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August 13, 2020

About 10 enterprises notify closure: MIC reports

By Nyein Nyein

Myanmar Investment Commission (MIC) has received official notification of business closure from around ten enterprises, said Director-General U Thant Sin Lwin of the Directorate of Investment and Company Administration (DICA). If the business is granted permits by MIC, they need to seek approval for withdrawal from the commission. “MIC offers tax break and incentives to the investors depending on types of business and location, according to the Myanmar Investment Law. Having said that, we ask the Internal Revenue Department to check tax payment of the businesses, and withdrawal is accepted later. Therefore, it takes a certain period for the withdrawal process. So far, shutters of about ten businesses are reported,” he said. Some businesses are found downsizing in the factories and temporary and permanent shutdown amid the coronavirus impacts. Some employers are fleeing without paying salary. The factory operators can face legal actions under the Myanmar Investment Law if they fail to comply with notification requirements for the closure of factories, he continued.
To avoid such cases, the Civil Society Organizations requested the MIC to sign off proposals only if the businesses pay the deposit. DICA D-G responded to the request: “We are endeavouring to facilitate the investments. The deposit is designed to protect the investment risk, yet we cannot set the deposit under the law. We accept the responsible business to ensure there is no environmental impacts, social impacts and national interests. We do not have a deposit plan. 100 CMP enterprises and other 63 businesses have reported the closure between 1 January and 21 June. Unemployment claims hit over 54,000 workers. Now, 101 of them resumed their operations. And over 15,000 workers returned to jobs, the DICA stated. (Translated by Ei Myat Mon)

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