YANGON — Myanmar aims to reduce its poverty level by an ambitious 10 per cent to 16 per cent by next year.

Myanmar’s Vice-President Nyan Tun made the announcement to some 8,000 workers at a rural development event in Yangon.

With many earning just US$2 (S$2.50) a day, the government wants to change that by various means, such as providing government loans to small local businesses, which ordinarily have no access to financial assistance.

“By providing these loans, people will enjoy regular incomes. They can then start to channel their money towards caring for their healthcare and education needs. So the people’s lives will get better,” said Mr Nyan Tun. “With these small loans, they can invest the money, and invest in buying equipment and doing business. That’s why these loans are essential to help reduce poverty.”

The target for a 16 per cent poverty rate within one year might seem ambitious for Myanmar, but it sets a timeline for everyone to work towards.

Dr Maung Maung Lay, vice-president of Myanmar Federation of Chambers of Commerce and Industry, said: “A target has to be set in order not to be complacent, and to see that these targets are accomplished in order to alleviate poverty.”

Dr Lay noted that apart from the loan, the money has to come, “and it has to be on a sustainable basis and to make sure that the loans are being used properly”.

“Aside from that, they have to be taught ways and means to generate income; and the vocational training, the education, have to be done in many areas just to teach them and to cultivate them and to nurture them,” said Dr Lay.

According to the United Nations, Myanmar remains one of the poorest countries in South-east Asia.

Agriculture is a key economic driver in the country and employs over 60 per cent of the workforce, and the government has identified agriculture as one of the main sectors to improve by providing farmers with microfinance, equipment and vehicles. CHANNEL NEWSASIA