Text
H.E.UThaungTunUnionMinisterMinistryofInvestmentandForeignEconomicRelations22.12.2020NayPyiTaw,Myanmar
MyanmarInvestmentEnvironmentUpdateWebinar
ASEAN-JapanCentre
COVID-19’SIMPACTONTHEGLOBALECONOMYANDMYANMAR
ASEANGDPGrowthp.a.,1999-2025f
-12%
-8%
-4%
0%
4%
8%
12%
16%
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021f 2023f 2025f
Myanmar
FacilitatingMyanmar’spost-COVID-19EconomicRecovery
Goal3EasingtheImpactonLabourers&Workers
Goal2EasetheImpactonthePrivateSectorthroughImprovements
toInvestment,Trade&BankingSectors
Goal1ImproveMacroeconomicEnvironmentthroughMonetaryStimulus
Goal4EasingtheImpacton
Households
Goal5PromotingInnovativeProducts&Platforms
Goal6HealthcareSystems
Strengthening
Goal7IncreaseAccesstoCOVID-19Response
Financing(IncludingContingencyFunds)
FacilitatingMyanmar’spost-COVID-19EconomicRecovery
The Myanmar Economic Recovery & Reform Plan DRAFT 7 | 30.10.2020 | 30/10/20 1:44:11 pm
1
GOVERNMENT OF THE REPUBLIC OF THE UNION OF MYANMAR
Overcoming as One: COVID-19 Economic Relief Plan 27 April 2020
FacilitatingMyanmar’spost-COVID-19EconomicRecovery
“…theexpressionofournationaldevelopmentvision–avisionwhichfindsresonanceintheglobal
sustainabledevelopmentagenda.”
“…criticaltoensuringthatallourprojectsandinitiatives,regardlessoftheirsourceoffinancing,areproperlylinkedanddirectedtowardsthesame
goals.”
H.E.DawAungSanSuuKyiStateCounsellor,
GovernmentoftheRepublicoftheUnionofMyanmar
Japan-MyanmarInvestmentRelations
ApprovedFDItoMyanmarbySource,FY2011/12-FY2020/21
$0B
$0.5B
$1B
$1.5B
$2B
$2.5B
$3B
SGP CHN THA HKG GBR KOR VNM JPN MYS NLD IND USA FRA IDN CAN TWN WSM UAE PHL AUS
$0.01B$0.01B$0.01B$0.02B$0.02B$0.02B$0.03B$0.06B$0.06B$0.08B$0.16B$0.2B$0.2B$0.22B
$0.41B$0.5B
$0.98B
$1.14B
$2.15B
$2.4B
Japan
WhyInvestinMyanmar?
• ASEANmembershipoffersregionaltradebenefits
• ImportantcrossroadsinChina’sBeltandRoadInitiative(BRI)infrastructurenetworkconnectingEuropeandAsia,fosteringeconomiccooperation
• Richsupplyofnaturalresources,includingforests,mineralsandnaturalgas
• Abundantagriculturalresourcesandmarineresources
• Highpotentialfortourism • Attractivelabourforce/demographicprofile-providingoneofAsia’slowestlaborcosts
GeographicalAdvantages
• LargestcountryontheSoutheastAsianmainland
• Strategicallylocatedinoneoftheworld’sfastestgrowingregions-aland-bridgebetweenSouthandSoutheastAsia
• Blessedwith1,200milesofuninterruptedcoastline-fromtheBayofBengaltotheAndamanSea
• Bordering40%oftheworld’spopulation
• Agrowingpopulationof54millionpeople,includingarapidlygrowingmiddleclass-withamedianageofjust27
StrongEconomicFundamentals
• Afastgrowingmiddleclass
• Pro-investmentreforms
• HighGDPgrowth.• SpecialEconomicZonesinThilawa,Dawei,KyaukpyuandsoonMon
• Richinnaturalresourcesincludingoil,naturalgas,industrialmineralsandgems
• Vastlandmass
• Populationofover54million
• Ayounglowcostworkforce
• StrategicallylocatedbetweenIndia,ChinaandThailand
• LandconnectiontoGreaterMekongsupplychain
• AccesstoIndianOcean
InvestmentFriendlyReformMeasures
0%
3%
6%
9%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020f 2021f 2022f 2023f 2024f 2025f
2%
6.5%6.4%
5.8%
6.4%
7.5%
8.2%7.9%
6.5%
5.5%5.2%
4.4%
Military USDP NLD
TelcomsLicensesIssued
ThilawaSEZ
EUSanctionsIssued
ForeignBankLicenses
YSXOpens
USSanctionsLifted
NewMFIL
4thLicenseIssued
NewMILandCompaniesLaw
InsuranceLiberalisation
Wholesale&RetailOpened
ProjectBankLaunched
ForeignOwnership
COVID-19
RelaxingRegulatoryRestrictiveness
Myanmar,OECDFDIRegulatoryRestrictivenessIndex
0%
10%
20%
30%
40%
50%
2013 2014 2015 2016 2017 2018
MyanmarInvestmentLaw
• Enteredintoforceon18October2016• ConsolidatesandreplacespreviousForeignInvestmentLaw(2012)andCitizensInvestmentLaw(2013)
•MyanmarInvestmentRules2017enteredintoforceon30March2017
Compulsoryforthefollowingclassesofinvestmentactivitieswhich:• arealignedtoMyanmar’s
strategy• arelargecapital-intensive
investmentprojects• havelargeimpactonthe
environmentandlocalcommunity
• useofstate-ownedlandandbuildings
• aredesignatedbythegovernmenttorequirethesubmissionofaproposal
Optionalbutallowsinvestorstobenefitfrominvestmentincentives•AnexpeditedprocesscomparedtotheMICPermit
•Benefitsinclude:long-termlanduserights(upto50+10+10year)andexemptionsandreliefs–especiallybeneficialforforeigninvestorswhoaregenerallyprohibitedfromenteringintoleaseagreementsofmorethanoneyearunlessexempted
MICPermit
MICEndorsement
MyanmarCompaniesLaw
• Enteredintoforceon1August2018• Includesanonlinebusinessregistry–MyanmarCompaniesOnline(MyCo)
•Wholesalerevisionofthe1913CompaniesAct(exceptforinsolvencyprovisions)basedonAustralia,SingaporeandUKversions
• Aimstomoderniseregulatoryframework,makingiteasierforlocalcompaniestoattractinternationalfundingandexpertise
“AcompanyincorporatedintheUnioninwhichanoverseascorporationorotherforeign
person(orcombinationofthem)ownsorcontrols,directlyor
indirectly,anownershipinterestofmorethanthirty-fivepercent”
IntellectualPropertyProtections
TrademarkLaw
30January2019
IndustrialDesignLaw
30January2019
PatentLaw
11March2019
CopyrightLaw
24May2019
MyanmarCompaniesOnline“MyCo”
• Onlineanduptodate,publiclysearchable,andreliable
• Efficientandcost-effectivewayforcompaniestofiledocumentswithDICA
LegalDevelopments
January2019
August2019
Novem
ber2019
February2020
March2020
May2020
October2020
Novem
ber2020
TRADEMARKLAWFrameworkforatrademarkregistrationsystemonafirsttofilebasis
Decem
ber2019
SAFEGUARDLAWLawtomanagesuddenandunexpectedsurgeinimportswhichcouldcauseseriousinjurytothelocalindustry
INSOLVENCYLAWFrameworkforbothvoluntaryandinvoluntaryliquidationprocesses,aswellascorporaterescueandrehabilitationprocesses
FOREIGNPARTICIPATIONONYSXForeignersbothresidentandnon-residentinMyanmarpermittedtopurchasesecuritiesonYSX
INDUSTRIALZONELAWFrameworkforsettingupofanindustrialzonebyaprivatedeveloperthroughlandtenuredfromthegovernment
REINSURANCEInsurancecompaniestobepermittedtoprovidereinsuranceservicesfromoffshoresourceseffective1October
RULESONUNSOLICITEDPROPOSALSPPPCentreissuedrulesonunsolicitedproposalson12October2020
ELECTIONS
LANDACQUISITION,RESETTLEMENTANDREHABILITATIONLAWFrameworkformostlandacquisitionandrepealedthe1894Law
AMENDMENTTOTHESTAMPACTReducedlatepenaltyfrom10timestheoriginalstampdutyto3times
TheProjectBank
• Anopen,interactive,web-basedplatformdesignedtohighlightinvestmentprojectsreadyforfinancingandimplementation
• Facilitatestheidentification,screening,appraisalandprioritisationofmajorprojects
• Fostersreal-timemulti-stakeholdercollaborationatalllevelse.g.betweenImplementingGovernmentAgenciesatbothUnionandtheStateandRegionlevelsandProjectBankTeam
• Enablesmoreefficient,informed,timelydecisionmakingandcoordination
• Accessibleviawww.projectbank.gov.mm
MyanmarInvestmentPromotionPlan
•AttheheartofMyanmar’srecenteconomicboomistheMyanmarInvestmentPromotionPlan(MIPP)launchedinOctober2018tostimulateitseconomyandattractUS$200billioninFDIover20years
•Theplanoutlineskeyobjectives,suchasbuildingatransparentlegalframeworkandimprovingcriticalinfrastructure,whichwillhelpMyanmartoachieveitsgoalofdevelopingintoamiddle-incomecountryby2032
•Keyprioritiesinclude:•Establishmentofafairandtransparentregulatoryregimeforinvestment
•Enhancementofinstitutionsforinvestmentpromotion• Infrastructureimprovement•Establishmentofsupportivebusiness-relatedsystems•Establishmentofcompetitiveindustriallinkageandimprovedhumanresources
RegionalComprehensiveEconomicPartnership(RCEP)
RCEP Members (share of world GDP, at purchasing power parity (%)
0T
35T
70T
105T
140T
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Other Euro Area RCEP
PromotedSectors
Agriculture
SupplyandTransportServices
PowerGeneration
PlantationandConservation
Telecoms
InformationTechnology
LivestockandFisheries
Education
HotelsandTourism
Manufacturing
Healthcare
ScienceResearchandDevelopment
Industry,ManufacturingandInfrastructure
Mandalay-KyaukphyuRailway
Muse-MandalayRailway
1GWsolartender(tobelocatedthroughoutthe
country)
1.39GWMeeLaungGyaingLNGpowerplant
NewYangonCity
NewMandalayResortCity
1.25GWLNGpowerplantinThilawa(recentlyannounced)
YangonCentralStationDevelopmentProjectandKyeemyindaingTOD
MonStateSEZ(recentlyannounced)
400MWThaketaLNGpowerplant
KyaukPhyuSEZ
Korea-MyanmarIndustrialComplex
HleguIndustrialPark
YangonAmataSmart&EcoCity
YangonElevatedExpressway
HanthawaddyInternationalAirport
WestYangonIndustrialPark(recentlyannounced)
YangonOuterRingRoad
IndustrialParksandSpecialEconomicZones
DaweiSpecialEconomicZone
KyaukPhyuSpecialEconomicZone
MonStateSpecialEconomicZone
ThilawaSpecialEconomicZone
Coming Soon
InvestmentPromotion
“Myanmarisintheprocessoftransforminganopaque,non-competitive,connections-basedeconomyintoalarger,more
transparent,morecompetitive,rules-basedeconomy.”
H.E.DawAungSanSuuKyi,StateCounsellorGovernmentoftheRepublicoftheUnionofMyanmar
Conclusion
“PleasedocometoMyanmar,soakinanatmospherebrimmingwithopportunities,andwitnessournewfoundeconomicvibrancywithyourowneyes."
“Iwishallofyouthevery,verybestaswegoforwardinourbusiness-to-businessengagementsandalsoinourpeople-to-peoplerelationships.Wevaluethedeep,genuineandmutuallybeneficialfriendshipsthatcanbringpeoplesandbusinessestogetherforthe
benefitofall.”
"Istandheretoreaffirmourcommitmenttocontinueourreformandtobuildaninvestment-friendlyenvironment”
StateCounsellorDawAungSanSuKyi