Home MMBIZ News Mon Firms Brace Themselves for New SME Law

Mon Firms Brace Themselves for New SME Law

Firms in Mon state are preparing themselves to adapt to the new classification clauses in the new Small and Medium Enterprise (SME) Law that is expected to go into effect soon.

The new law classifies manufacturing industries with investment capital less than K50 million ($48,800) as “small”, and those with investment capital between K50 and K100 million as “medium” industry.

However, service industries with an annual turnover of K5 million ($4,870) and those with an annual turnover between K5.1 and K10 million are under small and medium categories respectively.

This is a big shift from the standards applied under the 2011 Private Industry Law, which defined all business with a capital investment or annual production of over K5 million as “large” industries.

Following the changes, businesses in Mon state will have to take steps to adapt to the new standards, said U Khaing Tun, director of Mon state’s Industrial Supervisory and Inspection Department.

“The new SME law better reflects the current situation. We are preparing to implement the law when it becomes effective but there are some points that need to be specifically defined to ensure practical implementation,” said U Khaing Tun.

The growth of the state’s industries is still limited and the authorities started preparations in cooperation with private players to promote the industrial sector in line with the new SME law.

“Manufacturing and production businesses in Mon state need to conduct market expanding ventures. Agricultural products for instance do not have any overseas market access. Electricity access also poses a major barrier for industries,” said Dr Min New Soe, Mon state minister for industry.

Mon state currently has 13 government factories and over 39,000 private production plants, while the region’s major products include rice, sea-based products and rubber products primarily for the Yangon market.

- Advertisment -

Must Read

Myanmar Doing Well in Backing Country’s Economy During the Pandemic: State...

အောက်တွင် မြန်မာလို ဖတ်ရှုနိုင်ပါသည် Daw Aung San Suu Kyi, the State Counsellor of Myanmar, said in her address to the country on September 25 that the...