Myanmar’s new civilian government has taken
steps to amend some of the country’s antiquated
laws to attract foreign direct investment (FDI), but
contradictions in the law have put overseas investors off.
While FDI has seen steady growth year-on-year with nine
deals totalling $32 million since January this year, there was
a drop in total deal value from the $70 million recorded in the
same period last year, according to Dealogic.
According to lawyers in Myanmar, that’s due to
regulatory contradictions arising from the co-existence of old
and new laws. They think such ambiguity is slowing down FDI
into the country.
"This ambiguity causes legal risks and deters some large
international investors from investing in Myanmar," said
William Greenlee, partner at DFDL in Myanmar. He calls for
further legal reforms, but thinks it’s more
important that old laws – some that have been in place
since the 1960s...