Non-paper - 26 July 2017 - Update on Myanmar's Economic Policy1 สิงหาคม 2560
Myanmar attracted US$ 6.6 billion from foreign direct investment (FDI) in the 2016-2017 fiscal year, which ended in March 2017, according to statistics from the Directorate of Investment and Company Administration (DICA). It was the first decline in international inflows since the 2012-2013 fiscal year. This signifies that the revision and update of laws and economic policies for Myanmar are essential in order to reverse the downward economic trend, as Myanmar relies heavily on investment.
Although the Myanmar government is focused on building its economic vision based on the 12 point economic policy from July 2016, investors remain cautious about the government and its economic policies. As a result, analysts and businessmen have recommended that the government take steps to improve economic policies, in order to sustain investors’ confidence. Subsequently, the new Myanmar Investment Law (MIL) came into force at the beginning of April 2017 this fiscal year.
New Investment Law
Based on a combination of the Myanmar Citizens Investment Law of 2013 and the Foreign Investment Law of 2012, only the Myanmar Investment Commission (MIC) is authorized to grant permission for operating businesses. However, according to the new investment policy, not all types of business proposals require permission from the MIC. Investments up to US$ 5 million (6 billion Kyat) can be directly approved by the state and regional investment commission.
This means that investment proposals which do not exceed that amount can be approved by the regional and state investment commission, without seeking MIC permission. MIC permission is only required if the investment is strategic for the state, capital-intensive, has large potential environmental and social impact, uses state owned land or buildings, or designated by the Union Government as requiring MIC permission.
The Myanmar Investment Law intends to speed up the investment process and to make it more efficient than before. DICA’s Director-General U Aung Naing Oo stated that under the new investment policy, specified businesses are required to seek permission from the MIC in order to obtain tax relief and other incentives from the state.