The presentation is intended for those who are interested in investment in Myanmar, sharing some data of how the legal mechanism work on.

1. THE NEW MYANMAR INVESTMENT LAW
&
HOW IT WORKS

2. Foreign Investment in Myanmar
(2011-2012 to 2016-2017 October)
(US$ in Million)
4644.460
1419.467
4107.055
8010.533
9481.275
0.000
1000.000
2000.000
3000.000
4000.000
5000.000
6000.000
7000.000
8000.000
9000.000
10000.000
Other Services
Industrial Estate
Real Estate
Hotel and Tourism
Transport & Communication
Trading
Oil and Gas
Power
Manufacturing
Mining
Livestock & Fisheries
Agriculture
3461.953

3. Japanese Investment in Myanmar (1988-89 to 2016-2017 October)
0.000
50.000
100.000
150.000
200.000
250.000
300.000
350.000
211.902
4.318
54.063 55.711
198.713
341.821
66.200
(US$ in
Million)

4. Japanese Investment in Myanmar (1988-89 to 2016-2017 October)
Total Enterprise 112 - Investment -925.478 US$ Million
2%
58%
2%
4%
9%
4%
5%
1% 15%
Fisheries Sector
Manufacturing Sector
Agriculture Sector
Oil and Gas Sector
Hotels and Tourism Sector
Real Estate Sector
Transport & Telecommunication
Sector
Trading Sector
Others Services

5. Japan Investment in Thilawa SEZ
(2014-2015 November to 2016-2017 October)
150.04141.040
48.270
11.900
US Million
Manufacturing
Others Services
Logistics
Trading
Total Enterprises (24)/ Total Investment -251.251 US$ Million

6. ACCUMULATED JAPANESE RELATED INVESTMENT IN MYANMAR
925.478
1724.991
251.251
114.076
FIL Investment
FIL Related Investment
SEZ Investment
SEZ Related Investment
Total Enterprises (172),Total Investment -3015.796 US$ Million

7. ACCUMULATED JAPANESE RELATED INVESTMENT IN MYANMAR
FIL Investment Enterprise (135)- Investment 2650.469 US$ Million
SEZ Investment Enterprise (37)- Investment 365.327 US$ Million
Total Enterprises (172),Total Investment 3015.796 US$ Million
2650.469
365.327
FIL Investment
SEZ Investment

8. Oil and Gas
34%
Electric Power
30%
Manufacturing
12%
Telecommunication
8%
Real Estate
5%
TOP INVESTED SECTORS

9. Manufacturing Infrastructure Agriculture Tourism
INVESTMENT PROMOTED SECTORS

10. POSITIONING ASEAN AND MYANMAR IN THE
REGIONALISM

11. MYANMAR INVESTMENT LAW

12. OBJECTIVES (CHAPTER 2)
Protect Investors and their
Investments
Develop Responsible Business
Develop Businesses and
Investments that meet
International Standards

13. KEY DEFINITIONS AND SCOPE
• "Enterprise":
(1) any legal entity constituted or established in accordance with the
applicable laws including company, trust, partnership, sole proprietorship,
joint venture, business association or similar organisations
(2) a branch office of such legal entity established in accordance with the
applicable laws.
• “Direct Investment”:
 An investment where the investors have the right to control or influence or
manage of such assets which are invested by the investors within the
Union in accordance with the law.

14. KEY DEFINITIONS AND SCOPE (CONT’D)
 “Investment” (S.4) Investment includes:
a) an Enterprise;
b) movable and immovable property and related property rights etc;
c) shares, stocks, bonds and debentures;
d) Intellectual property rights etc;
e) claims to money and to any performance under contract having a
financial value;
f) rights under contracts etc; and
g) Assignable rights granted by the relevant laws or contract including the
rights of exploration, prospecting and extraction of natural resources.

15. Any Existing or new
Direct Investment
Not applicable to any
pending dispute or
any situation that
ended before the
date of the Law
Any measure adopted
or maintained by the
Union Government
and Government
organisations except
measures under Ch.
21 (General
exceptions) and Ch.
22 (Security
Exceptions).
SCOPE OF THE LAW (CH. 3)

16. Myanmar Investment
Commission (MIC)
Directorate of
Investment and
Company
Administration
(DICA)
ROLE OF THE MYANMAR INVESTMENT COMMISSION
 MIC Mandate and Functions include: acting as
investment promotion agency; investment
facilitation; advise on investment policies;
reviewing on incentives; responsible business;
investment grievance mechanism.
 Report periodically to the President and
Pyidaunghsu Hluttaw on the progress and issues of
investment in the Union.
 Annual Review and proposal to eliminate sectors
from restricted list;
 Delegation of certain functions to Chairman and
Members except powers to make Rules;
 Encourage Responsible Investment.

17. ADMISSION OF INVESTMENT
Investment in Any Allowed Sector
Enterprise Registration
Endorsement MIC Permit
Approval
Notification for
Endorsement

18. INVESTMENTS REQUIRING MIC PERMIT (S. 36)
• (a) Businesses /investment activities that are strategic for the Union;
• (b) Large capital intensive investment projects;
• (c) Projects which have large potential impact on the environment and the
local community;
• (d) Businesses/ investment activities which used state-owned land and
building; and
• (e) Businesses/ investment activities which are designated by the
Government to require the submission of a proposal to the Commission.

19. RESTRICTED SECTORS (NEGATIVE LIST)
Prohibited Sectors
(S. 41)
• Hazardous/
poisonous
• Untested
technologies unless
R&D business
• Damage to
environment
• Affect Public
Health
• Prohibited under
other laws
Restricted (S.42)
• Limited to
Government (e.g.
power
transmission)
• Restricted to
Foreign Investors
• JV between foreign
and citizen
investors
• Notification by
MIC (e.g.
Notification 26),
subject to review if
need to liberalise,
amend or remove
Special (s.46)
• Significant impact
on security,
economic
condition, the
environment and
national interest
• Approval from
Parliament

20. INVESTORS’ RIGHTS AND PROTECTIONS
Fair &
Equitable
Treatment
(s.48)
National
Treatment
(s. 47 (a) and
Most
Favored
Nation
Treatment
(s. 47(b))
Rights to
Use Land
(s. 50)
Right to
Employ
Expatriates
(s.51)
Investment
Guarantee
(s.52)
Transfer of
Funds
(s.56)

21. INVESTMENT GUARANTEE (CH. 14)
Conditions for an expropriation (S.52):
• for public purposes;
• in a non-discriminatory manner;
• The investors are to be provided with prompt, adequate and effective
compensation; and
• In accordance with due process of law.
Direct Expropriation Indirect Expropriation
 Formal transfer of legal title
 Outright seizure of the investment of the
foreign investors
• A measure or series of measures that has
similar effect to direct expropriation even
without formal transfer or outright
seizure of the legal title over the
investment.
• This is decided on a case-by-case basis.

22. CONDITIONS FOR AN INDIRECT EXPROPRIATION (S. 55)
Case-by-case and fact-based inquiry that takes into consideration the
following factors:
(a) Whether the action creates an intentional adverse effect on the
economic value of an investment;
(b) Whether the action breaches the Union Government’s prior binding
written commitment, contract, license, or other legal documents issued
in favor of the investor; and
(c) Whether the government action, including the objective contained in
section 52 (a), is consistent or not to the public interest.

23. Removal of Blanket Incentives
Notifications on Zones/ Investment Activities
Allows for special treatment of domestic SMEs
EXEMPTIONS AND RELIEFS

24. SETTLEMENT OF DISPUTES (CH. 19)
Dispute Between Investor and State
(Claims for Breach of the Investment Law)
(To show loss or damage)
Amicable Settlement
Unable to reach a settlement
Domestic Court/ Tribunal in
accordance with the law
Other forms if stipulated
in an agreement
(international arbitration)
GRIEVANCE
MECHANISM
(S. 82)
MIC to establish and
manage a grievance
mechanism to inquire
and resolve issues
before they become
legal disputes and to
prevent the occurrence
of disputes.

25. GENERALAND SECURITY EXCEPTIONS
 Government may maintain reasonable non-discriminatory measures for
prudential reasons, such as:
a) the protection of investors, depositors, financial market participants,
policy-holders, policy-claimants, or persons to whom a fiduciary
duty is owed by a financial institution;
b) the maintenance of the safety, soundness, integrity or financial
responsibility of financial institutions; and
c) ensuring the integrity and stability of the Union's financial system.
 May take measures necessary for the protection of its essential security
interests.

26. WAY FORWARD
18 October
2016
December,
2016
January, 2017
February, March,
2017
1 April 2017
Law enacted
First draft of
Rules
Consultation
& Completion
of Rules
Procedures &
Notifications
Commencement
of New Law

27. Thank You
www.dica.gov.mm
majanoo@gmail.com
Cooperator of Business Community,
Developer of National Economy
DICA