Aung Naing Oo Director General Directorate of Investment and Company Administration
Outlines Policies Reforms Outcomes Recent Trends of Investment Update 2
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Look East Engage East 4
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
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
Myanmar Sustainable Development Plan (2018 2030) 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
The objective To promote the responsible and quality investments necessary for Myanmar to become a middle-income country by 2030. 8
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Why Reform? Simplification Facilitation Liberalization Protection Decentralization Transparency Predictability 10
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
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
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
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
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. 165-169) 15
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
What changed? How transparent? Disclosure Statistics Investment News Press Conference Official Website Social Media 17
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
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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Before After Permit Permit Endorsement Procedures 8 Steps 4 Steps 3 Steps Processing Time 90 days 40 days 15 days 21
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
MyCO Myanmar Companies Online Fully online @ www.myco.dica.gov.mm Create an Account Register your Company 23
Yearly Company Registration 16000 14684 14000 12000 10000 8000 7910 7541 7091 10489 10607 6000 4563 6011 4000 2000 0 32 354 348 289 368 438 497 657 794 675 509 640 478 344 251 581 994 2687 1933 1955 1264 1365 1564 24
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Current FDI Flows (By Sector) 2018 2019 (As of January 11) No. Sector No. of Projects Amount (US$ Mil) % 1 Transport & Communication 2 565.113 45.83 2 Manufacturing 58 338.566 27.46 3 Other Services 8 201.091 16.31 4 Housing Development 1 54.133 4.39 5 Power 1 28.000 2.27 6 Livestock & Fisheries 4 20.897 1.69 7 Agriculture 3 10.620 0.86 8 Oil & Gas 10.204 0.83 9 Hotel and Tourism 1 4.370 0.35 Total 78 1232.994 100 26
Current FDI Flows (By Sector) 2018 2019 (As of January 11) 600 565.113 500 400 338.566 300 200 100 0 2 58 201.091 54.133 20.897 10.62 28 10.204 8 1 1 4 3 1 4.37 No. of Projects Amount (US$ Mil) 27
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) 2 272.208 3 593.113 +320.9 05 1 Transport & Communication 2 Manufacturing 37 129.234 58 328.592 +199.3 58 3 Other Services 7 63.100 8 201.091 +137.9 91 4 Real Estate 1 72.000 1 54.133-17.867 5 Livestock & Fisheries 3 7.400 4 20.897 +13.49 7 6 Agriculture 3 3.288 3 10.620 +7.332 7 Oil & Gas 10.204 +10.20 4 8 Hotel and Tourism 1 4.370 +4.37 9 Mining 1.310-1.31 10 Power 2 246.075-246.08 11 Industrial Estate 1 28.706-28.706 28
FDI Inflows (By Sector) From 2017 April to 2018 September No. Sector Amount (US$ Million) 1 Manufacturing 2475.854 2 Real Estate 1542.357 3 Other Services 1282.443 4 Transport & 1215.797 Communication 5 Power 498.454 6 Hotel and Tourism 186.303 7 Agriculture 145.135 8 Industrial Estate 68.518 9 Livestock & Fisheries 60.616 10 Mining 7.31 29
FDI Inflows (By Sector) From 2017 April to 2018 September 2500 2475.854 Value US$ Million) 2000 1500 1542.357 1282.443 1215.797 1000 498.454 500 186.303 145.135 68.518 60.616 7.31 0 30
FDI Inflows (By Country) From 2017 April to 2018 September No. Country Amount (US$ Million) 1 Singapore 2888.387 2 China 1699.951 3 The Netherlands 533.923 4 Japan 518.737 5 U.K 385.879 6 R.O.K. 330.913 7 Hong Kong 319.884 8 Thailand 188.459 9 U.S.A 184.580 10 U.A.E 100.500 11 Samoa 80.680 12 Viet Nam 71.161 13 India 30.918 14 Malaysia 29.217 15 Taiwan 25.374 31
FDI Inflows (By Country) From 2017 April to 2018 September No. Country Amount (US$ Million) 16 Cambodia 22.500 17 Seychelles 12.232 18 Brunei Darussalam 11.429 19 Indonesia 10.809 20 Germany 10.398 21 France 7.340 22 Norway 6.000 23 Macau 3.640 24 Austria 1.865 25 Luxembourg 1.527 26 Bangladesh 1.500 27 Canada 1.360 28 Sri Lanka 1.250 29 Ireland 1.103 30 Marshall Island 1.000 31 Switzerland 0.271 32
FDI Inflows (By Country) From 2017 April to 2018 September 3000 2500 2000 1500 1000 500 0 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
Japan Investment under FIL US$ in Millions 1186.326 2477.942 Direct Investment Related Investment Total FIL Investment of Japan 3664.268 US$ Millions 34
Japan Investment under Thilawa SEZ US$ in Millions 262.845 456.038 Direct Investment under Thilawa SEZ Related Investment under Thilawa SEZ Total FIL Investment of Japan 718.883 US$ Millions 35
Total Japan Investment in Myanmar US$ in Millions 456.038 262.845 1186.326 Direct Investment under FIL Related Investment under FIL Direct Investment under Thilawa SEZ Related Investment under Thilawa SEZ 2477.942 Total FIL Investment of Japan 4383.151 US$ Millions 36
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Reforms to Come Drafting of Standard Operating Procedures (SOP) Efficient One Stop Services (OSS) Enhance coordination Go online New Laws in the pipeline 38
Thank You www.dica.gov.mm www.myco.dica.gov.mm dg.dica@mptmail.net.mm majanoo@gmail.com