Government’s involvement in businesses may hinder private sector: NLD MP

Published 30 January 2020

The private sector will not see development as the government itself is doing business, taking overseas loans, said Upper House MP Than Soe from Yangon Region Constituency-4, at the session of the Union Parliament on 28 January.

MP Than Soe from the ruling National League for Democracy (NLD) criticized Yangon Region government’s proposal sent by the President to take 50 million euro ODA loan from the Polish government for the waste management project in the Yangon municipal area.

“The most important thing is that there is no reason for the development of private sector as long as the government is involved in the private sector taking loans. We need to go beyond this concept. My worrying point is there are many indicators to measure our country. Our country has good governance problem,” he added.

According to the 2017-2018 report, 91 million (one per cent) out of 3.8 billion USD in loans were spent in the time of the current government. The MP suggested that there should be special task force for the delayed processes due to a delay in most of the loan process and the government’s involvement in the private sector.

The country loses infrastructure and opportunities. The principal plus interest was 699 million USD in 2017-18 FY, 700 million USD in 2018-19 FY, 900 million USD in 2019-20 FY, 900 USD in 2020-21 FY and one billion USD in 2021-22 FY.

The projects which will stimulate the country’s economy face a delay. If the country sees no economic growth, the rising interest rate brings a heavy burden to the country. The country’s current debt is equal to the annual rice export earnings, he said.

From 1988 to 2011, Myanmar took overseas loans, mostly from China. It accounts for 97 per cent of the total loans. The interest rate is four per cent. In 2011-12 FY, most overseas loans are from the JICA. The JICA’s loan interest rate is just 0.01 per cent. Now the country has to repay loans taken before 2011.

Myanmar repaid 183 million USD to China in 2015-16 FY, 427 million USD in 2016-17 FY and 550 million USD in 2017-18 FY.