By Nyein Nyein
The region and state investment committees gave the green light to 70 domestic enterprises in the last financial year 2019-2020, with an estimated capital of K191.89 billion, the Directorate of Investment and Company Administration’s data indicated. Between 1 October and 30 September of the FY2019-2020, Ayeyawady Region Investment Committee cleared 13 projects, ploughing in estimated capital of K41.26 billion.
Similarly, Yangon Region Investment Committee gave a go-ahead to 12 enterprises with K26 billion, Taninthayi to 10 projects with K41.38 billion, Sagaing to 10 enterprises with K13.9 billion, Mon to five businesses with K13.6 billion, Kayah to four enterprises with K8.2 billion, Mandalay to three enterprises with K12.14 billion, Nay Pyi Taw Council to two businesses with K6.147 billion, Chin to two enterprises with K2.535 billion, Bago to two enterprises with K5.265 billion, Shan to two projects with K5.67 billion, Kayin to two enterprises with K9.6 billion, Magway Region to one with K2.5 billion, Rakhine to one with K2.499 billion, and Kachin to one with K965 million respectively.
The domestic investments are flowing into the manufacturing, hotels and tourism, other services, electricity, agriculture, real estate development and mining sectors. Of them, manufacturing sector pulls the most massive investments, followed by hotels and tourism and other service sectors.
To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to endorse local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million.
While some projects no longer need MIC approval, businesses that are strategic to the government require the permit from the commission. Besides, those businesses that have large capital investments exceeding $5 million and that may have a possible impact on the environment and the local community need to be approved by the DICA’s proposal assessment team and the relevant ministries.
With a fast-track way to set up a business in Myanmar having been introduced, investors can apply to the MIC or the state and regional Investment Committees to get their investment proposals endorsed, depending on the business type. (Translated by Ei Myat Mon)