ADB Asia SME Monitor 2020 database.

MYANMAR
Table 8.1: SME Definition
A. Definition until 8 April 2015
Item Cottage Small
Power used (horsepower) 0.25-5 H.P Over 5 H.P
Employees Not more than 9 Over 10
Capital investment … Up to MK1 million
Annual production … Up to MK2.5 million
H.P = horsepower.
Note: Small and medium-sized enterprise definition until 8 April 2015. SMEs refer to small and medium industries (manufacturing) under the
Private Industrial Enterprise Law No.22/1990 and cottage industries under the Law Amending the Promotion of Cottage Industries Law
No.14/2011.
Source: ADB Asia SME Monitor 2020 database. Data from Central Department of Small and Medium Enterprises Development, Ministry of
Planning, Finance, and Industry.

B. Definition after 9 April 2015

Sector Item Small
Capital (C) Up to MK500 million
Manufacturing
Employees Up to 50
Capital (C) Up to MK500 million
Labor intensive manufacturing
Employees Up to 300
Turnover (T) Up to MK100 million
Wholesale business
Employees Up to 30
Turnover (T) Up to MK50 million
Retail business
Employees Up to 30
Turnover (T) Up to MK100 million
Services
Employees Up to 30
Turnover (T) Up to MK50 million
Other sectors
Employees Up to 30
Note: The SME Development Law enacted on 9 April 2015 stipulated the new SME definition.
Source: ADB Asia SME Monitor 2020 database. Data from SME Development Agency, Ministry of Planning, Finance, and Industry.
 Medium
25-50 H.P
50-100
MK1-5 million
MK2.5-5 million

and medium industries (manufacturing) under the

ng the Promotion of Cottage Industries Law

nd Medium Enterprises Development, Ministry of

Medium
MK500 million˂C≤MK1,000 million
51-300
MK500 million˂C≤MK1,000 million
301-600
MK100 million˂T≤MK300 million
31-60
MK50 million˂T≤MK100 million
31-60
MK100 million˂T≤MK200 million
51-100
MK50 million˂T≤MK100 million
31-60

nistry of Planning, Finance, and Industry.

ADB Asia SME Monitor 2020 database.
MYANMAR
Table 8.2: SME Landscape
End of period data
Item 2006 2007 2008 2009 2010
NUMBER OF ENTERPRISES
Number of enterprises, total 43,421 44,381 44,130 44,115 43,478
Number of SMEs* 39,949 40,811 40,529 40,396 39,272
Number of large enterprises 3,472 3,570 3,601 3,719 4,206
SME to total (%) 92.0 92.0 91.8 91.6 90.3
SME growth (%) -- 2.2 (0.7) (0.3) (2.8)
SMEs by sector (% share)
Food and beverages -- -- -- -- --
Construction materials -- -- -- -- --
Mineral and petroleum products -- -- -- -- --
Garments -- -- -- -- --
Others -- -- -- -- --
Number of SMEs by region (% share)**
Yangon 11.5 11.6 11.4 11.3 11.0
Naypyitaw -- -- -- -- --
Others 88.5 88.4 88.6 88.7 89.0
EMPLOYMENT
Number of employment, total (million)*** -- -- -- -- 29.7
Number of employment by SMEs -- -- -- -- --
Number of employment by large enterprises -- -- -- -- --
SME employees to total (%) -- -- -- -- --
Employees growth (%) -- -- -- -- --
Share of female employees to total employees (%) -- -- -- -- 37.9
Employment by sector (% share)
Food and beverages -- -- -- -- --
Construction materials -- -- -- -- --
Mineral and petroleum products -- -- -- -- --
Garments -- -- -- -- --
Others -- -- -- -- --
Employment by region (% share)
Yangon -- -- -- -- --
Naypyitaw -- -- -- -- --
Others -- -- -- -- --
CONTRIBUTION TO GDP
SME contribution to GDP (MK million) -- -- -- -- --
SME contribution to GDP (% share) -- -- -- -- --
SME GDP growth (% share) -- -- -- -- --
SME GDP by sector (% share)
Agriculture, forestry, and fisheries -- -- -- -- --
Manufacturing -- -- -- -- --
Transportation and communication -- -- -- -- --
Construction -- -- -- -- --
Wholesale and retail trade -- -- -- -- --
Other services -- -- -- -- --
Others -- -- -- -- --
SME GDP by region (% share)
Yangon -- -- -- -- --
Naypyitaw -- -- -- -- --
Others -- -- -- -- --
EXPORTS
Total export value (MK million) 26,121 34,363 38,681 36,874 49,506
Total export growth (%) 13.7 31.6 12.6 (4.7) 34.3
SME export value (MK million) -- -- -- -- --
SME export to total export value (%) -- -- -- -- --
SME export growth (%) -- -- -- -- --
IMPORTS
Total import value (MK million) 14,590 17,971 23,901 24,126 27,152
Total import growth (%) 25.9 23.2 33.0 0.9 12.5
SME import value (MK million) -- -- -- -- --
SME import to total import value (%) -- -- -- -- --
SME import growth (%) -- -- -- -- --
GDP = goss domestic product, SME = small and medium-sized enterprise.
* SMEs refer to small and medium industries (manufacturing) and cottage industries until 2015. Data for 2016-2019 reflect the new SME definition effective in Ap
** SMEs refer to small and medium industries (manufacturing) only.
*** Data refer to all enterprises (small, medium, and large industries [manufacturing]).
Notes: Number of small and medium industries and employees was calculated based on firms located inside of industrial zones. Data refers to fiscal year which
Source: ADB Asia SME Monitor 2020 database. Data from SME Development Agency and Central Statistics Office.
2011 2012 2013 2014 2015 2016 2017 2018

43,739 43,637 43,976 44,693 44,937 66,191 69,159 79,119

38,978 38,590 38,654 39,062 39,162 59,694 61,949 71,290
4,761 5,047 5,322 5,631 5,775 6,497 7,210 7,829
89.1 88.4 87.9 87.4 87.1 90.2 89.6 90.1
(0.7) (1.0) 0.2 1.1 0.3 52.4 3.8 15.1

65.5 64.7 63.9 62.7 60.7 59.6 58.4 57.3

7.2 7.8 7.8 7.6 8.1 8.4 8.6 8.9
4.1 4.3 4.7 5.1 5.4 5.8 6.3 6.6
3.6 3.8 4.1 4.5 0.9 1.1 1.2 1.4
19.6 19.4 19.6 20.1 24.8 25.0 25.5 25.9

10.5 10.1 9.8 9.7 13.7 13.4 13.2 14.9

-- 1.4 1.3 1.3 1.3 1.5 1.6 1.6
89.5 88.5 88.9 89.0 84.9 85.1 85.2 83.5

30.1 30.5 30.9 21.2 21.8 -- 22.0 22.5

-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
1.4 1.4 1.0 (31.2) 2.6 -- -- 2.0
37.9 37.9 37.9 39.3 43.1 -- 42.5 43.4

40.7 34.1 33.4 32.8 31.9 29.9 28.0 27.8

4.9 6.2 6.3 6.2 6.5 6.9 7.1 6.7
2.6 2.8 2.8 2.9 2.9 2.9 2.9 2.7
39.8 44.4 45.4 46.2 58.6 60.4 62.0 62.9
11.9 12.5 12.1 11.9 -- -- -- --

62.5 61.9 62.4 62.7 62.5 63.6 66.4 66.5

-- 0.6 0.6 0.6 0.6 0.6 0.7 0.6
-- 37.4 36.9 36.7 36.4 35.8 32.9 32.9

-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --

-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --

-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --

51,916 7,609,500 11,098,204 11,812,738 14,907,328 16,068,728 18,901,836 25,841,600

 4.9 14,557.2 45.8 6.4 26.2 7.8 17.6 36.7
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --

51,085 7,866,855 11,898,484 16,730,930 21,832,872 21,320,895 26,222,586 29,984,750

88.1 15,299.5 51.2 40.6 30.5 (2.3) 23.0 14.3
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --

ew SME definition effective in April 2015.

Data refers to fiscal year which starts from 1 April and ends on 31 March of the following year.
2019

83,591
75,116
8,475
89.9
5.4

56.7
9.1
6.8
1.6
25.9

15.3
1.7
83.0

--
--
--
--
--
--

26.4
6.6
2.7
64.4
--

66.4
0.6
33.0

--
--
--

--
--
--
--
--
--
--

--
--
--

--
--
--
--
--

--
--
--
--
--
ADB Asia SME Monitor 2020 database.
MYANMAR
Table 8.3: Bank Credit
End of period data
Item 2009 2010 2011 2012 2013
COMMERCIAL BANKS
Number of commercial banks 18 18 22 22 22
Private sector banks 15 15 19 19 19
State-owned banks 3 3 3 3 3
Credit
Loans outstanding, total (MK million) 657,465 998,575 1,767,838 2,879,802 4,215,973
Loans outstanding in domestic currency (MK million) -- -- -- -- --
Loans outstanding in foreign currency (MK million) -- -- -- -- --
Loan growth (%) 29.1 51.9 77.0 62.9 46.4
Total commercial bank loans to GDP (%) 2.2 2.9 4.4 6.2 8.2
Lending rate (%)* 17.0 17.0 16.3 13.0 13.0
Gross nonperforming loans (NPLs) (MK million) -- -- -- -- --
Gross NPLs to total loans (%) -- -- -- -- --
Loans outstanding by sector (% share)
Agriculture, forestry, and fisheries 9.0 7.5 14.6 21.4 16.5
Manufacturing 27.3 27.3 26.5 19.3 16.7
Transportation and communication 3.1 2.3 2.0 1.8 1.6
Construction 5.7 5.0 7.1 8.9 9.9
Wholesale and retail trade 32.3 33.9 31.6 29.9 32.8
Other services 12.5 14.6 11.3 10.2 11.0
Others 10.2 9.4 6.9 8.5 11.4
Deposits
Deposits, total (MK million) -- -- 7,010,077 11,733,322 16,297,118
Deposits in domestic currency (MK million) -- -- -- -- --
Deposits in foreign currency (MK million) -- -- -- -- --
Deposit rate (%)* 12.0 12.0 11.3 8.0 8.0
SME LOANS**
SME loans outstanding, total (MK million) -- -- -- -- --
SME loans to total loans outstanding (%) -- -- -- -- --
SME loans to GDP (%) -- -- -- -- --
SME loan growth (%) -- -- -- -- --
SME lending rate (%) -- -- -- -- --
Nonperforming SME loans (NPLs) (MK million) -- -- -- -- --
SME NPLs to total SME loans (%) -- -- -- -- --
Number of SME loan borrowers -- -- -- -- --
SME loan borrowers to total bank borrowers (%) -- -- -- -- --
SME loan rejection rate (% of total applications) -- -- -- -- --
Number of SME savings account in banks -- -- -- -- --
Guaranteed SME loans (MK million) -- -- -- -- --
Non-collateral SME loans (MK million) -- -- -- -- --
SME loans outstanding by sector (% share)**
Agriculture, forestry, and fisheries -- -- -- -- --
Manufacturing -- -- -- -- --
Transportation and communication -- -- -- -- --
Construction -- -- -- -- --
Wholesale and retail trade -- -- -- -- --
Other services -- -- -- -- --
Others -- -- -- -- --
SMALL AND MEDIUM INDUSTRIAL DEVELOPMENT BANK
SME loans outstanding, total (MK million) 16,421 34,963 45,846 61,835 72,263
SME loans to total loans outstanding (%) 2.5 3.5 2.6 2.1 1.7
SME loans to GDP (%) 0.06 0.10 0.12 0.13 0.14
SME loan growth (%) -- 112.9 31.1 34.9 16.9
SME NPLs to total SME loans (%) -- -- -- -- --
SME lending rate (%) -- -- -- -- --
SME loans outstanding by sector (% share)
Agriculture, forestry, and fisheries -- -- -- 5.7 1.4
Manufacturing -- -- 54.6 40.1 37.3
Transportation and communication -- -- 2.0 1.4 1.8
Construction -- -- 3.5 3.8 6.1
Wholesale and retail trade -- -- 26.3 28.3 30.1
Other services -- -- 10.5 10.0 7.9
Others -- -- 3.1 10.8 15.4
SME loans outstanding by region (% share)
Yangon -- -- 68.0 69.2 53.3
Naypyitaw -- -- 2.8 9.2 5.3
Others -- -- 29.3 21.6 41.4
SME loans outstanding by type of use (% share)
For working capital -- -- -- -- --
For capital investment -- -- -- -- --
SME loans outstanding by tenor (% share)
Less than 1 year -- -- 100.0 100.0 100.0
1-5 years -- -- -- -- --
More than 5 years -- -- -- -- --
GDP = goss domestic product, SME = small and medium-sized enterprise.
* Based on IMF/IFS data on other depository corporations' rates (percent per annum).
** Based on Central Bank of Myanmar data.
Notes: Data refers to fiscal year which starts from 1 April and ends on 31 March of the following year. Net income represents amounts before tax.
Source: ADB Asia SME Monitor 2020 database. Data from Central Bank of Myanmar and Small and Medium Industrial Development Bank.
 2014 2015 2016 2017 2018 2019

25 25 27 27 27 29
22 22 24 24 24 26
3 3 3 3 3 3

6,427,788 9,057,691 12,344,306 16,132,449 19,446,011 23,357,888

-- -- -- -- -- --
-- -- -- -- -- --
52.5 40.9 36.3 30.7 20.5 20.1
11.1 13.9 17.0 20.2 21.5 --
13.0 13.0 13.0 13.0 13.0 --
-- -- -- -- -- --
-- -- -- -- -- --

19.8 16.9 12.6 12.2 1.7 2.2

12.6 13.4 11.3 11.3 10.5 12.3
1.2 1.2 1.1 1.4 2.2 2.0
10.5 12.0 13.6 15.4 18.3 18.6
27.4 33.3 33.1 33.6 35.5 25.7
9.5 10.7 11.4 12.0 13.0 15.6
19.1 12.5 16.8 14.1 18.9 23.7

19,919,513 25,882,793 32,114,334 -- -- --

-- -- -- -- -- --
-- -- -- -- -- --
8.0 8.0 8.0 8.0 8.0 --

-- -- -- 733,235 896,840 1,131,665

-- -- -- 4.5 4.6 4.8
-- -- -- 0.9 1.0 --
-- -- -- -- 22.3 26.2
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- 7,940 11,042 15,739
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --

-- -- -- 1.3 0.9 1.0

-- -- -- 22.2 20.8 18.9
-- -- -- 3.9 3.8 3.4
-- -- -- 2.2 2.0 1.5
-- -- -- 52.4 50.5 45.6
-- -- -- 8.1 9.9 11.4
-- -- -- 9.9 12.1 18.3

85,512 116,145 124,743 110,498 143,937 159,825

1.3 1.3 1.0 0.7 0.7 0.7
 0.15 0.18 0.17 0.14 0.16 --
18.3 35.8 7.4 (11.4) 30.3 11.0
-- -- -- -- -- --
-- -- -- 8.5 ~ 13 -- 8.5 ~ 16

-- -- -- -- 0.3 0.5
28.4 26.3 38.1 30.1 19.6 21.8
1.9 0.6 0.4 1.1 0.3 0.2
4.2 2.2 2.3 2.1 1.9 1.6
36.7 41.9 37.5 39.1 28.0 30.6
10.8 8.2 9.4 7.6 22.9 3.7
17.9 20.9 12.3 20.0 27.2 41.6

54.5 59.4 39.6 42.3 57.5 59.5

5.1 3.8 10.0 10.1 2.9 3.8
40.4 36.9 50.4 47.6 39.6 36.8

-- -- -- -- -- --
-- -- -- -- -- --

100.0 100.0 100.0 100.0 100.0 100.0

-- -- -- -- -- --
-- -- -- -- -- --

sents amounts before tax.

Development Bank.
ADB Asia SME Monitor 2020 database.
MYANMAR
Table 8.4: Nonbank Finance
End of period data
Item 2012 2013 2014 2015 2016
NUMBER OF NONBANK FINANCE INSTITUTIONS
Microfinance institutions 24 91 140 172 154
Credit unions/cooperatives -- -- -- -- --
Finance companies -- -- -- -- --
Pawnshops -- -- -- -- --
Leasing companies -- -- -- -- --
Factoring companies -- -- -- -- --
Insurance companies -- -- -- -- --
Others -- -- -- -- --
MICROFINANCE INSTITUTIONS
Financing outstanding, total (MK million) 49,194 67,245 110,069 169,293 260,948
Growth (%) -- 36.7 63.7 53.8 54.1
Total financing to GDP (%) 1.68 1.98 2.77 3.66 0.01
Annual financing rate (%, on average) 30.0 30.0 30.0 30.0 30.0
Gross nonperforming financing (NPFs) (MK million) 42.1 40.6 68.0 257.5 1,644.7
Gross NPFs to total financing (%) 0.1 0.1 0.1 0.2 0.6
Number of customers financed, total 426,245 548,881 815,056 1,106,881 1,445,313
Financing outstanding by sector (% share)
Agriculture, forestry, and fisheries 36.1 38.8 25.4 22.1 23.9
Manufacturing 3.1 2.7 2.7 2.4 2.9
Transportation and communication -- 0.03 0.12 0.24 0.36
Construction -- -- 0.001 0.120 0.003
Wholesale and retail trade 21.4 22.7 27.1 27.9 29.4
Other services 10.5 9.6 12.0 14.4 15.4
Others 28.9 26.1 32.6 32.9 28.1
Financing outstanding by region (% share)
Yangon 94.4 95.5 96.7 97.5 98.1
Naypyitaw -- 0.2 0.6 0.7 0.8
Others 5.6 4.3 2.7 1.8 1.1
GDP = gross domestic product.
Notes: Data for 2012 to 2018 refer to fiscal year which starts from 1 April and ends on 31 March of the following year. Data in 2019 as of September 2019 due to
from October 2018.
Source: ADB Asia SME Monitor 2020 database. Data from Financial Regulatory Department, Ministry of Planning, Finance, and Industry.
 2017 2018 2019*

162 171 189

-- -- 31,810
-- -- --
-- -- --
-- -- --
-- -- --
-- -- 20
-- -- --

426,016 793,197 1,800,232

63.3 86.2 127.0
0.01 0.01 0.03
30.0 30.0 30.0
2,769.5 9,085.2 14,376.3
0.7 1.1 0.01
2,121,929 3,029,529 5,340,000

23.5 17.8 30.8

3.3 4.7 10.5
0.37 0.30 --
0.003 0.003 --
31.0 35.7 33.2
18.3 19.4 25.6
23.5 22.2 --

98.6 99.3 --
0.7 0.4 --
0.7 0.4 --

2019 as of September 2019 due to the new fiscal year starting

ADB Asia SME Monitor 2020 database.
MYANMAR
Table 8.5: Capital Markets
End of period data
2016* 2017 2018 2019
EQUITY MARKET
Main Board
MYANPIX (Index) 561.5 463.2 406.2 458.2
Market capitalization (MK million) 583,957 578,721 554,599 627,449
Growth (%) -- (0.9) (4.2) 13.1
Trading value (MK million) 89.4 15.4 100.7 21.9
Trading volume (shares) 12,299 2,715 14,802 3,845
Number of listed companies** 3 4 5 5
Number of IPOs 0 0 1 0
Number of delisted companies 0 0 0 0
IPO = initial public offering.
*Yangon Stock Exchange (YSX) started the first trading on 25 March 2016.
**The three companies in 2016 and one in 2017 were just listing. They did not do any public offering at the time of
listing.
Note: Data are as of the end of the year.
Source: ADB Asia SME Monitor 2020 database. Data from Yangon Stock Exchange.
ADB Asia SME Monitor 2020 database.
MYANMAR
Table 8.6: Policies and Regulations
Regulations
Name
Nonfinance regulations
Private Industrial Enterprise Law No.22/1990
Law Amending the Promotion of Cottage Industries Law No.14/2011
Foreign Investment Law No.21/2012 (amendment)
SME Development Law No.23/2015

Myanmar Companies Law No. 29/2017

SMEs Development Central Committee’s Notification Numbers (1/2018),

(2/2018),(3/2018), January 2018
Finance regulations
Financial Institutions of Myanmar Law No.16/1990

Myanmar Agricultural and Rural Development Bank Law No.17/1990

Savings Banks Law No. 5/1992
Cooperative Society Law No.9/1992
Insurance Business Law No. 6/1996
Microfinance Business Law No.13/2011
Central Bank of Myanmar Law No.16/2013
Securities Exchange Law No.20/2013
Financial Institutions Law No. 20/2016

Secured Transaction Law (Draft), Forthcoming

Regulators and Policymakers

Name
SMEs Development Central Committee

SMEs Development Working Committee

SME Development Department, Ministry of Planning, Finance, and Industry
(MOPFI)
Financial Regulatory Department, MOPFI
Securities and Exchange Commission, MOPFI
Central Bank of Myanmar (CBM)
Policies
Responsible
Name
Entity
Policy of Small and Medium Enterprise Development Ministry of Industry
(2005) (MOPFI, since
November 2019)
Myanmar Financial Inclusion Roadmap 2014-2020 CBM

SME = small and medium-sized enterprise.

Source: ADB Asia SME Monitor 2020 database. Data from Ministry of Planning, Finance, and Industry; and Central Bank of Myanmar.
 Regulations
Outline

Business registration and regulations. SME definition included.

Cottage industries defined as small scale industries.
Regulation and promotion of foreign investment and exports.
The establishment of the SME Development Agency. The establishment of the SME
Development Fund. New SME definition included.
Implementation of an online company registration system under the Directorate of Investment
and Company Adminsitration (DICA).
Creation of Evaluating and Reporting Body, SME Agency, and Fund Management Body.

Regulation on financial institutions (commercial banks, investment/development banks, finance

companies, and credit societies).
Regulation on Agricultural Bank and Rural Development Bank.
Regulation on savings banks.
Regulation on credit societies.
Regulation on insurance companies.
Regulation on microfinance operations.
Stipulate the central bank as a regulator for financial institutions.
Regulation on securities companies and stock exchange.
Regulation on financial institutions (commercial banks, development finance banks, nonbank
financial institutions, and scheduled institutions).
Establishment of a modern and formal credit market through which borrowers can take loans
using a broad range of moveable assets as collateral and micro, small and medium-sized
enterprises have better access to financing.

Regulators and Policymakers

Responsibility
Formulates policies and guidance to carry out the development of SMEs in accordance with the
basic principles contained in the SME Development Law.
Provides information to Central Committee to support the promotion of SMEs.
Responsible for SME sector development.

Regulate and supervise nonbank financial institutions.

Regulate and supervise securities companies, listed companies and stock exchange.
Regulate and supervise financial institutions (banks and nonbank financial institutions).
Policies

Outline
1) Policy support areas:
(i) Human resources
(ii) Technology development and innovation
(iii) Financial resources
(iv) Infrastructure development
(v) Market access
(vii) Appropriate taxation and procedures
(viii) Conducive business environment
2) Role of the SME Development Agency:
(i) Registration of SMEs
(ii) Financial assistance
 (iii) Market analysis
(iv) Human resource development
(v) Monitoring of SME development activities (annual progress report)
(vi) SME analysis (to reduce disadvantages of SMEs)
(vii) Facilitation of non-financial services (business development services)
(viii) SME data collection
(ix) Connection with international financial institutions and development agencies,
business associations, and non-government organizations
(x) Collaboration with financial institutions
3) Prioritized industries listed in the short-term and long-term perspective
1) Strengthened financial sector to better support financial inclusion
i) Institutions critical to financial inclusion are created/strengthened
ii) Market barriers across product categories are addressed
2) Financial inclusion for three priority segments
i) Improved financial access in agriculture
ii) Increased financial access for SMEs
iii) Financial inclusion and resilience for low income households

try of Planning, Finance, and Industry; and Central Bank of Myanmar.