Tuesday, September 19, 2017

Ten prioritised sectors announced for investors

Myanmar Investment Commission (MIC) has recently extended an invitation to local and foreign investors to invest in 10 prioritised sectors.

According to the MIC statement published on June 26, the investors can submit proposals and state and region governments will also provide necessary assistance.

Those prioritised sectors are agriculture and its related services including value-added production of agricultural products, livestock production, breeding and production of fishery products, export promotion industries, import substitution industries, power sector, logistic industries, education services, health care industry, and construction of affordable housing and establishment of industrial estate.

FDI flow into Myanmar has increased since 2011-2012, during the tenure of then-president U Thein Sein, but there had been only a few investments in agriculture, livestock breeding and fishery, electricity generation, transport and logistics.

There is so far only US$ 81 million investment in agriculture sector during the 6-year period (starting from 2011-2012) and it constitutes merely 1pc of total FDI. Livestock breeding sector has received just merely $319 million, constituting 2pc of total FDI.

Although many rushed into real estate sector, there is no investment in affordable housing sector except some joint ventures with the government.

With the new investment law in place, region and state investment commissions will now be able to approve investment proposals of up to US$5 million without having to seek permission from the MIC.

There are exceptions, which are required to ask the MIC for approval.

Translation by Zaw Nyunt