Posts in category: INVESTMENT

The flow of Foreign Direct Investment (FDI) into the country stood at nearly US$246 million in the three months of this mini-budget period of the 2021-22FY, according to the Directorate of Investment and Company Administration (DICA).

In three months of the 2021-22FY mini-budget period, a total of $245.902 million FDI, including an increase in investment value flowed into the manufacturing sector, livestock and fisheries sector, energy sector, construction sector, transport and communications sector, hotels and tourism sector and other sectors.

In the 2020-21FY, the electricity sector topped FDI with over $3,121 million, followed by the industry sector with over $286 million and the transport and communications sector with over $133 million. According to DICA, a total of 48 enterprises have been granted permits and endorsements in the 2020-21FY, bringing in the capital of $3,791.398 million. The Ministry of Investment and Foreign Economic Relations is inviting investors to conduct business in a responsible and accountable manner. If those businesses enter Myanmar, it would be beneficial to the country.

Source: The Global New Light of Myanmar

Eight China-listed enterprises brought in US$93.4 million into Myanmar between October and December 2021 of the six-month mini-budget period, according to data released by the Directorate of Investment and Company Administration (DICA).

China is the top source of FDI so far and Singapore is placed as the second-largest investor of Myanmar. Those enterprises listed from China, Singapore, India, Republic of Korea, France, Hong Kong (SAR) and China (Taipei) also made investments this year. Chinese companies primarily invested in the manufacturing sector.

Myanmar has drawn foreign direct investment of more than US$2.46 billion during the October-December period, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, DICA’s statistics indicated. Of 17 foreign enterprises permitted and endorsed by MIC and the respective investment committees in the half of the mini- budget period, 11 enterprises pumped FDI into the manufacturing sector. Agriculture, power, construction, hotels and tourism received each project and other service sectors attracted two projects.

Source: The Global New Light of Myanmar

From July 2021 to early January 2022, up to 2,200 companies were deregistered under Section 430 (f) of the Myanmar Companies Law, according to figures released by the Directorate of Investment and Company Administration. 300 companies in July 2021; 200 companies in August; 400 companies in September and 400 companies in October; 400 companies in November; 40 companies in December; As of January 3, 2022, there are a total of 2,200 companies with 100 companies.

Companies that fail to submit an annual return under Section 97 of the Myanmar Companies Law will be removed from the register under Section 430 (f) of the Myanmar Companies Law (Struck.Off) by the Directorate of Investment and Company Administration from the date of issuance of these notices. Companies registered with MyCO are required to submit an Annual Return (AR). The last date to submit the Annual Return is stated on the company profile, so you have to pay the registration fee of 50,000 kyats before that date. Late Fee of 100,000 Kyats must be paid within 28 days after the date of submission of Annual Return. If the Annual Return is submitted after 28 days, it will be suspended.

The company will be deregistered if the AR is not submitted for six months after suspension. If the company is revoked and wants to revive its name, the company will have to file a 1-5 re-submission on MyCO with a court order. The Department of Investment and Company Administration (DICA) has issued a statement urging special attention to be paid to the annual return report, as the company will be tarnished by the costs of applying for a waiver in the event of a Struck Off listing and failing to comply with the Myanmar Companies Law. Section 97 (a) of the Myanmar Companies Law stipulates that all companies must submit to the Registrar every year at least once a year for two months from the date of its formation and thereafter, but not later than one month after the expiration of the year of incorporation.

Source: Daily Eleven

Yangon Region Investment Committee (YRIC) endorsed eight foreign enterprises and two domestic projects made by Myanmar citizens in the manufacturing sector, with an estimated capital of US$15 million and K2.39 billion, according to the YRIC’s videoconferencing convened at the YRIC office on 12 January. Those businesses will execute production of bridal gowns on the Cutting-Making and Packing basis, production of cotton, mattress and Pu Foam, Virgin Remy Double Drawn Hairs and Wigs production, manufacturing of apparel, electronic appliances production and production of candy.

The estimated capital to be brought in the country are $15.518 million and K2.394 billion and they are expected to create 7,334 local job opportunities. Moreover, they discussed the general issues of the other 18 companies. 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.

The investors can inquire about the investment and submit a proposal by dialling (01-658263, 01-658264) of YRIC located on Kabar Aye Pagoda Road, Yankin Township. The proposals worth above K6 billion can contact the Myanmar Investment Commission located on Thitsar Road, Yankin Township via 01-658102 and 01-658103, YRIC stated. 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.

Source: The Global New Light of Myanmar

The Myanmar Investment Commission gave green light to 14 foreign projects from China, China (Taipei), Hong Kong SAR, Singapore and the Republic of Korea during the period from 1 October and 25 November of the current mini-budget period and the capital of US$65.786 million were brought into the country, including expansion of capital by existing enterprises, according to the Directorate of Investment and Company Administration (DICA).

Those enterprises are to execute in agriculture, livestock and fishery, manufacturing, electricity and other service sectors respectively. The Ministry of Investment and Foreign Economic Relations has been inviting responsible businesses to benefit the country.

The Myanmar Investment Commission (MIC) ensures to approve the responsible businesses by assessing environmental and social impacts. The commission is working together with the relevant departments to screen the projects. Next, the COVID-19 surge and the political changes led to the drastic fell in this year’s FDI sector compared with that of previous years. Myanmar attracted foreign direct investment of more than $3.79 billion in the last financial year 2020-2021 from 48 enterprises.

Source: The Global New Light of Myanmar

The number of companies registered on the online registry system, MyCO, reached 6,928 in the past 11 months this year, the statistics released by the Directorate of Investment and Company Administration (DICA) indicated. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 keeping in line with the Myanmar Companies Law 2017. During the January-November period, the number of registered companies on MyCO was 1,373 in January, 188 in February,163 in March, 254 in April, 686 in May, 775 in June, 433 in July, 360 in August, 733 in September, 1,027 in October and 936 in November, the DICA’s statistics showed. At present, 100 per cent of the applicants are using the online registration platform, the DICA stated.

Last year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August, 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, as per statistics of the DICA. In 2019, the figure stood at 1,733 in January 2019, 1,419 in February, 1,108 in March, and over 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August and 1,181 in September. The figures reached a fresh new peak of 2,059 in October 2019. Then, 1,615 new companies in November and 1,772 in December were recorded, data of the DICA showed. When the online registry was launched in August 2018, 1,816 new companies registered on MyCO.

The figure stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018. In addition, all registered companies need to file annual returns (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) under Section 97 of the Myanmar Companies Law 2017. Under 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, about 17,000 companies were suspended so far for failing to submit AR forms within 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 AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents. 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

The Directorate of Investment and Company Administration (DICA) notified the companies on 22 November to open corporate accounts, according to its statement. Some companies or organizations established under the Myanmar Companies Law are found to run the business with the personal account of the directors without having corporate accounts. According to Section 5 (A) of the Myanmar Companies Law, a company is a legal entity in its own right separate from its members having full rights, powers and privileges. So, every company is obligated to have separate accounts to hold and manage money made within businesses.

The DICA hereby notified, in exercising the power conferred under Section 462 Subsection (a) (ii) of the Myanmar Companies Law, that a corporate account is required for the companies to deal with financial accounting of the businesses. This notification comprehends every registered company at the DICA. The number of companies registered on the online registry system, MyCO, reached approximately 6,000 in the past ten months this year, the statistics released by the Directorate of Investment and Company Administration (DICA) indicated. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 under the Myanmar Companies Law 2017.

During the January-Octoberperiod, the number of registered companies on MyCO was 1,373 in January, 188 in February,163 in March, 254 in April, 686 in May, 775 in June, 433 in July, 360 in August, 733 in September and 1,027 in October, the DICA’s statistics showed. At present, 100 per cent of the applicants are using the online registration platform, the DICA stated. Last year, the figures of registered companies stood at 1,415 in January, 1,298 in February and 1,015 in March, only 348 companies in April, 798 in May, 1,314 in June, 1,650 in July, 1,551 in August, 1,378 in September, 1,693 in October, 1,099 in November and 1,521 in December, as per statistics of the DICA.

In 2019, the figure stood at 1,733 in January 2019, 1,419 in February, 1,108 in March, and over 1,045 in April, 1,411 in May, 1,307 in June, 1,428 in July, 1,302 in August and 1,181 in September. The figures reached a fresh new peak of 2,059 in October 2019. Then, 1,615 new companies in November and 1,772 in December were recorded, data of the DICA showed. When the online registry was launched in August, 2018, 1,816 new companies registered on MyCO. The figure stood at 2,218 in September 2018, 1,671 in October, 1,431 in November and 1,364 in December 2018.

Source: The Global New Light of Myanmar

Foreign investments of over US$102 million, including the expansion of capital by the existing enterprises, flowed into Thilawa Special Economic Zone under the Special Economic Zone Law and one foreign enterprise was given the go-ahead in the financial year 2020-2021. While the manufacturing sector absorbed the largest share of foreign investments, the investments were also pumped into the trading, other services, logistics, hotels and tourism, and real estate sectors. Japan topped the list of foreign investors so far, accounting for over 33 per cent of the overall investment, followed by Singapore and Thailand.

FDI also flowed into the SEZs from the Republic of Korea, Hong Kong (SAR), the UK, Australia, the UAE, Malaysia, Austria, China (Taipei), Denmark, Brunei Darussalam, Viet Nam, France, Switzerland, and the Netherlands as well. Myanmar is currently implementing three Special Economic Zones — Thilawa, Kyaukpyu, and Dawei. Out of the three, Thilawa is leading to better infrastructure and successful businesses. More than 60 per cent of businesses in Thilawa is domestic-oriented manufacturing enterprises, while 40 per cent are export-oriented manufacturers, according to a press statement issued by Myanmar Thilawa SEZ Holdings Public Ltd in June 2019.

A company exporting at least 75 per cent of the production in value is registered as a Free Zone investor and is exempt from paying corporate tax for 7 years from the time it starts commercial operations. Companies such as logistics, which support export-oriented manufacturing, can also be listed as free zone companies. Domestic-oriented manufacturing companies are regarded as promotion zone companies, and they are eligible for a five-year holiday on corporate tax. Between 1 October and 30 September of the FY2019-2020, eight foreign enterprises were given the green light, ploughing in capitals of $163.277 million.

Source: The Global New Light of Myanmar

A total of 1,300 companies were struck off the register in the past four months (July-Oct) as they failed to submit annual return (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). The DICA has notified any registered company which fails to submit its AR on MyCO are to be suspended, under 430 (F) of Myanmar Companies Law, according to the DICA’s notification. 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, as per Section 53 (A-1) of the Myanmar Companies Law 2017. As per DICA’s report, more than 16,000 companies were suspended for failing to submit AR forms within 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 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. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. The number of companies registered on the online registry system, MyCO, topped more than 2,000 in the first half of this year. Earlier, MyCO received more than 1,000 applications from new companies every month. At present, 100 per cent of the applicants are using the online registration platform, according to data provided by the DICA.

Source: The Global New Light of Myanmar

The Myanmar Investment Commission gave the go-ahead to four foreign projects from China, China (Taipei) and Nepal in October of the current mini-budget period and the capital of US$14.883 million were brought into the country, including expansion of capital by existing enterprises, according to the Directorate of Investment and Company Administration (DICA).

Those enterprises are to execute in manufacturing and power sectors respectively. The Ministry of Investment and Foreign Economic Relations has been inviting responsible businesses to benefit the country. Myanmar Investment Commission (MIC) ensures to approve the responsible businesses by assessing environmental and social impacts.

The commission is working together with the relevant departments to screen the projects. Next, the COVID-19 surge and the political changes led to the drastic fell in FDI sector compared with the previous years. Myanmar attracted foreign direct investment of more than US$3.79 billion in the last financial year 2020-2021 from 48 enterprises.

Source: The Global New Light of Myanmar