Delayed Permitted Businesses to Receive Govt Assistance

Almost 600 firms have experienced delays getting their businesses off the ground since 1988 despite having received permits from the Myanmar Investment Commission (MIC).

Of the 2,723 local and foreign businesses permitted to operate in Myanmar between 1988 and 2017, a total of 581 have yet to start. As such, inspections will be conducted and assistance rendered to those affected by this month.

Late last month, Minister of Planning and Finance U Kyaw Win formed three teams tasked to investigate the situation. The teams will be led by MIC members U Htein Lwin, U Htay Chun and U Aye Lwin.

“There are many businesses that have experienced delays starting up in the country even though they have already received MIC permits. We will scrutinise and review these companies and provide assistance wherever needed,” U Htay Chun told The Myanmar Times.

He added that one reason for the delay is the failure to obtain additional licenses from the relevant ministries. “We will find out what the issues are and help to provide solutions.”

Typically, firms must apply for further licenses from the respective ministries and township municipals in Myanmar after receiving an MIC permit before being able to start operations.

While capital is not a major issue for foreign corporations, for local businesses, the lack of start up funds may well be a major hurdle resulting in delays getting off the ground. As local banks are not able to meet the capital requirements of these businesses, many may have been held back from starting out simply because they could afford to.

Out of the 2,723 companies that received MIC permits during the 29 years between 1988 and 2017, 1,410 were foreign businesses. Of the 581 that have yet to commence business, 288 are foreign.

Of the permitted foreign investments totaling $74.8 billion, during the period, more than 80 percent translated into actual activity.

 

Source: The Myanmar Times

 

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