Trading in Myanmar has long been restricted for foreign companies in Myanmar. It was liberalised only in 2017 when the Ministry of Commerce ("MOC") permitted 100% foreign-owned companies and foreign-Myanmar Joint Venture Companies ("JV Companies") to undertake the importation and sale of a select group of goods, which include fertiliser, seeds, pesticides, hospital equipment, construction materials and agricultural equipment ("Selected Goods").
Following this, MOC issued Notification No. 25/2018 to further liberalise trading by allowing foreign companies and JV Companies to undertake trading of goods, provided they apply for and are granted wholesale and/or retail licence in Myanmar. The notification categorises existing trading companies operating in Myanmar into three types:
- established foreign companies or JV Companies already operating in Myanmar that wish to register as wholesalers or retailers but do not currently have the right to sell goods wholesale or at retail;
- established foreign companies or JV Companies that are currently permitted to conduct wholesale or retail business via a Ministry of Investment Commission (MIC) Approval, or to undertake trading of the Selected Goods; and
- domestic companies undertaking wholesale or retail business.
The notification stipulates that foreign companies or JV Companies with less than 20% Myanmar shareholding that wish to apply for the relevant license must satisfy the following initial investment capital requirements:
- US$5 million – wholesale license
- US$3 million – retail license
- US$8 million – both wholesale and retail licenses
As for foreign companies or JV Companies with 20% or more Myanmar shareholding, the initial investment capital requirements are as follows:
- US$2 million – wholesale license
- US$0.7 million – retail license
- US$2.7 million – both wholesale and retail licenses
A fully Myanmar-owned company does not have to meet any initial investment capital requirements for license applications.
Foreign companies and JV Companies were given until 18 August 2019 to apply for a retail and/or wholesale licence for the Selected Goods. Pursuant to News Letter No. 6/2019 of the MOC, the importation and sale of the Selected Goods are not allowed if the importer or seller does not hold a retail or wholesale licence. Foreign companies and JV Companies engaged in the business of trading the Selected Goods must ensure that they apply for the requisite license and inject the required minimum investment capital set out in the MOC Notification 25/2018.
On 3 August 2019, the Union of Myanmar Federation of Chambers of Commerce and Industry ("UMFCCI") launched the Myanmar Arbitration Centre ("MAC"). The MAC is the central seat for arbitration disputes in Myanmar in accordance with the Myanmar Arbitration Law 2016.
The establishment of the MAC advances the UMFCCI's involvement in resolving commercial disputes in Myanmar, which was previously done only through mediation.
The Central Bank of Myanmar ("CBM") has been planning to issue banking licences to selected foreign banks with an aim to developing Myanmar's banking sector and facilitating the State's economic development. In August 2019, the Foreign Bank Selection Body of CBM selected an advisory firm to act as its consultant for the selection process of foreign banks which will be allowed to operate in Myanmar. CBM is expected to issue directives and guidelines on the application for a foreign banking license.
On 7 May 2019, the Pyidaungsu Hluttaw (Myanmar Parliament) enacted the much-anticipated Gambling Law. The enactment of the Gambling Law generated interests among investors seeking to invest in the casino business. Unlike the Gambling Act which has since been repealed, Section 23 of the Gambling Law authorises the Government to screen the business entities applying to operate casinos in Myanmar with reference to certain requirements, such as foreign investment ratios, compliance requirements and approvals and capital requirements. These requirements will be set out in the form of notifications or operational rules to be issued under the Gambling Law.
The Gambling Law still prohibits and restricts other forms of gambling that are not approved by the Government, including the establishment and operation of a Gambling-house, defined as a house, building, compound, enclosure, garden, room or vehicle where gambling takes place. It also prohibits unlicensed lotteries and other similar games.