The sixth regular session of the second Pyithu Hluttaw 13th day meeting was held yesterday morning in Pyithu Hluttaw meeting hall.
At the meeting, three Tatmadaw Pyithu Hluttaw representatives who hadn’t taken the oath of office were sworn in in front of Pyithu Hluttaw Speaker U Win Myint and signed the oath.
Responding to a question by U Myint Han Tun of Budalin constituency on the joint venture conducted by June Pharmaceutical and Ministry of Industry, Union Minister for Industry U Khin Maung Cho said Sagaing June Pharmaceutical & Foodstuff Industry Ltd joint venture was formed by Myanma Pharmaceutical Industries and June Pharmaceutical in No. 3 Pharmaceutical Factory (Sagaing) under Myanma Pharmaceutical Industries of Ministry of Industry with the permission of President Office and Myanmar Investment Commission. The joint venture company was formed with share ratio of 80 per cent from Myanma Pharmaceutical Industries and 20 per cent from June Pharmaceutical. The joint venture agreement was signed for 10 years from 1 April 2012 to 2022 and the agreement was according to the comments and suggestion of Union Attorney General office and Myanmar Investment Commission.
Eighty per cent share of Ministry of Industry’s Myanma Pharmaceutical Industries include the main factory and related areas of four Spirulina algae stations and the land, buildings, machinery, vehicles, office and other fixed assets, valued at Ks 6,748 million of fixed assets transfer value as of 1 April 2012. The 20 per cent share of June Pharmaceutical is an investment of Ks 1,687 million for the expansion, upgrade, repair and maintenance of building, vehicles and machinery and for operating capital. The agreement includes the schedules of payment for proceeds from the Spirulina produced. During the five years of joint venture operation, Ministry of Industry has received a profit share of Ks 214.252 million and as of date, 26 products of Spirulina algae were being produced and distributed said the Union Minister.
In his reply to the question raised by Dr. Daw Khin Soe SoeKyi of Pyay constituency on loan programs for small and medium enterprises (SMEs), Union Minister for Industry U Khin Maung Cho said SMEs are the base for Myanmar’s economic development and arrangements are made to provide loan from government funds and through loans and aid from partner international organisations to increase production, investment and money circulation in SMEs. Two Step Loans for SMEs were made by six private banks to which Japan International Cooperation Agency (JICA) has provided Japanese Yen 5,000 million of Government of Japan’s ODA Loan through Myanmar economic Bank. In order to provide these loans systematically, bank loan acquisition committee for SME was formed. There are two methods to make loan to SME and they are Two Step Loan of Government of Japan’s ODA Loan and Credit Guarantee Insurance (CGI) system.
SMEs can apply to these six banks for Two Step Loan and a preliminary selection will be made by loan assessors of these banks. Myanma economic Bank will also inspect whether the Two Step Loan is according to the set guidelines and the loans will be made to the SMEs by the relevant bank. The amount of loan depends on the relevant bank’s assessment of the SME and the bank’s policy.
To obtain loan with CGI system, Directorate of Industrial Supervision and Inspection assess the SMEs applying for loan and provide recommendation to Myanma Insurance and private banks. Arrangements are made to set up a SME Fund Management Board that will provide assistance to agriculture businesses as a priority, set up capital to provide loan to SMEs widely and easily, set up SME fund and work to acquire international assistance and SME loans can soon be made easily and quickly said the Union Minister.
Questions raised by U Thet Naung of Lahe constituency, U Khun Than Htoo of Hsihseng constituency, Daw Ni Ni Myint of Taungup constituency and Daw Tin Tin Oo of Kyunsu constituency were then answered by Ministry of Education Deputy Minister U Win Maw Tun.
Reference: GNLM