Foreign investment inflows to double: Myanmar govt

Approved foreign direct investment (FDI) into Myanmar is expected to grow this year, the Myanmar Investment Commission (MIC) says.

Already, approved FDI into Myanmar in the first three months of fiscal year 2019-20 is double what it was in the same period in the previous fiscal year, the commission said.

“Currently, FDI in the country shows obvious growth in the current fiscal year. We have received around US$500 million a month so far for this fiscal year so it shows promise of good growth,”’ said U Thant Sin Lwin, secretary of the MIC and also director general of the Directorate of Investments and Company Administration (DICA).

As of January 10, MIC has approved investments in projects totalling US$1.5 billion since the start of FY2019-20 on October 1, 2019. According to DICA, during the same period it approved investments totalling some $800 million for 60 projects.

Although the commission has approved a significant number of high-value foreign investment projects, it is also working to ensure the projects are sustainable and beneficial, U Thant Sin Lwin said.

“We did not simply accept any proposed project put forward by international investors who want to set up shop in Myanmar. The commission rejected proposed projects that were judged to have the potential to damage the country’s social and environmental landscape within the 15 days stipulated under the Myanmar Investment Law,” U Thant Sin Lwin, said.

Most recently, the commission rejected the two proposed investment projects that might bring damage to the environment at its meeting on January 10, he added.

The World Bank’s latest Myanmar Economic Monitor report states that FDI inflows showed signs of recovery in 2019. The increase in approved FDI indicates the recovery of FDI flows could continue into 2019-20. However, the report added that sustaining FDI inflows depends on continued efforts to improve the business environment to attract capital flows in the context of diminishing global flows and Myanmar-specific country risks.

According DICA, FDI rose to $4.2 billion in FY2018-19 from $3.3 billion in FY2017-2018, and is projected to reach $5.8 billion in the current fiscal year. Singapore remained the largest foreign investor in Myanmar, followed by China and Hong Kong. The sectors receiving the most foreign investment were oil and gas, followed by power, and manufacturing.

Source: Myanmar Times

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