Smooth Cash Flow: CMP Factories are urged to open Business Acc

The factories in Myanmar which have not opened business accounts must use banking system for cash flow of business and the factories which don’t have the flow of foreign currency are needed help of rules and regulations of the Central Bank of Myanmar in using foreign expenditure.

There are 732 CMP factories and workshops in Myanmar and among them, 362 factories have the flow of foreign currency and also opened business accounts and 284 factories don’t have the flow of foreign currency. So, as the lasting factories, have to opened business accounts at Central Bank of Myanmar.

U Nyunt Win, Permanent Secretary, Ministry of Labor, said " When we make inspections, some factories are currently running, without open both business accounts and foreign currency accounts. And also there are subcontractors CMP form the main factories and these accounts are personal, according to inspections. The CMP factories have to open business accounts through related associations and departments. So, the flow of currency can be supervised. Especially, the CMP businesses are running with the wage system for foreign countries and in purchasing raw materials from abroad, it is essential to transfer foreign money."

Permanent Secretary for the Ministry of Labor also added that there are having difficulties in cash flow and operations of the country if the factories and workshops don’t have business accounts. That’s why, the government urged to open business accounts and if they don’t follow, they will be taken actions in lines with the law.

There are two types of CMP, they are textile factories and industrial product industries and then, they will be urged to open business accounts as fast as they can.