Foreign investment law 2012 union parliament law no xxi 3 chapter i title and definition 1. Currently, foreign investment in myanmar is concentrated in oil and gas, minerals and power. The new myanmar investment law mil took effect in 2017 to combine the old citizens investment law and the myanmar investment law. This law shall be called the union of myanmar foreign investment. 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. 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. However, these separate legal regimes created the perception of an uneven playing field for foreign investors on the one hand and domestic investors on the other. This update to the most important investment related legislation helps establish the coherent legal framework for both domestic and foreign investors. 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. Myanmars new investment law regulations to take effect. Myanmar permits full foreign capital investments in.
The new myanmar companies act takes effect from 1 august 2018. Two new agricultural laws have also been passed with important implications for land rights and land use, the government is thinking about privatizing some state enterprises, and a new draft law is being considered to give the central bank greater autonomy to design and implement monetary policy. A new investment law to supersede the foreign investment law of 2012 and myanmar citizens investment law of 20 took effect in april 2017, helping to level the playing field between local and foreign investors. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Myanmars new foreign investment law fil was passed on november 2. Foreigners are allowed to lease land, and the lease duration is a maximum of one year. On 2 november 2012 myanmars president thein sein endorsed the countrys new foreign investment law fil. The myanmar citizen investment law and myanmar foreign investment law have been repealed with effect from 18.
This is the unofficial english translation of the new myanmar. This law shall be called the foreign investment law. Changing foreign investment laws new fdi law enacted in november 2012 to allow foreignowned investment up to 100% foreign investors to get fiveyear tax holiday and 50year land leases relaxed import restrictions and abolished export taxes. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. It was the first decline in international inflows since the 2012 20 fiscal year. Pursuant to the new fil, the foreign investment rules and the classification of. Overview the myanmar government is committed to promote foreign and local investment equally. Myanmar companies law english and burmese version from dica pdf 1. President barack obama who stated that myanmar was taking its first steps on. The foreign investment law the pyidaungsu hluttaw law no.
The law was introduced just a few weeks prior to the visit of u. Mar 01, 2017 myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Burma law times 19071920 indian law reports rangoon series 19231937 burma law journal 19221927 all india reporter, rangoon 19231937 rangoon law reports 19371942. Myanmar is in the midst of rapid economic and social change, with dramatic consequences for land tenure. Pursuant to the mil, when doing business in myanmar, foreign investors can. Abstract myanmar initiated a series of gradual and radical changes of economic reforms since 2011 aimed at comprehensive economic development.
Charltons accepts no responsibility for its completeness andor accuracy. State financing and the central bank of myanmar, 200506 to 2014 kyat, millions 59 table 3. The republic of the union of myanmar the pyidaungsu hluttaw the social security law, 2012 the pyidaungsu hluttaw law no. However, bylaws implementing the new mil have not been issued yet and as such the rules issued. While the registration under the foreign investment law 2012 is generally optional for foreign investors, certain activities such as manufacturing and infrastructure.
In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. Investors registered under the new fil are eligible for a lease term of up to 50 years, with the option of two consecutive tenyear renewals. Union of myanmar on november 2, 2012, the detailed negative lists notification no. This page provides the latest reported value for myanmar foreign direct investment plus. 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. Analyzing myanmars new foreign investment law asean.
Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Myanmars fiscal position, 201112 to 201516 per cent of gdp 60 table 3. Pdf the role of foreign direct investment fdi in myanmar. Liberalization of trade and foreign investment is an integral part of these economic reforms. The soee law restricts private sector participation both local and foreign in most sectors of the economy, unless granted an. Through these laws, foreign investors may choose to establish a foreign branch office in myanmar. Burma union of exporter guide myanmar exporter guide 2017. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. The study was based on secondary data source of myanmar over the. New investment law helps myanmar rebuild its economy and. The following terms mentioned in this law must be interpreted as stated below.
The foreign investment law, the law of the union assembly no. As at august 20, foreign investments into the country had. It was the first decline in international inflows since the 201220 fiscal year. Myanmar has been exporting primary products with low price, and importing manufactured and. The mil was drafted by the myanmar investment commission mic in consultation with the international finance corporation ifc and combines local.
Evaluation of the new foreign investment law in myanmar. Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Myanmar will look to foreign investors to transfer such skills as part of the foreign investment process. Overview section 57 of the new law repeals the foreign investment law of the union of myanmar 1988 1988 fil. Important land laws transfer of property act 1882 upper myanmar land and revenue regulations 1889. This was replaced by the myanmar investment law in 2016 so as to combine the regulation of both foreign and domestic investments under one set of laws. While the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. While lauding the move as beneficial for the myanmar education sector, u kyaw min khant, secretary of the myanmar teachers federation mtf pointed out that the education law should be updated to include rules on new foreign private investments. 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. On 3 november 2012, a new foreign investment law 2012 fil came into force, replacing the myanmar foreign investment law 101988.
The new mil is a consolidation of the myanmar citizen investment law 20 and the myanmar foreign investment law 2012. 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 citizen investment law and myanmar foreign investment law have been repealed with effect from 18 october 2016. 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. Regulation and protection of investment in myanmar chapter 4. Specific legal advice should be sought in relation to investment in myanmar. After the enactment of the foreign investment law in 2012, the myanmar citizen investment law was enacted in 20. This law shall be called the myanmar investment law. Legal and regulatory regime for investment enacting the new foreign investment law in 2012. The republic of the union of myanmar pyidaungsu hluttaw. Companies worldwide are looking eagerly at the opportunity to enter this exciting market.
Oct 27, 2016 while the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. Myanmar citizen investment directorate of investment and. 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. Vacant, fallow and virgin lands management law 2012 foreign investment law 2012. Foreign investment overview for myanmar myanmar 2016. Its objective is to establish a levelplaying field for local and foreign investors by providing a legal framework and incentives for investment by myanmar government. Pursuant to the mil, when doing business in myanmar, foreign investors can benefit from significant tax exemptions and other benefits. The objective of the study is to examine the role of foreign direct investment fdi and the situation of fdi flows in myanmar. Myanmars investment outlook for 2018 asean business news. 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. Foreign direct investment in myanmar increased by 734. The myanmar government is committed to promote foreign and local investment equally. In 2012, it established a managed float of the burmese kyat to stabilise the currency, and rewrote the countrys foreign investment law.
Support labour circulation to enable skilled and experienced employees of foreign firms in myanmar to set up their own enterprises, via mechanisms to assist access to finance and land. Investment promotion and facilitation in myanmar chapter 5. Fallow and virgin lands management law 2012 foreign investment law 2012 special economic zones law 2012. Myanmar foreign investment law was issued in 2012 to promote and regulate foreign investments. 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. Types of land farmland paddy land and several types of nonpaddy land non. Social reforms, too, been a key focus establishment of the national human. Foreign direct investment and economic transformation in myanmar 2 ii. This is the unofficial english translation of the new. Myanmars upcoming new companies act and revised foreign investment law.
The words and expressions in this law shall mean as designated hereundera the state means the republic of the union of myanmar. However, by laws implementing the new mil have not been issued yet and as such the rules issued. The law which was drafted in 20 based on suggestions from experts and businessmen with the help of international finance corporation ifc combines the foreign investment law drafted in 2012 and the citizens investment law drafted in 20. Myanmar foreign direct investment 20122019 data 2020. 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 government announced to make revisions in the foreign investment law fil which was originally issued in 1988. Under the myanmar investment law mil, foreign companies investing under a permit from the myanmar investment commission mic can enter into a 50year lease agreement with two 10year extensions. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. 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. In 2017, the century old companies law was substantially revised. 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. 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 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.
Land law stamp duty in myanmar seminar, 4 august 2016. Myanmars fiscal position, 201112 to 201516 per cent of. New myanmar foreign investment law enacted on 2 november 2012. The government seeks to push development into manufacturing, real estate, agriculture and services, areas that are virtually untouched currently by. In the current reform process, smallholders are reclaiming their legal land rights at the same time that foreign investment is flooding the country, placing all previous land use arrangements under increasing pressure.
Commission means the myanmar investment commission formed under this law c. New myanmar foreign investment law enacted on 2 november. The foreign investment law the pyidaungsu hluttaw law no 212012 the 3rd waning of thadingyut, 74 me 2nd november, 2012 the pyidaungsu hluttaw hereby enacts this law. 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. Law of 1987, foreigners are restricted from owning land.
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