FRIDAY, March 29, 2024
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Myanmar Baker & McKenzie expects surge in US investment

Myanmar Baker & McKenzie expects surge in US investment

Yangon/Washington DC - Baker & McKenzie has welcomed the likelihood of increased opportunities for US companies in Myanmar after the White House announced that further Myanmar-related sanctions were to be lifted.

Jo Daniels, Myanmar managing partner, said closer cooperation between Myanmar and the US, as well as deepening ties with Asian economic powerhouses, has the potential to fuel a boom in infrastructure development and consumer spending in Myanmar.
"As sanctions have eased over the past two years, we have seen a range of multinationals looking to set up Myanmar-specific investment vehicles, or include Myanmar as part of their wider emerging markets investment strategy. However, US multinationals have not featured as prominently in these discussions as other economic powers such as China, Thailand and Japan, in part due to the complex sanctions regime.
"Following the historic visit by Myanmar's State Counselor Aung San Suu Kyi to the US, and the decision by President Obama to further ease sanctions for Myanmar companies and state-owned enterprises (SOEs), we are hopeful that more US investors will begin to see the opportunities emerging in this great nation of 53 million people."
The Myanmar office has timely produced a guide for US companies seeking clarity on the legal landscape in Myanmar: Doing Business in Myanmar for US Companies. 
Sanctions expert and US Partner Alison Stafford Powell said that this level of sanction relief could indeed lead to significant US investment.
"The biggest hurdle to US investment has been the continuing designation or "blacklisting" of key Myanmar banks, companies and businessmen. The removal of the Myanmar Executive Order will effectively remove the basis for most Specially Designated Nationals (SDN) listings and should have a positive impact on the appetite of US companies to invest in this still largely untapped market. Non-US investors should also find it easier to procure financing from major international banks which, as a result of suffering huge fines for US sanctions violations, are extremely risk-averse to touching even lawful dealings with anyone who remains an SDN.  KYC (know your customer) due diligence is still important though, as several SDNs remain and the prohibitions extend down to even unlisted entities that are 50 per cent or more owned by one or more SDNs.”
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