You can read daily news of Global New Light of Myanmar using mobile applications. Download now!

May 31, 2020

No more permits for wood-based industrial enterprises

A woman works in a parquet factory in Yangon. Photo: Reuters

The Myanmar Investment Commission will no longer grant endorsements for new wood-based industrial businesses utilising raw materials extracted from Myanmar’s forests.
Wood production is being scaled down by the Ministry of Natural Resources and Environmental Conservation. There will be a great deal of uncertainty about getting raw materials if new wood-based finished product factories emerge. It might hurt the market, as there will be an imbalance between supply and demand. To tackle with this problem, the MIC suspended approvals to new businesses of this type.
This suspension is only on those businesses which utilise raw materials from natural forests, but not on businesses which use wood produced by private farms and imported raw materials.
This action will impact new businesses but will not affect existing businesses which have already received approval.
Between 1st April and the end of October, 89 foreign investment projects with an estimated capital of US$1.48 billion were permitted by the MIC for operation in the manufacturing sector.


Related posts