Nearly six months after the regime’s Arakan State Administration Council (ASAC) promised 10 billion kyats in loans to micro, small and medium enterprises (MSMEs) in Arakan State, qualifying business owners say they have yet to receive any loans.
The ASAC announced its plan to lend K10 billion to MSMEs on August 19, 2022, but the regime has not yet disbursed the money, according to loan applicants.
The loans, if provided in a timely manner, will contribute a great deal to local MSME, said =U Tin Nyein Oo, director of the Oh Thu Gyi Arakanese food manufacturing operation.
“It is the dry season and also cultivation season now, which is ideal for production. It will benefit us a lot if we can get loans at this time,” he said.
MSME business owners also called on authorities to properly examine loan applications so that only those who are really running businesses on the ground receive loans. They also suggested allocating loans for different sectors.
“We want the amount of loans provided to be sufficient to run a business. If MSMEs receive loans, the state will see economic growth,” said Ko Nyi Toe Min, chairman of the MSME Association Rakhine.
The association was formed in March of last year with a view toward exchanging technologies among MSME businesspeople, networking with local and foreign businesses, and creating markets for products manufactured by local MSMEs. The association now has more than 100 members.
The loans will be provided for MSMEs, as well as for agriculture and livestock farming, and authorities are still examining loan applications, said ASAC economic minister U San Shwe Maung.
“We are still screening loan applications. After we have a list of approved applications, we will meet MSME business owners one by one, and proceed according to the procedure. We can’t tell how long it will take,” said the minister.
The prominent businessman U Khin Maung Gyi from Arakan State called on authorities to provide practical assistance for MSMEs in Arakan State.
“Support given to MSME businesses has never been sufficient. Though the [lending] policy highlights the importance of MSMEs, there has never been practical assistance,” he said.
The ASAC has organized local MSME product exhibitions in Sittwe and Kyaukphyu to facilitate networking among local MSME businesses and help create markets.
