Financial Crime World

Myanmar’s Land Ownership and Use: A Complex Web of Laws

In Myanmar, land ownership and use are governed by a complex network of laws that apply to different types of land. Unlike many countries, there is no centralized legislation governing these aspects, making it challenging for individuals and businesses to navigate the system.

Types of Land Ownership

Myanmar recognizes freehold land, but it is reserved for citizens and relatively rare. Freehold rights are only granted to “ancestral lands”, a term that dates back to colonial times. Most private individuals own land through grants from the state or other private parties.

  • Freehold Rights: Recognized in Myanmar’s legal framework, but reserved for citizens.
  • Ancestral Lands: A term dating back to colonial times, freehold rights are only granted to these lands.

Foreign Investment

Foreigners are prohibited from buying, selling, transferring or leasing land in Myanmar for more than one year, unless they have obtained an exemption from the relevant government ministry. However, there are some exceptions:

  • Exceptions: Foreign governments, diplomatic missions, and organizations may be exempted.
  • Myanmar Investment Commission (MIC): Grants permits to foreign investors to lease land for at least 50 years.

Petroleum Sector Development

In August 2017, Myanmar enacted the Petroleum and Petroleum Product Law (PPPL), which governs the exploration, extraction, and sale of petroleum and natural gas. The law confers wide-ranging powers on the Ministry of Electricity and Energy:

  • Licenses and Permits: Issued by the Ministry of Electricity and Energy.

Fiscal Regulation and Banking Sector

Myanmar has made significant progress in fiscal regulation and banking sector reform. The Central Bank of Myanmar has introduced new regulations, including a minimum liquidity ratio of 20% for banks and daily reporting requirements:

  • New Regulations: Minimum liquidity ratio of 20% for banks and daily reporting requirements.
  • Union Tax Law (UTL): Updated to exempt small and medium-sized enterprises (SMEs) from income tax for the first three years of operation.

Labour and Employment

While there have been few major updates to labour laws in recent months, the Ministry of Labour, Immigration and Population has released a revised Standard Employment Contract Template (SECT):

  • Standard Employment Contract Template (SECT): Intended to simplify employment contracts and reduce disputes between employers and employees.
  • Workplace Safety and Health Law (WSH Law): A draft law aimed at establishing a new safety framework for industries such as manufacturing, construction, and agriculture.

Conclusion

Myanmar’s land ownership and use laws are complex and fragmented, with many exceptions and regulations that apply to different types of land. While there have been some recent developments in fiscal regulation and banking sector reform, the country still faces significant challenges in establishing a stable and transparent business environment.