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Myanmar: 36 investment proposals permitted under two old laws
For the first month of this fiscal year, 36 businesses, approved under two older investment laws, have been permitted to operate, according to Myanmar Investment Commission (MIC) secretary U Aung Naing Oo.
They include 24 foreign investments – worth US$656.277 million – and 14 domestic investments, which are worth US$186 million (or K366 billion), he added.
“At present, we have been deciding on the proposals made under the old investment laws.
“A few proposals remain under old laws. After that, approval for proposals will be granted under the new investment law,” the MIC secretary said.
Myanmar enacted a new foreign investment law in late 2016. The new Myanmar Investment Law came into force on April 1, 2017, combining two older laws stipulated in 1988 and 2012 and merging two separate laws for foreigners and Myanmar citizens.
The new legislation allows a more level-playing field between local and foreign investors, although some differences remain.
In total, 32 foreign investment proposals, worth US$1.5 billion, and 20 domestic investment proposals, worth K462 billion, are left to be scrutinised under the old laws, he said.
That leaves 8 foreign investment proposals and 6 domestic investment proposals are yet to be approved.
Proposals under the new law, which are still under deliberations, consist of 26 foreign investment proposals with US$511 million, as well as two domestic investment proposals with K34.4 billion, he added.
The MIC is planning to approve the investment proposals with the new investment law starting from this new fiscal year, 2017-18.
The target for this year’s FDI is US$6 billion, which is the same as last year’s.
The target for FDI in the fiscal year 2016-17 is US$6 billion and the FDI approved is US$6.649 billion.
For that fiscal year, Singapore is the biggest investor by country, contributing US$3.82 billion, almost half of the total. Vietnam comes second with US$1386 billion; China is third with US$482 million; and Japan is fourth with US$60 million.
FDI approved should not be confused with FDI net inflows. The former is FDI proposals approved by the Myanmar government; the latter refers to the value of inward direct investment made by non-resident investors in the Myanmar economy.
Source: http://www.mmtimes.com/index.php/business/25977-36-investment-proposals-permitted-under-two-old-laws.html