Junta-appointed Arakan (Rakhine) State chief minister U Naing Oo said that developing micro, small and medium enterprises (MSMEs) in Arakan State is a priority.

He made the claim at the Arakan State MSME Development Workshop, held on May 25 at Khine Thazin Hall in Sittwe, the state capital.

The workshop also reviewed departmental business licensing and registration processes.

In and around Sittwe, the military situation between the junta and the Arakan Army (AA) remains tense, with frequent clashes making business operations impossible, businesspeople from Sittwe said.

“Many businessmen from Sittwe have relocated to Yangon. As the fighting has moved closer to Sittwe, many residents have also been displaced to Yangon. As a result, the local business landscape has changed significantly. Sittwe used to serve as an economic hub linking the entire Arakan State, but it has now become increasingly isolated, causing major disruptions to business activities,” he told DMG.

Locals criticized the junta-appointed Arakan State chief minister’s pledge to promote MSMEs in the region, saying it lacks substance and is largely empty rhetoric.

Currently, the junta has stepped up security measures around Sittwe, including fencing off parts of the city, constructing roadside bunkers and watchtowers, tightening overnight guest checks, and deploying naval patrols.

“Many people in Sittwe are on the verge of starvation. It is difficult for locals to go out, jobs are scarce, and prices are very high. In addition, people are being arrested by the junta almost every day,” a woman from the city said.

Sittwe is the only remaining major city in northern Arakan State still under the junta's control.

The junta has stepped up defensive measures and tightened security as the AA attempts to take control of Sittwe. The coup regime reinforced the city with large numbers of troops and carried out artillery bombardments.