SMEs, SEZs will spur regional growth: vice president

Speaking at the Asean Business and Investment Summit on Wednesday, VP Sai underscored the importance of SMEs and SEZs in the sustainable development of the region.
"Myanmar has set priorities for development, narrowing the development gap and encouraging SMEs, which are the prime movers of economic development," he said.
"SMEs are the backbone of the Asean economy and it is incumbent to achieve long-term sustainable growth. Similarly, we also need to support and encourage young entrepreneurs and women leaders to achieve economic development in our region."
He added that the government has prioritised private sector development in its economic reforms by reducing barriers in doing business in the country one after another and promoting public-private partnership.
"Today, Asean member states are striving to achieve economic development amid economic uncertainties. At the same time, it is important to assess the socio-economic impacts and review social life to create a better future for our people," he said.
During the summit, the vice president committed support to businesses that need help, self-help businesses, and SMEs to narrow the development gap and reduce various forms of disparities, such as education and unemployment among the member states.
He also highlighted the country's strategic location, which served as a bridge to connect South Asia and Southeast Asia.
"Because of our favourable location, we have initiated special economic zones such as Thilawa, Dawei, and Kyauk Phyu SEZs. In this regard, I would like to invite you to come forward with investments in our SEZs," he said.
He said implementation of the master plan on Asean connectivity, working for the sustainable development of micro, small and medium enterprises, and measures to narrow the development gap are crucial factors to achieve economic growth.
Minister for National Planning and Economic Development Kan Zaw echoed the vice president's view.
"Most of the businesses in Asean are micro, small and medium enterprises. So the power of SMEs and SEZs will support the region's growth. I have no doubt that Asean member states will be able to improve the investment framework under the four fundamental pillars of investment - liberalisation, protection, facilitation, and promotion," said Kan Zaw.
Nowadays, Asean has become one of the most open trading blocs in the world. Last year, the global FDI reached up to US$1.5 trillion, and FDI inflow to Asean member states amounted to $122.4 billion, which was 16.9 per cent of the global FDI flow, increasing 7.1 per cent in comparison with 2012. About 33 per cent of the total FDI inflow went to manufacturing while financial and related services received about 27.3 per cent. Asean dialogue partners were the biggest sources of FDI inflows to the region, reaching $70.8 billion, 44.8 per cent of the global FDI inflow last year.
"As investors regain confidence in the medium term, flows are expected to reach the level of $1.6 trillion this year and $1.8 trillion in 2015. Investment flow from outside Asean and within Asean is increasing time to time.
The minister said that the reforms undertaken since April 2011 helped achieve 7.3 per cent GDP growth in 2012-13, which exceeded the projected rate of 6.7 per cent. Myanmar aims to achieve 9.1 per cent GDP growth in fiscal 2014-15.
He suggested that Asean needs to improve investor confidence in the region for long-term growth, and continue to promote FDI inflows and cross-flow towards making Asean a single integrated market under the Asean Economic Community. The implementation of an Asean economic and investment agreement would further benefit Asean connectivity and attract foreign direct investment.
During the summit, the minister urged the business community to strengthen cooperation and work together to bolster Asean trade and investment.
"Realising the potential of AEC, Asean is laying particular emphasis on its implementation in 2015. Your investment in Asean will have the opportunity to protect the extensive market," he said.