We will circulate a more detailed summary once the text of the new law becomes available. This aims to introduce internationally recognised antitrust notions into myanmar law. New myanmar foreign investment law enacted on 2 november 2012. The rapid opening and political transition has led to bureaucratic overload, as the new government has enacted new laws and formed new institutions, including moecaf established in 2011. Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Myanmars upcoming new companies act and revised foreign investment law. Set aung, deputy minister of national planning and economic development and vice governor of the myanmar central bank, told the recent myanmar global investment forum in nay pyi daw that the foreign investment law was amended. Myanmars new foreign investment law fil was passed on november 2. On 2 november 2012 myanmars president thein sein endorsed the countrys new foreign investment law fil. This is the unofficial english translation of the new foreign investment law signed by president thein sein last friday. Pursuant to the mil, when doing business in myanmar, foreign investors can benefit from significant tax exemptions and other benefits. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Fdi in myanmar was on the rise even before the new investment law was being drafted, a trend continued during extensive public discussion and debate about the legislation. With an abundance of natural resources, a large and lowcost labor pool, and shared borders with 40 percent of the worlds population, it should be no surprise.
The introduction of the fil is good news for potential investors and came in the same week in. The words and expressions in this law shall mean as designated hereundera the state means the republic of the union of myanmar. There will be a new type of myanmar investment commission mic approval process, referred to as the mic endorsement. 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. Specific legal advice should be sought in relation to investment in myanmar. This is the unofficial english translation of the new. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. Can a business in myanmar be 100percent foreign owned. The myanmar legislature enacted the myanmar investment law the mil late last year. On 2 november 2012 myanmar s president thein sein endorsed the countrys new foreign investment law fil. Jun 29, 2017 the myanmar legislature enacted the myanmar investment law the mil late last year. 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. The republic of the union of myanmar pyidaungsu hluttaw. Aug 12, 20 as it happens, relatively few applications under the foreign investment law are actually in process.
New investment law helps myanmar rebuild its economy and. 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. This law shall be called the foreign investment law. Overview section 57 of the new law repeals the foreign investment law of the union of myanmar 1988 1988 fil. Analyzing myanmars new foreign investment law asean. Myanmar state media details new foreign investment law. New myanmar foreign investment law enacted on 2 november. Building on the positive momentum, last week, the myanmar government finally passed the longawaited foreign investment law, which effectively opens the nation to global investment. 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. After considerable internal debate, myanmars new foreign investment law fil was enacted on 2 november 2012.
Myanmar will look to foreign investors to transfer such skills as part of the foreign investment process. Myanmar investment law burmese version18102016 approved. This law shall be called the union of myanmar foreign investment. Foreign direct investment in myanmar increased by 734. 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. 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. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity. 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. Jul 03, 2012 myanmar will look to foreign investors to transfer such skills as part of the foreign investment process. The government seeks to push development into manufacturing, real estate, agriculture and services, areas that are virtually untouched currently by. The mil, the investment rules and the myanmar companies law 2017 are the key pieces of legislation underpinning the governments efforts to attract foreign investment to myanmar. The legal system in myanmar is based on english common law. 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.
Foreign investment law law firm hong kong law firms. Based on data for actual and approved foreign direct investment fdi from 19892011, this paper explores the major trends in fdi in myanmar, focusing on changes over time in the source and sector of investment. The myanmar investment law, enacted in 2016, vastly simplified the process for investment applications and offers a number of tax breaks, incentives, guarantees, rights and protections for business ventures. Certain activities are designated as restricted or prohibited, and the myanmar investment. 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.
Myanmar myanmar investment law investment laws navigator. 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. Full updated law below chapter i title and definition 1. Regulation and protection of investment in myanmar chapter 4. 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. The new law allows foreigners to own up to 100% of many businesses approved by the foreign investment. The role of foreign direct investment fdi in myanmar. In 2012, it established a managed float of the burmese kyat to stabilise the currency, and rewrote the countrys foreign investment law. Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday.
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. 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. 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. Union parliament union assembly has enacted this law. Jun 12, 2012 myanmar investment summit 2012 official opening address. The mil was drafted by the myanmar investment commission mic in consultation with the international finance corporation ifc and combines local and foreign. Myanmar is drafting several laws and regulations to create a more level playing field and more favourable investment climate. 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. Myanmars investment outlook for 2018 asean business news. This work and any original materials produced and published by open development myanmar herein are licensed under a cc bysa 4.
Market participants in myanmar are querying the validity of an alleged new draft of myanmars foreign investment law, obtained and leaked by reuters last week, and have branded the significance of the proposed changes as overhyped. Foreign investment by country directorate of investment and. The mil repealed the 2012 foreign investment law the fil. Through these laws, foreign investors may choose to establish a foreign branch office in myanmar. Foreign investment law of 2012 open development myanmar.
Myanmar foreign direct investment 20122019 data 2020. Why myanmars revised foreign investment law is over. Foreign investors who wish to undertake specific business activities in myanmar may rely on the foreign investment framework available under the myanmar companies act, the 2012 myanmar foreign investment law and the 2014 sez law. Myanmar s 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. Myanmar investment law directorate of investment and company administration dica ministry of construction ministry of agriculture livestock and irrigation myanmar investment commission mic myanmar citizens investment law of 20 foreign investment law of 2012 myanmar investment law of 2016 special economic zones sez. Photo courtesy of wikimedia commons as part of the reforms by president thein sein to open up myanmar after decades of economic isolation, the parliament has approved a new foreign investment law.
News article summaries are extracted from their sources, as guided by fairuse principles and are ed by their respective sources. Jul 10, 2017 the mil, from its start date, applies to existing or new investments in myanmar except for matters coming under the old foreign investment law 2012 such as investment disputes or prior permit investments previously suspended from business operations before the start date or investment projects suspended by governmental measures under general. Charltons does not currently advise on the law of myanmar. Further to our legal update dated 9 november 2012 myanmar s foreign investment law. Oct 19, 2016 myanmar investment law burmese version18102016 approved 1. Myanmar is committed to providing a secure, accessible and conducive investment environment for both foreign business people and myanmar citizens. The republic of the union of myanmar the pyidaungsu hluttaw the social security law, 2012 the pyidaungsu hluttaw law no. The regulations are comprised of two separate notifications, notification 120 and notification 1120 together the investment rules.
This page provides the latest reported value for myanmar foreign direct investment plus. 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. According to th e w orld ba nk data source in 2012. Kpmg in myanmar your investment resource for thailands. 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 restrictions will receive tax and other benefits and guarantees. The two foreign companies are welcomed by the government as they upgrade the countrys outdated telecommunications infrastructure one of the aims specified in the foreign investment law fil of 2012. Myanmar business guide new myanmar investment summit 2012. The myanmar investment law 2016 law, which replaces the foreign investment law, 2012 2012 law and the myanmar citizen investment law, 20 20 law, has been enacted and, according to sources at the directorate of investment and company administration dica, will come into force on april 1, 2017. Anyone who wants to do business in myanmar had to submit a proposal to myanmar investment commission, regardless of whether it is a small business or a big business. Myanmar legislation includes volumes of codified laws enacted between 1841 to 1954, known as the burma code, in addition to numerous special laws, notifications, rules and regulations enacted from time to time. Aung hla tun, myanmar parliament passes investment law. On 2 november 2012, president thein sein signed into law myanmar s new foreign investment law the new fil, replacing the previous union of myanmar foreign investment law of 1988.
Publication of the foreign investment law and rules, published in 2012 and 20. A new draft foreign investment bill published in 2015. Foreign investment overview for myanmar myanmar 2016. You can get new foreign investment law 2012 both english and myanmar versions in the following link. Myanmar s upcoming new companies act and revised foreign investment law. Nov 17, 2016 the mil was drafted by the myanmar investment commission mic in consultation with the international finance corporation ifc and combines local and foreign investment regulations, by replacing the now repealed foreign investment law of 2012 fil and the myanmar citizens investment law of 20. Currently, foreign investment in myanmar is concentrated in oil and gas, minerals and power.
The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. Foreign investment law 2012 union parliament law no xxi 3 chapter i title and definition 1. The new law has prompted debate about the role of foreign investment in national development and how it might affect other local interests. Foreign direct investment policy myanmar s foreign direct investment policy is a component of the overall restructuring and development policy of the government. The idea is that if you also look at our previous, 2012 foreign investment law, all investment needs to be approved by the mic. The soee law restricts private sector participation both local and foreign in most sectors of the economy, unless granted an. 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. The following terms mentioned in this law must be interpreted as stated below. The investment law, which passed the lower house of myanmar s legislature on september 28 th and the upper house on october 5 th, was signed by president htin kyaw on october 18 th and represents further liberalization of the southeast asian nations foreign investment laws and rapidly changing economic environment. Charltons accepts no responsibility for its completeness andor accuracy. Summary of amendments on 2nd november 2012, president thein sein signed into law the longawaited new foreign investment law.
Outside the arbitration field, the myanmar competition law coming into force in february 2017. Pdf the role of foreign direct investment fdi in myanmar. On the company registration front, we note that mic, the watchdog over foreign companies in burma, is already going around inspecting foreign companies in myanmar to make sure that they are working within the scope of business they declared. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. It was the first decline in international inflows since the 2012 20 fiscal year. Mar 01, 2017 myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Investment promotion and facilitation in myanmar chapter 5. Summary of amendments, we have now had sight of an unofficial translation of the longawaited new foreign investment law, signed into law by president thein sein on 2 november 2012. Oct 14, 2016 the idea is that if you also look at our previous, 2012 foreign investment law, all investment needs to be approved by the mic.