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The Union Government released the State Economic Policy on 29 July 2016. The State Economic Policy aims to bring the continual development of the country in a manner which is people-centered and inclusive across all states and regions. Privatization of some state-owned economic enterprises, promoting SMEs, developing infrastructures including electrification facilities and ports to implementing an ID card system, the Digital Government Strategy and the e-Government System are captured in the State Economic Policy. The policy also aims to implement systematic practices for intellectual property rights and encourages the improvement and innovation of advanced technology, while it also states that separate policies will be drawn up which will promote the increase of foreign investment and the private sectors under a free-market system, and promote the rule of law as well as establish an effective and fair tax system.
Subsequent to Notification No. 11/2016 from the Ministry of Commerce ("MOC") which permits foreigner joint-venture companies to undertake trading, wholesaling and retail of 4 items, namely (i) fertilizer; (ii) insemination seeds; (iii) pesticides; and (iv) hospital equipment, the MOC further issued Notification No. 56/2016 dated 7 July 2016 which permits foreigner joint-venture companies1 to undertake trading, wholesaling and retail of construction materials following the same set of conditions and procedures imposed on local Myanmar companies.
1 Foreigner Joint-Venture Companies; Informal consultation was made to the MOC clarifying if the term Foreigner Joint-Venture ("FJV") is meant only to individual foreigner itself or Foreign Companies can be fallen under the term FJV, and if FJV Companies are meant to be joint-ventures only between the foreigners/foreign entities or the joint-ventures between Myanmar citizens (including Myanmar companies) and the foreigners/foreign entities. We understand from our consultation with MOC that Foreigner Joint-Venture means the joint-venturing between Myanmar Citizens/Companies and foreigners/foreign companies.
The Legal Affairs Commission issued a letter dated 5 September 2016 (Letter No. 03/PaHtaSa(KaMaYa-1)/2016-484) which sets out a list of 48 prioritized laws to be enacted in the near future. The list includes a new Trademark Law, Copyright Law, Anti-Dumping Law, Information and Technology Law, Myanma Privatization Law, Foreign Employment Law, and a Law on Protection for Bank Customers.
According to a news article from the 23 September 2016 issue of the Myanmar Times, U Thant Zin, an official in the Financial Regulatory Department of the Ministry of Finance and Planning, said that the government is going to speed up liberalization to the foreign players involving in the insurance business in Myanmar. He also said that current restrictions imposed on foreign insurance firms are intended to protect the local insurance companies before they are ready to compete with foreign players, and it is because the local firms may need time to develop their own products and pricing structures so that they are well-prepared before foreign firms enter the market.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Rajah & Tann
Myanmar Company Limited
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