Myanmar making an impact for a greener, inclusive planning

697 views

Published on

Published in: Travel, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
697
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
89
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Myanmar making an impact for a greener, inclusive planning

  1. 1. Managing Foreign Investmentin the Natural Resource Sectors Lai Lai Thein Director General, Planning Department, Myanmar 8 August 2012 1
  2. 2. • Introduction• Current National Plan• Foreign Direct Investment in Myanmar• Environmental Mainstreaming• Conclusion 2
  3. 3. IntroductionWhere Myanmar is! China – 1347 India - 1220 Bangladesh-158 Thailand – 70 Laos – 6 Total – 2801 40% of World Population 3
  4. 4. Introduction (continued)• Rich in natural resources• More than 100 national races 4
  5. 5. Introduction (continued) Topography can roughly be divided into 3 parts: the Western Hills Region, the Central Valley Region and the Eastern Hills Region 5
  6. 6. Introduction (continued)• New Administration launched end of March 2011• Political and macro-economic reform• Peace making activities• Review law and regulation and promulgate the new laws• Second stage of reform – People Centered Approach• Four policies have been adopted 6
  7. 7. Introduction (continued)• Sustaining agriculture development towards industrialization and all round development;• Balanced and proportionate development among states and regions,• Inclusive growth for entire population, and• Quality and correctness of statistics 7
  8. 8. Current National Plan National Plan Regional PlanSectoral Plan 14 States/Regions 14 Sectors Union Territory 8
  9. 9. Sectors under Sectoral Plan  Agriculture  Livestock and Fishery  Forestry and Environmental Conservation  EnergySectoral Plan  Mining  Processing and Manufacturing  Electric Power  Construction  Transport  Communications  Trade  Investment and Finance  Social and Administrative Sector  Services 9
  10. 10. 14 Sectors’ contribution in GDP 2011-12 (Target) 20 26 2 0.1 2 0.9 8.3 13.2 0.3 0.1 0.8 4.7 1.1 20.4 Agriculture Livestock and Fisheries Forestry Energy Mining Processing and Manufacturing Electric Power Construction Transport Communication Finance Social and Administration 10 Other Services Trade
  11. 11. Foreign Direct Investment in MyanmarMyanmar has opened its doors for FDI in 1988 subsequently the enactmentof Foreign Investment Law on 30 November, 1988 11
  12. 12. Investment Laws of Myanmar The Union of Myanmar Foreign Investment Law (FIL) was enacted on 30 November 1988. The Union of Myanmar Special Economic Zone Law was enacted in January 2011. The Dawei Special Economic Zone Law was also enacted in January 2011 subsequently. 12
  13. 13. FDI Policy in Myanmar• Adoption of market oriented system for the allocation of resources• Encouragement of private investment and entrepreneurial activity• Opening of the economy for foreign trade and investment 13
  14. 14. Investment Laws of Myanmar 100% Foreign Owned Any Myanmar Partner An Individual 35% A Private Company A Cooperative Society State Owned Enterprise 14
  15. 15. Constraints for Foreign Investors• Land can lease only state-owned land and buildings for investment activities• No one shall lease immoveable property to a foreigner or a company owned by a foreigner for more than one year• There is no right for investors to make an account transfer for payment transition 15
  16. 16. Notifications• Two notifications were issued for better opportunities in doing business 16
  17. 17. Notifications • With the aim of facilitating investment procedures and getting better opportunities in doing business, Government issues two notifications relating to Land used and Foreign Currency. The Transfer of Immoveable Republic of the Union of the Property Restriction Law Myanmar Notification of (Pyithu Hluttaw Law No. Concession Rights for Land 1, 1987) Used relating to FIL (Notification No. 39/2011) - No person shall lease to a - Investor has a right of the foreigner or a company grantee of land lease or land owned by a foreigner used from government owned immoveable property for more land, governmental than a year at a time department, organization owned lands and citizen owned private lands 17
  18. 18. Notifications (Conted.) Republic of the Union of the Myanmar Notification of Existing FIL Relating to foreign currency relevant with Foreign Investment Law (Notification No. 40/2011) Foreign Capital brought in Foreign Capital brought in can be has to be evaluated at exchange with prevailing market official exchange rate price No rights to make account Investor has the rights to make transfer for payment account transfer for payment transition transition 18
  19. 19. • According to notification, private can release his or her own land and grant longer time for utilization, and favorable condition for foreign currency.• FDI law and Special Economic Zone Law are currently revising. 19
  20. 20. Investments in Myanmar Livestock & Industrial Estate Agriculture Real Estate Fisheries Transport & 3% 1% Communication Construction Hotel and Tourism 1% 3% Other Services Manufacturing 4% Mining 7% Power 46% Oil and Gas 35% 20
  21. 21. Investments in Myanmar Foreign Investment of Permitted Enterprises as of (30/6/2012) (By Sector) (US$ in Million) Sr. Permitted Enterprises Particulars No. Approved % No. Amount 1 Power 5 19067.498 46.47 2 Oil and Gas 113 14181.972 34.57 3 Mining 66 2814.36 6.86 4 Manufacturing 170 1778.375 4.33 5 Hotel and Tourism 45 1064.811 2.60 6 Real Estate 19 1056.453 2.57 7 Livestock & Fisheries 25 324.358 0.79 8 Transport & Communication 16 313.906 0.77 9 Industrial Estate 3 193.113 0.47 10 Agriculture 7 173.101 0.42 11 Construction 2 37.767 0.09 12 Other Services 6 23.686 0.06 Total 477 41029.400 100.00 21
  22. 22. Investments in Myanmar (Cont.) Foreign Investment of Permitted Enterprises as of (30/6/2012) (By Country) (US$ in Million) Sr. Permi tted Enterpri ses Parti cul ars No. Approved % No. Amount 1 China 34 14142.674 34.47 2 Thailand 61 9568.093 23.32 3 Hong Kong 40 6371.495 15.53 4 Republic of Korea 51 2954.105 7.20 5 U.K * 54 2799.185 6.82 6 Singapore 75 1824.651 4.45 7 Malaysia 41 1026.961 2.50 8 France 2 469.000 1.14 9 U.S.A 15 243.565 0.59 10 Indonesia 12 241.497 0.59 11 The Netherlands 5 238.835 0.58 12 Japan 25 216.940 0.53 13 India 6 262.000 0.64 14 Philippine 2 146.667 0.36 15 Russia Federation 2 94.000 0.23 16 Australia 14 82.080 0.20 17 Austria 2 72.500 0.18 18 Panama 2 55.101 0.13 19 Viet Nam 3 41.796 0.10 20 United Arab Emirates 1 41.000 0.10 21 Canada 14 39.781 0.10 22 Mauritius 2 30.575 0.07 23 Germany 2 17.500 0.04 24 Republic of Liberia** 2 14.600 0.04 25 Denmark 1 13.370 0.03 26 Cyprus 1 5.250 0.01 27 Macau 2 4.400 0.01 28 Switzerland 1 3.382 0.01 29 Bangladesh 2 2.957 0.01 30 Israel 1 2.400 0.01 31 Brunei Darussalam 1 2.040 0.00 32 Sri Lanka 1 1.000 477 41029.400 100.00 * Inclusive of enterprises incorporated in British Virgin Islands, Bermuda Islands and Cayman Islands. ** The name and promoter and principal organization be changed from Singapore to 22 Republic of Liberia.
  23. 23. • Resource seeking investment is higher in Myanmar• Induced investment in agriculture, livestock and fisheries, hotel and tourism, industrial estate, electricity and other services• Potential land resources for the expansion of crop areas• Less exploited in fishing and large mineral potential 23
  24. 24. • Downstream project in oil and gas sector• High potential in hydropower• Shortage of power supply and development of power projects are needed• EIF and SIF take into account• Mining law is revising to preserve environment 24
  25. 25. Environmental Mainstreaming• Constitution prescribes to protect environment• Article 45 states as “The Union shall protect and conserve natural environment”.• Article 390 (b) Every citizen has the duty to assist the Union in carrying out environmental conservation• Energy, Electricity, Mining and Forestry Sector is included in SCHEDULE ONE, Union Legislative List “Environmental protection and conservation including wildlife, natural plants and natural areas” is prescribed under it. 25
  26. 26. Environmental Mainstreaming• Environmental Conversation has been taken place in poverty reduction and rural development objectives.• Extraction of forestry products is limited to preserve the environment.• FDI is not allowed for the extraction of teak and hard wood.• Environmental law was promulgated in April 2012 to implement environmental policy. 26
  27. 27. Conclusion• Managing for the effective utilization of natural resources• Economic and environmental impacts are also considered• Managing natural resources in Myanmar needs to consider both the requirements for long-term investment in a context of less abundant capital, as well as the acute immediate needs for poverty reduction and expansion of education, health and other human development outcomes. 27
  28. 28. 28

×