Over 40 state-owned entities to be reformed

Forty-four state-owned entities in nine sectors will be reformed through joint ventures with local and foreign companies and privatisation schemes, according to the 20-year National Comprehensive Development Plan (NCDP).

The nine sectors include energy, mining, environmental conservation, finance and revenue, construction, industry, electric power, communications, posts and telegraphs. There is also a miscellaneous category. According to figures from the 2013-2014 fiscal year, four of the nine sectors suffered losses.

The revenues generated from nine sectors amounted to Ks 9.039 trillion, while the expenditures were equal to Ks 8.059 trillion. The four loss-making sectors were electric power (Ks 322 billion), industry (Ks 182 billion), construction (Ks 22 billion) and the miscellaneous sector (Ks 112 billion).

Under the NCDP, priority will be given to reforming the loss-making entities in order to make them more competitive in the market over a short period of time.

It is expected that in the attempt to generate more revenues, the handover of the 40 state-owned businesses to the private corporations and the formation of joint ventures are to be completed by 2020. Whether or not that plan materialises depends on the actions of the new government, led by President Htin Kyaw.

Plans are under way to balance the country’s budget and to reduce the number of the state-owned businesses, which rely heavily on the state budget, through reforms and privatisation. Under the NCDP, plans are under way to balance the state budget by raising the production capacity of the state-owned industries and minimising the losses of the loss-making state-owned businesses.

The government will offer protection to workers by reforming the sizes of the remaining state-owned businesses, creating employment opportunities and raising production capacity. The NCDP aims to guarantee jobs, fix minimum salaries and hand over state-owned entities to the private sector.