22 May 2020
The Second Pyithu Hluttaw held the third day of 16th regular session on 20 May. In the meeting, Hluttaw representative U Tun Tun from Pwintbyu Constituency raised the question about the investment sector in Myanmar. His question was about the improvement of Myanmar investment sector from April of 2016 to December of 2019, and the visions of investment for the country.
Myanmar has been adapting market oriented economy till now. In October of 2016, Myanmar Investment Law was enacted. To have more foreign investments, Myanmar Investment Law and Myanmar Companies Law are enacted and amended in accordance with the current age. To have more focus on investment, the Ministry of Investment and Foreign Economic Relations was formed in November of 2018, investment procedures were relieved, taxes were reduced, Myanmar Investment Promotion Plan was upgraded to 2035-36 year-plan, electronic registry system was initiated, and other procedures were relieved.
“For the development of a country’s economy, the foreign investment plays a crucial role. When observing the Human Development Index of a country, the importance of ease of doing business and the investment volume can be easily witnessed. Even the developed countries are trying to pursue the foreign investments. The more foreign investments come in, the more employment is provided within the country. More investments in a country result in having many skillful workers, getting technology advanced, making the industry sector improve, reducing import and increasing export, and having better revenue cycle,” said U Tun Tun.
In response to the question, U Bharat Singh, Deputy Minister for Investment and Foreign Economic Relations said that from 2016 April to 2019 December, 799 foreign investments which were worth of $19.455 billion and 473 local investments which were worth of 8,914.191 billion kyats were approved. The most invested countries and regions are from Singapore, China and Hong Kong. Foreign investment created 464,095 employments and local investment provided 65,705 employments for local workers.
“Concerning the approval of investment in the country, previously, only Myanmar Investment Commission has the authority to give approval, and starting from 2017-2018 fiscal year, the region and state governments are given authority to accredit the businesses. Since the foundation of the ministry, total 9 investment fairs were held. The businesses which can raise the export sector are identified as the investment promotion businesses and are granted with tax reduction or exemption. Myanmar Investment Commission is managing the investments coming in to be quality and responsive investments which are effective and supportive for the country’ economy,” said the Deputy Minister for Investment and Foreign Economic Relations.
During the Coivd-19 outbreak, the Myanmar Investment Commission reduces 50 % of service fees for investors in order to save the production cost and other charges. Moreover, Working Committee to remedy the economic impacts caused by the Covid-19 allows some businesses to get loan from Myanma Economic Bank. Total 312 businesses have been allowed to get financial assistance.
Thaw Tar Swe Zin, Zwe Mahn and Ye Naing (Laukkai)
Photo Credit - Pyithu Hluttaw