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