President signs foreign investment bill

President Thein Sein has signed the foreign investment bill, which was approved by the Union Assembly of the parliament, on November 1, 2012.
 
Before parliament approved the draft law, the bill committee submitted the issue and eight parliamentarians discussed the remarks of the President, which had been sent to parliament on September 22.
 
“Some local and foreign media criticised the foreign investment bill as favourable to cronies,” said Dr Khin Shwe, MP of Yangon region constituency (9), who is being blamed for land-grabbing cases.
 
Dr Myo Aung, MP of Dagon Myothit (Sekkan) township constituency, said, “Parliamentarians should seriously supervise the drafting of the details of the foreign investment bill. The foreign investment commission is now getting a lot of power to make decisions regarding foreign investments due to the lack of ‘checks and balances’, which is the essence of democratic practice.”
 
The bill stipulates that “The amount of foreign investment can be decided on agreement by both sides in a joint-venture business; the ratio of foreign capital can be applied for limited businesses in accordance with the by-laws; the obvious change in  land cannot be done without the approval of commission.
 
According to the bill, a foreign company can sell out all or some of its shares to a foreigner, another foreign company or a local company; foreign investors can only have joint ventures with local businesspersons in the livestock breeding and agricultural sectors.
 
“The bill is quite flexible. The commission is likely to protect the investments of foreign firms. Some discussions will also be held with foreign investors before drafting by-laws. These could attract foreign business firms,” said Lower House MP Kyi Myint (Latha).