In wait for Myanmar’s new investment law

Myanmar’s president Thein Sein is expected to sign the new investment law in late August after it has passed parliament.

Myanmar’s new investment law, eagerly awaited by companies ready to pour money into the newly opened economy, has still not been approved by the country’s lawmakers, postponing business licence applications and the creation of joint-ventures.

Originally, the law was expected to be approved by the Myanmar parliament by the end of July, according to an interview with Tin Ko Win, deputy director general of the country’s Directorate of Investment and Company Administration, with the Wall Street Journal on July 17.

However, the bill is still being debated by Myanmar’s upper house of parliament. Assuming it gets the nod from lawmakers, it will go to president Thein Sein for signing, which can take another two weeks.

The law is now expected to become effective some time between late August and the end of September. It is said to include new regulations such as tax holidays and the right for foreigners to own 100 per cent of companies or set up joint ventures with local citizens or government departments with at least a 35 per cent involvement of foreign capital.

The law also sets the land lease period for foreign companies at 50 years, with two additional 10-year extensions possible. Local citizens must make up at least 25 per cent of the skilled workforce after five years, 50 per cent after 10 years and 75 per cent after 15 years.

The anticipated growth rate for Myanmar is 7.7 per cent until 2016, according to government projections.

 



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[caption id="attachment_4101" align="alignleft" width="300"] Myanmar's president Thein Sein is expected to sign the new investment law in late August after it has passed parliament.[/caption] Myanmar's new investment law, eagerly awaited by companies ready to pour money into the newly opened economy, has still not been approved by the country's lawmakers, postponing business licence applications and the creation of joint-ventures. Originally, the law was expected to be approved by the Myanmar parliament by the end of July, according to an interview with Tin Ko Win, deputy director general of the country's Directorate of Investment and Company Administration, with the Wall Street...

Myanmar’s president Thein Sein is expected to sign the new investment law in late August after it has passed parliament.

Myanmar’s new investment law, eagerly awaited by companies ready to pour money into the newly opened economy, has still not been approved by the country’s lawmakers, postponing business licence applications and the creation of joint-ventures.

Originally, the law was expected to be approved by the Myanmar parliament by the end of July, according to an interview with Tin Ko Win, deputy director general of the country’s Directorate of Investment and Company Administration, with the Wall Street Journal on July 17.

However, the bill is still being debated by Myanmar’s upper house of parliament. Assuming it gets the nod from lawmakers, it will go to president Thein Sein for signing, which can take another two weeks.

The law is now expected to become effective some time between late August and the end of September. It is said to include new regulations such as tax holidays and the right for foreigners to own 100 per cent of companies or set up joint ventures with local citizens or government departments with at least a 35 per cent involvement of foreign capital.

The law also sets the land lease period for foreign companies at 50 years, with two additional 10-year extensions possible. Local citizens must make up at least 25 per cent of the skilled workforce after five years, 50 per cent after 10 years and 75 per cent after 15 years.

The anticipated growth rate for Myanmar is 7.7 per cent until 2016, according to government projections.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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