Financial Crime World

Myanmar Landmarks Progress on Legislation, But Foreign Investment Restrictions Remain

Yangon, Myanmar - In a significant step forward for the country’s economy, Myanmar has made progress on legislation governing land ownership and use. However, foreign investors may still face restrictions in certain sectors.

Lack of Centralized Legislation

Myanmar currently lacks centralized legislation governing land ownership and use, with various laws regulating different types of land, including farm land, forest land, and industrial land. The concept of freehold land is recognized, but it is largely reserved for citizens and there is a scarcity of such land.

  • Private individuals can hold land through grants from the state or other private persons.
  • Most grant land is concentrated in larger cities and towns.
  • Grants typically have terms ranging from 60 to 90 years, and rights are transferable.

Foreign Investment Restrictions

Foreign investors face significant restrictions under the Trade Investment and Production Rights Act (TIPRA), which prohibits the sale, transfer, or exchange of land to foreigners. Additionally, foreigners are limited to leasing land for a period no longer than one year, unless they have obtained an exemption from the relevant government ministry.

Progress in Other Areas

Despite these restrictions, Myanmar has made progress in other areas:

  • In August 2017, the Petroleum and Petroleum Product Law (PPPL) was enacted, governing fuel sources including liquid petroleum gas, liquefied natural gas, and compressed natural gas.
  • The Central Bank of Myanmar (CBM) has taken steps to strengthen financial regulations, issuing a regulation on credit information reporting systems in March 2017. This move aims to increase transparency and stability in the banking sector.
  • In the labor sphere, Myanmar’s Ministry of Labour, Immigration and Population released a revised Standard Employment Contract Template in November 2017, implementing changes to the Employment and Skills Development Law of 2013.

Challenges Ahead

While these developments are positive, foreign investors may still face challenges in certain sectors. The draft Workplace Safety and Health Law, which aims to establish a new safety framework for employers and employees, is currently under review.

As Myanmar continues to develop its economy, it remains to be seen how these legislative changes will impact foreign investment in the country.