However, these timeframes are discretionary and could be extended by the mic. Chinas new foreign investment law knowledge fasken. It was the first decline in international inflows since the 2012 20 fiscal year. It is widely expected that this law will provide clarity and greater ease of doing business in myanmar. Foreign investors and legal experts have said the existing code is better. Oct 20, 2016 the newly enacted myanmar investment law was tentatively welcomed by dr soe tun, vice chairman of the myanmar rice federation. The longawaited new investment regulations, along with plans to float its currency, the kyat, from april mark the boldest economic reforms since resourcerich myanmar emerged from decades of. On 2 november 2012, president thein sein signed into law myanmars new foreign investment law the new fil, replacing the previous union of myanmar foreign investment law of 1988. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. 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. Myanmars new foreign investment law fil was passed on november 2, 2012. International investment law, investment treaties and investorstate arbitration.
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. Myanmar foreign investment law implementing rules table of contents prohibited activities joint ventures restricted activities procedural information on 31 january, 20 the ministry of national planning and economic development of myanmar released new detailed regulations to augment the 2012 myanmar foreign investment law fil. On 3 november 2012, a new foreign investment law 2012 fil came into force, replacing the myanmar foreign investment law 101988. Pursuant to the new fil, the foreign investment rules and the classification of. Its purpose is to establish rules to attract foreign investment to the country and promote its contribution to national development. 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.
Myanmar investment law directorate of investment and. The minimum amount of foreign capital required to be eligible under the foreign investment law are as follows. New myanmar investment law a new dawn for foreign investors. Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Introduction this month has marked some significant milestones for myanmar also known as burma which, as a former pariah state, has recently emerged as the new investment hotspot in asia due to its rich natural resources. The foreign investment law the pyidaungsu hluttaw law no 21 2012 the 3rd waning of thadingyut, 74 me 2nd november, 2012 the pyidaungsu hluttaw hereby enacts this law. 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. Oct 31, 2016 the new investment law was endorsed on oct. 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. The new law has prompted debate about the role of foreign investment in national development and how it might affect other local interests. Sep 17, 2012 until myanmars law is amended, mr soe thane said, the existing 1988 foreign investment law was quite adequate. Myanmar investment law burmese version18102016 approved 1.
May 08, 2012 following months of delay, myanmars new foreign investment law has been finalised and includes a straight fiveyear tax exemption, with an extension of three years if certain criteria are met. Considered by many to be one of the last economic frontiers, myanmar has been the object of investor interest for the past three years. Dan and i did have a chance to travel and to meet with local lawyers and business people. As with the 1988 foreign investment law, the mfi law identifies certain key activities which may secure from the mic an investment permit. Myanmar state media details new foreign investment law. New myanmar foreign investment law enacted on 2 november. Jul 03, 2012 the government is working to make foreign investment more attractive by overhauling its legal system for foreign investment. The fil sets out a revised voluntary framework for foreign investment in myanmar whereby those foreign investors who apply and receive a permit to operate within its.
Myanmar to release new investment law by next year. May 03, 20 on 2 november 2012, president thein sein signed into law myanmars new foreign investment law the new fil, replacing the previous union of myanmar foreign investment law of 1988. Myanmar finalises new investment law financial times. The regulations are comprised of two separate notifications, notification 120 and notification 1120 together the investment rules. Kpmg in myanmar your investment resource for thailands. The mil repealed the 2012 foreign investment law the fil. Nov 03, 2012 myanmar s 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. The amended law specifies the restricted or prohibited areas for foreign investment, whereas the old law did not.
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. The new chinese foreign investment law and its implication on. Mar 16, 2012 the longawaited new investment regulations, along with plans to float its currency, the kyat, from april mark the boldest economic reforms since resourcerich myanmar emerged from decades of. This is the unofficial english translation of the new myanmar foreign investment law signed by president thein sein on november 2, 2012. The mil was drafted by the myanmar investment commission mic in consultation with the international finance corporation ifc and combines local. The newly enacted myanmar investment law was tentatively welcomed by dr soe tun, vice chairman of the myanmar rice federation. Regulation and protection of investment in myanmar chapter 4.
The new law is intended to streamline and improve the efficiency of investment processes for both local and foreign investors. Myanmars new investment law regulations to take effect next. Normally it takes at least three months to release rules and regulations following a law, maung maung win said. It also sets out general exceptions to the protections for investors, allowing the government to regulate in favour of the environment and health. The law, enacted recently, combines the myanmar citizens investment law and the foreign investment law. These include a number of new activities, including as relate to import substitution and the development of a modern industry. 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. New myanmar foreign investment law enacted on 2 november 2012. Myanmar approves new foreign investments in garment sector. If you look at the new law there are actually two categories.
Until myanmars law is amended, mr soe thane said, the existing 1988 foreign investment law was quite adequate. On 30th march 2017, the ministry of planning and finance, therefore, published the myanmar investment rules mir under the myanmar investment law 2016 mil as notification no. Investment promotion and facilitation in myanmar chapter 5. The following is a summary of the business areas that are restricted or prohibited for foreign investment pursuant to the amended law. However, major portions of foreign investments were not in the clothing sector, but were in other sectors such as oil and gas, mining and energy sectors. While the law is in effect, the rules and actions to implement the law have yet to be developed practitioners have told asialaw the new legislation has been drafted better than the previous investment laws and includes more streamlined processes are. Myanmars new investment law regulations to take effect. August, 2012 the amended bill new fil was approved by the house of representatives the lower. The myanmar investment law 2016 mil was enacted to replace the foreign investment law 2012 and the myanmar citizens investment law 20 on 18th october 2016.
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. 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. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. New or streamlined procedures for investment approval. Activities that affect cultural traditions, customs, health, natural resources and environment. 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. In relation to the mil, the myanmar ministry of planning and finance has drafted the myanmar investment rules the mil rules. Why myanmars revised foreign investment law is over. Nothing unworkable had been suggested and some changes, such as allowing foreign shareholders and directors, would make. August, 2012 the amended bill new fil was approved by the house of representatives the lower house of the assembly of the union september,2012. Initial impressions are that it is chinas opposite. After considerable internal debate, myanmars new foreign investment law fil was enacted on 2 november 2012. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign.
Foreign investment act final pmk ministry of trade and. By end of august, china was the largest foreign investor in myanmar, followed by thailand and hong kong. The soee law restricts private sector participation both local and foreign in most sectors of the economy, unless granted an. I think international investors are impressed by the new law. There will be a new type of myanmar investment commission mic approval process, referred to as the mic endorsement. How will the new investment law make it easier for foreign investment. The mil was drafted by the myanmar investment commission mic in consultation with the international finance. 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. The showcase project for this is the adoption of a new foreign investment law.
The republic of the union of myanmar pyidaungsu hluttaw. 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. Asialaw myanmars new investment law presents risks and. Myanmars new investment law, replacing the existing foreign investment law and myanmar citizens investment law, was approved in 2016. 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. 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. The idea is that if you also look at our previous, 2012 foreign investment law, all investment needs to be approved by the mic. Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Myanmar foreign investment law implementing rules charltons. One is mics permitted business and the other one is mics approved businesses. On 31 january, 20 the ministry of national planning and economic development of myanmar released new detailed regulations to augment the 2012 myanmar foreign investment law fil. On 2 november 2012 myanmars president thein sein endorsed the countrys new foreign investment law fil. In 2012, unctad launched the investment policy framework for sustainable. The words and expressions in this law shall mean as designated hereundera the state means the republic of the union of myanmar.
Myanmars upcoming new companies act and revised foreign investment law. The law was introduced just a few weeks prior to the visit of u. The new draft of the national law, by contrast, refers to responsible investment and the protection of the environment. Myanmar to delay foreign investment law financial times. The current foreign investment law and citizen investment lawknown together as the myanmar investment lawwere enacted in october by president u htin kyaw.
The implementation of a new foreign investment law passed in myanmar earlier this month has been delayed because the countrys president is sending it back to. Sep 23, 2015 the new draft of the national law, by contrast, refers to responsible investment and the protection of the environment. 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. 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 government is working to make foreign investment more attractive by overhauling its legal system for foreign investment. 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. A preliminary draft of the new foreign investment law has been approved by the parliament. This law is expected to be promulgated some time in. Foreign investment law 2012 union parliament law no xxi union parliament union assembly has enacted this law. Steve dickinson as i mentioned, my first post on myanmar, myanmar foreign investment. Soepaing said the proposed foreign investment law revisions were likely to have a positive effect on foreign investment in the country. If there is a delay, we will finish by the end of this fiscal year, at the end of march, he added. Myanmar foreign investment the reality on the ground. Jan 26, 2017 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.
This gave us the chance to find a little of the reality behind the statements of aspiration expressed by government officials at. New list of prohibited and restricted activities for foreign investment. Myanmar drafts new foreign investment rules reuters. Revision of myanmar foreign investment law 2011 the government announced to make revisions in the foreign investment law fil which was originally issued in 1988. Myanmar enactment of amended foreign investment law. Jun 29, 2017 the mil repealed the 2012 foreign investment law the fil. Foreign investment overview for myanmar myanmar 2016. The current foreign investment law and citizen investment lawknown together as the myanmar investment lawwere. The draft law combines elements of the myanmar companies act of 1914 and the special companies act of 1950, reworked in hopes of attracting foreign investment, said deputy minister for planning and finance u maung. Dica will announce new regulations for the national investment law in early march, in time for the start of the 20162017 fiscal year, according do a senior dica official. 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. Besides awaiting the enactment of the new law, investors are eagerly anticipating a new list of prohibited and restricted activities for foreign investment that may be introduced to supersede the existing list which was just issued on 21 march 2016 notification 262016. This law is of public policy and for general adherence throughout the republic.
President barack obama who stated that myanmar was taking its first steps on. Following months of delay, myanmars new foreign investment law has been finalised and includes a straight fiveyear tax exemption, with an extension of three years if certain criteria are met. The fil will fundamentally change the existing foreign investment legal regime in china currently ruled by the sinoforeign equity joint ventures. It was the first decline in international inflows since the 201220 fiscal year. Foreign investment, law and sustainable development unccd.