GDP expands to 7.4pc as more companies are cleared for business

Mandalay Region, Myanmar’s second largest city, has permitted the opening of 14 local and foreign businesses in the 2017-2018 fiscal year, said Dr Zaw Myint Maung, chair of the Mandalay Regional Investment Committee.

Nine foreign companies will contribute foreign direct investments totaling $13.6 million, while the remaining six companies will contribute K23.1 billion in local investments.

“By reducing the administrative procedures involved in the approval process, we can now give the companies permission to do business in Mandalay on the spot if the applicant’s documents are complete,” Dr Zaw Myint Maung said.

The move is part of a wider push to expedite the approval process for companies seeking to invest in the states and regions of Myanmar under the New Investment Law enacted in October 2016. Under that law, investment committees were formed in each of the states and regions to decentralise decision-making and facilitate investments.

Under the new law, regional and state investment committees can approve investments of up to $ 5 million or K6 billion, according to a March 2017 statement from Myanmar Investment Commission (MIC).

As a result, economic growth in Mandalay rose to 7.4 percent in 2017-18, up from 6.1pc in the previous fiscal year. Over the period, the number of jobs created also doubled to 10,000 as new investments in the region translated into job opportunities.

A total of 62 foreign direct investments worth $3.2 billion has been permitted so far, while 154 Myanmar citizen investments worth K4.9 trillion has also been approved under the MIC.

Source: Myanmar Times

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