Diplomatist Magazine Diplomatist August 2018 | Page 48

PERSPECTIVE
Topics Old Law (MCL 1914) New Law (MCL 2017)
Constitution Memorandum & Article of
Association (2 docs) One single Constitution
Objective Required Not Required
Minimum no. of Shareholder 2 1
Minimum no. of Director 2 1 Resident Director
Class of Shares Only 1 class - Ordinary share More than 1 class; Ordinary, Preferences, Redeemable or
Convertible
Authorized Capital Required Not Required
Par Value of Share Required Not Required
Declaration of dividends Only from profi t Not necessarily from profi t. However, must pass the
solvency test and must not materially prejudice the
company's ability to pay its creditors
Ability to do trading Foreign owned company & Foreign
JV not allowed to do trading JV with ≥ 65% Myanmar ownership can do trading
Director's Duties Not clearly defi ned Clearly defi ned
However, several factors have damped investor enthusiasm
in Myanmar in the past year due to a number of factors,
including depressed global commodities prices and, not
surprisingly, the Rakhine situation. Concerns over alleged use
of excessive force by Myanmar security forces, in responding
to terrorist attacks in October 2016 and August 2017, appear
to have negatively infl uenced potential investors from some
of the countries represented around the table today.
Nevertheless, Chinese, Thai, Singaporean, Korean and
Japanese have moved in to fi ll the investment gap. They have
been investing in infrastructure, transportation, real estate
and small industries.
In addition to these new laws, Myanmar has prioritized
certain sectors to increase foreign investment. Examples
include agro-processing, manufacturing of import-substitute
products, logistics services etc. The country has recently
issued a notifi cation welcoming foreign investment in the
education sector too.
Indeed, new opportunities are being created every day as
ASEAN seeks to promote connectivity. Myanmar is also the
fi rst country that India sees when it seeks to implement its
“Look East” and “Act East” policy. The active engagement
of neighbouring countries will no doubt have a positive
impact on Myanmar’s trade and investment growth over the
medium term.
Myanmar has also signalled its intention to open up by
launching a number of trade-related development plans and
frameworks: they include the National Export Strategy; the
Master Plan for the Establishment of the Myanmar Trade
Promotion Organization; the Private Sector Development
Framework and Action Plan and a Gap Assessment on the
ASEAN Trade in Goods Agreement.
We invite all investors to invest in Myanmar. Supported
by the business-friendly Government Agency, which is
Myanmar Investment Commission and favorable investment
environment that we have created, it is ensured that all
investors can do business smoothly and successfully in
Myanmar.
We have many challenges but there is no challenge that
we cannot overcome. We want Myanmar to emerge as a
reliable partner to investors – a country that seeks to build
relationships with old friends and new ones alike. With the
new investment and business regulatory and administrative
changes in place, we are sending a clear message to the world:
“Myanmar is open and welcome for investment”.
* Author is director general, Directorate of Investment
and Company Administration, and Secretary of Myanmar
Investment Commission
48 • Extraordinary and Plenipotentiary Diplomatist • Vol 6 • Issue 8 • August 2018, Noida