With the merging and consolidation of the foreign investment law 2012 and the citizens investment law 20 into the new mil, the government will now treat foreign and local investment projects equally in terms of expansion, management, operation and sale of direct investments. Local or foreign investor wants tax incentives, or foreign investor wants to lease land for more than one year and the investment does not require an mic permit submitted by the investor or its authorized representative new. This update to the most important investmentrelated legislation helps establish the coherent legal framework for both domestic and foreign investors. Myanmars parliament passed a first draft of the fil on 7 september 2012, only for it to be returned by the president with instructions to temper some of its more protectionist provisions. Nov 01, 2016 the law, enacted recently, combines the myanmar citizens investment law and the foreign investment law. This law shall be called the myanmar investment law. Jan 26, 2017 foreign invested companies are still generally prohibited from leasing premises for more than one year, however i a lease of up to 50 years, with the option of two 10year extensions, may be granted to mic permit holders and mic endorsement holders, and. Update on foreign investment in the last week, two important matters have occurred which are relevant to foreign investment in myanmar. New myanmar foreign investment law enacted on 2 november. The government seeks to push development into manufacturing, real estate, agriculture and services, areas that are virtually untouched currently by. Foreign investment act final pmk ministry of trade and.
President barack obama who stated that myanmar was taking its first steps on. It was the first decline in international inflows since the 201220 fiscal year. Myanmar investment law burmese version18102016 approved. The minimum amount of foreign capital required to be eligible under the foreign investment law are as follows. The law was introduced just a few weeks prior to the visit of u. The mil was drafted by the myanmar investment commission mic in consultation with the international finance corporation ifc and combines local.
Myanmar enactment of amended foreign investment law. Myanmar enactment of amended foreign investment law in myanmar. Regulation and protection of investment in myanmar chapter 4. The following is a summary of the business areas that are restricted or prohibited for foreign investment pursuant to the amended law.
As of november 2015, 1024 enterprises have been permitted to conduct business under the myanmar foreign investment law. He claimed that the law gives equal rights for local and foreign investors and that he is waiting to see how the government manages foreign investment. Despite some positive developments, reforms are far from complete and appear fragile. Foreign investment overview for myanmar myanmar 2016.
The amended law specifies the restricted or prohibited areas for foreign investment, whereas the old law did not. Earthrights international and other civil society groups are concerned that the consultation period for the law was too short, and the. Puchniak, director centre for asian legal studies faculty of law, national university of singapore. The following expressions contained in this law shall have the meaning given hereunder. Myanmars upcoming new companies act and revised foreign investment law. T he new myanmar investment law mil was enacted on october 18 2016, replacing the previous foreign investment law 2012 fil 2012 and citizens investment law 20 myanmar investment commission application process. Aug 01, 2018 we have approved 5 foreign businesses according to the foreign investment law during this fiscal year, he said this week. Myanmar state media details new foreign investment law.
Mar 01, 2017 r direct investment means an investment in which the investor has the right to control, influence or manage, of such assets which are invested by the investor within the union in accordance with the law. In relation to the mil, the myanmar ministry of planning and finance has drafted the myanmar investment rules the mil rules. The words and expressions in this law shall mean as designated hereundera the state means the republic of the union of myanmar. The myanmar times sat down with myanmar investment commission secretary u aung naing oo this week to discuss what the new law means for both foreign and local businesses and how the mic plans to. Dica to consolidate myanmar foreign investment law and. Condominium law foreign investment in myanmar proposed amendments for those who follow our blogs, you will know that we have reported several times on the discussions relating to the proposed condominium law in myanmar. The law created incentives for investors to get involved in certain business sectors that the government had targeted for development. The union of myanmar foreign investment law 1988 statement on foreign investment law of myanmar the government of the union of myanmar has been striving hard to promote all round development of national economy to improve provisions of food, clothing and shelter for the people so as to ameliorate their living standards. Myanmar foreign direct investment 20122019 data 2020. Law and policy 24 march 2016 faculty of law, national university of singapore bukit timah campus programme thursday, 24 march 2016 8. Executive summary assessment and recommendations chapter 1. Activities that affect cultural traditions, customs, health, natural resources and environment. Jul 10, 2017 with the merging and consolidation of the foreign investment law 2012 and the citizens investment law 20 into the new mil, the government will now treat foreign and local investment projects equally in terms of expansion, management, operation and sale of direct investments.
You mentioned that the new investment law offers tax incentives to encourage investment in promoted sectors or in undevel do you think it will be difficult to encourage investment in areas that lack infrastructure, such as an adequate electricity supply and good transportation. The new law has prompted debate about the role of foreign investment in national development and how it might affect other local interests. Key points to note background the new myanmar investment law 2016 mil came into force on 18 october 2016, when it was signed by the president, having previously been approved by the pyithu hluttaw on september 28 2016 and the amyotha hluttaw on 5 october 2016. The foreign to domestic ownership ratio for joint ventures in activities that are not restricted or prohibited is subject to the agreement between the parties. With the new investment law sailing through both houses of parliament this month, formal approval appears imminent, as a signature from the presidents office is all that is required to see it passed. We have approved 5 foreign businesses according to the foreign investment law during this fiscal year, he said this week. Myanmar investment law draft 2016, pyidaungsuhluttaw law no. Based on data for actual and approved foreign direct investment fdi from 19892011, this paper explores the major trends in fdi in myanmar, focusing on changes over time in the source and sector of investment. New myanmar foreign investment law enacted on 2 november 2012. Oct 20, 2016 the newly enacted myanmar investment law was tentatively welcomed by dr soe tun, vice chairman of the myanmar rice federation. There will be a new type of myanmar investment commission mic approval process, referred to as the mic endorsement. The directorate of investment and company administration dica has issued a consultation draft of the rules under the myanmar investment law 2016 mil.
Investors registered under the new fil are eligible for a lease term of up to 50 years, with the option of two consecutive tenyear renewals. The expressions contained in these rules shall have the same meaning as are assigned to. The mil repealed the 2012 foreign investment law the fil. Nothing unworkable had been suggested and some changes, such as allowing foreign shareholders and directors, would make. Combines the foreign investment law 2012 and the citizens investment law 20 proposals under the new law submitted since april 2017 distinguishes between citizen investor and foreign investor citizen investor includes enterprises established only by citizens which is at odds with the draft of the new companies law. Oct 19, 2016 myanmar investment law burmese version18102016 approved 1. Myanmars new foreign investment law allows overseas firms to fully own ventures and offers tax breaks and lengthy land leases, state media said on saturday, releasing details of legislation. This is the law that, if passed, will allow foreign ownership of.
The republic of the union of myanmar pyidaungsu hluttaw. Burmas union parliament has finally passed a much awaited foreign investment law, which has now been signed into law by president thein sein the mfi law and published in local newspapers on november 3, 2012. Unofficial translation october 10, 2016 chapter 1 title and definition 1. Ayeya hintha holdings company limited, dagon township, defence services museum, fujita corporation, hluttaw, hluttaw representative, hotel project, japan overseas infrastructure investment corporation, japanese investors, minister for the ministry of planning and finance, myanmar citizen investment law. On 3 november 2012, a new foreign investment law 2012 fil came into force, replacing the myanmar foreign investment law 101988. Sep 23, 2015 this draft law stands in sharp contrast with the bilateral investment treaties bits that myanmar has signed with a number of major foreign investors for example, china, india, japan, philippines and thailand, all of which include troubling provisions that can undermine the governments right to regulate in favour of the environment. The directorate of investment and company administration dica is drafting the 2015 myanmar foreign investment law with the assistance of the international finance corporation. The dica regularly provides information on investment permit applications that have been granted by the mic. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. Myanmars new foreign investment law 3 o if the mic decides to evaluate an investment proposal, it must approve or reject that proposal within 90 days from the date the mic accepted the proposal for evaluation i. This law shall be called the foreign investment law.
Nothing unworkable had been suggested and some changes, such as allowing foreign shareholders and directors, would make direct investment in myanmar companies easier, he said. Normally it takes at least three months to release rules and regulations following a law, maung maung win said. The fil does not repeal or amend any other laws in effect that may impact foreign investment, the most notable of which is the myanmar stateowned economics enterprises soee law. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. The new myanmar investment law 2016 mil came into force on 18 october 2016, when it was signed by the president, having previously been approved by the pyithu hluttaw on september 28 2016 and the amyotha hluttaw on 5 october 2016. On 2 november 2012 myanmars president thein sein endorsed the countrys new foreign investment law fil. Myanmar to release new investment law by next year. Myanmar update on foreign investment baker mckenzie. On 18 th october 2016, the myanmar investment law 2016 mil was enacted to replace the foreign investment law 2012 pyidaungsu hluttaw law no. These rules shall be called foreign investment rules.
Foreign investors may also wish to locate in an sez and for this they will need to apply for an sez permit. The dica has invited submissions from interested parties in relation to the 2015 myanmar foreign investment law and has made a draft available on its website. Jun 29, 2017 the mil repealed the 2012 foreign investment law the fil. If there is a delay, we will finish by the end of this fiscal year, at the end of march, he added. Myanmar investment law burmese version18102016 approved 1. However, these timeframes are discretionary and could be extended by the mic. The new myanmar investment law mil took effect in 2017 to combine the old citizens investment law and the myanmar investment law.
The law formalizes the requirement that certain state and regional approvals, in addition to that of the myanmar investment commission mic which administers the foreign investment regime as well as a regime that is applicable to myanmar citizens under the myanmar citizens investment law, are also required in respect of a given project. This page provides the latest reported value for myanmar foreign direct investment plus. The newly enacted myanmar investment law was tentatively welcomed by dr soe tun, vice chairman of the myanmar rice federation. A new investment law has been rushed through burmas parliament, with the upper house giving its approval on oct. This draft law stands in sharp contrast with the bilateral investment treaties bits that myanmar has signed with a number of major foreign investors for example, china, india, japan, philippines and thailand, all of which include troubling provisions that can undermine the governments right to regulate in favour of the environment. According to the myanmar investment commission, the law is expected to take effect soon. I think international investors are impressed by the new law. Pdf the role of foreign direct investment fdi in myanmar.
Myanmar will look to foreign investors to transfer such skills as part of the foreign investment process. The myanmar times sat down with myanmar investment commission secretary u aung naing oo this week to discuss what the new law means for both foreign and local businesses and how the. Currently, foreign investment in myanmar is concentrated in oil and gas, minerals and power. The mil was drafted by the myanmar investment commission mic in consultation with the international finance. Why myanmars revised foreign investment law is over. The current foreign investment law and citizen investment lawknown together as the myanmar investment lawwere enacted in october by president u htin kyaw.
The law, enacted recently, combines the myanmar citizens investment law and the foreign investment law. Soepaing said the proposed foreign investment law revisions were likely to have a positive effect on foreign investment in the country. Foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the. The mil will notably introduce a new form of investment approval, called mic endorsement, to speed up the investment approval process in non. New or streamlined procedures for investment approval. Foreign direct investment in myanmar increased by 734. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. Oct 14, 2016 with the new investment law sailing through both houses of parliament this month, formal approval appears imminent, as a signature from the presidents office is all that is required to see it passed. Condominium law foreign investment in myanmar proposed. May 03, 20 foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the myanmar investment commission the mic. The new myanmar companies act takes effect from 1 august 2018. Myanmar to release new investment law by next year investvine. However, companies registered under the foreign investment law fil are permitted to repatriate investments and profits in the foreign currency in which the investments were made, subject to the approval of the investment commission and the central bank.
Burmas disappointing new investment law earthrights. When the two laws coexisted, procedures to approve investment applications by foreign companies were complicated and the laws effectively restricted. Oct 29, 2016 any investment approval granted by the commission in accordance with the union of myanmar foreign investment law the state law and order restoration council law no. The mic has the power under the foreign investment law to prescribe a minimum foreign ownership requirement or a casebycase basis. The following expressions contained in this law shall have the. The soee law restricts private sector participation both local and foreign in most sectors of the economy, unless granted an. A foreign investor may apply for and obtain a permit under the foreign investment law for an economic activity not so specified, provided the foreign investor can explain how the activity would be.
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