Myanmar stresses role of private business organization in economic development

A high ranking Myanmar defense official has stressed the important role played by the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) in helping private entrepreneurs to achieve success in national economic development.

Noting that the private sector contributes 53.6 percent to the country's foreign trade, Lieutenant-General Myint Swe, Chief of Military Affairs Security of the Ministry of Defense, told the entrepreneurs at their annual meeting here on Friday that the government is practising trade policy systematically, encouraging export and allowing necessary goods for import, the state-run newspaper New Light of Myanmar reported Saturday.

Pointing out that since the fiscal year 2002-03, Myanmar has seen trade surplus, Myint Swe held that if the already achieved momentum is maintained and export is extended, the country will have prospects for economic development.

He urged the entrepreneurs to boost production of value-added goods to be able to win customers' satisfaction in the international market, emphasizing the need to focus on boosting output of semi-finished and finished products of beans and pulses, forest and marine products, while seeking ways for the supply of financial and technological resources with the help of the government.

He also called for boosting production of import-substitute products, pointing out that the country had to import yearly 24 to 30 million U.S. dollars worth of dairy products, 70 millioin dollars' edible oil and 28 million dollars' car tyres.

He further urged boosting of export crop items, diary and marine products through initiating contract farming system.

According to the UMFCCI, Myanmar's private sector now contributes 90 percent to the gross domestic product (GDP). The sector had turned over 1.3 billion dollars in 2003-04 and 2.8 billion dollars in 2004-05, accounting for 55.5 percent and over 43 percent of the GDP in the respective years.

Statistics show that Myanmar's GDP grew to 12.2 percent in 2004- 05 from 12 percent in 2003-04.

Although the country's foreign trade surplus and the GDP growth in 2004-05 were satisfactory, there produced 9-percent inflation rate which requires to be brought down to 5 percent, U Soe Tha, Minister of National Planning and Economic Development and Secretary of the government's Trade Council, stressed at a recent meeting with exporters and importers in the country.

According to official figures, in the last fiscal year of 2004- 05, the country's exports were valued at 2.9 billion, while its imports stood 1.9 billion out of its total foreign trade volume of 4.9 billion with a trade surplus of 954 million.

Myanmar's export is expected to hit 3 billion U.S. dollars in the fiscal year 2005-06 which ended in March.

Source: Xinhua