The Myanmar Investment Commission (MIC) approved41 foreign investment projects worth over US$ 1.3 billion from 1 October to 30Novemberthis year, an increase of more than US$ 900 million when compared to the same period last year, according to the figures from the Directorate of Investment and Company Administration under the Ministry of Investment and Foreign Economic Relations.
The permitted foreign investment projects are expected to create up to 20,000 job opportunities for Myanmar citizens.“The foreign investment projects approved by the MIC from 1 October to 30 November this year under the Special Economic Zone Law reached US$ 1377.426 million, said U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA).
The MIC gave the green light to 34 foreign investment projects valued at more than US$ 465 million during the same period in the fiscal year 2018-2019.
The increase in foreign direct investment into Myanmar attributes to massive influx of foreign investment into the Southeast Asian country, the Director-General added.“Company registration system in Myanmar has improved as compared to previously introduced scheme.
This is the reason why enormous foreign investment has been channeled into Myanmar,” he said.
Union Minister for Investment and Foreign Economic Relations U Thaung Tun said that FDI inflows into Myanmar will likely increase in the current fiscal year once proposals for offshore oil exploration and mineral extraction are scrutinized and approved.
The Union Minister went on to say that the government has taken a number of significant measures to ensure that it will be much easier for foreign investors to do business in Myanmar.
The majority of the foreign investment from China, Hong Kong, Taiwan, British Virgin Islands, India, Seychelles and United Kingdom came to manufacturing, communications, transport, tourism, agriculture, electricity generation, real estate and industrial sectors.
The Southeast Asian country aims to woo US$ 5.8 billion of FDI in the current financial year.The MIC expects that the country will receive more foreign direct investment in the years to come. The government is also committed to encouraging FDI inflows to the country that can contribute to the creation of job opportunities for Myanmar people, help their income increase and promote their socioeconomic status. The government believes that the foreign direct investment is a key drive for economic growth of the country.
The DICA has been cooperating with NGOs and INGOs so as to lure foreign direct investments to the country by organizing seminars, investment and business forums.Myanmar set a target to attract US$ 221 billion of FDI within 20 years from 2016-2017 FY to 2035-2036 FY under the short-term, mid-term and long-term Myanmar Investment Promotion Plan in an attempt to attract responsible investments into the country.
In addition Myanmar is estimated to become a middle-income country by 2036.Arrangements are being made to attract more foreign direct investments in the industrial sector that can create more job opportunities for Myanmar citizens under the MIPP.
Around 1,780 foreign companies from 50 countries around the world were permitted to pour investments into 12 sectors, with the total amount of US$ 81,597.743 million during the period from 1988 to early November 2019.
Myanmar received US$ 9.4 billion of foreign direct investment in 2015-2016 FY, US$ 6.6 billion of FDI in 2016-2017 and US$ 5.7 billion of FDI in 2017-2018 FY.
The largest sector of foreign direct investment flowed to oil and gas sector, accounting for 27.29 per cent of the total FDI, followed by the power sector with 25.77 per cent and the manufacturing sector with 14.04 per cent._GNLM
