Myanmar assembly rejects investment cap
Foreign investors are now allowed to take 80 per cent share of a joint venture with Myanmar nationals in restricted businesses, the country’s legislative branch, the Union Assembly, decided on March 18.
The initial investment law stated that foreign ownership of businesses in the prohibited or restricted business category should be capped at 49 cent.
However, the provision says “it may be amended by the Myanmar Investment Commission, by notification, from time to time, with the permission of the Union Government”.
The provision became a controversial issue after the Upper House amended it to allow only 49 per cent of foreign capital in the restricted category, after the Lower House approved up to 80 per cent.
Foreign investors should also not be given decision-making authority in the joint ventures because this will affect national security and food supplies, it said.
Myanmar has introduced a new investment law in 2012 to lure investors to the newly opened country. However, the regulations remain vague and are subject to amendments by the Myanmar Investment Commission, which has been heavily criticised by foreign investors.
Foreign investors are now allowed to take 80 per cent share of a joint venture with Myanmar nationals in restricted businesses, the country's legislative branch, the Union Assembly, decided on March 18. The initial investment law stated that foreign ownership of businesses in the prohibited or restricted business category should be capped at 49 cent. However, the provision says “it may be amended by the Myanmar Investment Commission, by notification, from time to time, with the permission of the Union Government”. The provision became a controversial issue after the Upper House amended it to allow only 49 per cent of...
Foreign investors are now allowed to take 80 per cent share of a joint venture with Myanmar nationals in restricted businesses, the country’s legislative branch, the Union Assembly, decided on March 18.
The initial investment law stated that foreign ownership of businesses in the prohibited or restricted business category should be capped at 49 cent.
However, the provision says “it may be amended by the Myanmar Investment Commission, by notification, from time to time, with the permission of the Union Government”.
The provision became a controversial issue after the Upper House amended it to allow only 49 per cent of foreign capital in the restricted category, after the Lower House approved up to 80 per cent.
Foreign investors should also not be given decision-making authority in the joint ventures because this will affect national security and food supplies, it said.
Myanmar has introduced a new investment law in 2012 to lure investors to the newly opened country. However, the regulations remain vague and are subject to amendments by the Myanmar Investment Commission, which has been heavily criticised by foreign investors.
