The new Myanmar investment policy that was announced in mid-November of 2016 will be effective from January, according to Vice President Myint Swe who made the comments during a meeting with the UMFCCI (Union of Myanmar Federation of Chambers of Commerce and Industry).
The announcement of the new investment policy followed the endorsement of the new Investment Law in October, which merged the pre-existing Myanmar Citizens Investment Law approved in 2013 and Foreign Investment Law approved in 2012. The policy, which was designed to give support to the government’s 12-point economic policy publicised in July 2016, underscores the government’s initiatives to ensure the rule of law for conduct of business activities and the protection for investors in an effort to attract more foreign investment and enhance sectoral investment. It contains seven key points relating to accountability and checks and balances, aiming to improve the investment environment.
Under the new policy, the Myanmar Investment Commission (MIC) and other relevant government departments are required to assure a quick and transparent procedure for the ease of doing business of foreign investments. It also pledges trustworthy arbitration methods for controversies and a reliable financial system.
On the other hand, the policy demands local and foreign investors to engage in responsible investment by taking responsibility concerning the protection of the environment and natural resources, complying the prescribed investment and business mechanisms. According to the policy, foreigners are banned from engaging in businesses related to national security, culture and some social issues, and those firms which have such affiliations must announce their dealings transparently. The new seven-point investment policy precedes the new investment law which will take effect from April 2017 onwards. Myanmar attracted $2.061 billion of foreign investments during the first seven months of the 2016-2017 financial year which ends in November, significantly lower than the official forecasts by the MIC.
