Myanmar: Regional investment commission approves first Kachin project
The Kachin State Investment Commission has approved one investment involving K1,688 million since its office was opened last July. The commission is currently examining two investment applications, U Tun Kyaw Kyaw, deputy director from at the Directorate of Investment and Company Administration (DICA), explained.
The approved investment is in the agriculture sector and relates to the production of rubber sheet by Hole in One Gems Company Ltd.
The project is expected to generate 38 jobs. This is the first investment approved since the Myanmar Investment Commission (MIC) decentralised and established regional investment committees in accordance with the new Investment Law.
The new Investment Law enacted and promulgated last year has delegated power to regional authorities. Regional and state investment commissions, chaired by regional chief ministers, have the authority to approve investment proposals without having to seek permission from the MIC. Exceptions include capital intensive investments, investments with considerable environmental impacts and sectors asked by the Union government for scrutiny will need to ask the MIC for approval.
The maximum amount of investments which can be approved by regional and state investment commissions is US$5 million (K6 billion). Meanwhile, investors can apply for tax exemption across 191 sectors, depending on the zones, and exemptions are granted for periods of three, five or seven years.
“Tax exemptions are granted for five years in Myitkyina, and seven years for Banmaw and Putao. This is because some areas in Kachin are less developed,” he added. In Kachin State, there are 93 registered local companies and four foreign companies present.