Investment body scrapped in surprise move by president

 

The President’s Office announcement No 41/2014 dated June 27 was just published in the government gazette posted on the website of the Information Ministry. The announcement did not reveal the reason for the decision.

On May 28, MIC chairperson Win Shein, the Union minister for finance, stepped down as chairman of the MIC. He was succeeded by Zeyar Aung, Union minister for energy. Zeyar Aung chairs the committee, which has other 12 committee members.

The shuffle led to criticism as Zeyar Aung is the brother-in-law of Ye Htut, the president’s spokesperson and deputy minister for information. 

Ye Htut and Aung Naing Oo, director-general of the Directorate of Investment and Company Administration, were unavailable to comment on the matter when contacted by Daily Eleven.

Formed in 1994, MIC is a government-appointed body that appraises domestic investment proposals in Myanmar. All foreign investment projects must be screened and approved by the body, as it exercises the power under the Foreign Investment Law. 

A powerful body, MIC has been often criticised for making wrong policies. Much of the criticisms are aimed at its chairpersons. 

 Win Shein’s predecessor, Soe Thein, the Union minister at the President’s Office, also faced criticism while in office.

He triggered criticism for approving licences for alcohol, cigarette and beer factories. He also granted tax exemption to one business operator to import products worth Ks 900 billion (US$900 million). 

Win Shein led the MIC for one year and did not face as much criticism as Soe Thein.

The recent reshuffle came at a time when the Myanmar government introduced a big change to the MIC’s authority. First established under the Ministry of National Planning and Economic Development, from this month on the MIC would be as independent as the Central Bank of Myanmar. 

The MIC is instrumental in luring foreign investment into the country. In the 2013-14 fiscal year, ending March 2014, the country attracted US$4.1 billion in foreign direct investment (FDI), compared with $1.419 billion a year before and $91.17 million 10 years ago in fiscal 2003-04.

In an interview with Reuters last week, Aung Naing Oo, secretary of the MIC, forecast more FDI in the present fiscal year, which started on April 1, with plans to make the investment climate even more attractive. Latest data showed that nearly $260 million flowed in in April from 28 companies.