Posts in category: INVESTMENT

Home chargers for battery electric vehicles (BEVs) have arrived at the designated port, according to the Ministry of Commerce. On 21 February 2023, five 7 kW GB AC home EV chargers were released at the port by Chindwin Shan Co Ltd. To support the EV sector in the domestic market, imports of chargers for electric vehicles have been exempted from Customs tariffs. Myanmar Investment Commission (MIC) released a notification dated 15 February that it will give priority to electric vehicles (EVs) and related business sectors.

In the exercise of the power conferred under Sections 43 and 100 (B) of the Myanmar Investment Law, MIC issued this statement with the approval of the Union government. Enterprises executing installation, manufacturing and restoration services of the EVs, renewable electricity generation, EVs charging service businesses, electric vehicle battery production, EV battery and related service business, electric bus operation services, electric taxi and transport service businesses and scientific research development business are included in those priority sectors.

During the establishment and ideation phase for incorporation and operations, those businesses can seek a permit from the MIC to enjoy tariff relief or zero-customs tariff status and the exemption for other taxes levied in the country under Section 77 (A) of the Myanmar Investment Law and income tax exemption under Section 75 (C) of the Myanmar Investment Law for the importations of machinery, essential equipment and accessories, spare parts and construction raw materials that cannot be found in domestic markets.

Electric vehicles (EVs) are entitled to zero-Customs tariff status, according to the notification released in early November 2022 by the Ministry of Planning and Finance. To encourage the number of EV users and improve the related business, tariffs for battery electric vehicles (BEVs) imported under Completely Built Up (CBU), Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) in Customs Tariff of Myanmar 2022 were reduced to zero per cent in accordance with the decision of the Union Government.

Types of battery electric vehicles (BEVs) include road tractors for semi-trailers, buses or motor vans for the transport of ten or more people including the driver, trucks, motor vehicles for personal use, three-wheeled vehicles for the transport of persons, three-wheeled vehicles for the transport of goods, electric motorcycles, electric bicycles, ambulances, prison vans and hearses. According to this directive, the imports of spare parts (for instance, charging station equipment and device) with the recommendation of the Ministry of Electricity and Energy and the spare parts with the recommendation of the Department of Industry can be done between 2 November 2022 and 31 March 2023. 

Source: The Global New Light of Myanmar

Myanmar Investment Commission (MIC) released a notification dated 15 February that it will give priority to electric vehicles (EVs) and related business sectors. In the exercise of the power conferred by Sections 43 and 100 (B) of the Myanmar Investment Law, the MIC issued this statement with the approval of the Union government. Enterprises executing installation, manufacturing and restoration services of the EVs, renewable electricity generation, EVs charging service businesses, electric vehicle battery production, EV battery and related service business, electric bus operation services, electric taxi and transportation service businesses and scientific research development business are included in those priority sectors.

During the establishment and ideation phase for incorporation and operations, those businesses can seek a permit from the MIC to enjoy tariff relief or zero-customs tariff status and the exemption for other taxes levied in the country under Section (A) of the Myanmar Investment Law and income tax exemption under Section 75 (C) of the Myanmar Investment Law for the importations of machinery, essential equipment and accessories, spare parts and construction raw materials that cannot be found in domestic markets.

Electric vehicles (EVs) are entitled to zero-Customs tariff status, according to the notification released in early November 2022 by the Ministry of Planning and Finance. To encourage the number of EV users and improve the related business, the tariff of battery electric vehicles (BEVs) imported under Completely Built Up (CBU), Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) in the Customs Tariff of Myanmar 2022 were reduced to zero per cent keeping in line with the decision of the Union government.

Types of BEVs include road tractors for semi-trailers, buses or motor vans for the transport of ten or more people including the driver, truck, motor vehicle for personal use, three-wheeled vehicles for the transport of persons, three-wheeled vehicles for the transport of goods, electric motorcycles, electric bicycles, ambulances, prison vans and hearses. According to this directive, the imports of spare parts (for instance, charging station equipment and device) with the recommendation of the Ministry of Electricity and Energy and the spare parts with the recommendation of the Department of Industry can be done between 2 November 2022 and 31 March 2023. 

Source: The Global New Light of Myanmar

THE meeting 1/2023 of the Myanmar Investment Commission was held yesterday morning at the Union Government Office in Nay Pyi Taw. SAC member Myanmar Investment Commission Chair Lt-Gen Moe Myint Tun and members of the commission attended the meeting.

MIC greenlighted the expansion of the capital in eight ongoing investment projects and new investments in the electricity sector, the transport and communications sector, the petroleum and gas sector, the industrial sector, the hotels and tourism sector and the service sector. The investment amount of these businesses is US$143.634 million and K98,078.094 million generating 1,374 domestic job opportunities. The production of electricity from renewable energy was also approved.

Out of 52 countries and territories investing in Myanmar, Singapore, China and Thailand ranked the largest shares of investments as of end-January 2023. Among the twelve economic sectors, the most invested sectors are 28.30 per cent of the total investments in the electricity sector, 24.63 per cent in the petroleum and natural gas sector and 14.34 per cent in the industrial sector. Myanmar Investment Commission oversees and approves project proposals of investment as well as is serving the existing investors under the Myanmar Investment Law.

Source: The Global New Light of Myanmar

A total of 52 foreign enterprises brought US$200.148 million in Myanmar’s manufacturing sector in the past ten months (April-January) of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar Investment Commission nodded 70 foreign projects from eight countries in the past ten months. The country attracted a capital of US$1.476 billion this FY, including the expansion of capital by the existing enterprises. Those enterprises are engaged in agriculture, mining, manufacturing, power, hotels and tourism, real estate and service sectors respectively.

The majority of the investments were brought into the manufacturing sector. The agriculture sector drew $3.5 million from two projects. The power sector received $820.27 million from 11 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. The mining sector received $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses is also seen.

Additionally, the livestock and fisheries sector saw a capital expansion of $1.845 million. The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community. Manufacturing of fertilizer, cement, iron and steel, value-added foodstuff, electric vehicle and pharmaceutical and medical devices, agriculture and livestock farming and its related industries and public transportation services will be prioritized for investment. The commission welcomes both foreign direct investment and domestic investments made by Myanmar citizens in those sectors. Myanmar Investment Commission and the related ministries will also ensure investment facilitation.

Myanmar’s manufacturing sector is largely concentrated in garment and textile produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. There are 547 factories actively operated under the Myanmar Garment Manufacturing Association. The majority of them are from China, followed by Myanmar and the Republic of Korea. The MGMA has been providing capacity development programs and labour law awareness training compulsory programmes to boost employee performance and build employee resilience. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping an estimated capital of $202.667 million. 

Source: The Global New Light of Myanmar

The Yangon Region Investment Committee (YRIC) endorsed nine foreign enterprises and one domestic business in the power and manufacturing sectors at the recent meeting held on 25 January 2023, creating 4,300 jobs for residents. They will execute solar power projects, milling and production of sunflower oil and peanut oil, refining and production of palm oil, printing and dyeing enterprises, manufacturing of electrical appliances and production of footwear on a Cutting, Making, and Packing (CMP) basis. Those five businesses will bring in an estimated capital of about K6 billion and over US$10 million. YIIC gave the go-ahead to four foreign projects with over 4,300 jobs.

Source: The Global New Light of Myanmar

A total of 44 foreign enterprises pumped US$187.426 million into Myanmar’s manufacturing sector in the past nine months (April-December) of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar attracted foreign direct investments of $1.462 billion from 59 enterprises during the April-December period. The majority of the investments were brought into the manufacturing sector. The agriculture sector drew $3.5 million from two projects.

The power sector received $817 million from 10 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. The hotels and tourism sector attracted less than $1 million. The mining sector received $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses is also seen. 

Additionally, the livestock and fisheries sector saw a capital expansion of $1.545 million. The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community. Manufacturing of fertilizer, cement, iron and steel, value-added foodstuff, electric vehicle and pharmaceutical and medical devices, agriculture and livestock farming and its related industries and public transportation services will be prioritized for investment. The commission welcomes both foreign direct investment and domestic investments made by Myanmar citizens in those sectors.

Myanmar Investment Commission and the related ministries will also ensure investment facilitation. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the cutting, making, and packaging (CMP) basis, and it contributes to the country’s GDP to a certain extent. There are active 541 factories operated under MGMA. The majority of them are from China, followed by Myanmar and the Republic of Korea. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping an estimated capital of $202.667 million. 

Source: The Global New Light of Myanmar

Foreign investments of over US$2.188 billion have been pumped into Thilawa Special Economic Zone under the Special Economic Zone Law as of November 2022, the statistics released by the Directorate of Investment and Company Administration (DICA) indicated.

Myanmar Investment Commission will prioritize the manufacturing of fertilizer, cement, iron and steel, value-added foodstuff, electric vehicle and pharmaceutical and medical supplies, agriculture and livestock farming and related industries and public transportation services for investments.

At present, approximately 102 factories are running at Zone A and B of the Thilawa SEZ. The power sector topped the investment line-ups with more than $3.121 billion of investment, as per the DICA. The commission welcomes both foreign direct investment and domestic investments made by Myanmar citizens in those sectors. MIC and the related ministries will also ensure investment facilitation. 

Source: The Global New Light of Myanmar

The Yangon Region Investment Committee (YRIC) endorsed one domestic project and one foreign enterprise in the manufacturing sector, with an estimated capital of over K4.08 billion and US$0.50 million at a meeting 12/2022 held on 14 December at the YRIC office in Yankin Township. Those two businesses are expected to create 295 jobs. Moreover, the meeting discussed the general issues of 16 companies and gave the go-ahead for capital expansion of $2.483 million by four companies. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis.

To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China Taipei, Malaysia, the British Virgin Islands and Seychelles are arriving in the region. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million. Myanmar attracted foreign direct investments of $1.459 billion from 58 enterprises during the April-November period of the current financial year 2022-2023. Singapore is the top source of FDI in Myanmar so far.

Fourteen Singapore-listed enterprises pumped in foreign investments of $1.154 billion into Myanmar in the past eight months. Hong Kong SAR stood as the second largest investor this FY with an estimated capital of over $164.9 million by 12 enterprises and the existing ones. China is ranked third in the investment line-up with more than $94 million from 26 businesses and the existing ones, according to the Directorate of Investment and Company Administration. Two enterprises from the Republic of Korea also pumped $5.4 million into Myanmar, with the existing ones. One enterprise each from Belize, China Taipei, the UK and Japan also made investments in the past eight months respectively. The existing enterprises from India, Bangladesh, Thailand, Switzerland and Seychelles also increased their investments.

Source: The Global New Light of Myanmar

Fourteen Singapore-listed enterprises pumped in foreign investments of US$1.154 billion into Myanmar in the past seven months (April-Oct) of the current financial year 2022-2023, the Directorate of Investment and Company Administration’s statistics showed. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors. Hong Kong SAR stood as the second largest investors this FY with an estimated capital over $163 million by 11 enterprises and the existing ones.

China is ranked third in the investment line-up with more than $90 million from 22 businesses and the existing ones. One enterprise each from Belize, China (Taipei), the Republic of Korea and Japan also made investments in the past seven months respectively. The existing enterprises from China (Taipei), China, Hong Kong SAR, the Republic of Korea, India, Bangladesh and Seychelles also increased the investments. Myanmar attracted foreign direct investments of $1.45 billion from 52 enterprises during April-October period. Majority of the investments brought into the manufacturing sector. Agriculture sector drew $3.5 million from two projects.

Power sector received $817 million from 10 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. The mining sector earned $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses are also seen. Additionally, the livestock and fisheries sector saw a capital expansion of $1.545 million.

Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022), according to the statistics released by the DICA. Singapore stood as the largest foreign investor in Myanmar in the previous years, pulling in the FDI of  $1.85 billion in the FY 2019-2020, $2.4 billion in the FY 2018-2019, $724.4 million in the mini-budget period (April-September, 2018), $2.16 billion in the 2017-2018 FY, $3.8 billion in the 2016-2017 FY, $4.25 billion in the 2015-2016 FY, $4.29 billion in the 2014-2015 FY, $2.3 billion in the 2013-2014 FY and $418 million in the 2012-2013 FY respectively. Additionally, Singapore emerged as the second largest foreign investor in the Thilawa Special Economic Zone, after a top investor Japan.

Source: The Global New Light of Myanmar

A total of 4,100 companies have been struck off the register in the past ten months as they fail to submit annual returns (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). This year, 400 companies each in January, February and March, 300 in April and 500 in May, 400 each in June and July, 55 in August and 400 each in September and October did not file annual returns on MyCO respectively, according to DICA. The DICA has notified any registered company which fails to file its AR on MyCO is to be suspended under 430 (F) of the Myanmar Companies Law, according to DICA’s notification.

The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 under the Myanmar Companies Law 2017. All registered companies need to file AR on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to Section 97 of the law. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements (G-5) simultaneously. All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending under Section 53 (A-1) of the Myanmar Companies Law 2017.

As per DICA’s report, thousands of companies were suspended for failing to submit AR forms before the due date. Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns. The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days of receiving the notice, the system will show the company’s status as suspended. Companies can restore their status only after shelling out a fine of K50,000 for the AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents, totalling K250,000. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the register, according to the DICA notice.

Source: The Global New Light of Myanmar