The key figure is 100. Projects that move over 100 people or projects with budgets of over $100m or projects targeting areas of over 100 acres (1000 acres if agricultural) are seen as requiring a permit. There are exceptions and we include some examples below.
The Myanmar Investment Law was approved by the Government during September and October last year. It has been warmly welcomed because it adds flexibility, allowing further investment into this rapidly growing economy. One of the benefits is that a permit will not be required for many projects. This saves time and eliminates the process for many, when applications were sent to the controlling administration The Myanmar Investment Commission (MIC), for a permit. Last year many of the new details in the law were not announced and these are now emerging, with a deadline for these clauses to be published for the new financial year, starting 1st April.
(FocusCore published blogs on The Investment Law last year. The law combines the Myanmar Citizen’s Investment Law and The Foreign Investment Law, thus bringing to an end the exception within ASEAN member countries, of Myanmar demanding different treatment between national and foreign investment.)
Examples where permits are required include projects that are seen as “strategic to the Union”.
Further exceptions can include projects in agriculture, media, energy distribution and technology. Other examples are projects in border areas. Details are awaited on what is included in the category entitled “re-stricted” investments. Please do not forget that if you require a permit FocusCore can help you with your application to the MIC.
While the legal process of change continued last year, many investors waited for these revisions to be written into Myanmar Law. So there was a slowdown in investment, which created a back log. It is forecast that due to these new regulations, which are much more flexible, and the processing of the back log, the target of $6 Billion for foreign investment in Fiscal Year 2017 will be exceeded.
This ties in with our predictions that Myanmar growth is set to continue and continue. Contact FocusCore now to receive the latest information together with Corporate Support and Start Up services for your company.
Let us help you make 2017 the year you start and prosper in the vibrant economy of Myanmar. The Asian Development Bank stated that Myanmar is expected to see 8.3% growth in 2017. Beat that!