Myanmar SMEs and Industry Policy

Myanmar’s industrial development was in the process of implementation since the previous government under the ambitious plan known as “Myanmar to be a Modern, Developed Industrialized Country”. A 20 years-long Myanmar industrial development plan, split into four different 5 years plan, is currently being created to enhance the development of the industrial sector. Under the first 5 years plan, the primary issue is the development of Myanmar SMEs. Thus, it can be determined that the development of SMEs serves as a foundation for further development of the industrial sector.
Agriculture, industry, and services are considered Myanmar’s key sectors and it is estimated that the industrial sector will contribute to 37% of the overall GDP by 2030. However, the actual contributions of manufacturing and processing sector under the industry is only slightly over 20% due to the fact that the industrial sector is comprised of mining, electricity, energy, construction and manufacturing and processing sectors.


The private sector can be separated into three main sectors which are manufacturing, wholesale and retail, and services. Not only is it challenging to start a business but also to keep the business operational particularly in the manufacturing sector. SMEs, flexible in nature are also difficult to start or survive business. The fact that SMEs make up about 95% of all businesses in the country display that SMEs provide the highest marginal benefits and opportunities. Subsequently, it is highly encouraged to emphasize and prioritize the necessary measures that the government and private sector are already aware of, for the further development of SMEs in Myanmar.