He reiterated the government’s commitment to developing agro-based and livestock-based manufacturing industries and highlighted the need to build on the country’s strong foundations in these sectors to boost productivity. Although oil crops like peanuts, sesame, sunflower, and soybeans are being cultivated, the country still lacks self-sufficiency in edible oil, leading to continued reliance on imports. Therefore, he underscored the need for sustained efforts to achieve self-sufficiency in oil production.

A country’s economy is typically measured by its GDP. In the 2024-2025 financial year, our GDP was recorded at US$76.4 billion. For the 2025-2026 financial year, it is projected to reach $81.6 billion, with a targeted increase of approximately $5.2 billion. While reviewing these figures, we noted that the World Bank had initially projected Myanmar’s economic growth at 2.5 per cent. However, it has now revised its forecast, predicting a potential contraction of up to -2.5 per cent. He said this revision is based on inaccurate and incomplete data. What matters most for Myanmar is the need for genuine effort. Regardless of external forecasts, if the people remain committed and hardworking, we can defy these expectations and achieve real GDP growth.

He said that Myanmar has a lower GDP compared to other ASEAN nations and neighbouring countries, we must make every effort to strengthen the manufacturing sector to boost GDP. The Prime Minister noted that he recently attended the Fourth Europe-Asia Economic Forum (EEF 2025) held in Belarus. He highlighted that Belarus is a country with a strong agro-based industry. Its GDP stands at $73.1 billion, with agricultural exports generating between $6.8 billion and $8.2 billion. In contrast, Myanmar’s agricultural exports amount to only about $4.8 billion – roughly half that of Belarus – underscoring the need to modernize our agricultural and livestock sectors.

He explained that beyond attending the forum, the visit provided an opportunity to closely study Belarus and its development strategies. Despite being smaller in both land area and population compared to Myanmar, Belarus has achieved a higher GDP. The country is recognized globally for its production and export of advanced agricultural machinery, a result of adopting modern farming practices and building strong export capacity. In the livestock sector, Belarus also excels. It raises dairy cattle using modern equipment and technologies to produce and export a wide range of dairy products – an area from which Myanmar could draw valuable lessons.

Similarly, during his visit to the Republic of Buryatia in the Russian Federation, It was observed that they are using modern techniques in local livestock farming, including the breeding of purebred animals and the export of high-quality meat. If Myanmar adopt similar production methods and make use of the strong foundations already present in our country, while implementing these practices in a systematic and organized way, it can also achieve success in its agricultural and livestock sectors, just as they have.

Our country currently has a national rice self-sufficiency rate of around 170 per cent. However, there are still some regions and states that have not yet achieved self-sufficiency in rice production. By cultivating systematically and improving crop yields in line with set goals and objectives, it is possible to attain rice self-sufficiency in each region and state.

It has been observed that Chin State, Taninthayi Region, Magway Region, Mandalay Region, Yangon Region, and Shan State are not yet self-sufficient in rice. If the targeted objectives are successfully met in these areas, all regions and states, except for Chin State and Mandalay Region, can reach rice self-sufficiency. Moreover, if the country can produce high-quality rice for export, it would generate increased foreign income. Therefore, we must continue working to enhance agricultural productivity.

In the rice cultivation efforts across various regions and states, authorities have encouraged the use of seed planting and rice transplanters, and there has been noticeable improvement in these practices. To further enhance productivity, it is important to maintain proper row spacing and ensure grow healthily and increase yields. For this, it is essential to cultivate crops systematically to ensure they thrive and reach their full potential.

In addition to increasing crop yields, it is also important to expand the cultivated area and promote multiple cropping practices. During the 2022-2023 period, the total rice cultivation area was 17 million acres, including 15 million acres of primary cultivation, 2.24 million acres of multi-cropping, and 28,000 acres of intercropping.

Currently, there are 7.33 million acres of farmland where only a single crop is grown throughout the year. Cultivating rice or other suitable crops on these lands would bring significant benefits. Across the country, there are approximately 20 million acres of farmland used for single-crop cultivation annually.

Regions and states must take concrete steps to ensure the success of agricultural activities. To achieve agricultural goals, it is essential to begin with systematic planting, using high-yielding seed varieties, applying appropriate fertilizers, and improving soil quality. Additionally, measures must be taken to ensure a reliable water supply for agriculture. The government committed to making agricultural activities successful, and also urge the chief ministers of all regions and states to prioritize the development and success of agriculture and livestock-related enterprises during their terms in office, except for cases impacted by natural disasters. He emphasized that ensuring the success of agriculture-based businesses should remain a key priority of the government.

There have been reports indicating a rise in Myanmar’s poverty index. Generally, poverty can be caused by two main factors: the failure of businesses and the impact of natural disasters. In our country, around 70 per cent of the population lives in rural areas, while the remaining 30 per cent reside in urban centres. Of the total population, more than half are engaged in agriculture and forestry in some capacity. Therefore, if the country can successfully implement agriculture and livestock initiatives – the primary livelihoods of rural communities – it will make a significant contribution to poverty reduction. These efforts must be carried out with care and a genuine sense of responsibility to ensure their success. In addition to agriculture, livestock development must also be prioritized. Myanmar has the potential to successfully raise chickens, pigs, goats, sheep, cattle, and fish across all regions of the country. Expanding both agricultural and livestock activities is essential to meet the daily nutritional needs of the population, such as meat, fish, eggs, and fruits, while also boosting local economies.

By doing so, the socio-economic conditions of rural communities will improve. Since agriculture and livestock are primarily rural-based, increasing productivity in these sectors will raise rural incomes and help reduce poverty indicators nationwide.

Since around 2021, we have been providing support for micro, small and medium enterprises (MSMEs) based on agricultural and livestock products. At present, it can be observed that many of these enterprises are operating successfully to a certain extent.

Looking globally, it is evident that MSMEs are being encouraged and promoted. When we look at the MSMEs in our own country, we find that the majority are involved in the production of food and beverage products. Therefore, it is necessary to increase the production of goods that can enter wider markets, such as industrial products and agricultural machinery and equipment.

In manufacturing, some products require labour to produce, as well as others can be made using natural resources. For example, with bamboo, which grows naturally in the environment, it is possible to produce a wide variety of goods. If used effectively and profitably, such products could generate substantial national income. Hence, attention should be drawn to this opportunity.

Regarding crops, there are approximately 500,000 acres of cotton plantations. If cotton-based industrial enterprises are promoted, this could greatly contribute to national economic development. Cotton is a crop with strong potential for supporting the country’s development and should be supported and expanded.

Therefore, cotton and bamboo should be prioritized and developed as key industries to boost the national economy.

Support is being provided to micro, small, and medium enterprises (MSMEs) with the objectives of replacing imported goods, strengthening the domestic economy, producing high-quality products for export, and generating foreign income.

In operating MSMEs, access to raw materials is of primary importance. Therefore, priority is being given to MSMEs that are based on regionally produced raw materials. At the same time, it is necessary to ensure the adequate supply of critical imports such as fertilizers, pesticides, fuel for machinery, and electricity.

In addition to financial capital, it is also essential to have sufficient and skilled human resources. During recent visits to MSMEs across the country, reports were received regarding shortages of labour. As a result, in 2024, a request was made to compile a list of the working-age population based on the country’s total population.

According to available data, the estimated number of people of working age (those aged between 15 and 65) is approximately 34.806 million. Of these, around 19.141 million are engaged in some form of employment. There are over 1 million civil servants, approximately 140,000 university students, and around 17.13 million people registered and working as labourers domestically and abroad. Although the country possesses a substantial labour force, there is a need to make more effective use of this potential. While Myanmar already has favourable land and conditions for employment, there is still a need to create real job opportunities.

To this end, the government has allocated funds from the National Economic Promotion Fund to regions and states. Additional funding is being provided as necessary. The government will also continue to supply the required investment and technology. What is most important, however, is that people must truly be willing to work.

The World Bank has assessed that Myanmar’s Gross Domestic Product (GDP) may decline due to disruptions in production caused by ongoing conflicts within the country, and due to damage sustained by economic activities following the recent major earthquake in Mandalay.

In response, we have included in our post-earthquake recovery plans measures to provide low-interest investment funding to help economic activities resume as quickly as possible.

We are fully committed to making every effort to restore the national economy, which has been adversely affected. We will support the development of manufacturing industries and provide necessary encouragement to those who wish to contribute to the country’s economic growth.

It is our firm belief that if such efforts are carried out effectively, the national economy will have the potential to recover and improve.

Following that, in connection with national economic development, the Union Minister for Planning and Finance provided explanations regarding the financial status of the Union Government, including annual budget estimates by financial year, the use of emergency funds in response to natural disasters, and contributions made to the National Disaster Management Fund.

He also discussed the preparation of the Union Budget Estimate for the 2025–2026 financial year; consumer price inflation and monetary inflation rates; the expenditure and remaining balance of the MSME Development Fund; the establishment and additional capital inflow of the National Economic Promotion Fund, and distributions made to regions and states.

The Union Minister for Agriculture, Livestock and Irrigation explained the progress in the agricultural and livestock sectors, and the development of manufacturing industries based on those sectors. He also shared findings from the study of export and import volumes, as well as revenue and expenditure figures from financial years 2020-2021 to 2024-2025. Comparative observations regarding the production and export volumes of neighbouring countries were also presented.

The Union Minister for Energy outlined the ministry’s ongoing efforts in the energy sector to support national economic development. He explained the current initiatives to reduce reliance on imported petroleum products, to locally produce and use high-grade fuels, and the benefits of doing so. Measures to reduce imports of fertilizers were also being implemented. In addition, he highlighted key fundamental measures being taken to improve the energy sector.

The Union Minister for Industry presented on the formation of committees and commissions dedicated to the development of the industrial sector and MSME manufacturing businesses. He discussed the organization of MSME product exhibitions, efforts to ensure the local production of high-quality iron and steel for the construction industry, and plans to maximize the output of cement factories.

He further explained ongoing activities for the development of industries and industrial zones, promotion of manufacturing enterprises, the increasing production of pharmaceuticals, and the production performance of state-owned factories by financial year.

Afterwards, those attending the meeting held discussions and presented their views on matters relating to the country’s economic development.

In response to the presentations, the Chairman of the State Administration Council and Prime Minister stated that it is necessary to ensure sufficient domestic production of the medicines most needed in the country.

He added that in supporting MSMEs, priority should be given to using locally available raw materials to produce improved goods that can also be increasingly exported abroad.

He also stressed that in carrying out manufacturing activities, emphasis should be placed on producing quality products in large quantities that meet market demands, so they can be sold successfully.

Afterwards, in his concluding remarks, the Chairman of the State Administration Council and Prime Minister stated that the matters discussed were productive and constructive.

He noted that the government is currently working towards the development of the national economy and the reduction of commodity prices. He emphasized that while there are matters that require long-term efforts, there are also issues that must be addressed and resolved immediately.

He highlighted the need to prioritize economic development in the short term and called for improvements in the manufacturing sector. He added that necessary support should be provided as much as possible to meet the requirements for implementing these activities.

Furthermore, he pointed out that, through conducting research and studies, it would be possible to enhance and improve business operations more effectively.

In carrying out agricultural activities, it is necessary to conduct research aimed at cultivating high-yield and high-quality crop varieties that are suited to the current conditions. Efforts should also be made to achieve wheat sufficiency across all regions and states.

As maize production is also a national necessity, it is important to produce high-quality maize as a raw material so that value-added maize-based products can be manufactured domestically and exported.

Enhancing the cultivation and production of oil crops such as sunflower will greatly contribute to domestic oil sufficiency.

It is also necessary to research to ensure high-quality cultivation of fruit crops that thrive in Myanmar, such as Myanmar durian and Sein Ta Lone mangoes. Cultivating crops according to zones that match the local conditions will enable the production of large quantities of high-quality produce in concentrated areas.

Furthermore, improving the cultivation of kitchen crops such as onions, garlic, potatoes, and other essential vegetables will directly benefit farmers.

Research activities will lead to improvements in the cultivation of crops that are essential to the nation and will greatly contribute to national economic development.

Similarly, in the area of livestock breeding, the raising of indigenous poultry already has both domestic and international market potential, and the required animal feed can be sufficiently sourced within the country.

Research should also be carried out concerning the breeding of animals such as chickens, ducks, pigs, goats, cattle, fish, and prawns in order to help improve domestic livestock production. In addition, support should be provided to those engaged in livestock farming.

If we are able to further develop agricultural and livestock-based production industries to ensure domestic sufficiency and increase exports, this will provide considerable support to national economic growth.

However, it was also noted that illegal trade and unauthorized extraction of natural resources in border areas continue to cause serious harm to the nation. Therefore, regional and state governments must take systematic action to strictly control and prevent such activities.

The meeting concluded in the evening after the discussions. It was attended by members of the Council, Union ministers, the chairman of the Nay Pyi Taw Council, deputy ministers, and departmental officials, while chief ministers from various regions and states joined via videoconference.

MNA/KNN/TH

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