A Singapore-based agribusiness will invest $4 million in hardwood plantations in the Ayeyarwaddy region, the first foreign investment proposal in the agricultural sector to be approved under the NLD government.
Timberland Plantation Investment received approval for the project on March 2, the head of the Directorate of Investment and Company Administration (DICA) said earlier this month.
“The investment will be a joint venture with a Myanmar company, which will take a 35 percent stake while the remaining 65 percent will be owned by the Singaporean company,” said U Aung Naing Oo, DICA’s director general.
The two plantations will be situated in Pathein and Thar Paung townships in the southern delta region.
Agriculture has accounted for a tiny fraction – just 0.05 percent – of foreign investment since 1988, government figures show.
But with the end of many western sanctions and the return of special trade benefits from the EU and the US for many agricultural products, the sector is experiencing growing interest from foreign companies.
Myanmar has so far approved more than $656 million worth of investments this fiscal year, which started April 1. That includes proposals from 24 foreign entities and 12 local businesses, figures from DICA show.
Source: Myanmar Business Today
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