Description

In 2010, Myanmar, the country which had closed its doors to the outside world since 1962 signalled a change in its long standing isolationist policy. In November of that year, world famous Nobel peace prize winner Aung San Suu Kyi was released from house arrest by the military regime. Then in March 2011, power was also transferred to a nominally civilian government led by President Thein Sein. This, along with China’s growing influence in the region, spurred policy shifts from the west – which had long ostracized Myanmar through various economic sanctions programs.

Since 2012, many of the sanctions that have been in force against Myanmar for the past few decades have been lifted, and in the case of the United States, eased. This amended foreign policy has put in place the foundations for western investment into the country for the first time in 60 plus years. Over 152 laws have been enacted since Thein Sein’s government took control, and many of the new laws are specifically intended to encourage investment into Myanmar. These include the 2013 Foreign Investment Law and the 2014 Special Economic Zone Law. The framework however is very much in a state of flux as new draft laws emerge to update recently enacted laws. For instance, the 2013 Foreign Investment Law may be superseded by the new Myanmar Investment Law – which is currently under consideration. The 1914 Companies Act is also currently being amended.

Yet, even with all this uncertainty, foreign investors are flocking to Myanmar’s now open shores. Given the country’s abundance of natural and largely untapped resources, young workforce, and relatively large population (51+ million), it presents an attractive though risky gamble for investors. In the last 3 years foreign investors from around the world have defied cost-benefit analyses – willingly paying exorbitant rents and enduring bouts of dengue fever and food poisoning to set up business in Yangon. From law firms, to mining companies, to foreign banks, to well-known international brands – all have eagerly staked their claim in the new Myanmar.

This edited book seeks to gain some insight into these first 3 years, and to interrogate the legal framework that is being put in place for foreign investment. It hopes to shine a light on the type of investors that are coming into Myanmar and the safeguards (legal and otherwise) that the country has put in place against unscrupulous operators.