PERSPECTIVE
MYANMAR- A RISING DESTINATION FOR BUSINESS AND INVESTMENTS
BY AUNG NAING OO *
Myanmar, in the last couple of years, has started a series of reforms and programs so that the country may be considered as the best place for investors. Over more than two years, many political, economic and social reforms have been rolled out by the government which was elected in 2015. Liberalization of trade and foreign investment are integral parts of these economic reforms.
In order to facilitate economic development by encouraging more Foreign Direct Investment( FDI), Myanmar is creating a transparent, consistent, stable and investors-friendly environment. The new Special Economic Zone Law, new Myanmar Investment Law( MIL) and new Myanmar Companies Law( MCL) were enacted during the recent years. The new MIL, in fact, will ensure transparency while also levelling the playing field for all businesses.
The new Myanmar Investment Law( MIL) was enacted on 18 October 2016 and its subsequent rules were prescribed on 30 March 2017. The law places the private sector as the prime-mover of the market mechanism; while also facilitating and simplifying investment related activities. Under the MIL, almost all sectors are fully open to FDI in the forms of 100 percent-owned or Joint Venture with local companies.
Another recent reform, which can be mentioned as a“ revolution”, is the modernization of the century-old Companies Act to reflect the current business and regulatory environment by reducing registration procedures, facilitating electronic company registration, and so on.
The new Myanmar Companies Law( MCL) was enacted on 6 December 2017. It has come into effect on 1st August 2018 with the implementation of the electronic registry. The new law transforms Myanmar’ s corporate landscape. It aims to make it easier for businesses to be registered as companies by providing more flexibility to companies to conduct business and manage their internal affairs, while ensuring certainty and stability in corporate regulation. As a result of this electronic registry, the companies can be registered in Myanmar for doing business within a few hours.
Under MCL, foreign ownership in local companies is permitted up to 35 percent. The law also envisages equal treatment for foreign and local companies. The changes in the investment scenario brought about by MCL will be better understood when comparing it with the previous law.
Extraordinary and Plenipotentiary Diplomatist • Vol 6 • Issue 8 • August 2018, Noida • 47