by Feng Yingqiu
YANGON, Oct. 6 (Xinhua) -- Myanmar's House of Nationalities (Upper House) approved on Wednesday the bill of new Myanmar Investment Law after it was passed by the House of Representatives (Lower House) last month.
With the passing of the law by both Houses, the new Myanmar Investment Law is expected to take effect in the near future, Myanmar Investment Commission (MIC) said.
Although Myanmar enacted Foreign Investment Law in 2012 and Citizens' Investment Law in 2013, there were arguments over the laws and the former government has called for drafting a new one combining the two laws with the support of International Finance Corporation.
According to experts, the existing foreign investment law abounds in weaknesses. For example, it requires permission for every proposal from the MIC, it offers no ways to settle a dispute peacefully before going to arbitration and it lacks legal description on momentary policy in transfer of foreign currency.
Other shortcomings include an abundance of documents to be tendered and attached herewith and the MIC's monopoly of authority.
Apart from that, tax exemption results in great loss in national income. Dual investment laws had led to assumptions on discrimination between local and foreign investors.
The new investment law includes tax breaks which are different from those stipulated under the former government.
Under the new law, tax breaks are only provided to investment in sectors promoted by the new government, said U Aung Naing Oo, secretary of MIC and director general of Directorate of Investment and Company Administration.
The prompt approval of the bill was seen as in response to exuberant foreign investors wishing to invest in the economic sphere in the country.
With the help of Asian Development Bank, Myanmar is also drafting the new Company Act, key to allowing foreign investors in Yangon Stock Exchange, according to the Securities and Exchange Commission of Myanmar.
Myanmar is devoted to providing guarantee to foreign investors and luring more investment, experts say.
The country's new government has formed a new MIC led by U Kyaw Win, Minister for Planning and Finance in early June.
The new MIC has permitted a total of 38 foreign investment projects worth 383.877 million U.S. dollars during the over five months' period since the new government took office in April.
From late 1988 to August this year, total foreign investment in Myanmar amounted to over 64.4 billion U.S. dollars , according to the MIC.
