Myanmar publishes Investment Promotion Plan
The Government of Myanmar published the Investment Promotion Plan 2018 (MIPP), a document drafted by the Myanmar Investment Commission (MIC) in cooperation with the Japan International Cooperation Agency that, pursuant to the investment promotion law of 2016, goes to replace the FDI Promotion Plan of 2014, presenting an investment attraction strategy over the next 20 years.
The Plan sets forth three goals: convert Myanmar into an average income country in two decades; increase the per capita GDP from 1,451 dollars of 2017 to 4,400 dollars in 2035 and improving the business climate.
The Government’s Investment Promotion Plan analyses both the critical issues (including the political risk, the crisis in Rakhine, the uncertainty of the regulatory framework, the weakness of the financial sector, the lack of infrastructure) and the opportunities (its strategic geographical position between China and India and membership of the ASEAN, the abundance of natural resources, its growing domestic market and low labour costs) associated with the investment possibilities in Myanmar.
Recognising the need to support investments through the creation of a clear and predictable regulatory framework, the Investment Commission outlined five “long-term growth processes” aimed at: boosting exports, in relation to which Myanmar hopes to benefit from its low-cost labour; boosting the internal market and the local economic fabric; developing infrastructure; promoting the tertiary sector, with a special focus on information and telecommunications technology (ITC); exploiting natural resources. In particular, the Government estimates that the Oil & Gas sector will receive a relevant share of foreign investments next year, thanks to the planned launch of new tendering procedures.
From the organisational point of view, a new Investment Promotion Committee to be chaired by the Union Minister, U Thaung Tun, will be established to monitor the implementation of the MIPP every five years through the Directorate of Investment and Company Administration.
The Government will place great attention on the protection of the intellectual proprietary rights of foreign investments and priority will be given to investments and economic activities capable of boosting exports or replacing imported goods.
