Aung Naing Oo Director General Directorate of Investment and Company Administration

Transcription

1 Aung Naing Oo Director General Directorate of Investment and Company Administration

2 Outlines Policies Reforms Outcomes Recent Trends of Investment Update 2

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4 Look East Engage East 4

5 The Role of New Ministry (The Ministry of Investment and Foreign Economic Relations) To enhance the coordination for investment among the Ministries To expand the FDI Network To improve the investment image of the country 5

6 National Economic Policy Creating employment opportunities for all citizens including those returning from abroad and giving greater priority in the short term to economic enterprises that create many job opportunities. Asserting the right of individuals to freely pursue the economic opportunities they choose, so as to enable private sector growth in line with a market economy system; formulating specific policies to increase foreign investment; and strengthening property rights and the rule of law. 6

7 Myanmar Sustainable Development Plan ( ) PILLAR 2: PROSPERITY & PARTNERSHIP GOAL 3: JOB CREATION & PRIVATE SECTOR-LED GROWTH Strategy 3.1: Create an enabling environment Strategy 3.2: Support job creation in industry and services Strategy 3.3: Provide a secure, conducive investment enabling environment which eases the cost of doing business, boosts investor confidence and increases efficiencies Strategy 3.4: Further reform our trade sector and strengthen regional and international cooperation and linkages Strategy 3.5: Increase broad-based access to financial services Strategy 3.6: Build a priority infrastructure Strategy 3.7: Encourage greater creativity and innovation 7

8 The objective To promote the responsible and quality investments necessary for Myanmar to become a middle-income country by

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10 Why Reform? Simplification Facilitation Liberalization Protection Decentralization Transparency Predictability 10

11 How reform? Legal framework New Investment Law and Rules New Companies Law and Regulations Other laws Regulatory framework Streamlined procedures Enhanced after care services Easier entry Electronic means Institutional framework Expansion of DICA State and Regional Investment Committees 11

12 What changed? How simplified? Investor MIC Non-MIC Permit Go Enjoy incentive endorse Do not enjoy incentive Go below threshold above threshold State/Regional govt. Go MIC Go 12

13 What changed? How facilitated? Myanmar Investment Rules Chapter XVI One Stop Service Chapter XVII Investment Assistance Committee Chapter XIX Investment Monitoring Division Chapter XXI Transfer of Funds 13

14 What changed? How liberalized? (Notification No. 15) Negative List (Previously positive list) Sectors previously closed or restricted are now open to FDI (For example: Education, Retails and Wholesales, Insurance Business, Banking Services and etc.) 14

15 What changed? How protected? National Treatment [S. 47 (a)] Most Favored Nation Treatment [S. 47(b)] Fair & Equitable Treatment (S.48) Investment Guarantee (S.52) No Expropriation Grievance Mechanism (S.82) Investment Assistance Committee (Rule ) 15

16 What changed? How decentralized? Delegating Power to States and Regions (Notification No.11) State and Regional Investment Committees Endorsement Investment Capital Amount up to USD 5 Million or MMK 6 Billion 16

17 What changed? How transparent? Disclosure Statistics Investment News Press Conference Official Website Social Media 17

18 What changed? How predictable? Rule 48, reject the proposal within Rule 49, assess the proposal within working days days Rule 71, reject the application within Rule 72, decide to approve it within working days days Rule 85, reject the application within Rule 87, decide to approve it within working days days Rule 119, reject the application within Rule 120, decide to approve it within working days days 18

19 New Myanmar Companies Law Key Changes Single shareholder/single director companies Company constitution No more fixed value for shares or authorised capital Foreigners allowed to own up to 35% Myanmar resident director Overseas corporations (as branch offices) Small company exemptions Easier decision making (written resolutions) Solvency tests Better corporate governance Directors duties and liabilities New DICA enforcement powers 19

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21 Before After Permit Permit Endorsement Procedures 8 Steps 4 Steps 3 Steps Processing Time 90 days 40 days 15 days 21

22 Liberalized Environment Restriction to set up JV Before 1 st April 2017 After 94 sectors 22 sectors Retail and Wholesale open for foreign investors Education sector opens Foreign Banks operationalization Insurance liberalization 22

23 MyCO Myanmar Companies Online Fully Create an Account Register your Company 23

24 Yearly Company Registration

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26 Current FDI Flows (By Sector) (As of January 11) No. Sector No. of Projects Amount (US$ Mil) % 1 Transport & Communication Manufacturing Other Services Housing Development Power Livestock & Fisheries Agriculture Oil & Gas Hotel and Tourism Total

27 Current FDI Flows (By Sector) (As of January 11) No. of Projects Amount (US$ Mil) 27

28 Comparison of FDI Inflows (By Sector) No. Sector (2017 Oct to 2018 Jan) Amount No. (US$ Mil) (2018 Oct to 2019 Jan) Amount Amount No. (US$ (+/-) Mil) Transport & Communication 2 Manufacturing Other Services Real Estate Livestock & Fisheries Agriculture Oil & Gas Hotel and Tourism Mining Power Industrial Estate

29 FDI Inflows (By Sector) From 2017 April to 2018 September No. Sector Amount (US$ Million) 1 Manufacturing Real Estate Other Services Transport & Communication 5 Power Hotel and Tourism Agriculture Industrial Estate Livestock & Fisheries Mining

30 FDI Inflows (By Sector) From 2017 April to 2018 September Value US$ Million)

31 FDI Inflows (By Country) From 2017 April to 2018 September No. Country Amount (US$ Million) 1 Singapore China The Netherlands Japan U.K R.O.K Hong Kong Thailand U.S.A U.A.E Samoa Viet Nam India Malaysia Taiwan

32 FDI Inflows (By Country) From 2017 April to 2018 September No. Country Amount (US$ Million) 16 Cambodia Seychelles Brunei Darussalam Indonesia Germany France Norway Macau Austria Luxembourg Bangladesh Canada Sri Lanka Ireland Marshall Island Switzerland

33 FDI Inflows (By Country) From 2017 April to 2018 September Singapore China The Netherlands Japan U.K R.O.K. Hong Kong Thailand U.S.A U.A.E Samoa Viet Nam India Malaysia Taiwan Cambodia Seychelles Brunei Darussalam Indonesia Germany France Norway Macau Austria Luxembourg Bangladesh Canada Sri Lanka Ireland Marshall Island Switzerland 33

34 Japan Investment under FIL US$ in Millions Direct Investment Related Investment Total FIL Investment of Japan US$ Millions 34

35 Japan Investment under Thilawa SEZ US$ in Millions Direct Investment under Thilawa SEZ Related Investment under Thilawa SEZ Total FIL Investment of Japan US$ Millions 35

36 Total Japan Investment in Myanmar US$ in Millions Direct Investment under FIL Related Investment under FIL Direct Investment under Thilawa SEZ Related Investment under Thilawa SEZ Total FIL Investment of Japan US$ Millions 36

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38 Reforms to Come Drafting of Standard Operating Procedures (SOP) Efficient One Stop Services (OSS) Enhance coordination Go online New Laws in the pipeline 38

39 Thank You