Lower house passes investment law

A draft investment law is to be debated by the Amyotha Hluttaw, after being approved by lawmakers in the Pyithu Hluttaw on September 28.

Once approved, the law will replace the Foreign Investment Law of 2012 and Myanmar Citizens Investment Law of 2013.

The draft was written by the Directorate of Investment and Company Administration with support from the International Finance Corporation. The drafting process included an extensive consultation period.

Advocates say it will level the playing field between local and foreign companies. Some blanket incentives and tax breaks open to foreign investors under the 2012 law will be removed, and replaced with tailored incentives focused on attracting investment into particular sectors or geographic regions.

The law will also streamline the investment process by reducing the types of projects that require a permit from the Myanmar Investment Commission, and contain greater emphasis on managing environmental and social impacts.

Support more independent journalism like this. Sign up to be a Frontier member.

Lawmakers are expected to approve the bill by the end of October. During a press conference with US President Barack Obama on September 14, State Counsellor Daw Aung San Suu Kyi said the bill would be approved “quite soon – we hope within the next few weeks”.

The amalgamated investment law is one of several steps the government is taking to attract foreign investment, including overhauling the century-old Myanmar Companies Act.

President Obama’s recent decision to lift most remaining sanctions against Myanmar is also expected to spur investment over the medium term.

Share on facebook
Share on twitter
Share on email

More stories

Latest Issue

Stories in this issue
Myanmar enters 2021 with more friends than foes
The early delivery of vaccines is one of the many boons of the country’s geopolitics, but to really take advantage, Myanmar must bury the legacy of its isolationist past.
Will the Kayin BGF go quietly?
The Kayin State Border Guard Force has come under intense pressure from the Tatmadaw over its extensive, controversial business interests and there’s concern the ultimatum could trigger fresh hostilities in one of the country’s most war-torn areas.

Support our independent journalism and get exclusive behind-the-scenes content and analysis

Stay on top of Myanmar current affairs with our Daily Briefing and Media Monitor newsletters.

Sign up for our Frontier Fridays newsletter. It’s a free weekly round-up featuring the most important events shaping Myanmar