YANGON, Feb. 13 (Xinhua) -- A Malaysian company is planning to invest in building an acacia mangium furniture factory in Myanmar's Bago region, the official Global New Light of Myanmar reported Wednesday.
The unidentified Malaysian company projects will buy 3,000 tons of raw material of acacia mangium per year from the Myanmar Acacia Mangium Production Association and a feasibility study is being made to find out if enough raw materials can be supplied from across the country's plantations, according to the report.
To make finished products with acacia mangium, Myanmar needs to have a supply of 15,000 acres (6,075 hectares) of acacia mangium per year, said U Myo Ko Ko Thein, chairman of the association.
According to him, there are over 30,000 acres of acacia mangium plantations in Myanmar.
Acacia mangium can be used to make flooring, A4-sized paper and other personal goods.
According to official figures, over 1.8 billion U.S. dollars' investment from 85 foreign enterprises had entered Myanmar's Bago region as of December 2018.
Manufacturing sector topped the list with 1.4 billion dollars foreign investments, followed by onshore petroleum enterprise and agriculture sector in the region.
Meanwhile, the region also attracted 946 billion kyats (610.3 million U.S. dollars) domestic investment so far.
The new Myanmar Investment Law, introduced on Aug. 1, 2018, allows foreign investors to take up 35 percent in local companies.
Under the new investment law, investment with capital not exceeding 5 million U.S. dollars can be permitted by regional and states authorities of the Directorate of Investment and Company Administration.