Posts in category: INVESTMENT

According to figures released by the Directorate of Investment and Company Administration (DICA), the actual inflow of foreign investment into Myanmar in 2020 was just over $ 2.2 billion. In the last fiscal year 2019-2020, Myanmar allowed more than $ 5.525 billion in foreign investment, and only $ 2.205 billion in actual inflow into Myanmar by 2020. During the 2018-2019 fiscal year, Myanmar allowed more than $ 4.5 billion in foreign investment.

According to the Directorate of Investment and Company Administration (DICA), the actual inflow of foreign investment into Myanmar during the period was $ 2.766 billion. In the investment sector, the MIC has already given permission, but foreign investors have not been able to enter immediately and have to conduct a preliminary study on their business capabilities. There is a business approve. What kind of business is allowed by the business owner? How much to invest? You have to submit it first. Does the state have to allow the proposed business under the Investment Law? Should the Union allow it? It was approved step by step.

Once authorized, the employer does not enter immediately. He also studied whether it is possible in the country first. When all goes well, the business will start. Some jobs take years. For example, the investment allowed this year is not immediate. They may start working next year or next year. This year’s entry also includes permits from some companies from previous years. In some years, it is more than allowed, said an official from the Myanmar Investment Commission (MIC). If we look at the amount of foreign investment that has actually flowed into Myanmar year by year, in 2014 it was almost $ 1.2 billion. In 2015, it was over $ 4.2 billion. In 2016, it was about $ 3.9 billion. In 2017, more than $ 4.8 billion; $ 1.8 billion in 2018; In 2019, it received more than $ 1.7 billion, according to DICA.

Source: Daily Eleven

METRO Wholesle Myanmar, a well-known company in Yangon, announced on September 1 via its social media site that it would be shutting down at the end of October due to operational difficulties.

The statement said it regretted that METRO Myanmar would cease operations at the end of October 2021. They have carefully considered what can be done under various circumstances. However, the current situation makes it very difficult to operate in accordance with the high standards set by METRO.

Customers who have trusted and worked with them over the years; Thanks to all our business partners and suppliers. They would also like to thank all the METRO staff and pledge to provide full guidance and support during the transition period. METRO Wholesle Myanmar entered and invested in Myanmar in 2017.

Source: Daily Eleven

A total of 300 companies was struck off the register in July as they failed to submit an 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. The DICA found that in July, 300 companies failed to restore their status within six months of suspension under 430 (F) of Myanmar Companies Law. The companies were struck off the register starting from 5, 9 and 16 July respectively, 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 sub mit 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 in 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, keeping in line 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. During the public holidays from 23 to 31 August, the DICA is offering services for investment and company registration at the Head Office located at No.1 Thitsar Road, Yankin Township of Yangon Region and One- Stop-Service is opened at No. 49, Seinlemay lane, Kabar Aye Road, Yankin Township for the department coordination matters, the DICA announced. 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

Myanmar has attracted foreign direct investment of more than US$3.767 billion in the past ten months of the 2020-2021 financial year from 45 enterprises, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, according to the Directorate of Investment and Company Administration (DICA). 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.

In May, the UK-listed enterprise brought in large investments of $2.5 million and became the top source of FDI in Myanmar in the past nine months, DICA’s statistics indicated. Japan stood as the second largest investor this FY with estimated capital of $518.76 million from three projects, followed by Singapore investing $428.336 million in Myanmar. Those enterprises listed from Brunei, China, Thailand, India, Malaysia, Republic of Korea, Viet Nam, Marshall Island, Samoa, Hong Kong (SAR) and China (Taipei) also made investments this year. Of 45 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 31 July of the current FY, 24 enterprises pumped FDI into the manufacturing sector.

Electricity sector received six large project and livestock and fisheries sector attracted six projects. Other service sector drew five projects while agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors. The FDIs stood at $6.9 million from 158 enterprises in the FY 2016-2017, $6.119 billion from 234 businesses in the FY 2017-2018, $1.94 billion from 89 projects in the 2018 mini-budget year, $4.5 billion from 298 businesses in the FY 2018-2019 and $5.689 billion from 253 businesses in the FY 2019-2020 respectively, the DICA’s data indicated. Those enterprises created over 96,000 jobs in the FY 2016- 2017, 110,000 jobs in the FY 2017- 2018, over 53,000 jobs in the 2018 mini-budget period, over 180,000 jobs in the FY 2018-2019 and 210,000 jobs in the FY 2019-2020 respectively.

Source: The Global New Light of Myanmar

The Yangon Region Investment Committee (YRIC) has endorsed eight foreign enterprises and two joint ventures in the manufacturing sector, with estimated capital of US$19 million, in the past months of the current financial year 2020-2021. Additionally, two domestic enterprises were also given the go-ahead, with capital of K3.5 billion. Those enterprises are to create around 4,220 jobs.

They will execute manufacturing of bags, footwear, underwear and garments on a Cutting, Making, and Packing (CMP) basis, manufacturing of construction materials, production and sales of aluminum, grinding and manufacturing of pulses and beans, and production and distribution of fish sauce, YRIC stated. Between 1 October and 30 September of the previous financial year 2019-2020, Yangon Region attracted FDI of $308.768 million from 137 foreign enterprises.

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.

Source: The Global New Light of Myanmar

Thirteen Singapore-listed enterprises brought in US$428 million into Myanmar between October 2020 and June 2021, according to the data released by the Directorate of Investment and Company Administration (DICA). The UK-listed enterprise brought in large investments of $2.5 million in May 2021 and became the top source of FDI in Myanmar. Singapore is placed as the second largest investor in Myanmar. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors.

Those enterprises listed from Brunei, China, Thailand, India, Malaysia, Republic of Korea, Viet Nam, Marshall Island, Samoa, Hong Kong (SAR) and China (Taipei) also made investments this year. Myanmar has drawn foreign direct investment of more than US$3.76 billion during Oct-Jun period, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, DICA’s statistics indicated. Of 44 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 June of the current FY, 23 enterprises pumped FDI into the manufacturing sector. Power sector received six large project and livestock and fisheries sector attracted six projects.

Other service sector drew five projects while agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors. MIC intends to reach FDI target of $5.8 billion for the current FY 2020-2021. Singapore has stood as the largest foreign investor in Myanmar since 2012, 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 top investor Japan.

Source: The Global New Light of Myanmar

The number of companies registered on the online registry system, MyCO, reached over 3,800 in the past seven 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, in keeping with the Myanmar Companies Law 2017. During the January-July 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 and 433 in July, 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), according to Section 97 of Myanmar Companies Law 2017. 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 as of September-end 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 power sector is ranked first with the largest foreign direct investment in the past nine months (Oct-Jun) of the current financial year, according to statistics provided by the Directorate of Investment and Company Administration (DICA). During the October-June period, FDI of over US$3.76 billion, including expansion of capital and investments in the Special Economic Zones, has flowed into the country. MIC and the investment committees of states and regions gave the green light to 44 enterprises to invest in the country. The quantum of investment in power is higher than in any other sector this year, with an estimated capital of over $3 billion.

In May, Myanmar Investment Commission (MIC) permitted one large project from the UK with capitals of US$2.5bn for the construction of a liquefied natural gas (LNG) power plant. The electricity generated by this project will be sold domestically and is expected to support the goal of 100-per-cent nationwide electricity from the national grid by 2030. Of 44 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 June of the current FY, 23 enterprises pumped FDI into the manufacturing sector with an estimated capital of $256 million. The power sector received the largest FDI of $3.12 billion from six projects and the livestock and fisheries sector attracted six projects worth $19.2 million.

Other service sectors drew five projects ($103 million) while the agriculture sector pulled two projects ($9 million) and one foreign enterprise each entered industrial estate with capital of $81 million and the hotel and tourism sectors bringing in the capital of $28 million. Additionally, the existing enterprises raised capitals of $133.5 million in the transport and communications sector and $8 million in the real estate sector as of end-June. 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. The Ministry of Investment and Foreign Economic Relations has been inviting responsible businesses to benefit the country. 

Source: The Global New Light of Myanmar

A total of 100 companies has been struck off the register as they fail to submit an 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. The DICA found that 100 companies failed to restore their status within six months of suspension under 430 (F) of Myanmar Companies Law and the companies were struck off the register starting from 5 July, 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 (I9A). 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. Normally, MyCO is receiving 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

As of the end of May of the 2020-2021 fiscal year, more than $ 3,750 million in foreign investment was approved, including more than $ 254 million in foreign investment, including increased investment in the manufacturing sector, according to the Directorate of Investment and Company Administration. From the 2016-2017 fiscal year to the end of May 2021, Myanmar citizens invested more than 2,586 billion kyats in Myanmar’s manufacturing sector, accounting for nearly 23 percent of the total national investment, according to the Directorate of Investment and Company Administration.

From the 2016-2017 fiscal year to the end of January 2021, the national investment in the real estate sector was over 3,071 billion; In other sectors, more than 1,868 billion kyats; In the manufacturing sector, more than 2556 billion kyats; Over 1,141 billion kyats in the telecommunications and transportation sector; Over 1,125 billion kyats in the hotel and tourism sector; More than 436 billion kyats in the energy sector; Over 324 billion kyats in the industrial zone sector; Over 347 billion kyats in the livestock and fisheries sector; Over 228 billion kyats in the construction sector; In the mining sector, more than 75 billion kyats; More than 42 billion kyat has been invested in the agricultural sector and more than 13 billion kyat in the oil and gas sector.

In the fiscal year 2019-2020, 130 new Myanmar venture capital projects were approved, with a total investment of over 1,881 billion kyats, including a total investment of over $ 413 million. The Myanmar Investment Commission has approved a total of 130 new projects for Myanmar citizens in the 2019-2020 fiscal year with a total investment of US $ 266.873 million, including US $ 266.873 billion, for 1535.075 billion kyats. 1881.459 billion kyats was allowed to operate, including 618 million. The Myanmar Investment Commission has approved a total of 245 new ventures for foreign investment in the 2019-2020 fiscal year with a total investment of $ 4.235 billion, and has approved a total investment increase of $ 1.291 billion for 110 existing projects, including an increase in investment of $ 5.56 billion.

Source: Daily Eleven