7 January 2018
Myanmar Investment outlook seminar was held in Yangon on Sunday. More foreign investments are likely to come due to new Myanmar Companies law but entrepreneurs have still difficulties in access to finance, a speaker pointed out at the event.
New Myanmar Companies law was approved on the 6th of December 2017 and will come into effect on the 1st of August this year. The new Myanmar Companies law allows foreign investors to take up 35% stake in local companies. More foreign investors will come into, one of the speakers, Myanmar Citizen Bank CEO said.
CEO, Myanmar Citizen Bank, Dr. Thaung Han said “Foreign investors have now had incentive to come into our country as the new law allows them to take up 35% stake in local companies. The local businessmen are mentally ready for that but they are not ready for ongoing process.”
4 new regulations related with capitalization, loan and liquidity came out in 2017 but local banks have some difficulties in practicing, the CEO added.
CEO, Myanmar Citizen Bank, Dr. Thaung Han said “The 4 regulations which came out last year are to make local banks strong and systematic. But most of the banks are facing some difficulties for instance access to finance … so do the companies.”
In the fiscal year of 2016-2017, the country’s GDP went down to 6.3 – the highest was 8 in 2014. 2018 will be the testing year of the country’s economy, as economic policies need to be clear enough, the business entrepreneurs pondered.