Many MSMEs in Arakan State operating unlicensed

25 Mar 2023

DMG Newsroom
25 March 2023, Sittwe

Only around 30 mini, small and medium-sized enterprises (MSMEs) have officially applied for business licences from the MSME Association Rakhine, according to the association.

The association has more than 100 members who produce a variety of goods including foodstuffs, cosmetics and consumer goods, but only around 30 have applied for licences.

Others do not apply for licences because they do not have knowledge about licences, or lack networking among business owners.

Licensed businesses benefit from advantages including benign able to sell their products across the country, and guarantee food safety.

“Businesses producing food — for example, dried shrimp or fish sauce — can receive food tests for products at small-scale industries departments. If the lab result is OK, they will get licences, which are a guarantee of food safety for consumers. And they can also distribute their products across the country with the licences,” said the vice chairperson of the MSME Association Rakhine, Daw Hay Mar San.

Without licences, products will be less marketable and consumers will have less trust in such products, she added.

The chairman of the MSME Association Rakhine, U Nyi Toe Min, said: “It is difficult for small-scale businesses to get Food and Drug Administration (FDA) certificates. It is costly and the procedure is lengthy. So, some apply for a good manufacturing practice certificates. Businesses should apply for licences. But some can’t apply due to various difficulties.”

Small-scale businesses have to apply for licences at the Small-Scale Industries Department, while medium and large businesses have to apply at the Directorate of Industrial Supervision and Inspection.

“We do lab tests for cosmetics and foodstuffs. Some products contain a lot of preservatives. In that case, that product will not pass our lab test. Only products that pass our lab test can apply for a licence,” said an official of the Arakan State Small-Scale Industries Department.

Across Arakan State, only around 200 small-scale businesses have licences, according to the department.

“Some manufacturers think they don’t need to apply for business licenses as their products are selling and known for good quality,” said the owner of Lan Chan Mye, a dried nipa palm bud production operation in Sittwe. “But if something bad happens related to their products, it is difficult to solve. So, businesses should apply for all the necessary licences.”

The MSME Association Rakhine was established on March 14, 2022, with a view to facilitating networking with local and foreign business owners, and creating markets for the products of members.