Myanmar assembly rejects investment cap

Myanmar terminalForeign 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.



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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...

Myanmar terminalForeign 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.



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.

$
Personal Info

Donation Total: $10.00

 

 

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