NEW businesses including one enterprise in the agriculture sector and two in the livestock and fisheries sector were permitted to bring in investments of US$200 million and K25 billion in early September, said U Thant Sin Lwin, the Director General of the Directorate of Investments and Company Administration.
“The farming industry still makes up less than one per cent of the total investment, representing 0.5 per cent of the total investment. To promote investments in the agriculture sector, we will try to link it with the manufacturing sector,” said U Thant Sin Lwin.
“Foreign investors in the agricultural sector can share know-how of farming methods. Agriculture accounts for 32 per cent of the GDP and 20 per cent of exports,” he added.
Myanmar’s agricultural sector has received investments from China, Singapore, South Korea, Malaysia, France, India, and Japan. Between October and early September this year, six enterprises entered the agriculture, livestock, fisheries and real estate development sectors. Investments in the agriculture industry hit $134.48 million in the 2017-2018FY. In the October-August period of the current fiscal year, FDI into the sector exceeded $19 billion.
The new Myanmar Investment Law allows up to 80-per cent foreign investment in the agriculture sector. It also allows 100-per-cent foreign investment in seed production.
“Foreign investors have shown interest in investing in the farming industry. The sector has seen a relatively low FDI inflow as it involves long-term investment, and is directly associated with the climate. Investing in the farming sector may pose some risks for investors. It is still difficult to implement a crop insurance system in Myanmar. Land ownership also remains an important issue. This is why investment in the agriculture sector is relatively low compared with that in the non-agricultural sector,” said an official from the Myanmar Rice Federation.
In the current financial year, 224 businesses in 10 sectors have pulled in foreign direct investment of $3.526 billion, with the majority of the FDI flowing into the country’s manufacturing sector.
The Myanmar Investment Commission plans to support those who want to invest in ten prioritized areas of investment as quickly as possible, including agriculture, livestock breeding and fisheries, export promotion industries, import substitution industries, power sector, education services, logistics industries, healthcare services, construction of affordable housing, and establishment of industrial estates.
— GNLM (Translated by Ei Myat Mon)
