After the annexation of Myanmar by the British, timber industry for teak was operated almost entirely by five major British firms. Myanmar nationals were allowed to harvest a small amount of lower grade teak and the entire hardwood business. Myanmar nationals were engaged in hardwood sawn timber. There was a locally owned plywood factory in Yangon.
After independence, foreign timber companies were nationalized and their timber business terminated. From 1963 onwards, all the non-teak hardwood timber business was again nationalized and local private timber businesses came to a halt.
In 1988, under the market oriented economy, the government permitted the private sector to resume hardwood timber business. Due to certain circumstances, hardwood log harvesting and exporting business was banned in 1993.