1. Outlines of
Myanmar Economy
Prepared by
Win Htut Aung & Associates

2. Economic Policy
4 Economic Objectives
 To Promote Agriculture as Based Sector.
 To Adapt Market-oriented Economic
System gradually.
 To Accept Foreign Investment & Know-
how.
 To Keep the Control Measures of the
Economy by the State & Citizens.
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3. Legal Frame Work
(Before 1988)
 Myanmar Companies Act, 1914
 Special Companies Act, 1950
• For Joint Ventures where a Government
Entity is a Shareholder
 Myanmar Companies Regulations, 1957
• For Establishment of Foreign Companies &
Branches
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4. Legal Frame Work
(Investment)
 1988 – Myanmar Foreign Investment
Law
 1989 – State-owned Economic
Enterprises Law
 1990 – Private Industrial Enterprise Law
 1994 – Myanmar Citizens Investment
Law
 2002 – Co-operative Society Law
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5. Legal Frame Work
(Reservation List)
 Extraction and sale of teak.
 Cultivation and conservation of forest plantation.
 Exploration, production and sale of oil and gas.
 Exploration, production and export of gems and pearl.
 Exploration, production and export of minerals.
 Post and telecommunication.
 Air and railway transport.
 Banking and insurance.
 Broadcasting and television.
 Electricity generation.
 Arms, ammunitions & security related items.
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6. Legal Frame Work
(Agriculture)
 1990 – Pesticide Law
 1990 – Myanmar Agricultural & Rural
Development Bank Law
 2002 – Fertilizer Law
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7. Legal Frame Work
(Fishery, Forestry, Mining)
 1989 – Law relating to Fishing Rights of Foreign
Fishing Vessels
 1989 – Law relating to Aquaculture
 1990 – Myanmar Marine Fisheries Law
 1991 – Freshwater Fisheries Law
 1992 – Forest Law
 1994 – Myanmar Mines Law
 1996 – Myanmar Pearl Law
 1996 – Myanmar Gemstone Law
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8. Legal Frame Work
(Financial)
 1990 – Central Bank of Myanmar Law
 1990 – Financial Institutions of Myanmar
Law
 1992 – Saving Banks Law
 1993 – Myanmar Insurance Law
 1996 – Insurance Business Law
 2002 – Control of Money Laundering
Law
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9. Legal Frame Work
(Others)
 1990 – Myanmar Tourism Law
 1993 – Myanmar Hotel & Tourism Law
 2000 – Highways Law
 2007 – Law Relating to Private Health
Care Services
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10. Fiscal Policy
 Deficit Budget
 Average Increase of Money Supply during
2000~2008 – 28.5% p.a.
 GDP Growth Rate
 Continuous Double digit growth
 High Inflation Rate
 Average Increase of Consumer Price Index
(CPI) during 2000~2008 – 24.9%
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11. GDP Growth
Consumer Price Index
Bank Interest Rate - Saving
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
GDP
Growth
13.7 11.3 12.0 13.8 13.6 13.6 13.1 11.9 10.7
CPI -1.72 34.50 58.11 24.94 3.77 10.74 26.33 32.93 22.50
Bank
Interest 9.00 9.00 9.00 9.00 9.00 12.00 12.00 12.00 12.00
Rate
(Source: MNPED) 11

12. Foreign Trade
(Changes)
 Promote Foreign Trade.  Form Trade Council.
 Allow Import First Export  Change of Trade Policy.
Later System &  Stop “Permit to Trade” to
Consignment Import Foreign Trading &
System. Service Companies.
 Less Control over Issue  Strict Control over Issue
of Export / Import of Export / Import
Licence. Licence.
 Minus Foreign Trade  Surplus Foreign Trade
Balance during 1987-88 Balance during 2002-03
to 2001-02 (15 years). to 2008-09 (7 years).
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13. Foreign Trade
(Trend)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Export 12,736 17,130 19,955 14,119 16,697 20,647 30,026 35,297 37,028
Import 16,073 18,378 14,910 13,398 11,339 11,514 16,835 18,419 24,874
Total 27,809 35,508 34,865 27,517 28,036 32,161 46,861 53,716 61,902
Trade
Balanc -,2337 -1,247 5,045 722 5,358 9,133 13,191 16,878 12,154
e
(Source: MNPED) 13

14. Foreign Trade
(Procedures)
 Has licence control system.
 Need prior clearance and price
recommendations from various
dept./organization before application of
licence.
 All licence are issued with the approval
of Trade Council, which is nearly
equivalent to Cabinet.
 Licence is valid only for 3 months.
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15. Foreign Trade
(Banking System)
 Export
 Allow only FOB (Yangon) basis.
 Allow only TT and L/C at sight.
 Bank (government bank) prefer TT.
 Import
 Allow only CIF (Yangon) basis.
 Allow only L/C at sight.
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16. Current Issues
(Origin-wise)
 Foreign Companies
 Permit to trade was suspended since
2003.
 Visa & Stay Permit is issued only with the
recommendations of respective ministry.
 No general rule on issue of
recommendation.
 Different taxation and fees applied.
 Local Companies
 Lack of bank facilitation.
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17. Current Issues
(Sector-wise)
 Manufacturing
 Lack of transparency complication of
procedures in issue of Investment Permit.
 Lack of infrastructure (Port, Transport,
Electricity, etc.)
 Prohibition of second hand machinery
import.
 Need capital remittance into Myanmar.
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18. Current Issues
(Sector-wise)
 Oil and gas
 HR issues on major investment.
 Mining
 Lack of transparency in issue of permit.
 Construction
 Licence control over construction
materials.
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19. Current Issues
(Sector-wise)
 Trading
 3 months validity of export / import licence.
 Lack of trade financing.
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20. Current Issues
(General)
 International sanctions.
 High inflation rate & negative interest rate.
 Short of electric power supply (4~6 hours per
day).
 Short-term validity of company.
 Prohibition of remittance other than opening
L/C.
 Complication of tax laws.
 New Government after 2010.
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