Eleven on Thu, 11/09/2017 - 05:03
From April to September of this year, the inflow of actual foreign investments into the country reached US$ 2.8 billion though Myanmar Investment Commission granted foreign investments worth US$ 4137.013 million.
The MIC allowed foreign investments in agricultural, livestock and fishery, manufacturing, electricity, transportation and communication, hotels and tourism, real estate, industrial zone construction and other service sectors.
During this fiscal year, the country sees the influx of investments from Bangladesh, Brunei, China, France, Germany, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, South Korea, Singapore, Sir Lanka, Thailand, the Netherlands, UK, US, Vietnam, Luxembourg, Samoa, Qatar, South Africa, Taiwan and New Zealand.
From 1988-1989 until September of this FY, China topped the list of foreign investors with an investment of more than US$ 74 billion, followed by Singapore. Take a look at the investment sector, oil and gas sector stands first and energy sector, second.
Under the second five-year National Comprehensive Development Plan (2016-2017 to 2020-2021), the government has prioritized export promotion by encouraging foreign investments, private sector promotion, the transformation of regional development projects into commercial cooperation and coordination with private investments for the benefits of people.
FDI could exceed MIC’s target in 2017-18, but still lower than previous years’
20 Jul 2017
FDI
amounted to US$3.1 billion for the first four months of the current
fiscal year, which is half the MIC’s original target for the entire
year. The Myanmar Times
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.
Ref:https://www.mmtimes.com/business/26883-fdi-could-exceed-mic-s-target-in-2017-18-but-still-lower-than-previous-years.html
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.
Ref:https://www.mmtimes.com/business/26883-fdi-could-exceed-mic-s-target-in-2017-18-but-still-lower-than-previous-years.html
Foreign Investment Falls More Than 50pc Compared to Last Year
According to Myanmar Investment Commission, Singaporean investment in Myanmar from 2011-12 to 2015-16 stood at over $10 billion.
Foreign
investment into Myanmar has fallen by more than 50% to $1.4 billion in
the six months to the end of September, according to the Myanmar
Investment Commission, which nonetheless remains optimistic about the
rest of this fiscal year.
In the first half of the 2015-2016 fiscal year overseas investors pledged $3 billion, but that figure fell by $1.6 billion this year as companies awaited clarity from the new NLD government, according to U Aung Naing Oo, Secretary of the Myanmar Investment Commission.
“In the period of transition from the previous government to the new one, foreign investors were hesitant,” he said. “They have been watching and observing the government’s policies and priorities.” The lacklustre investment was normal for a period of transition, he added.
In June the NLD disbanded the Myanmar Investment Commission set up by the USDP government and formed a new one. The new MIC started work on June 27th, and has since approved $662 million of investments from 52 firms.
The $1.4 billion total since April includes extensions to businesses that were already approved by the USDP-led government and $143.526 million for the Thilawa Special Economic Zone, according to the MIC.
The commission expects Myanmar’s new investment law, which was passed by the upper house earlier this month, to spur foreign investment for the rest of the fiscal year and help it catch up to last year’s figure.
“The new Myanmar Investment Law improves upon the two previous laws,” said U Aung Naing Oo. “According to the existing laws, investors have to submit all the information to the MIC, especially foreign investors. The MIC had full authority to approve the investment proposal. So, foreign investments took time and the process wasn’t smooth.”
He added: “We expect $6 billion of foreign investment [by the end of the fiscal year]. Current investment volumes are slow compared to last year but we have six months left in this year, I believe that investment will increase for the rest of the fiscal year,” U Aung Naing Oo, Secretary of MIC, said.
Correction: In last week’s issue our story ‘Foreign Investment Jumps as $280m in New Projects Approved’ incorrectly stated that the MIC had approved $662 million in investments since April 2016. The figure in fact only applies to the period from June 27th, when the newly reformed commission began work. We apologise for the error.
Ref:https://www.mmbiztoday.com/articles/foreign-investment-falls-more-50pc-compared-last-year
In the first half of the 2015-2016 fiscal year overseas investors pledged $3 billion, but that figure fell by $1.6 billion this year as companies awaited clarity from the new NLD government, according to U Aung Naing Oo, Secretary of the Myanmar Investment Commission.
“In the period of transition from the previous government to the new one, foreign investors were hesitant,” he said. “They have been watching and observing the government’s policies and priorities.” The lacklustre investment was normal for a period of transition, he added.
In June the NLD disbanded the Myanmar Investment Commission set up by the USDP government and formed a new one. The new MIC started work on June 27th, and has since approved $662 million of investments from 52 firms.
The $1.4 billion total since April includes extensions to businesses that were already approved by the USDP-led government and $143.526 million for the Thilawa Special Economic Zone, according to the MIC.
The commission expects Myanmar’s new investment law, which was passed by the upper house earlier this month, to spur foreign investment for the rest of the fiscal year and help it catch up to last year’s figure.
“The new Myanmar Investment Law improves upon the two previous laws,” said U Aung Naing Oo. “According to the existing laws, investors have to submit all the information to the MIC, especially foreign investors. The MIC had full authority to approve the investment proposal. So, foreign investments took time and the process wasn’t smooth.”
He added: “We expect $6 billion of foreign investment [by the end of the fiscal year]. Current investment volumes are slow compared to last year but we have six months left in this year, I believe that investment will increase for the rest of the fiscal year,” U Aung Naing Oo, Secretary of MIC, said.
Correction: In last week’s issue our story ‘Foreign Investment Jumps as $280m in New Projects Approved’ incorrectly stated that the MIC had approved $662 million in investments since April 2016. The figure in fact only applies to the period from June 27th, when the newly reformed commission began work. We apologise for the error.
Ref:https://www.mmbiztoday.com/articles/foreign-investment-falls-more-50pc-compared-last-year
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