by May Oo
YANGON, Nov. 16 (Xinhua) -- Myanmar Investment Commission (MIC) announced Tuesday the detailed investment policy in support of the government's 12-point economic policy introduced in July this year, highlighting the government's promises to attract foreign investment and promote sectoral investment, while emphasizing macro-economic stability.
Local experts said the economic growth is currently relying on foreign direct investments as it is too earlier to enjoy the results of other macro-economic policies.
Myanmar's new Investment Law, endorsed on Oct.18 with the approval of both Houses, was drafted in 2013 based on suggestions from experts and businessmen with the help of International Finance Corporation (IFC) and the new law combines the Foreign Investment Law drafted in 2012 and the Citizens' Investment Law drafted in 2013.
The first point of the policy highlights the will of the government to welcome responsible businesses which benefit both sides.
The second point is that the MIC and other related governmental organizations will simplify the investment process with faster rate and transparency.
Thirdly, the 7-point policy emphasizes the macroeconomic stability of the country, encouraging rule of law, reliable regulations for arbitration, trustworthy financial system to promote economic infrastructure.
The fourth point is that the government promises to take responsibility of improving investment environment, enhancing check and balance and transparency without discrimination between local and foreign enterprises.
Other promises are the assurance of protection of profits after taxation and transactions of businesses in accordance with the law and serving for the permitted investments in land leasing process.
The fifth point is notifying both local and foreign investors to follow the rules and regulations for taking responsibility concerning with environment and natural resources.
The sixth point prohibits foreign investors from operating in the areas concerning security, culture and society of the state. The country will announce the prohibited business areas soon.
The seventh point highlights the country's promoted sectors for investments which cover improving the productivity for global value chain and value-added agricultural products production, the businesses which can be effective for local ones bringing the technology, the businesses which enhance the small and medium enterprises, the businesses which accelerates the infrastructure development, the ones which create job opportunities and vocational training, the ones which invest in least developed regions, the ones which can operate in industrial towns and special businesses in cooperation.
The last point is investments related with travel and tour sector.
"I have positive opinion with the law but the most important one is how the player reinforce to enact the law and policies. I think the new investment law provides equality to both citizen and foreign investors," U Tint Swai, Chief Financial Officer of Union of Myanmar Federation of Chamber of Commerce and Industry(UMFCCI), commented.
The new investment law will take effect with its regulations on April 1 next year, according to the Directorate of Investment and Company Administration (DICA).
Unlike the previous one, the new law stipulates that tax breaks are only enjoyed by those who invest after the new law comes into effect.
The country began to lure foreign direct investments, forming a new 11-member Myanmar Investment Commission (MIC) in June this year.
According to the statistics of MIC, the country drew 2.061 billion U.S. dollars of foreign investments in over first seven months of this fiscal year 2016-2017 as of mid-November.