By Nyein Nyein
Myanmar Investment Commission (MIC) has received the official notification of the closure from three factories, even though there are over 120 factories’ shutdown, DICA Director-General U Thant Sin Lwin said on 7 April.
MIC has formed the monitoring group and the working group to address the possible economic impacts caused by Covid-19. The monitoring group is led by the Directorate of Investment and Company Administration (DICA). They found layoffs and temporary and permanent closure in the factories, he added.
“What an unusual case is downsizing in the factories and temporary and permanent shutdown, although only three factories have notified MIC of their closures. The remaining carried out depending on the situations of the relevant factories and industrial zones. As of 1 April, 124 factories are reported to close down the operations. Of them, 36 are permanently closed, while five carry out temporary suspension, three downsize the workers, as per the report of the Yangon Region government”, he stated.
At present, MIC is proceeding with the factories having official notification of its closures by linking with the related departments.
Additionally, a committee to remedy the economic impacts caused by the Covid-19, led by MIC’s president, was formed with nine members on 13 March. The working committee has been taking measure to give loans and to relax the process and procedure of the respective departments.
“The DICA offices in the regions and states have been receiving loan applications by the businesses hit by Covid-19,” he noted.
“We have received 796 loan applications as of 7 April, and the entrepreneurs have sought K127 billion of loans,” he said.
Regarding the loans, the respective evaluation group and the lending group will conduct the process in line with the procedures. They are attempting to give loans as soon as possible.
The factory operators can face legal actions under the Myanmar Investment Law (MIL) if they fail to comply with notification requirements for the closure of factories. However, no one faces legal actions under the MIL so far.
Some CMP factories have shut down due to the lack of raw materials, resulting from the Covid-19 negative impacts. Some investors are fleeing. Those factories without official notification of closure will be inspected by a ground field inspection team, the DICA stated. (Translated by Ei Myat Mon)