The Myanmar National Democratic Alliance Army (MNDAA) has allowed sex workers to operate inside businesses in Lashio Township of northern Shan State, according to residents.

“We don’t arrest [people engaged in prostitution] like the regime did,” a source close to the MNDAA told DVB on the condition of anonymity. 

Lashio is located 107 miles (172 km) south of the Myanmar-China border town of Muse, in northern Shan State, and 243 miles (391 km) north of the Shan State capital Taunggyi.

The source added that individuals wishing to engage in sex work must undergo health checks at the Lashio Department of Health. Managers are required to accompany their employees during health checks and screenings which began on March 13. 

The tests include screening for hepatitis B and C, Human Immunodeficiency Viruses (HIV/AIDS), various sexually transmitted diseases, and tuberculosis. Check-ups are conducted every three months.

Employees who pass the tests will receive an “Infection Screening Card for Entertainment Service,” which is a form of certification necessary for such services. Those who fail must receive medical attention and are not allowed to work until cleared.

The MNDAA, however, has not issued any official statement legalizing prostitution, the source said, adding that there are no new businesses only the resumption of pre-existing ones.

The MNDAA took full control of Lashio after it seized the Northeastern Regional Military Command (RMC) headquarters on Aug. 3. The regime and the MNDAA signed a formal ceasefire agreement during the second round of China-brokered talks in Kunming on Jan. 18.

A Lashio resident told DVB that there are designated areas in town for prostitution, with signposts directing people to the services. “Although I don’t approve of prostitution, it’s better this way than illegitimate businesses running without health checks,” he added.

The known hubs for entertainment businesses are located in Lashio’s residential quarters at the regime’s military engineering battalion 959, as well as in Ward 8 and Ward 12. 

The MNDAA reportedly imposed a 20 percent tax on the revenue from these businesses. The tax is calculated in Chinese yuan, with the amount each business pays varying based on its size and operations. 

“Before, these girls didn’t have any security or access to healthcare services,” said a Lashio resident who supports the initiative.