Foreign investment is allowed up to October this year, the MIC US $ 4.5 billion, while the actual amount entered in the $ 2.8 billion (TV)
MIC is allowed until October this year, the amount of foreign investment amounted to US $ 4.5 billion has actually entered in a $ 2.8 billion (TV)
2017-18 Access to valuable financial year FDI Scheduled of US $ 6 billion within to October MIC has allowed foreign investment worth $ 4.5 billion, the actual amount of access from the list until the end of September there is only $ 2.8 billion (62%) of the Myanmar Investment Commission.
This valuable financial access to foreign investment amounted to $ 4.5 million until October (Access to valuable financial year FDI Scheduled to US $ 6 billion)
Htin Lin Aung 20 Nov 2017 | Myanmar Times daily
This year2017-2018 budget year until October increase the amount of incoming foreign investment in the US $ 4.5 billion, according to the Myanmar Investment Commission.
October valuable momentum funds were allowed foreign investment up to 153 have been checked in investment amounted to US $ 3.707 million 996 million. According to the Special Economic Zone Act Thilawa investment amounted to more than US $ 214 million permitted the previous year, allowing businesses to increase investment, the total investment amounted to US $ 4 million, including 5 billion this year. Access to valuable financial year foreign investment Scheduled to enter the investment of approximately US $ 6 billion in the six months (In fact, over a period of nine months) 4, the correct list of the tenth 5 billion (MIC was given 2.8 billion, down 50%).
If this is true for more than six months, seven months US$ 4 .5 billion (September during the nine months to the correct list MIC 2.8 billion, down 50%), so this momentum is going out of six billion dollars earmarked for this year and, as such, a good momentum this year, say, "said Aung Naing Oo, secretary of the Myanmar Investment Commission, November 17 Spoken.
United previous government 2015-2016 budget year amounted to US $ 9 billion in foreign investment in the country over the current government valuable 2016-2017 budget of US $ in the year 6.7 billion (about 26%) was reduced, resulting in a small amount of investment to enter.
Until the end of October 2017, allowing foreign investors to access investment amounted to US $ 74.596 million from 780 million, noting Foreign Investment in the oil and gas sector m to US $ 22.410 million, 368 million total investment has been invested in more than 30 percent of the maximum amount of energy m to US
$ 20.715 million to 131 million, the second-largest investor lies with a total investment volume of more than 27% Best The manufacturing sector m to US $ 9.248 million to 85 million, the third largest investor.
Investment in 49 countries, while China's largest investment in China and Singapore is the second most invested.
Ref: https: //myanmar.mmtimes.com/news/103842.html
2017 will no longer be a wait-and-see year for Myanmar (latest investment law)
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Despite the 30 percent drop in FDI compared to the preceding year, the inward FDI in the financial year 2016-17 was moderately satisfactory, with US$6.6 billion. That amount mainly derived from the transport and communications sector.
The sector alone attracted US$3 billion FDI, making it the top sector in terms of FDI.
However, it is surprising that there was not a single dollar of FDI which flowed into the agriculture sector during the 2016-17 fiscal year. Why is that the case? Why isn’t Myanmar’s agriculture sector attracting foreign capital? What makes international investors hesitant to enter the sector? The FDI policy on agriculture needs to be thoroughly reviewed so the sector can develop robustly with foreign capital.
Other sectors which experienced the same fate in that year include mining, oil and gas, construction and industrial estates sectors. Power, energy and oil and gas sectors are usually the top spot for attracting FDI. In fact, it is the first time that transport and communications sector becomes the most attractive sector.
A US$1.8 billion FDI in 2013-14 was the historical peak for the manufacturing sector and this year’s total ended up with US$1.1 billion, a little lower than the peak. Significant rises in FDI compared to the previous year are also seen in numerous industries, such as livestock and fisheries, power, hotel and tourism and service sectors.
Myanmar enacted a new foreign investment law in late 2016. The new Myanmar Investment Law came into force on April 1, 2017, combining two older laws stipulated in 1988 and 2012 and merging two separate laws for foreigners and Myanmar citizens. The new legislation allows a more level-playing field between local and foreign investors, although some differences remain.
What is special about the latest investment law is the introduction of investment channeling which attempts to guide FDI flow to areas and sectors prioritised by the administration. The law does so by creating and categorising zones and investment promotion sectors.
There are three zones – zone 1 (least developed), zone 2 (moderately developed) and zone 3 (sufficiently developed) – and 20 sub-categories of investment promotion sectors.
According to the law, income tax exemption will no longer be automatic and will be granted only for FDI in sectors specified by the Myanmar Investment Commission (MIC). The exemption period will vary depending on the zone – seven years for zone 1, five years for zone 2 and three years for zone 3.
The classification of investment promotion businesses is rather broad and general, covering most sectors apart from some strategic resource-related ones such as oil and gas and mining activities. In other words, it can be seen as an FDI policy shift from being resource-dependent to non-resource-dependent by placing its focus on manufacturing and sectors which are labour-intensive.
The MIC has released an order to delegate new power to regional and state-level investment committees to grant endorsement to investment applications up to US$5 million.
There are also two types of MIC applications. In addition to MIC full permit, a new type of MIC endorsement is introduced, with a purpose to speed up the application process. The reconstitution of MIC is certainly a step towards decentralisation and greater efficiency.
There remain many questions, such as infrastructure support, difficulty in logistics, skilled labour and market access.
However, the new investment law, together with clearer investment policies, means that 2017 will no longer be a wait-and-see year. Instead, international investors are likely to change to a “commit-and-act” approach in Myanmar in this new fiscal year.
Ref:Sales Manager at Jebsen & Jessen (SEA)
https://www.linkedin.com/pulse/2017-longer-wait-and-see-year-myanmar-latest-law-tun-mba-yueco-
March 21, 2017 7:00 am JST
Myanmar braces for 30% drop in foreign investment
Slump in oil, gas investment sparks push for policy reforms
MOTOKAZU MATSUI, Nikkei staff writer
YANGON -- Foreign investment in Myanmar appears poised to plunge roughly 30% for the year ending March 31 amid the absence of new oil and gas projects, highlighting the need for the government to lure other industries with deregulation and firm economic policy plans.
Myanmar received about $6 billion in foreign direct investment during the 11 months through February, an official at the Directorate of Investment and Company Administration told The Nikkei. An additional $1 billion or so is expected for March, the official said, bringing the annual total to around $7 billion for the first year-on-year drop since fiscal 2012.
Foreign investment had typically increased since Myanmar's democratization in 2011, stoked by efforts to improve ties with the international community and throw open the economy under the government headed by retired Gen. Thein Sein. But much of that money was concentrated in the energy sector, as 40-50% of investment in fiscal 2014 and fiscal 2015 flowed into oil and gas development.
Such oil and gas investment was nonexistent as of the end of February because no new gas and petroleum fields had been offered for development since the start of fiscal 2016. More money went into the communications field amid growing cellphone use as well as into manufacturing, driven by the expanding sewing industry, than in fiscal 2015. But the overall decline remains substantial, exposing the fragile foundations of a resource-dependent economy.
Policy transition
Some point out that the political handoff in March 2016 between the Thein Sein government and State Counselor Aung San Suu Kyi's National League for Democracy hampered investment. The NLD government released an initial economic policy plan in July laying out 12 priorities such as infrastructure building, but provided little detail on those points. Plans to fill out Myanmar's power infrastructure and draw investment are not yet forthcoming.
"The government is short on talent who can draw up economic policies," a diplomatic source said.
The NLD also has pledged to give greater weight to environmental impact assessments for large-scale economic development projects, and signaled that plans formulated under the previous administration for coal-fired power plants will be reviewed in light of potential environmental damage.
Those moves raised concerns among foreign energy companies that their projects could be suspended, a source at a Japanese trading house said. This "has prompted businesses to suspend their projects until they can assess the details of the new government's economic policies," the source said.
FDI could exceed MIC’s target in 2017-18, but still lower than previous years’
The Myanmar Investment Commission (MIC) could achieve or even exceed its US$6 billion foreign direct investment target for 2017-18.
Between April 1 and July 11 of the current fiscal year, FDI into the country hit US$2.7 billion, almost half the MIC’s target. Meanwhile, a total of US$127 million in fresh funds was pumped into the Thilawa Speical Economic Zone, while US$221 million was injected into existing projects.
That’s US$3.1 billion in total for the first four months of the current fiscal year, which is half the MIC’s original target for the entire year.
“During first four months of the [fiscal] year, FDI has already reached US$3 billion so our target is likely to be achieved. We still have about eight months left to the end of the fiscal year, so things are looking very promising,” said U San Myint, deputy director general of Directorate of Investment and Company Administration.
Falling behind
However, the FDI target for the current year still lags behind previous years’. In 2016-17, the National League for Democracy government’s first year in power, FDI totaled US$6.6 billion, which was about US$3 billion less than in FY2015-16. During the last year of former president U Thein Sein’s administration, Myanmar enjoyed FDI of US$9.5 billion.
The highest year on record for FDI was 2010-11, when total FDI hit almost US$20 billion. Half of those funds were approved for the oil and natural gas extraction sector, while US$8.2 billion was channeled to the electricity sector. The remaining funds were ploughed into the mining and mineral extraction sector.
At the time, China was Myanmar’s largest foreign investor, pumping in investments worth US$8.3 billion. Hong Kong came in second with investments of up to US$5.8 billion. Meanwhile, South Korea, Thailand, and Singapore invested US$2.7 billion, US$2.1 billion and US$226 million respectively.
Since then, Singapore has emerged as one of the largest foreign investors in Myanmar, with investments totaling US$17.5 billion as at June 2017, up around 25 per cent from the previous year.
China still tops the list as the largest investor in Myanmar, with some US$19 billion invested in the economy, up about 27 pc from the previous year.
Thailand is the third largest investor, with US$10.9 billion invested in the local economy.
While the oil and natural gas extraction sector still attracts the most funds, interest in transport and communication as well as mining has risen in recent years, according to data provided by the Directorate of Investment and Company Administration (DICA).
New policies
The government has introduced new policies in a bid to boost FDI. A new investment law implemented in October 2016, when approved this month, will see new regional and state investment commissions approved, making it easier for potential investors to expand in the country.
“We will authorise investment permits to the regional and state investment commissions soon,” said deputy director general U San Myint. “This will speed up the investment process in Myanmar.”
Under the new law, regional and state investment commissions can approve investments of up to US$5million (K6 billion).They can authorise most investment works apart from some exceptions governed under section 36 of the new Myanmar Investment Law.
The law stipulates that capital investments and investments with potential environmental impact as well as those under scrutiny by the Union Government will need MIC approval to proceed.
The government will also seek to enhance the farming, service and agricultural based products, livestock breeding and fisheries, import substitute businesses, hydroelectric distribution, transport, education and health sectors, while construction of low-cost housing and industrial cities will be the State’s priority.
“We will focus on the sectors most in need of investment in the country. The first one is electricity, second is transport, then import substitution and improving exports. These are the most important sectors,” U San Myint said.
Meanwhile, 60 pc of the Myanmar population still live in villages. “So we will need more investments in the farming sector and livestock breeding sector. The education and health sectors are also important for the country,” he adds.
We also need the right infrastructure to develop our industrial sector. Low-cost housing is also needed for the people who have low salaries. We have invited investors to consider all these sectors,” he said.
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