17-18 Oct, 2012 - Yangon, MYANMAR
PARKROYAL Yangon
PARKROYAL Yangon
On 07 September 2012, Myanmar’s parliament passed a much anticipated foreign direct investment law that is vital for government’s expansion plans. The new law to be signed by President Thein Sein is considered a major step forward. Several provisions that would deter foreign investments were dropped. One of which is such a requirement of $5 million minimum initial investment outlay. The new version permits foreign parties to hold 50% stake in joint ventures.
A barrier to foreign investments was lifted with the easing of sanctions by the Western nations. Investors were also further encouraged with the reforms to the financial system, particularly the abandoning of an onerous dual exchange rate system.
Yet another progressive aspect of the new law is that instead of 35 years land leasing to foreign investors in the old rules, it is now extended to an initial period of 50 years with an option to renew.
Myint Soe, Chairman of the Myanmar Garment Association and an executive member of the Myanmar Chamber of Commerce and Industry said that permitting 50% foreign equity in joint ventures was conducive to attract foreign investors who might be wary if the law favoured protection for local entrepreneurs too much. “What Myanmar needs is a law that will attract new investment rather than restrict it. I welcome the fact that the amended law has dropped the regulation that requires $5 million startup initial capital.”
The 2nd New Myanmar Investment Summit to be held in Yangon on 16-18 October 2012 will offer vital details of the various developments in Myanmar. The summit features an official session on “Investment Opportunities and Private Sector Development” by U Aung Naing Oo, Director General, Directorate of Investment and Company Administration (DICA), Ministry of National Planning and Economic Development. Furthermore, Ms. Cheah Swee Gim, Director and Foreign Consulting Attorney, from Kelvin Chia Yangon Ltd will speak on “New Foreign Investment Law – Implementation Guidelines”.
Register here to attend this summit, or contact Ms. Hafizah at hafizah@cmtsp.com.sg for further queries.
Source: Abcnews.go.com
