Foreign and domestic investments rise during govt’s first fiscal year
DURING the 2016-17 fiscal year, the NLD government approved new foreign investments in a total of 138 projects. Investors included European countries such as the UK, France and the Netherlands as well as Asian countries like Thailand and Vietnam.
But they also included the likes of Australia, Bangladesh, and Canada, which have not invested in Myanmar for more than ten years. Meanwhile, countries that had never invested in Myanmar before, such as Lebanon, Ireland, and Brazil, have also started investing, U Set Aung said.
Due to contributions from new countries, countries that had stopped and restarted their investments and countries with ongoing investments, capital inflows during 2016-17 were much higher compared to the previous fiscal year, said U Set Aung.
“We can conclude that because of the amendments made to existing laws and implementation of new laws, foreign investors are now interested to invest in Myanmar.” U Set Aung added,
He was referring to the Myanmar Investment Law, which is a combination of the Foreign Investment Law and Myanmar Citizens Investment Law, enacted on October 18, 2016. Further investment policies were published a month later on November 15, 2016.
The transportation and communications sectors received a combined total of 46.3 percent of foreign investments. Meanwhile, the industry and electrical energy sectors received some 17.7pc and 13.7pc of foreign funds.
On the domestic front, 40pc of the funds invested was channeled into the housing and construction sector, while some 25pc was pumped into transportation and communications. The remaining 18pc was received by other sectors such as livestock and agriculture
The nation has also benefitted from taxes and land leases as a result of the investments made. The government draws revenues of US$338.7 million in such receipts from foreign investors and K126.8 billion from local investors, U Set Aung said.