After decades of isolation, foreign direct investment began to flourish as a seemingly civilian government replaced the military junta in 2011. Keywords: Myanmar, Foreign Direct Investment, ASEAN, China/India competition, economic development. Yearly Foreign Direct Investment Flow into Myanmar from 1988-89 to 2012-13 (December) Source: DICA 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 7177.091 217.688 19.002 86.948 91.17 158.283 6065.675 ... Foreign Investment Law Advantages of New FIL More than Old One Old FIL New FIL (30th November, 1988) The State Law and Order Restoration Council hereby enacts the following Law:-Chapter I Title and Definition 1. The investment challenges in a context where the economy is still dominated by the interests of the mili-tary and their connected “crony” businessmen are obvious. Prior the enactment of the FDI Law, direct foreign investment was regulated in accordance with the Federal Law No.2 of 2015 concerning commercial companies (“Commercial Company Law”), which required the majority shareholding (more than 50 percent) to be held by a UAE national, and therefore a foreign investor could only be a minority shareholder (less than 50 percent). More than that, they are looking for a clear roadmap for sustainable economic development in the medium term and the long term, and a better understanding of how they can be a … for rebalancing Myanmar's FDI. Foreign Direct Investment Promotion Plan in Myanmar (FDIPP) in 2014. This was replaced by the Myanmar Investment Law in 2016 so as to combine the regulation of both foreign and domestic investments under one set of laws. It is expected to promote foreign investment. Training Courses; Contact Person; Contact Us Already, approved FDI into Myanmar in the first three months of fiscal year 2019-20 is double what it was in the same period in … The description is composed by our digital data assistant. “Weak rule of law is probably not a major factor in determining investment flows, and the more causal relationship may be in the reverse direction. The MIL, from its start date, applies to existing or new investments in Myanmar except for matters coming under the old Foreign Investment Law 2012 such as investment disputes or prior permit investments previously suspended from business operations before the start date or investment projects suspended by governmental measures under general and national security exemptions. Any permit for investment granted by the Commission subject to the Union of Myanmar Foreign Investment Law (The State Law and Order Restoration Council Law No. Approved foreign direct investment (FDI) into Myanmar is expected to grow this year, the Myanmar Investment Commission (MIC) says. • Foreigners are allowed to lease land, and the lease duration is a maximum of one year. In February 2011 media outlets worldwide reported that China had surpassed Thailand as the largest foreign investor in Myanmar.1 China had US$8.25 billion of approved investment in fiscal year Accordingly, the government introduced a foreign investment law, which provides potential foreign entrepreneurs with several attractive investment inducements. for rebalancing Myanmar’s FDI. This law shall be called the Foreign Investment Law. With the recent suspension of US sanctions and the impending passage of an update to the foreign investment law, the road to Myanmar's riches will soon be well-beaten. The Union of Myanmar government announced the Foreign Direct In vestment Law in 2011. 8|76 activities. Myanmar Foreign Investment Law was issued in 2012 to promote and regulate foreign investments. The following expressions contained in this Law shall have the meaning given hereunder: (a) Union means the Republic of the Union of Myanmar; (b) Commission means the Myanmar Investment Commission formed under this Law; Foreign Direct Investment in Myanmar averaged 492.34 USD Million from 2012 until 2020, reaching an all time high of 3821.91 USD Million in March of 2016 and a record low of 3.14 USD Million in June of 2016. More recently, the FDIPP was reviewed in terms of the following needs: Conformity to the Investment Policy announced in 2016 and new investment regime of Myanmar under the Myanmar Investment Law and Special Economic Zone (SEZ) Law After introducing Myanmar foreign investment law, the influx of foreign direct investment started in Myanmar from 1989 onwards. The MIL, from its start date, applies to existing or new investments in Myanmar except for matters coming under the old Foreign Investment Law 2012 such as investment disputes or prior permit investments previously suspended from business operations before the start date or investment projects suspended by governmental measures under general and national security exemptions. THE UNION OF MYANMAR FOREIGN INVESTMENT LAW THE STATE LAW AND ORDER RESTORATION COUNCIL LAW NO. 2 Myanmar Business Guide 1. Foreign Direct Investment in Myanmar increased by 82.08 USD Million in November of 2020. The Foreign Direct Investment [FDI] inflows to Myanmar in between 2012 & 2016 were 534.35 million dollars as averaged. Foreign direct investment in Myanmar: What impact on human rights? 2. A commission to oversee and make recommendations on foreign direct investment in Burma is to include experts from various types of industry and from nongovernmental organizations, according to Sandar Min. Though Myanmar foreign direct investment fluctuated substantially in recent years, it tended to decrease through 2000 - 2019 period ending at -2,292 million current US$ in 2019. Article 6 of the FDI Law provides for the UAE Cabinet to form a foreign direct investment committee (the FDI Committee). Myanmar remains strong and assists China in its major investment projects, with one notable exception. • Under the Myanmar Investment Law (MIL), foreign companies investing under a permit from the Myanmar Investment Commission (MIC) can enter into a 50-year lease agreement with two 10-year extensions. 10/88 The 7th waning day of Tazaungmon, 1350 B.E. For example, foreign investors want clarity over the amendments to the foreign investment law. While the incentives themselves are beneficial, the main benefit of the law is establishing the framework in which investors can operate, allowing them to enter what is still an uncertain frontier market. Keywords: Myanmar, Foreign Direct Investment, ASEAN, China/India competition, economic development. Law of 1987, foreigners are restricted from owning land. (Burma’s Foreign Investment Law Approved by Parliament, MIZZIMA (Sept. 10, 2012). The Republic of the Union of Myanmar. Abstract: "Foreign Direct Investment is one of the main factors to improve trade in each and every country to boost its economy. 10/1988) or the Foreign Investment Law (the Pyidaungsu Hluttaw Law No. Foreign Direct Investment (FDI): Case Study on Myanmar 1. Presenter, Commentator, Khaing Sape Saw (Ms.) Khin Maung Nyo (Mr.) Freelance Researcher Freelance Researcher and Writer Myanmar Engineering Society (MES), 3F, Hlaing Universities Campus March 15, 2014 KGU-MARCED The 1st International Conference On Development Alternatives … In April 2017, Myanmar will begin implementing a new investment law designed to promote and facilitate both foreign and domestic investment in the economy and open more economic sectors to private investment. Doing Business in Myanmar; Myanmar Investment Law; Tourism Investment Opportunities; Why Invest in Myanmar; Foreign Investment in Hotels and commercial complexes; Statistics. Foreign investment law has created a more market-oriented, legalized, and international investment environment for foreign investors and enterprises, and has been acting as a … Myanmar’s new Investment Law clarifies the country’s still-developing legal structure governing both domestic and foreign investment, while offering various incentives to attract investment. Promoting Investment Climate: How to attract FDI? The new law provides corporate tax reductions for foreign businesses investing in Myanmar and eases conditions for long-term real estate leases. With the new investment law sailing through both houses of parliament this month, formal approval appears imminent, as a signature from the President's Office is all that is required to see it passed. Economic sanctions by the European Union (since 1990) and the United States (since 1989) were only lifted as recently as 2013 and 2016 respectively. While the pursuit of natural resources has primarily driven China’s FDI ambitions in Myanmar, changing US foreign policy and the recent dissolution of military law in Myanmar in 2012 may impact China’s motivations by adding a stronger Primary objectives of the study This meant most of the FDI were flowing into the country from other Asian countries like China and Thailand where no economic sanctions were imposed on Myanmar. Foreign investment in the country peaked around 2015, according to official statistics, at $9.5bn — roughly 10 times the amount in 2009 before the democratic transition began. Arrivals 2020; Arrivals 2019; Training. While the prospects of this new market have captured the excitement of investors, Myanmar has yet to facilitate foreign investment efficiently. Policy and Law; Publications; Speeches and Presentations; COVID-19 Announcements; Get In Touch. The MIL, the Investment Rules and the Myanmar Companies Law (2017) are the key pieces of legislation underpinning the Government’s efforts to attract foreign investment to Myanmar. 21/2012) or the Myanmar Citizens Investment Law (the Pyidaungsu Hluttaw Law No.18/2013) shall continue to be effective till the term of such permit is … The same experienced an all time high figure of 3821.91 USD million in March of 2016 and a record low of 3.14 USD Million in June of 2016. 1. Pursuant to the MIL, when doing business in Myanmar, foreign investors can … (p) Investor means a Myanmar Citizen investor or Foreign investor who invests within the Union in accordance with the law. It shall also include investments stipulated under section 40. For instance, it is true for China that the presence of at least certain foreign investors may contribute to the development of the rule of law … The Myanmar government has implemented the Foreign Investment Law in 2012 which allow 100% foreign equity ownership for foreign investors, with a minimum amount of foreign capital of US$ 500,000 for the industry sector investment and US$ 300,000 for In 2017, the century old Companies Law was substantially revised. Ministry of Investment and Foreign Economic Relations (MIFER) ... 2021/January Foreign Direct Investment Yearly Approved Amount By Sector: 76.26 KB Then the new law was enacted on 2nd November 2012. In February 2011 media outlets worldwide reported that China had surpassed Thailand as the largest foreign investor in Myanmar.1 China had US$8.25 billion of approved investment in fiscal year (q) Investment means any assets owned or controlled by the investor in accordance with this Law. The FDI Committee will be tasked with proposing a "positive list" to the UAE Cabinet which will set out the economic sectors in which greater levels of foreign direct investment will be permitted. The Myanmar Ministry of Investment and External Economic Relations (MIFER) described as "encouraging" the progress made in foreign direct investment (FDI) inflows during the first 10 months of the current fiscal year, despite the spread of the coronavirus both within the country and around the world since the beginning of 2020. Myanmar is still a high-risk country, requiring a rigorous re-sponsible investment strategy.