Welcome to the latest edition of BLP’s monthly Myanmar update. We have distilled the latest Myanmar news into this ‘speed read’. Please get in touch for more information.
New Myanmar Investment Law (MIL) and amendments to Companies Act delayed
Myanmar’s parliament did not pass the new MIL or amendments to the Myanmar Companies Act 1914 on 29 August 2015, in what may have been the final parliamentary session before the general election.
The new MIL seeks to streamline the existing Foreign Investment Law 2012 and Myanmar Citizens Law 2013, whereas the amendment to the Companies Act 1914 aims to overhaul antiquated regulations relating to the formation and management of companies in Myanmar. Secretary of the Myanmar Investment Commission, Mr Aung Naing Oo, has hinted that the new MIL will be passed in the post-election parliamentary session in January 2016 with members of the current parliament, before the swearing in of the new lawmakers.
The Central Bank of Myanmar (CBM) to encourage use of Myanmar kyat
The CBM is stepping up its efforts to encourage the domestic use of Myanmar kyat. The CBM issued an open letter dated 28 May 2015 to ministries and government authorities instructing them to make all payments in Myanmar kyat – to date, many ministries have ignored the instruction and CBM has been cautious about strictly enforcing the instruction given recent volatility in the Myanmar kyat.
The deputy director of CBM, Mr Win Thaw, has indicated though that it will start to take action against ministries before the end of the year and that details of an action plan to transition Myanmar towards the use of Myanmar kyat in domestic business will be announced soon.
Directorate of Investment and Company Administration (DICA) extends deadline for Myanmar registered companies
DICA has extended the deadline for companies registered under the Myanmar Companies Act 1914 and Special Company Act 1950 to update DICA of whether the company is currently active and carrying on business. The deadline has been extended to 16 October 2015.
Update on Myanmar’s minimum wage
On 28 August 2015, the National Committee on the Minimum Wage announced that the minimum wage had been set at K3,600 (US$2.80) for an eight hour working day or K450 per hour. The minimum wage will not apply to small and family-owned businesses with less than 15 employees. The prescribed minimum wage came into effect on 1 September 2015.
Expressions of Interest: Yangon Central Railways Station Area Comprehensive Development Project
Myanmar Railways has invited expressions of interest from developers to undertake design and build works for the Yangon Central Railways Station Area Comprehensive Development Project. Both domestic and international organisations are eligible for submission of expressions of interest. Interested parties must submit expressions of interest by 14:00 hours on 6 November 2015.