Economists concerned
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Economists have expressed concern over protectionist clauses added by Parliament to the draft foreign investment law as they would only make cronies richer.
Analysts who were initially involved in drafting the new legislation criticized that the amendments are blocking strong laws to rebuild the country’s economy left behind for many decades.
Amendments in the bill include a requirement that initial foreign investment must be at least US$5 million.
Economists are worried that the amendments will scare off foreign companies and benefit crony capitalists who have long dominated the economy.
Sean Turnell, an expert on Myanmar’s economy at Australia’s Macquarie University, said, “Instead of moving to a more liberal economic environment, some within the country seem to be pushing towards an outcome that could see the effective ‘oligarchisation’ of Burma’s economy.”
Deutsche Presse-Agentur quoted Minister of President Office U Soe Thein (former minister of industry) as saying that the $5 million requirement is very discouraging for small to medium enterprises. He added that the existing law is better than the new draft with its amendments.
