Good Governance Toolkit for Myanmar Businesses: A handbook for resisting corruption and working with integrity
Acknowledgements: This toolkit was produced by Coffey International Ltd. under a grant from the UK Government’s Bilateral Programme Fund, with support from the British Embassy in Yangon. Coffey International Ltd. would like to thank all the representatives of business, NGO and government who shared their insights and experiences during the research for this toolkit. We would especially like to thank the teams and individuals from partner organisations who participated in review and feedback exercises: Building Markets, Coca Cola Myanmar; Myanmar Centre for Responsible Business; Myanmar Directorate for Investment and Company Administration (DICA); The PLAN: Public Legal Aid Network; Telenor Mynamar; and Yoma Strategies, Ltd. Special thanks also to interviewees Nwai Aye Aye Wai, Kyaw Htun, and to SMART Technical Services for sharing stories from their business experience. Disclaimer: The examples used in this toolkit represent the practices of selected partners and interviewees, as well as international sources. Examples do not necessarily represent all the good practices of companies or government agencies in Myanmar. Any opinions expressed by individuals who are quoted in this document are theirs alone, and do not necessarily reflect the opinions of Coffey International Ltd. or the UK government. Coffey International Ltd. and the authors are not responsible for the translation or interpretation of the content, nor for any statements that would be defamatory or illegal in any reader’s country of origin.
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ABBREVIATIONS AND ACRONYMS
Abbreviations and Acronyms ASEAN
Association of South East Asian Nations
BHC
British High Commission
CAC
Coalition Against Corruption
CIEN
China Integrity Education Network
CIPE
Centre for International Private Enterprise
DICA
Directorate for Investment and Company Administration
EITI
Extractive Industries Transparency Initiative
FCPA
Foreign Corrupt Practices Act
FMI
First Myanmar Investment Ltd.
GE
General Electric
MBF
Myanmar Business Forum
MCRB
Myanmar Centre for Responsible Business
NGO
Non-governmental organisation
NIS
National Integrity System
OMI
Open Myanmar Initiative
OSS
One Stop Service
PDF
Portable Document Format
PLAN
Public Legal Aid Network
SME
Small and Medium sized enterprises
SMS
Short message service
TI
Transparency International
TiME
Transparency in Myanmar Enterprise
TYACN
Thai Youth Anti-Corruption Network
UMFCCI
Union of Myanmar Federation of Chambers of Commerce and Industry
UNCAC
United Nations Convention Against Corruption
UNDP
United Nations Development Programme
CONTENTS
Contents 1
Who should read this toolkit
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2
Why should you care about corruption?
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3
What are we talking about? What is corruption?
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3.1
Defining Corruption
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3.2
Special Risk Areas
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3.3
Integrity-Another way of thinking about fighting corruption
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4
What can my business do to fight corruption and operate with integrity?
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4.1
Internal: Set up a strong anti-corruption policy and programme in your company
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4.2
External-communicating with others about your commitments
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4.3
Collective action-companies working together to promote integrity and fight corruption
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5
Government and civil society-what role can they play?
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5.1
Government-an essential partner for business efforts
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5.2
Civil society- the important role of information
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6
Conclusion-What would you do?
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6.1
Corruption scenarios-What can you do?
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Annexes
Annexes
A-1
Good Governance Toolkit for Myanmar Businesses: A handbook for resisting corruption and working with integrity 1:Who should read this toolkit This anti-corruption toolkit is presented to help owners and managers of businesses in Myanmar who want to resist corrupt practices and reduce exposure to the risks that corruption can pose. The toolkit is designed to be usable by many different types of businesses, but especially for small and medium-sized enterprises (SMEs). Not every idea and recommendation will be relevant to every business. Managers and owners will need to assess their risks and objectives and decide which steps are right for them. Some people might think that fighting corruption is the responsibility of government, and businesses only have to wait for changes that will improve the business climate. Wherever there is widespread corruption, governments have a big responsibility to improve their own rules and practices to reduce opportunities for corruption, enforce laws and regulations against corruption, and prosecute and punish people who are found guilty of corruption. But corruption isn’t only a government’s problem. Corruption happens not only because authorities take advantage of opportunities to demand bribes and other benefits, but also because businesses offer them and people feel powerless or don’t know what they can do to avoid corruption. Business associations also can be part of the problem or part of the solution by promoting good practices in business, practicing transparency in their own work, and advocating for reforms in government laws and practices. The main purpose of this toolkit is to provide ideas and examples for businesses in Myanmar, but it also suggests improvements that governments can make and some important support that can be provided by citizens and NGOs. The toolkit includes these topics: Chapter 2: Why should I care about corruption in my business? Chapter 3: What are we talking about? What is corruption and what is integrity? Chapter 4: How can my business resist corruption and operate with integrity? o Internal: Improving practices inside a business o External: Telling your story and setting a good example o Collective action: Businesses working together to fight corruption Chapter 5: How can government and civil society help fight corruption and improve the environment for business?
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2:Why should you care about corruption? Myanmar is in transition Laws are being revised and there are more opportunities for international investment. At the same time, no country or society changes everything at once, so old ways of doing things remain. This can be a dangerous environment for businesses, when it’s not clear what is accepted and what is not. It is also an opportunity to establish new practices for better shortterm and long-term outcomes. “Because our anti-corruption policy is clear, and all our employees are trained on our code of conduct, our operations are more efficient. For example, our employees who work with the ministries know very well that they can’t pay tea money or other extras, so there is no time wasted asking for permission or instructions when this problem comes up. They immediately tell the official that they can’t pay anything. Also, our policy is well known outside the company, so our employees get fewer requests for extra payments.” --Myanmar business person
Corruption can make business more difficult and costly Especially for smaller businesses, the costs of corruption can be very significant. Even one shipment of raw materials stuck in customs can be a big deal to a small company trying to maintain its supply stream to customers, for example, while a larger company may have the option to wait longer. Furthermore, small businesses may not have the clout to call someone “higher up” to get the problem fixed without paying a bribe.
Corruption can be risky
One bribe may not be enough, and the end may never be in sight. That’s expensive. In Myanmar, it is illegal for public officials to take bribes. As the country becomes compliant with its international commitments, such as the United Nations Convention Against Corruption,1 offering bribes will also be illegal. So if you participate in an illegal action, who can you complain to if your bribe doesn’t get you what you need or if the client doesn’t pay you for the contract you won? From a risk management perspective, corruption is a high-risk action.
Corruption can make a company less attractive for international investment Under the United States Foreign Corrupt Practices Act and the UK Anti-Bribery Act, among others, international businesses can be convicted in those countries for bribes made by their agents, “…any company doing business in Myanmar, particularly if they come from suppliers or subsidiaries in Myanmar. So Myanmar North America or Europe, faces businesses that want to work with international exceptional scrutiny of their operations to firms need to be sure they have strong antia degree which they would not face for 2 corruption policies and practices in place. investments in Laos, Cambodia, or Furthermore, if a company is convicted of engaging Vietnam.” in corrupt practices, many organizations, including the World Bank, the Asian Development Bank, and Myanmar Centre for Responsible Business, Pwint Thit Sa/Transparency in Myanmar Enterprise the European Union now exclude them from Report 2016, p. 10. bidding on contracts, which could mean a lot of lost business opportunities in a country like Myanmar, where international aid and multi-lateral financing is growing.
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See Annex D for more resources on UNCAC. See Annex D for more information on these laws.
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Does your company exhibit any red flags for international partners? Multinationals are paying attention to potential red flags that may arise when they are considering establishing a relationship with a third party business that seems overly risky. A company may exhibit such warning signs – and potentially lose a valuable business relationship – if it (among others): Is not transparent about ownership Has public officials in its ownership or management Was aggressively recommended by a government official Does not publish accounts according to generally recognized accounting standards Does not keep its public filings up to date Is registered in an offshore jurisdiction with weak regulation (i.e. tax havens) [or does not have a physical address in Myanmar] Has previously engaged in illegal or suspicious activities Has little relevant experience, or is not known to people within the industry Seeks unusual payment arrangements, such as abnormally high commissions or success fees Runs a charity (even bona fide) affiliated with a foreign government official Source: Center for International Private Enterprise (CIPE), Anti-Corruption Compliance: A guide for mid-sized companies in emerging markets (2014).
Strengthening your company’s resistance to corruption has many benefits
A good anti-corruption programme in your company can help protect you from being penalised or blacklisted by international companies for the actions of your employees. If your company has a well-known reputation for not offering bribes, it is likely that your employees will be asked for them less often. Contracts that are won through clean competition are more enforceable. A reputation for having high ethical standards is “For a small company, one important attractive in the context of growing global benefit of strong anti-corruption policies interest in socially and environmentally and practices is better planning. You can responsible investment and tourism. plan your operational costs more Meeting the anti-corruption requirements of one effectively when you don’t pay bribes. international firm or organisation can give a Because when you pay bribes, you company access to other international contracts never know how many times you will have to pay. Also, you don’t know if there and investment. will be bigger consequences later.” A good reputation can attract better employees --Myanmar business person and encourage higher morale and professionalism. A Success Story – The benefits of fighting corruption and promoting integrity SMART Technical Services has developed a strong corporate integrity programme and has seen many positive results. It was not always easy, but after a year-long review of all their policies and records by the American company General Electric (GE), SMART won a major partnership with the company. GE is subject to the United States Foreign Corrupt Practices Act (FCPA), and so the company had to make sure that SMART met all of the requirements for good anti-corruption practices before SMART and GE could become business partners. That success has confirmed SMART to be a reliable company of trust and integrity in business practises. The company is known for working with many other international companies in the Oil & Gas Industry. Source: Interview, October 2016.
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3:What are we talking about? What is corruption? 3.1:Defining Corruption Many different types of actions can be corrupt. Some are illegal in Myanmar. Others are not illegal, but they are bad practices that can damage business performance, public sector performance, and national development goals. In Myanmar law, corruption is legally defined as bribery. In the law:
Corruption is “the abuse of entrusted power for private gain.” Corrupt actions are any activity in which a person or organisation takes advantage of the power that has been entrusted to them to get a benefit (for himself, herself, the organisation or their relations) that is more than what they are due within the applicable laws or other rules.
Bribery means an authorized person misuses his designation to do something, to refrain from doing things legally, to give legal rights or to prohibit legal rights untruly to someone, to accept or give bribes or to put an effort to accept or give or obtain or offer or promise bribes for him or someone else or organization directly or indirectly;
Bribe means accepting or giving cash, property, gift, service charge, entertainment and other unlawful benefits without giving adequate value (rightful cost) in order to do bribery.3
Anyone can give an example of what bribery looks like in real life: A clerk at the passport office accepts some “tea money” to process your application faster. A township administrator takes a big gift and then looks the other way when a mine pollutes a local river. A bank manager stalls approval of a loan until the company that applied for the loan gives him an extra payment. A police officer stops a taxi driver for driving in the wrong lane. Rather than recording the violation and confiscating the driver’s license, the officer suggests that the driver can make a payment on the spot. IMPORTANT: Corruption doesn’t always involve interactions between business and the public sector. Just like the example of the purchasing manager in the box below, inside dealing and corrupt practices can take place between businesses, and they are no less dangerous for the health of the company.
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Myanmar Anti-Corruption Law 2013 (unofficial translation)
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CORRUPTION IS MORE THAN JUST BRIBERY Myanmar law defines corruption as bribery, but there are many other activities that are corrupt by other definitions. All of these practices are bad for business and the broader society. Here are some examples of other types of corruption that are illegal in many countries.
A public official uses her position as a director to make sure that her brother’s son gets a job in her department. A purchasing manager’s family owns a printing company. Instead of gathering competitive bids for printing the new product catalogue, the purchasing manager gives the contract to his family’s company. A ministry official provides one company with early access to the details of a tender in exchange for a contribution to the official’s political party. Then the Ministry announces the public procurement, with a very short deadline for submission of proposals. Teachers don’t teach the proper lessons during the regular school day, and then require students to attend private tuition sessions in order to learn what will be on the final exam. A company that is seeking a contract from the government organizes a business trip for a key official and pays all the expenses for the official and his family to stay in a luxury hotel. An official in the Ministry of Tourism creates a regulation requiring all hotels to have x-ray machines for security screenings, and that official owns one of the only companies in the country that sells these machines.
3.2:Special risk areas The examples in the previous section might be pretty clear, but what about some other practices that are common, and even widely accepted, in Myanmar? Could your business become guilty of corruption even without intending to? Here are some areas that are particularly risky for businesses, especially those working in countries where strong anticorruption systems are not well-established.4 Later chapters will offer some ways for businesses to protect themselves against these risks and perhaps even avoid some of these problems altogether.
Telenor's No Gifts policy posted in its Yangon office
Gifts and Entertainment In Myanmar and many other countries, there are many occasions when gifts are given to pay respect and to recognise special occasions, like Thadingyut or the New Year. In business, exchanging gifts or providing meals or other entertainment is generally part of building good relationships. But expensive gifts or lavish entertainment, or very frequent gifts, can be seen as bribery. There is more guidance for how to manage giving and receiving gifts in the next chapter.
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This discussion draws significantly from the Transparency International Business Principles for Countering Bribery—Small and Medium Enterprise (SME) Edition 2008. The G20-B20 Anti-Corruption Toolkit for Small and Medium Sized Businesses 2015 was also consulted.
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Facilitation Payments (Tea Money) Payments to “speed up” a service to which you’re already entitled are very common in many countries, but they are really just another form of bribery. In Myanmar, it is illegal for a public official to accept any kind of bribe, so facilitation payments are illegal, even though they are so common that most people think they are essential for getting things done. The next chapter suggests some ways that companies can try to reduce the frequency and impact of facilitation payments.
Conflicts of Interest In the example above about the purchasing manager, he made a decision that was in his family’s interest, but not necessarily in the company’s interest. He used his position to give an advantage to his family, and this means he didn’t give priority to the company’s interests. This constitutes a conflict of interest even if his family’s company gave a good price and service. In every case where a person or organisation may have another interest that competes with the overall good of the company, there is a potential for conflict between these two interests. This potential conflict should always be declared to the relevant authority—company management in this case—so that mitigating measures can be put in place. In this case, another purchasing manager might be given responsibility for this contract, or an open bidding process could be set up so that it’s clear that the family company provided the best product at the best price. This is even more important for a company that is part of an international supply chain or representing an international company. Undeclared and unmitigated conflicts of interest are not illegal everywhere, but they are in many countries.
Charitable Contributions, Sponsorships and Political Contributions Bribes don’t have to be given directly to an individual. Contributions to an official’s or another businessperson’s favorite charity, or sponsoring an event or activity (sports team, etc.) that is a project of an official or businessperson, or contributions to a political party, can constitute bribery if it’s done in order to gain a special advantage or favor from the person or institution associated with it. All such contributions should be made openly, with a clear business case that doesn’t have anything to do with seeking a private advantage or favor. It’s especially important to consider how the contribution might look to outside observers, especially if your business is seeking a service, approval, or contract from anyone associated with the receiving organisation.
3.3:Integrity – Another way of thinking about fighting corruption This chapter has been all about corruption and types of corrupt practices that should be avoided. It’s helpful to know what not to do, but it’s also helpful to think about what you want your company to do and to be. What are the values that you want your company to be associated with? One way to think about this is integrity. A company with integrity has the skills, resources, and values to achieve its business goals without resorting to corruption.
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Integrity is the alignment of: Accountability We take responsibility for our actions We do what we say we do We provide stakeholders with the information they need to check our work Competence We have what it takes to get the job done We do it well We manage our work professionally Ethical behaviour We value others’ opinions We can be trusted We work for the public good Without corruption/with corruption controls We work without corruption We use tools to make corruption difficult We support those who try to reduce corruption Alignment: We mean what we say; there is no gap or difference between our words and our actions. Our understanding of Accountability, Competence, and Ethics is consistent with each other, and supports each other in the task of strengthening integrity. Source: Integrity Action, Live and Work with Integrity: You Can Do It! (Integrity Action, 2015)
You might also draw inspiration for creating a company with integrity from Myanmar’s own national goals, as stated in the Anti-Corruption Law of 2013. Business leaders and employees might ask themselves…”What are my business practices doing to promote the transformation of my country and the goals of good governance, accountability, and national development? Am I proud of the values my business/employer promotes in the way it works?” A National Vision for Combating Corruption The objectives of the Myanmar Anti-Corruption Law 2013: to make the eradication of bribery a national duty; to create clean government and good governance in public administration; to promote prestige and accountability; to prevent impairment of the benefits and rights of citizens and society, and of the state’s property, due to bribery; to take effective action toward those who commit bribery; to develop the economy by promoting local and foreign investment through more transparent rule of law and administration. Source: Myanmar Anti-Corruption Law 2013 (unofficial translation)
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4:What can my business do to fight corruption and operate with integrity? Every business has an interest in reducing the risks that corruption causes. Some of the ways of doing this are quite simple. Others can be more complicated, but it may be worth the effort. You can think about integrity and fighting corruption in business in three stages: Internal: A strong anti-corruption policy and compliance programme, based on clear principles, with training for employees and partners. Other supporting mechanisms such as reporting channels and monitoring processes can be added. These elements of a programme can be larger or smaller, depending on the size and scope of the business and the scale of risk it faces. External: Communicating the company’s commitment to integrity and fighting corruption to partners and other stakeholders. Collective: Taking action with other companies to establish wider agreements and standards to address corruption risks in the business environment. This chapter offers some ideas and examples of what businesses can do to make their internal policies and practices stronger and to create networks that can help everyone work better.
4.1:Internal: Set up a strong anti-corruption policy and programme in your company
The Myanmar translation of Transparency International’s Business Principles for Countering Bribery—Small and Medium Enterprise (SME) Edition can be found online at http://www.myanmarresponsiblebusiness.org/pdf/2014-11-04-TI-GuideBusiness-Principles-for-Countering-Bribery.pdf or you can get a copy from the Myanmar Center for Responsible Business in Yangon. The English version is available at https://www.transparency.org/whatwedo/tools/busines s_principles_for_countering_bribery_sme_edition/1/.
Every business needs to be sure it has rules in place that clearly define acceptable practices, especially in some of the risky areas outlined in the previous chapter. Then it needs to take steps to ensure those rules are implemented. To understand the basics of how to do this, there is already a very good resource available, translated into Myanmar language—Transparency International’s Business
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Principles for Countering Bribery—Small and Medium Enterprise (SME) Edition. The Transparency International guide already includes a lot of information about the steps necessary to implement a strong anti-corruption programme in a business, so this toolkit won’t repeat all that information. Instead, this chapter will summarise some of that information and also provide guidance from other resources not available in Myanmar, along with some international and local suggestions and examples for how these ideas might look in practice.
4.1.1:First Step: Assess Your Risks and Prioritise Every company’s anti-corruption programme doesn’t have to look the same. An anticorruption programme should be proportional to the range of risks that the company is exposed to and to the resources available to address those risks. Assessing Risks by Reading Social Media
A very small company providing only local services may not need to establish an extensive training programme for local One company manager in Yangon says he sees complaints from and suppliers, for instance, but it still needs clear rules to about his employees on Facebook employees resist demands for bribes and understand the and sometimes uses these to proper limits on giving or receiving gifts. Firms operating in inform the company’s antioil and gas, mining, forestry and construction have much corruption training or policies. higher exposure to corruption risks involving high-value kickbacks for land concessions, for example, while trading Source: Interview, September 2016 firms may face more risks related to small bribes to clear goods through customs or move them around the country. If your company doesn’t sponsor events or make political donations, then developing policies for those issues clearly shouldn’t take up the company’s time. A simple way to assess corruption risks – talk to your employees The simplest ways to assess corruption risks in your company is to learn from your staff. Start by meeting with staff and introducing your objective of strengthening your company’s efforts to reduce corruption. o Explain the risks that participating in corruption can pose to the company. It’s very important to assure your staff that they won’t get into trouble by talking about corruption risks. Ask staff to think about these questions: o In what ways do we interact with public officials or other companies? o In those interactions, are we participating in any corrupt or risky behaviors, such as making facilitation payments, giving or receiving gifts, or seeking inside information? o In what areas of our business are these risky practices most common? Seeking contracts? Buying goods and services? Paying taxes? Getting services (electricity, telephone, internet)? Seeking permits and approvals? Discuss these risk areas and decide which ones are the most important. If your staff are uncomfortable discussing this, you could ask them to write down the areas where they encounter corrupt practices, and count up the “votes”. Use this information to map out your risk areas and decide what areas to prioritise as you develop and implement your anti-corruption policy and procedures.
IMPORTANT: When assessing their risks and committing to address them, businesses need to be honest about their own role as “part of the problem.” Changing practices within a business has to start with recognising that there will be costs as well as benefits. Old 10
practices may be hard to eradicate when they run against core business interests like winning a contract or saving on taxes.
4.1.2:Establish Clear Rules to Avoid Bribery and Promote Integrity Every company needs to have an anti-corruption policy that clearly states the company’s stand against participating in bribery or other types of corruption. This policy doesn’t have to be long and complicated. In fact, it’s better if it’s brief and clear, like this one from First Myanmar Investment (FMI). Other examples can be found in Annex B. Excerpt from Anti-Bribery Policy of First Myanmar Investment, Ltd. (FMI) Policy The Group does not tolerate any form of bribery or corruption. You must not offer, pay, make, seek or accept a personal payment, gift or favour in return for favourable treatment or to gain any business advantage. You must follow the anti-bribery and corruption laws to which you and the Group are subject, remembering that Myanmar antibribery and corruption laws apply wherever you are operating. You are liable to disciplinary action, dismissal, legal proceedings and possibly imprisonment if you are involved in bribery and corruption. You must ensure people who work for and with you understand bribery and corruption is unacceptable. You must comply with the Group procedures for the prevention of bribery and corruption. This policy will be disseminated and published to all employees, contractors, suppliers and business partners together with all updates and clarifications. The complete policy is at http://fmi.com.mm/anti-bribery-policy/.
An anti-corruption policy is usually a statement of essential principles. A company also needs to have a clearer definition of what its policy means in concrete terms. This is usually captured in a code of conduct or handbook that outlines specifically what behaviors are expected. A code of conduct typically deals with more issues than just corruption, but it must define acceptable and unacceptable behaviors related to corruption, specify procedures for dealing with corruption situations, and clarify who is responsible for implementing a company’s anti-corruption programme. (See Annex C for some guidance on codes of conduct and some samples from Myanmar.) Two high-risk areas should be addressed with clear policies and codes of conduct. One is facilitation payments, which were described in the previous chapter. “Tea money” might not seem like a big problem, but they can get you into a cycle of bribe-paying that never ends. At the same time, if your business permit, electricity connection, customs clearance or safety clearance takes too long, your business is at risk.
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A simple policy on facilitation payments It’s not always possible to avoid paying these bribes, but here are some ideas for steps that you might take:
If payment is demanded, actively resist (the next section has some ideas for resisting) If payment was made, inform manager Keep the amount to a minimum Create a record for the payment
Source: International Finance Corporation, “SME Integrity Tool” http://www.smetoolkit.org/smetoolkit/en/content/en/54665/SME-Integrity-Tool-Level1#sthash.7L0kIZKb.dpuf
IMPORTANT: Sometimes facilitation payments can’t be avoided, like when there is a threat of violence or other direct harm. In this case, employees need to know that they will be supported by the company and not punished for doing something to protect their safety. A policy that requires the reporting ofbribes paid in situations where there is really no alternative can help send that message. At the same time, these reports can help the company learn more about its major risk areas so that it can develop plans and strategies for reducing that risk in the future. Anti-corruption policies and codes of conduct also need to be very clear about giving and receiving gifts or entertainment. It can be difficult to know where to draw Giving Gifts: Questions to Ask the line between a gift and a bribe, You are in a local government office trying to get a especially when gift-giving is a very necessary letter of approval signed. There is a box common and respected tradition, as it asking for donations for a local monastery on the front is in Myanmar. This is especially risky desk. Would it be corrupt to make a donation? Here if your company has some business are some questions to ask yourself: before the recipient’s agency or if you’re trying to do a business deal Is the gift likely to influence the recipient’s with the recipient. Small gifts, objectivity in his or her duties? especially at traditional times, are Will the gift set a precedent in your company usually considered reasonable. But as being appropriate rather than questionable? expensive gifts, especially if there is Will the gift appear to people outside the any appearance that they are given to company as if it is a bribe? try to get an illegal advantage in a Source: Questions adapted from G20-B20, Anti-Corruption Toolkit for business matter, may look like bribes, SMEs, p. 47 and they can hurt your company’s reputation. Giving or receiving gifts of cash should never be allowed. IMPORTANT: Gifts can look like bribes, even if they are not intended that way. Think about whether people outside your company might see a gift as an inappropriate attempt to influence a decision or gain some other favor. Remember that some companies try very hard to avoid even the appearance of corruption, so you may damage your company’s reputation with some international firms, for example, if you try to give an expensive gift. Companies should also have clear policies on what to do if a valuable gift is offered to an employee or manager. Sometimes it would be inappropriate or offensive not to accept it, especially if it is offered at a public occasion, but there should be a plan for what to do with them. They should be recorded, and maybe given to a charity. It’s almost never appropriate
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to keep a valuable gift for personal use. It can be helpful to inform the giver about what has been done and why, in order to avoid the same situation in the future.5 IMPORTANT: Owners and managers should encourage employees always to ask questions and get guidance when they are confronted with gifts—either receiving or giving them. It’s better to ask questions in advance than to have problems later. Other situations that may require clear rules include the conflicts of interest, political contributions, and charitable donations and sponsorships discussed in the previous chapter. Others include business travel expenses for customers or clients, requests for favours, and specific terms of payment in contracts (such as commissions and consultancy fees, location and method of payment). More suggestions on how to manage these can be found in the Transparency International SME guide mentioned above, along with the other guides cited in this toolkit. Do You Know Myanmar’s Law and Guidelines on Gifts to Public Officials? Myanmar’s new government guidelines say that no public official may take a gift that is worth more than 25 dollars, or gifts that add up to more than 100 dollars in a year. This is a good standard for judging what might be considered “lavish” or “expensive.” Myanmar’s Anti-Corruption Law has a very wide definition of “bribery” and the [new government Guidelines issued in 2016] also recognise that gifts can take different forms, such as meals, accommodation, travel, club memberships and even gold and silver. As a basic principle, the Guidelines expressly forbid public officials from accepting any gift from a person or organisation which has been offered or given to the public official on account of their official position. This is further explained by referencing gift giving in the context of the gift giver trying to do business with an agency under the supervision of the official, or the gift giver potentially benefitting from an act which the official has the authority to do (or refrain from doing). Similarly, public officials are instructed not to demand gifts and are required to inform their respective superior officers immediately about the offer of any gift, whether it is accepted or refused. However, there are certain limited exceptions under the Guidelines which permit acceptance of gifts in the following situations: where the value of the individual gift is less than 25,000 kyats (around US$20) (albeit that the total value of multiple gifts received from a person or organisation in a year shall not exceed 100,000 kyats); where gifts are given on account of a familial or personal relationship; or where gifts having a value not exceeding 100,000 kyats are given on special occasions such as Christmas or Thadingyut. References: Myanmar Anti-Corruption Law 2013 (http://www.accm.gov.mm/acc/image/data/acc/books/ACCL_en.pdf) Source: Berwin Leighton Paisner LLP, “Myanmar issues guidelines to combat ‘rampant and obvious’ bribery,” Expert Legal Insights Blog, 26 April 2016. http://www.lexology.com/library/detail.aspx?g=9a78b6ae-0c14-473c-a215c6b0bfda87df. Accessed 1 October 2016.
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Transparency International, Business Principles for Countering Bribery – SME Edition, p. 20.
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4.1.3:Avoiding Corruption – What can you do? Sometimes giving a bribe or participating in other forms of corruption just seems impossible to avoid, especially if there is a truly dangerous situation. But there might be more options than you think.
4.1.3.1: Prevent A first priority is to do things that will help prevent situations where you might be pressured to be involved in a corrupt action, and to be prepared for this possibility.6
Know the rules, official costs and time requirements if you need a permit, license or other service. Make sure you have the right paperwork completed and that you submit it in good time. When involved in complex processes like bidding for a large contract, knowing what is and is not allowed (such as giving beneficial information to only one bidder, or setting the requirements to advantage a single company) may give a company the tools to protest if it looks like proper procedures are not being followed. This information is not always easily available, but do your best to learn as much as possible in advance.
Be careful when working with agents or brokers, and make sure they know your company’s policies. It’s true that some rules are changing fast in Myanmar, and others are very hard to find. Some agents and lawyers specialise in assisting companies to complete difficult processes, but you should be sure they are doing it based on knowledge of the rules and procedures and not through corruption.
Follow the rules. Shortcuts might seem more beneficial because you get what you need quickly, but they can give officials an opportunity to demand a bribe, and a company won’t have any basis for complaint if it is already in violation of the law.
Plan and be prepared. Think about information that might be requested, and try to bring relevant business documents to appointments. Work in teams of at least two employees if there is a possibility a bribe will be demanded. Don’t offer to help “speed things up” at the first mention of a delay. The delay might be justified; find out more and seek legal ways to expedite the process.
Keep good records. Be sure to keep all the records of what has been submitted, who received it, and when. Ask for a date stamp and signature on a receipt showing when documents and payments are submitted. Create a log showing the number and frequency of audits or inspections, and ask the official to sign for each visit. After a meeting with officials, follow up with a letter documenting what was said or agreed. If asked for a bribe, write an internal memo describing what happened.
4.1.3.2: Resist If the strategies in the previous section don’t work to avoid being pressured for a bribe or other corrupt action, here are some ways to try to resist demands for corruption:7
6
This section is minimally adapted from Hills Program on Governance, Anti-Corruption Manual for SMEs (Asian Institute of Management Hills Program on Governance, 2011), pp. 44-55. 7 This section is minimally adapted from the G20-B20 Anti-Corruption Toolkit for SMEs, pp. 52-54.
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Try saying no, but with different words. When it’s not possible to directly refuse to pay a bribe, you might be able to say What can you say? something else, like the suggestions in the box to the right. Make the process very complicated. Say that you have to consult with your supervisor or the business owner (even if you are the final decision maker). Ask for the request in writing or suggest that you and the other person will both need to go discuss this with your boss. Say that even if the boss agrees, a written receipt would be required. These strategies might be most effective if the person asking seems to be acting alone, without broader support from the institution or supervisors, so a more public discussion might be unappealing to them.
Here are some things you might say if asked for a bribe:
“I do not have access to extra funds.” “My company has a very strict policy against giving bribes, and I would lose my job if I violate this policy.” “I have to refer all extra payments to our senior manager.“ “Would you please show me the rule that says this payment is required.” “My business is constantly being audited by our international partners.” “I am not looking for special services or arrangements.” “May I speak with your manager?” “Can I know your name and your position?” “I will go to your supervisor.” “I’m going to report this on Facebook.”
Try to learn more about the situation. Source: Myanmar interviewees and Hills Program on Check with other people if they have Governance, Anti-Corruption Manual for SMEs, p. 51. had problems with the same agency or person. If the agency or organisation is known to be widely corrupt, then it may be more risky to try to escalate the situation to your boss or a superior in the agency. Find out if you can get the same service from another source.
Point out the legal restrictions the company operates under and the risks that a corrupt action would create. You can do this by carrying your company’s code of conduct with you.
Find ways to convert illegal actions into legal ones. In some conditions, small facilitation payments can be legal, even if they are still corrosive to the business environment. Any such payments should be made openly and recorded in company accounts. Giving cash gifts secretly is almost always inappropriate. The important thing is any payment is done openly and documented with receipts.
Blow the whistle by reporting the problem to law enforcement, the media, or other authorities. This may not always be a good option, especially if there is a chance that law enforcement authorities will not follow through appropriately, or if the reported person or institution is powerful enough to cause further problems for the company. But it also sends a powerful message that the company doesn’t go for “business as usual.”
Act collectively. Sometimes it’s easier (and maybe safer) to get things done together than to try to tackle a problem alone. You will find some suggestions for working together with other businesses later in this chapter.
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VOICES FROM MYANMAR: What strategies have you used that helped resist corruption? “One of our employees had to get a construction permit, but he was told he needed to make a ‘donation’ to the official before the permit would be approved. This is not allowed by our code of conduct, so the employee told the official he would have to get permission from his manager, and that the official would have to provide a receipt. When the official insisted, our employee told him that our company had already paid for a national license to operate in Myanmar, so no ‘extra’ fees would be paid. Finally the employee got the construction permit.” (Compliance officer of international company in Myanmar) “I sometimes ask to know the name of the person who is telling me I need to pay an extra payment. This gives them an idea I might use their name on Facebook or report them to a supervisor.” (Myanmar business person) “When I was a procurement manager, I never gave my personal address to potential suppliers. I met with suppliers only at my office during office hours.” (Myanmar NGO employee) “My company frequently receives requests from government offices to take out paid advertisements in their newsletters. We review each request with our legal department and ensure that no favors are being given in return. One question we always ask is whether the newsletter is in fact widely circulated, so that there is a legitimate advertising benefit from our ad. Most of the time we politely decline the request unless it's really a unique advertising opportunity and doesn’t violate any of the company’s rules or laws.” --officer of an international company in Myanmar
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How can you help employees resist corruption? Sometimes it’s hard for an employee to resist a demand for a bribe, but it might be easier if he can show that he’s resisting because his company requires him to. Coca-Cola provides its employees with a card they can use when they are being pressured for a bribe.
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4.1.4:Communications and Training It doesn’t do any good to have an anti-corruption policy if no one knows about it. Policies should be communicated clearly to all staff, as well as suppliers and agents. This is especially important for any directors, owners, staff, suppliers or agents involved in high-risk activities such as seeking licenses and permits, clearing and transporting goods, seeking contracts for the company, or procuring goods and services. It’s important that this communication comes from the highest-level management, to let everyone know that company leadership supports this effort—most importantly, that management will support employees when they run into problems while trying to avoid bribery and other forms of “One big problem is when employees corruption. This “tone from the top” is an essential are told they can’t be involved in part of a successful anti-corruption programme, and corruption, but at the same time the company is demanding employees to it should be more than just talk. High-level things get done fast. I need my managers and owners should demonstrate that company to support me when I try to they act in line with company policies and support resist corruption. My performance their employees to do the same. evaluation should include integrity.” – Myanmar employee
Don’t just communicate anti-corruption policies and commitments through a single memo or meeting. Employees should be exposed to anti-corruption policies more often than just receiving a copy of the policy when they start employment. Wall posters and other notices are important reminders, but not sufficient on their own. There is no perfect programme, but in-person or on-line training at least annually is a good practice. Give employees the opportunity to talk about the policy, ask questions about specific problems they might have encountered, and get advice on how to deal with them. Bribery and other forms of corruption are sometimes difficult to discuss, and people can be afraid of saying the wrong thing. It’s important to give “Our company’s leadership training them a safe and open environment to talk about it. really emphasises the importance of speaking up. People are sometimes afraid to discuss corruption or other problems, and we want our staff to understand it’s important for our business to honestly address these challenges.” – Compliance manager for a Myanmar company
If a company doesn’t have the resources to have these discussions with all employees, it’s helpful to give them a helpline or advice resource, perhaps to the company’s compliance department (or for a smaller company, to the person designated to handle anticorruption policies and risk management).
IMPORTANT: Remember that the people who are most distant from the headquarters are often the ones who face the most complicated situations or feel the least connected to the company’s support and monitoring structures, and maybe even its core values. Companies should make extra efforts to reach these employees with training and communications about resisting corruption.8 Special efforts to train suppliers and other sub-contractors can be very important.
8
G20-B20, Anti-Corruption Toolkit for SMEs, p. 42.
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Making Anti-Corruption Training and Communications Effective Here are some tips for making the best of anti-corruption training: Use simple language and avoid legal jargon Diversify content and format – don’t just lecture to employees Use scenarios and role play Include staff from different departments and different seniority levels Ensure participation by including anti-corruption training in job requirements and by giving staff time off to attend Here are some additional steps that can complement anti-corruption training and outreach and enhance its effectiveness:
Open door policy: Make sure everyone knows that the person(s) responsible for ethics and compliance is always available to answer questions and provide advice. Outreach to supervisors: Supervisors are usually the first point of contact if an employee sees a violation or has a concern. They need to be especially well-trained in how to respond. Team meetings and company memos: These can be important ways to reinforce the company’s values and code of conduct. Meetings and memos that encourage better performance against sales goals, for instance, should also clearly state that these goals should not be pursued through corrupt or other questionable actions. Internal newsletters with case studies: Especially in larger companies, employees may wonder what happens when a corrupt action is reported or discovered. Newsletters or other means of reporting back to give employees updates on particular cases can help everyone learn from experience, and build trust that the processes are open and fair. Just remember to protect employees’ privacy by removing names or changing identifying details such as the particular department or business unit location.
Source: Adapted from Center for International Private Enterprise (CIPE), Anti-Corruption Compliance: A guide for midsized companies in emerging markets (2014), pp. 34-35.
4.1.5:Control, Monitoring and Following Through In addition to anti-corruption policies, good practices for avoiding and resisting corruption, and training and communications, companies seeking a strong internal anti-corruption programme need to implement control, monitoring and follow-up policies and practices. These include financial management controls, a system for reporting suspicions of corruption, a system for monitoring corruption risks and progress over time, and processes for rewarding good behaviours and penalising bad ones. This section describes some of the basic elements of these systems. As with all aspects of anti-corruption programmes, larger and more complex companies will need more complex systems than smaller ones.
Managing Company Funds Every company needs an accounting system and a procurement policy. The complexity of these systems will depend on the size of the company. For small companies, here are some very basic rules to start with.9
9
All non-electronic payments should always be recorded and backed up with receipts. All cash withdrawals should be recorded and signed for.
Rules adapted from G20-B20, Anti-Corruption Toolkit for SMEs, p. 30.
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Cash payments and receipts should be limited to small transactions. Define the maximum amount and make sure that employees know what it is. Restrict the use of cash advances for employee’s personal use. All payments above a certain amount should require more than one signature. The company’s procurement policy should require quotes from more than one supplier for every major purchase (establish a minimum value).
4.1.5.1:A System for Reporting Suspected Corruption Not every company needs a complicated system for reporting corruption, but there should be a way for employees to raise concerns and ask questions. A company’s procedures should be outlined in its anti-corruption policy or its code of conduct. Here are some options:10
Reporting to a supervisor or manager: Most reports should go to a supervisor or higher manager. But there should be an alternative channel for any employee who has a concern about the manager or supervisor.
Reporting hotline or other alternative: For reports that can’t go to a manager or supervisor, employees need a way to reach someone else. Large companies often have a phone number or email address where employees can report concerns. A smaller company could designate an advice officer or set up a box where employees can submit written reports. The location of a box should be easily accessible, but private. All reports should be kept confidential until a fair investigation is made. The identity of employees who make reports should always be kept confidential.
Dealing with reports: You need to have a plan for how reports will be handled. Small cases might be investigated by the supervisor or manager of the department where the problem is reported to be. For cases that involve serious offences, large amounts of money, or high-level employees or managers, a company should establish a committee to ensure fair investigation and treatment of the problem.
Protecting people who report: Even with confidentiality, suspicions can arise among the staff, or especially from the accused person, about who might have reported the problem. The company should have a clear policy that people who make reports in good faith (meaning, they do not make malicious reports or reports they know are not correct) will be protected from any sort of retaliation. It’s the responsibility of owners and managers to make sure that this policy is followed.
Follow-up on reports. If employees report violations but never see any action to resolve them, your reporting system—and perhaps your whole anti-corruption system—will break down very quickly. Rumours and more suspicions are other likely results. Companies should register every report, keep track of the conclusion, and follow up with the person who made the report (if they did not report anonymously). Newsletters or quarterly/bi-annual/annual ethics updates can be another way of communicating this information, as long as they do not reveal confidential information.
IMPORTANT: Remember that any reporting mechanism is only as good as the trust you instill in employees that their concerns will be taken seriously and they won’t suffer reprisals for reporting in good faith. 10
This section is adapted from G20-B20, Anti-Corruption Toolkit for SMEs, p. 35.
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4.1.5.2:Monitoring progress and risks Building a strong anti-corruption programme isn’t a one-time effort. A company needs to track its progress and its risks. Here are some important steps:11
Keep accurate records. Accounts should reflect all transactions of the company. Require that “When someone is fired or punished receipts are given and received for all because of corruption, we inform department managers about the type transactions of problem that came up, how it was Ensure regular external audits. Make sure that investigated and what we found, the auditor meets professional standards and though we never mention the individual the values of the company. Auditors can also name(s). This is a way for the be asked to review the company’s internal company to learn from experiences controls and make recommendations where we’ve had and improve our they find weaknesses. management in the future.” Monitor the progress and effectiveness of anti--Compliance officer of a Myanmar corruption policies and procedures. Review company participation in anti-corruption training. Use surveys or group discussions to hear from employees about knowledge of anticorruption policies, their challenges in implementing or following it, and any pressures they have experienced to participate in corruption. Identify risk areas and develop responses. Monitor trends in high-risk areas like travel and entertainment spending, use of cash vs. other means of payment, selection of suppliers and agents.
4.1.5.3:Penalties and Rewards: Following through on anti-corruption commitments A company can have the best anti-corruption policies, but if they don’t have consequences, then they don’t mean anything. Every element of an anti-corruption policy has to be implemented, from keeping accurate accounts to abstaining from making unofficial payments and giving inappropriate gifts. You can encourage employees to implement the company’s policies by providing incentives and disincentives.12
Penalize corrupt and other unethical behavior: Companies should have a clear policy on what types of penalties will apply for corrupt or unethical actions. The most important thing is to apply the policy fairly and consistently. No one should be seen as getting special treatment or being unfairly punished. At the same time, penalties should be proportional to the seriousness of the offense. o Repayment: When an offence is small and it is determined to be the result of lack of knowledge or otherwise unintentional, an employee may be asked to pay back the costs that the company incurred (such as the amount of the unofficial payment). o Reprimand: This is a written memorandum to the employee for committing a simple offense or an offense committed for the first time. This may be combined with repayment in some cases. o Suspension: The employee does not come to work, and does not earn pay and does not accrue benefits. An employee being investigated can be put in suspension while the investigation is going on.
11
This section adapted from Hills Program on Governance, Anti-Corruption Manual for SMEs, and CIPE, Anti-Corruption Compliance: A guide for mid-sized companies. 12 This section adapted from Hills Program on Governance, Anti-Corruption Manual for SMEs, pp. 42-43.
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o
Dismissal: A dishonorable discharge from the company. A dismissed employee loses his accrued leave and other benefits, including severance (separation) pay.
Implement incentives for fighting corruption and promoting integrity: Companies should reward behaviours that exemplify the best implementation of the code of conduct, anticorruption policy and the company’s overall commitment to integrity. o Reward ethical behaviour with private and public recognition: A person who reports corruption should be congratulated by the leaders of the company. Some companies give small bonuses for actions that save money or protect the company’s reputation. Others give an annual (or monthly/bi-annual) award to employees who best represent the company’s values. o Include fighting corruption and other ethical behaviour as part of the evaluation criteria for employee performance reviews. Ethical behavior should be a factor in determining who receives a merit bonus or promotion.
4.2:External – communicating with others about your commitments The first part of this chapter described the various things you can do to create a strong anticorruption programme to help your business improve its management practices and strengthen its overall business stability. With so much new investment and international aid coming to Myanmar, publicising how your business is working hard to strengthen its ability to work without corruption will be even more valuable. Here are some things you can do that will send a strong signal to potential investors and clients about your commitment. Practice corporate transparency. Meeting basic standards of transparency is a critical step to allow potential investors and clients to conduct the necessary due diligence. Especially important are financial status, the structure of subsidiaries or other holdings, and the names of the actual owners of the company. Let the world know about your anti-corruption programme. Make sure your web site includes your anti-corruption policy and code of conduct. But more important is evidence of implementation. Tell the story of how you train staff, assess risks and monitor progress. The Pwint Thit Sa Report
Large medium-sized Myanmar businesses have a unique opportunity to tell the story of their responsible practices. For the past three years, the Myanmar Centre for Responsible Business (MCRB) has published Pwint Thit Sa, or the Transparency in Myanmar Business (TiME) report. The report scores on a number of criteria related to anti-corruption, organisational transparency, and human rights (including land, and health, safety and environment) standards. Starting in 2016, MCRB will conduct a “mini” Pwint Thit Sa for larger medium-sized businesses that want to be evaluated. Even if your company doesn’t have all the necessary practices in place or doesn’t yet have a web site, there is much to be learned from the questions that are used for the evaluation. Information about the mini Pwint This Sa and the questions that are covered can be found in English at http://www.myanmarresponsiblebusiness.org/pwint-thit-sa/mini.html or in Myanmar at http://www.myanmarresponsiblebusiness.org/my/pwint-thit-sa/mini.html 22
4.3:Collective action – companies working together to promote integrity and fight corruption Even if a company does everything “right” with regard to its internal policies and practices, it still can be very difficult to operate with integrity, especially where corrupt practices are still very common and widely accepted as “normal.” Around the world, as businesses are working to control corruption in their own houses, they are also seeing the benefits of working together, and in joint efforts with government and civil society, to improve the Working collectively has two big broader environment. advantages. It amplifies the voice of businesses Collective action amplifies the voices of that want to improve their practices companies that are trying to improve their and the environment they work in. practices. Instead of each company working It creates more equality by committing alone to address corruption problems in the all the members to the same standards business environment, working together and practices. strengthens each voice and avoids repeating the same small efforts over and over again. Smaller businesses that are part of collective alliances can benefit from the influence that larger companies in the alliance might wield.
Second, collective action helps create more equal conditions for companies trying to resist corruption and operate with integrity. When a significant number of companies agree to act together—for instance to avoid bribery in a big tender—each one can feel more confident it has a fair chance of winning the contract based on the merits of its bid rather than the extra money they paid in bribes.
Long-term collective action initiatives Collective action efforts can either be long-term initiatives, or they can focus on a specific project, like a government tender.13 Typically, long-term initiatives aim to promote a set shared principles and standards of behaviour, along with providing a forum for information sharing and mutual learning. They may also include collaborative efforts with government to improve the policy and institutional environment. There are many examples of such initiatives around the world. Some examples from Asia include:14
Philippines: Integrity Initiative -- “Project SHINE” was launched in 2010 as “a private sector-led campaign that aims to promote the re-establishment of common ethical and acceptable integrity standards among various sectors of society.” It developed a Unified Code of Conduct for Business, an Integrity Compliance Framework and an Integrity Self-Assessment Tool. The Makati Business Club and the European Chamber of Commerce of the Philippines launched the project with funding from Siemens. More than 2000 businesses have used the Self-Assessment Tool as of March 2016. More information at http://www.integrityinitiative.com/features/shine.
13
This section draws significantly from World Bank Institute, Fighting Corruption Through Collective Action - A guide for business (2008). 14 Descriptions of activities in this section are drawn from Hills Program on Governance, Collective Action Against Corruption: Business and anti-corruption initiatives in ASEAN (2014), with additional information from project web sites where available.
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Thailand: Private Sector Collective Action Coalition Against Corruption (CAC) also launched in 2010 and has developed a self-assessment guide and a certification process it describes as “considerably more advanced than regional peers.” It also works in collaboration with the Thai National Anti-Corruption Commission and civil society groups to promote good practices in the Thai business community. The CAC now has 731 members, and 177 companies have been certified. More information at http://thai-cac.com.
Collective action doesn’t always need to be formally organised
Benefits of long-term collective action:
Working together creates a sense of Businesses in the construction industry use a community among businesspeople who Facebook page to discuss tenders and want to promote integrity and reduce problems they encounter, including corruption corruption. problems. Shared standards, especially certification, create a sense of pride and achievement and may also be a valuable resource for international companies seeking local partners. Create a venue for identifying problems and engaging with policy makers to address them. In some cases, this is achieved more effectively through an agreed partnership between government and the private sector, rather than through a solely private-sector based initiative. (The Myanmar Business Forum is an example of such a partnership. It has working groups that are mapping out regulations for land registration and taxation, among others, and conducting dialogue with government on promoting reforms http://myanmarbusinessforum.org.)
Weaknesses of long-term collective action:
Do not always create concrete results like fairer outcomes of public procurements or more efficient delivery of service. Can be difficult to sustain, especially if initial activities are funded by donors. When the funds run out, the activity may die out, too. From the beginning, these initiatives should consider collecting membership fees or other locally-mobilised resources.
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Short-term, or project-based, collective action In contrast to long-term initiatives that are mainly mobilised around promoting shared principles and good practices in What is an Integrity Pact? general, projectAn Integrity Pact is a formal contract in which a government agency and based collective bidders agree to create fair and transparent bidding in public procurement related to specific projects. Its key requirements are: action initiatives typically aim to A formal written contract between the government agency and all improve the bidders who commit not to pay bribes or collude in the bidding outcome of a process. specific process, It is introduced in pre-tender phase. like a public Its principles are transparency, fair business conduct, and no tender or delivery corruption or bribery. of a major An independent monitor is appointed to oversee compliance with infrastructure the Integrity Pact. project. These Any bidder found to violate the Integrity Pact is subjected to initiatives are also penalties, including exclusion from future tenders for several years based on shared and a fine. values of integrity Integrity Pacts are beneficial for all concerned. They benefit the bidding and combating companies, which are assured of a fair chance of selection as a supplier for corruption, but a project, the government agency which will avoid overpaying for a product they aim to that may be of inferior quality, and the public which is the ultimate achieve a specific beneficiary of the project. goal over a shorter period of Source: Hills Program on Governance, Anti-Corruption Manual for SMEs, pp. 72-73 time. The best-known example of this approach is the Integrity Pact, which is “a tool for preventing corruption in public contracting.”15 The unique characteristic of an Integrity Pact is that it includes an external monitor, typically an NGO, which monitors the behavior of both the private companies and the government and investigates complaints of cheating. In some cases, there is also an arbitration mechanism to resolve any disputes that arise, with all parties agreeing to submit to that authority.16 If it’s not possible to get all the parties to agree to the specific requirements of an Integrity Pact, an Integrity Declaration is an alternative. While it does not include the monitoring and arbitration elements of an Integrity Pact, participants still pledge to operate with integrity and avoid corruption. However the only thing that binds them to this commitment is their promise, and perhaps some peer pressure from colleagues. It can be easier to convince businesses to join in this kind of effort because they don’t have to agree to be monitored or to submit to arbitration. It also might be easier to bring the government on board for the same reasons. But that is also what makes this arrangement less powerful for assuring clean practices in the project.
15 16
Transparency International, https://www.transparency.org/whatwedo/tools/integrity_pacts/4/. Accessed 4 October 2016. World Bank Institute, Fighting Corruption Through Collective Action - A guide for business, pp. 45-47.
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Integrity Pacts in Action In 2000, the Pakistan chapter of Transparency International (TI) introduced Integrity Pacts in the Greater Karachi Water Supply project implemented under the responsibility of the Karachi Water and Sewerage Board. TI monitored the bidding process for the design and supervision of the project and recommended procedures that were maintained for the remaining contracts of the project, which was completed ahead of schedule at a total cost US$10 million less than initially estimated. Source: Transparency International https://www.transparency.org/whatwedo/tools/integrity_pacts/4/
If you want to see another Integrity Pact in action, you can see the full story of how the Transparency International chapter in Indonesia implemented an Integrity Pact in Solok District, West Sumatra in Transparency International, Handbook on Curbing Corruption in Public Procurement 2006, pp. 120-130. Available at https://www.transparency.org/whatwedo/publication/handbook_for_curbing_corruption_in_public_procurement.
A story from Myanmar: Working together for shared solutions The Ngwe Saung Beach Hoteliers Association works together to find shared solutions for business problems. One such problem was frequent requests to contribute entertainment or venues for official events and rooms for visiting officials. The Association wanted to support official visits and activities, but members also needed to control costs. Members agreed to respond to all official requests as an Association, not as individual businesses. This allowed the members to establish an agreed level of contribution (for example, standard rooms for overnight visitors) and to distribute the contributions across all the members. All requests for official visits must now be submitted to the Association, which considers each one according the policies of the Association and responds for the member. Source: Interview, October 2016.
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5:Government and civil society – what role can they play? Businesses can do a lot on their own to change their rules and practices. They can also work together to promote better practices in the business community and to identify weaknesses in the laws, regulations and institutions that govern the economy. But anyone using this toolkit will recognise that it is very difficult to implement good practices in an environment that doesn’t support it. Businesses need allies in their efforts to resist corruption and operate with integrity.
5.1:Government – an essential partner for business efforts Government has an essential role to play. Complicated regulations, poor public services, weak law enforcement, and poor discipline of public officials all contribute to corruption, and they are all within the government’s areas of responsibility. It’s also true that governments usually have too much to do and too few resources. Reforming the public service and raising the pay of civil servants, for instance, would probably help reduce the problems that often lead people to offer bribes, but this process can take a long time. Making sure that officials (and others) at all levels who are found to be involved in corruption are brought to justice and appropriately disciplined, and that courts operate efficiently and fairly, are also essential steps. Progress on these and other big reforms will be very important to improve the environment for doing business in Myanmar. While larger changes go forward, governments can take a number of more tangible actions to facilitate the efforts of business to resist corruption and operate with integrity. Some of these are already underway in Myanmar.
5.1.1:Establish Clear Priorities and Responsible Leadership for Reform Businesses that want resist corruption and work with integrity will benefit greatly from knowing that they have a strong partner with a clear plan. Anti-corruption and pro-integrity reform is a huge undertaking, so it’s not possible to do everything at once. In the reform process, it’s essential to have a roadmap and to know who is responsible for driving to each destination. An anti-corruption commission17 or other authority is usually established to lead this process and monitor progress, often through the development and implementation of a national anti-corruption strategy.18 It’s not essential that a commission plays this role, as it may have other duties such as investigating corruption cases, but someone needs to be in charge of planning and monitoring the way forward.
17
Experience has shown that anti-corruption commissions around the world have not always been effective because they are under-resourced, lack independence, have too many or unclear mandates, or lack support from government leadership. A useful overview of good practices is Transparency International, “Best Practices for Anti-Corruption Commissions” 2013. Available at http://www.transparency.org/files/content/corruptionqas/Best_practices_for_anti-corruption_commissions_2.pdf. 18 A useful guide to the strengths and weaknesses of national anti-corruption strategies in the Asia-Pacific region is UNDP, AntiCorruption Strategies: Understanding What Works, What Doesn’t And Why? Lessons learned from the Asia-Pacific region 2014. Available at http://www.asia-pacific.undp.org/content/rbap/en/home/library/democratic_governance/anti-corruptionstrategies/
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5.1.2:Simplify regulations This toolkit recommends that businesses should follow the rules and be prepared to do things correctly. But this is hard to do if the rules are very complicated. One very important step for governments is to make processes for getting licenses and public services like electricity and telephone, registering a business, getting a building or land use permit—any function that businesses have to complete in order to do business lawfully—as simple as they can be, while still fulfilling the regulatory needs of government. One effective tool for doing this is process mapping, which outlines all the steps required to complete a certain function and describes the problems that businesses can encounter with these steps. Mapping a process in this way helps to highlight how complicated some processes are and where there are gaps or contradictions among different laws that apply to a particular process. This analysis provides a basis for recommending changes. The Myanmar Business Forum19 is already working on mapping several important processes, including rural and urban land use, tax, and customs. Mapping processes is the first step toward simplifying them. These changes can significantly affect how easy it is to do business in a country and how attractive it is for investors. Myanmar made progress in the 2016 global Doing Business ranking for the process of Starting a Business, for example, by eliminating the minimum capital requirement for local companies and streamlining incorporation procedures. While there is still some distance to travel, these are important steps. Figure 1: How Myanmar ranks on the ease of starting a business
Source: World Bank, Doing Business 2016 Economy Profile Myanmar, p. 19.
19
The MBF is a partnership between the Government of Myanmar and the UMFCCI, supported by the International Finance Corporation. The MBF provides a platform for regular and effective dialogue business community and the Myanmar Government. http://myanmarbusinessforum.org/en/about-us-3/; also available in Myanmar.
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5.1.3:Make Regulations and Laws Clear and Accessible Sometimes, the problem isn’t only that processes are complicated, but also that they are unclear or unknown. Laws may be out of date, contradictory, or sometimes they just can’t be found. In many countries that are newly opening to international investment, an essential step is to make sure that laws are accessible for companies seeking to invest. Setting up a web site with an annotated list of PDFs of existing laws and regulations is the most basic approach. When this is done, translating laws and regulations and making them available in searchable formats (e.g., Word documents instead of PDFs) will help companies find the information they need to operate legally. In addition to making laws and regulations accessible, government agencies can help businesses operate legally by providing simple, clear summaries of required approvals and processes. A good example of this is the work done by the Myanmar Directorate of Investment and Company Administration, which has published a clear guide to registering a business and is making it easier for people visiting the agency to follow the required steps for many processes. Figure 2: Example of a very clear guide to an official process in Myanmar (first page only)
Source: Myanmar Directorate of Investment and Company Administration, How To Register Your Company in Myanmar 2016. http://www.dica.gov.mm/sites/dica.gov.mm/files/uploads/pdf/how_to_register_eng.pdf
5.1.4:Publicise the Basics Even before all the laws are simplified, updated and published, an agency can make some things very clear. It can post signs in every office specifying the official fees for the service that office delivers and the time required for each step (permit, license, approval, utility connection, etc.). This empowers customers with knowledge and gives them a realistic understanding of what they should expect. Web sites, newspaper advertisements and even outdoor signs can be used to inform prospective customers of the fees, timelines, and required documents or prior approvals before they arrive for their appointment. 29
5.1.5:Implement Anti-Corruption Programmes inside Public Agencies Public agencies should implement initiatives in this toolkit. As in businesses, public managers need to set clear policies, educate staff and provide opportunities for them to ask questions and get advice, create systems for reporting corruption, enforce rules and monitor progress. High-level officials should set the example for public employees by demonstrating that they comply with all regulations, such as the Myanmar government’s gift policy.
5.1.6:Collect Customer Feedback
Instructions are posted in the DICA office, Yangon
Whether gathered through a simple paper form, a smartphone app or a periodic user survey, customer feedback is very important for identifying problem areas and assessing progress. An agency could also cooperate with a business association or NGO to create a feedback desk outside the office. The key thing is to make feedback mechanisms easy to use—accessible and brief. Consider what information is most needed from the Agency’s in order to keep improving performance. Gathering Feedback in a Public Agency As part of a larger anti-corruption programme, the Myanmar Directorate of Investment and Company Administration (DICA) has started collecting feedback from customers to monitor the progress of its anticorruption programme. The feedback is used by DICA management to identify problem areas and find ways to address them. At this time the Agency does not publish the results of this information gathering.
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5.1.7:Engage in Critical Self-Analysis Corruption in a society is rooted in a huge array of factors, including weak governance capacity, poor legal frameworks and dysfunctional legal institutions, unscrupulous leadership, negative external influences, individual greed, and social expectations that “things won’t change.” Understanding the factors that create the conditions for corruption is the first step toward planning how to address it, and having a plan for addressing corruption makes governments a better partner for businesses trying to achieve the same goal in their own operations (see below). Tools for doing this kind of analysis include UN Convention Against Corruption (UNCAC) Gap Analyses20 and National Integrity Systems studies.21 The most important characteristic of a good analysis is to identify not only what is weak or missing in a country’s legal and institutional framework, but also why it is weak or missing. Anti-corruption reform initiatives often fail because they are based on the false assumption that changing laws and procedures, or setting up a new agency, is the main objective. In reality, these steps are just the beginning. Assuring the implementation of the reform is a much greater challenge that is shaped by many interlocking political, economic, social and cultural dynamics. Taking a hard look at those issues first will help illuminate the road ahead.
5.2:Civil society – the important role of information Civil society can support the integrity and anti-corruption efforts of business in many important ways. The role of civil society groups in monitoring Integrity Pacts was already discussed. Civil society groups also serve as advocates and monitors for good business practices in environmental and social protection. They are also very important advocates for policy reforms that help fight corruption and promote integrity. Civil society groups in Myanmar, for example, provide an alternative “third voice” to the interests of businesses and government in the Extractive Industries Transparency Initiative (EITI).22 In addition to these functions, local civil society groups have been especially valuable in two areas: raising public awareness of corruption and anti-corruption issues, and creating systematic information about corruption. In Myanmar, civil society groups can help in both of these areas. This section provides some ideas and examples (from Myanmar and other countries) of activities that civil society groups can undertake. IMPORTANT: There are many, many ways that civil society can help promote anticorruption reforms in a country. This toolkit focuses only on few of these.
20
A basic approach is the UNCAC Self-Assessment Checklist, part of the official UNCAC review mechanisms (http://www.unodc.org/unodc/en/treaties/CAC/self-assessment.html). A more comprehensive approach that examines implementation and works toward a reform agenda is described in UNDP, Guidance Note: UNCAC Self-Assessments – Going beyond the minimum, 2010. http://contentext.undp.org/aplaws_publications/3080500/UNCAC_Self_Assessment_Guidance_Note.pdf 21 NIS studies are often conducted by NGOs or research institutes. http://www.transparency.org/whatwedo/nis/ 22 See http://www.myanmareiti.org/.
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5.2.1:Raise Public Awareness Raising awareness about corruption and ways to resist helps “push” anti-corruption and integrity messages out to the broader society, where business leaders and employees live and work. If more people understand the costs of corruption and ways they can resist it, then businesses will have more allies in their efforts to fight corruption and work with integrity. Civil society groups are often at the forefront of developing new ideas for reaching out to citizens to help them understand how corruption affects them and what they can do about it. Because they can come from every part of society and represent many different interests, civil society groups can see needs and opportunities from all sorts of perspectives. Just a few examples from Asia (some of the winners of a social innovation competition) give inspiration for what is possible to bring knowledge and capacity to more parts of the society.
Philippines - Citizen Empowerment Hubs - Citizen Empowerment Hubs will address a major challenge in the Philippines: disaster management. Natural disasters are now more frequent and severe. Most affected are local communities, especially their most vulnerable groups -- women and children. The Hubs will build the capacity of grassroots women to map and monitor service delivery, with a focus on local response to disasters. The initiative will especially try to increase partnerships between grassroots women and local authorities so that women become more visible in local decision-making, including budget planning, for disaster risk reduction.
Thailand - Anti-corruption Cafés in Universities - This initiative will expand “Refuse To Be Corrupt”, a social enterprise of the Thai Youth Anti-Corruption Network (TYACN). It is a joint project with True Coffee, the largest locally-owned chain of coffee shops in Thailand. TYACN will scale up “Refuse To Be Corrupt” cafés in Khon Kaen University and Ubon Ratchathani University. Each café will give college students a space and a command centre where they can sit down and discuss issues, organize multi-media events, and map out plans to tackle corruption in their universities and the wider communities.
China - Youth Participation Innovation Laboratory - This initiative will set up an Innovation Laboratory for Youth Participation in anticorruption, to promote youth engagement in corruption prevention in China’s higher education sector. Among the initial activities will be a national student design competition for innovative plans to curb the spread of corruption in the higher education sector, with technical advice from UNDP. Winning plans will be piloted in selected member universities of the China Integrity Education Network (CIEN).23
5.2.2:Create Information Creating information gives businesses and their anti-corruption allies more evidence about specific problem areas, enabling more targeted responses and strengthening the case for further efforts. Civil society groups have been at the forefront of creating systematic information that is either directly about corruption, or it is information that is useful for addressing corruption.
23
From http://www.asia-pacific.undp.org/content/rbap/en/home/presscenter/articles/2014/06/13/six-innovations-to-combatcorruption-win-awards-at-first-ever-undp-social-innovation-challenge/. Accessed 4 October 2016.
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Civil society groups around the work are now harnessing technology and other methods to create and/or disseminate information: Government budget information: In Myanmar, the Open Myanmar Initiative (OMI) (www.omimyanmar.org) is organising and publishing newly-available government budget information, a first step toward citizens monitoring how national resources are being used. Globally, the International Budget Partnership (www.internationalbudget.org) provides support and tools for doing this work and calculates the Open Budget Index, a measure of budget transparency around the world. (Myanmar scored a 2 out of a possible 100 in 2015.)
Parliamentary actions: OMI is also creating quantitative information on the motions submitted by members of parliament (Pyithu Hluttaw, Amyotha Hluttaw and Pyidaungsu Hluttaw).
Identifying problem areas: Civil society organisations are often the most innovative in using technology to gather information about corruption. This “crowd-sourced” information can be used to identify agencies or regions where corruption problems are worst, and then responsive governments and others can begin to address the problems.
Using Technology to Track Corruption Around the world, civil society groups are harnessing technology to “crowd source” corruption data. ipaidabribe.com. Through this website set up by the Janaagraha Centre for Citizenship in India, citizens can report on the nature, number, pattern, types, location, frequency and values of actual corrupt acts that they experienced. On the same website, citizens can also report on positive experiences they had with honest officers. The initiative started in India but has now been duplicated in a range of countries including Greece, Kenya, Zimbabwe, and Pakistan. Transparencymyanmar.com has launched an initiative like this in Myanmar. Draw a Red Line: Transparency International Macedonia worked with a cellular provider to launch an online reporting platform called Draw a Red Line (https://transparencywatch.org/main?l=en_US). It allows individuals that have experienced or witnessed corruption to report their cases by sending SMS, sending an email, using a web form, on twitter or by telephone. The reports are verified by TI Macedonia and forwarded to the appropriate public institution to request follow-up. Bribe Market (http://www.piatadespaga.ro/) is a similar initiative developed in Romania that allows citizens to share their experiences of bribery when interacting with public services and the amount of money they had to pay. Within its first four months of existence Bribe Market received nearly 650 reports of corruption. Reports are mapped to help people identify which service providers are the “cheapest” and the least corrupt. Source: Summaries taken from U4 and Transparency International, “Technological Innovations to Identify and Reduce Corruption” U4 Helpdesk Answer (2013). Available at http://www.u4.no/publications/technological-innovations-to-identifyand-reduce-corruption/
More traditional methods can also be used, such as surveys. In east Africa, for example, local chapters of Transparency International and other civil society groups conduct surveys to create the East Africa Bribery Index24 that documents individual people’s experiences with corruption in various institutions.
24
http://www.tikenya.org/index.php/the-east-african-bribery-index#
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Similar surveys are conducted in many other countries. In Myanmar, this kind of scientific surveying hasn’t been done, but more informal approaches have been used as a first step. One survey of participants in three corruption-related civil society meetings produced the following distribution of perceptions of where corruption was the most endemic:
Source: David Allan, “Scoping the Need: Corruption ‘heat mapping’ as a precursor to an NIS: The case of Myanmar”.
6:Conclusion – What would you do? Corruption has many faces and many causes, and there is no country where it has been eradicated. It’s always a slow process that involves changing laws, changing institutions, changing behaviours, and changing attitudes and beliefs. None of this is easy. Business is just one part of society that is affected by corruption, but it is in an important position to help lead these efforts, since business is essential for an economy and society to thrive. If changing everything seems too complicated, remember instead that things are sure to stay the same if no one does anything differently. The following “scenarios” give you a chance to think about what you might be able to do, or do differently than before, when faced with possible corruption. What can you do to promote integrity and fight corruption?
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6.1:Corruption scenarios – What can you do? Scenario 1: Delays in processing imported goods25 Daw Aye Aye is a wholesale importer and distributor of imported foods and gifts. She has many customers who are shop owners and who are waiting for their orders. But she is still waiting for her goods to be released by the Customs Department. When she met with an officer there, she was told there are problems with her import permits, but they might be able to resolve the problems together. She believes the official is asking for a bribe, but she also knows that offering a bribe may make her vulnerable to more demands for bribes. Possible Responses: Make sure all your documents are in order and that you have followed all required procedures. When you meet with the Customs official, bring someone with you to act as a witness. Having a witness will make it more difficult for the official to solicit a bribe. At the meeting, ask the official to explain exactly what the problems are with the documentation. Do not give the impression that you are under a tight deadline. Be calm and gentle, yet persistent. Take everything the official says at face value and ignore hints for a bribe. The official may not ask for a bribe directly, since he or she knows it is illegal. If you do not pick up on hints and if all your documentation is in order, the official may just give up and release your shipment. Let the Customs official know that paying a bribe is not an option for you. If the Customs official is unreasonable, ask to speak to his or her supervisor or somebody higher. Discuss the problem with your customers and ask for extra time for delivery.
Scenario 2: A tax assessment problem U Aung Min has operated a hotel for the past three years, and it has been doing very well in the new tourism industry in Myanmar. He has been paying taxes every year, but he doesn’t know how the amount is determined, and it seems to change from year to year. This year, he was told he owed much more than in previous years. [Name] does not believe he should have to pay the higher amount, but he also does not want to pay a bribe to the tax assessor. Possible Responses: Meet with the tax assessor and ask him or her to explain the basis for the tax assessment. Bring all documents showing revenue over the past years, and previous assessments. Review the Internal Revenue Department rules and regulations to learn as much as possible about tax assessments.
25
Scenarios 1 and 2 adapted from Hills Program on Governance, Anti-Corruption Manual for SMEs.
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Consult with an outside accountant or lawyer to make sure your company’s records have been kept correctly. Communicate to the tax assessor that you will never resort to bribery to resolve an issue and instead will use all available channels for challenging the assessment. If you are able to negotiate a lower tax assessment, ensure that it is properly documented. Do not give in to any bribery demands. Once you start, the official may keep coming back with more demands.
Scenario 3: Managing the risks of agents or sub-contractors26 Skyline Transport has a lot of shipments coming across the border post at Myawaddy. They have been working with a local clearing agent for years. The agent provides effective clearance at a good price. But the agent’s invoices are very general and don’t provide any details about how the money he is paid is actually used. The accounting department of Skyline is concerned that there is no record of what company funds are used for, and this could be a cover for bribes. Possible responses: Explain to the clearing agent that company policy is changing, and more details are needed in their invoices that explain exactly what fees are being paid for clearing goods. Require the agent to provide the official receipts for clearing fees that are included in invoices. Before a new contract is signed with the agent, do a due diligence review of the company to be sure its business practices don’t endanger your company. If the clearing agent is involved in bribery, don’t renew the contract, and make a plan for dealing with possible higher costs or longer delays at the border while new practices and standards are implemented.
26
Adapted from Transparency International UK, “Doing Business without Bribery” on-line training http://www.doingbusinesswithoutbribery.com/
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Annex A: Myanmar Anti-Corruption Law Myanmar Anti-Corruption Law 2013 English: http://www.accm.gov.mm/acc/image/data/acc/books/ACCL_en.pdf Myanmar: http://www.accm.gov.mm/acc/image/data/acc/books/ACCL_mm.pdf Myanmar Anti-Corruption Rules 2015 English: http://www.accm.gov.mm/acc/image/data/acc/books/ACCR_en.pdf Myanmar: http://www.accm.gov.mm/acc/image/data/acc/books/ACCR_mm.pdf
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Annex B: Sample Anti-Corruption Policy FMI Myanmar Anti-Bribery Policy English: http://fmi.com.mm/anti-bribery-policy/ Myanmar: http://fmi.com.mm/myanmar/anti-bribery-policy/
SMART Technologies Anti-Bribery and Corruption Policy English: http://smartmyanmargroup.com/wp-content/uploads/2015/12/ANTI-BIRBERY-ANDCORRUPTION-POLICY.pdf Myanmar: http://smartmyanmargroup.com/wp-content/uploads/2016/08/ABC-PolicyMyanmar-Version.pdf
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Annex C: Code of Conduct Guidance and Samples Guidance for Developing a Code of Conduct -- Hong Kong Independent Commission against Corruption Key Elements of the Code (i) Acceptance of Advantage Prohibit directors and staff from accepting advantages from persons with whom they have official dealings and from their colleagues/subordinates, except with the company’s permission, as this may affect their objectivity in conducting the company’s business. Specify the permissible value of token gifts they are allowed to accept in their official capacity. Lay down the procedures and authority for approval of acceptance of advantages under specified circumstances. (ii) Offering Bribes Prohibit directors and staff from offering bribes or illicit advantages to directors, staff or agents of another company or organization, in conducting the company’s business. (iii) Acceptance of Entertainment Advise directors and staff to avoid accepting overly lavish or frequent entertainment offered by business associates, as this may be a “sweetener” to build up a store of goodwill for future demands of unjustified favours. (iv) Declaration of Conflict of Interest Require directors and staff to avoid and declare any actual or perceived conflict of interest. Remind them not to misuse their position in company or abuse the power entrusted in them to make personal gains or to benefit their relatives or personal friends. Require directors to make a declaration to the board and the staff to their supervisors when a conflict of interest arises. Provide examples of conflict of interest in work situations (e.g. those relating to procurement and recruitment of staff). Provide a standard form for declaration of conflict of interest. Specify the actions for managing declared conflict of interest, such as requirements to abstain from related meetings or to reassign the tasks. (v) Protection of Company Property and Information Remind directors and staff to use company assets and information solely for the purpose of the company’s business and prohibit any unauthorized use. Require directors and staff to protect the company’s classified information in their possession and prohibit unauthorized disclosure of such information. (vi) Compliance with the Code State the disciplinary sanctions against breaches of the Code, such as warning, dismissal, etc. Designate a staff member of the appropriate level, if resources allow, to handle enquiries on the Code. (vii) Compliance with the Law Remind directors and staff to comply with the local laws and those of overseas jurisdiction when conducting the company’s business. A-3
Source: Independent Commission Against Corruption (Hong Kong), “Governance and Internal Control: A Best-Practice Checklist (for use by small and medium enterprises)” English. Available at http://www.icac.org.hk/filemanager/en/Content_1031/sme.pdf
Sample 1: Coca Cola Code of Business Conduct English: http://www.cocacolacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2012/11/COBC_ English.pdf Myanmar: http://www.cocacolacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2013/02/code-ofbusiness-conduct-burmese.pdf
Sample 2: First Myanmar Investment, Ltd (FMI) Code of Conduct English: http://fmi.com.mm/code-of-conduct/ Myanmar: http://fmi.com.mm/code-of-conduct/
Sample 3: Smart Technologies Code of Ethics English: http://smartmyanmargroup.com/wp-content/uploads/2015/12/code-ofethics.pdf Myanmar: http://smartmyanmargroup.com/wp-content/uploads/2015/12/Code-ofEthics-_Mya_.pdf
Sample 4: Telenor Anti-Corruption Handbook English: https://www.telenor.com.mm/pages/anti-corruption/86
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Annex D: Other resources Resources in Myanmar language For business: Transparency International, Business Principles for Countering Bribery—Small and Medium Enterprise (SME) Edition 2008. Translated to Myanmar and available at http://www.myanmar-responsiblebusiness.org/publications/principles-for-counteringbribery.html Sample Code of Ethics and Employee Handbook on Anti-Corruption is available in electronic version and hard copy from Building Markets office in Yangon. See http://buildingmarkets.org/our-impact/myanmar For civil society: Transparency International, Teaching Integrity to Youth: Examples from 11 countries 2004. Translated to Myanmar and available in hard copy from Spectrum SPDK, in Yangon (see http://www.spectrumsdkn.org/my/)
Initiatives in Myanmar
Building Markets. http://buildingmarkets.org/our-impact/myanmar Myanmar Alliance for Transparency and Accountability (MATA). http://www.matanrg.org/ Myanmar Business Forum. http://myanmarbusinessforum.org/en/home/ Myanmar Centre for Responsible Business (MCRB). www.myanmarresponsiblebusiness.org Myanmar Extractive Industry Transparency Initiative. http://myanmareiti.org/ Open Myanmar Initiative. http://www.omimyanmar.org Spectrum SPDK. http://www.spectrumsdkn.org/ Transparency Myanmar. www.transparencymyanmar.com
Resources in English language Anti-corruption toolkits and resources Business Anti-Corruption Portal. Free anti-corruption compliance & risk management resources, including e-learning training, country risk profiles and due diligence tools. http://www.business-anti-corruption.org/ Center for International Private Enterprise (CIPE), Anti-Corruption Compliance: A guide for mid-sized companies in emerging markets (2014). English. Available at http://cctrends.cipe.org/anti-corruption-compliance-guide/ Hills Program on Governance, Anti-Corruption Manual for SMEs (Manila: Asian Institute of Management Hills Program on Governance, 2011). English. Available at http://www.cipe.org/sites/default/files/publicationdocs/antiCorruptionManualForSMEs_English.pdf Independent Commission Against Corruption (Hong Kong), “Governance and Internal Control: A Best-Practice Checklist (for use by small and medium enterprises)” English. Available at http://www.icac.org.hk/filemanager/en/Content_1031/sme.pdf International Finance Corporation, “SME Integrity Tool” English. Available at http://www.smetoolkit.org/smetoolkit/en/content/en/54664/SME-Integrity-Tool A-5
Transparency International, “Business Principles for Countering Bribery—Small and Medium Enterprise (SME) Edition” 2008. https://www.transparency.org/whatwedo/tools/business_principles_for_countering_bri bery_sme_edition/1/. Transparency International, Handbook on Curbing Corruption in Public Procurement 2006. English. https://www.transparency.org/whatwedo/publication/handbook_for_curbing_corruptio n_in_public_procurement Transparency International, Teaching Integrity to Youth Transparency International UK, Countering Small Bribes: Principles and good practices guidance for dealing with small bribes including facilitation payments. 2014 http://www.transparency.org.uk/publications/countering-small-bribes/ World Bank Institute, Fighting Corruption Through Collective Action – A guide for business. 2008. English. Available at http://www.grantthornton.ca/resources/Guides/Forensics/Collective%20action%20gui de.pdf World Economic Forum, “Partnering Against Corruption -- Principles for Countering Bribery” Partnering Against Corruption Initiative (PACI). 2009. English. Available at http://www3.weforum.org/docs/WEF_PACI_Principles_2009.pdf
Training resources: International Chamber of Commerce, Transparency International, UN Global Compact, and World Economic Forum, RESIST—Resisting Extortion and Solicitation in International Transactions: A company tool for employee training. 2011. Scenariobased discussion tool (PDF). English, French, Spanish. Available at https://www.unglobalcompact.org/library/157 Transparency International UK, “Doing Business Without Bribery”. Interactive on-line training. English. Available at http://www.doingbusinesswithoutbribery.com/ International agreements and laws: OECD Convention Against Bribery o OECD home page for the Convention: http://www.oecd.org/corruption/oecdantibriberyconvention.htm United Kingdom Anti-Bribery Act o Fraud Advisory Panel, Introduction to UK Legislation, 2016. https://www.fraudadvisorypanel.org/wp-content/uploads/2016/05/Bribery-andcorruption-3rd-edition-May2016.pdf Transparency International resource page: https://www.transparency.org.uk/our-work/business-integrity/bribery-act/ United Nations Convention Against Corruption (UNCAC) o Business Anti-Corruption Portal UNCAC site: http://www.business-anticorruption.com/anti-corruption-legislation/united-nations-convention-againstcorruption o Civil Society Guide: UNCAC and the private sector. 2013. https://www.unodc.org/documents/NGO/Civil-Society-Guide-English.pdf United States Foreign Corrupt Practices Act (FCPA) o Business Anti-Corruption Portal FCPA site: http://www.business-anticorruption.com/compliance-quick-guides/united-states o US Department of Justice and US Securities and Exchange Commission, A Resource Guide to the FCPA. 2012 https://www.justice.gov/sites/default/files/criminalfraud/legacy/2015/01/16/guide.pdf
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DRAFT 3: 4/2/17 Tranche 1, 2 and 3: Interim version for review.
IMPORTANT NOTICE: THIS IS A DISCUSSION DRAFT ONLY AND SUBJECT TO GOVERNMENT REVIEW AND APPROVAL RELEASED FOR INFORMATION PURPOSES ONLY. THE COMMISSION RESERVES THE RIGHT TO MAKE ANY CHANGE TO THE DRAFT IT SEES FIT AND NO RELIANCE SHOULD BE PLACED ON IT. THIS DRAFT CONTAINS THE FIRST TRANCHE OF DRAFT RULES (1-139) PRIMARILY RELATING TO THE ASSESSMENT OF PERMIT AND ENDORSEMENT APPLICATIONS AND OTHER FILINGS (RELEASED 13/1/17), THE SECOND TRANCHE (140 – 195) CONCERNING RULES ON THE COMMISSION, DELEGTION OF COMMISSION POWERS, AND COMMITTEES TO BE ESTABLISHED TO SUPPORT THE COMMISSIONS INVESTMENT APPROVAL, INVESTOR ASSISTANCE AND INVESTMENT MONITORING FUNCTIONS AND THE THIRD TRANCHE DEALING WITH REPORTING, INVESTOR RESPONSIBILITIES, ADMINISTRATIVE PENALTIES AND OTHER MISCELLANEOUS AND TRANSITIONAL MATTERS. IN ISSUING THIS DRAFT WITH THE TRANCHE 3 RULES SOME MODIFICATIONS HAVE BEEN MADE TO HE PREVIOUS TRANCHES FOLLOWING SUBMISSIONS MADE AND FURHTER REVIEW. A FURTHER, FULLY REVISED DRAFT TAKING ACCOUNT OF ALL COMMENTS AND SUGGESTIONS REMAINS TOBE COMPLETED. GOVERNMENT OF THE REPUBLIC OF THE UNION OF MYANMAR MINISTRY OF PLANNING AND FINANCE NOTIFICATION NO. [●] /2017 THE [●]TH WANING DAY OF [●] , [●] ME ([●] , 2017) In exercise of the power conferred under section 100 of the Republic of the Union of Myanmar Investment Law (Law No. 40 of Pyidaungsu Hluttaw, 2016), the Ministry of Planning and Finance has prescribed these Rules with the approval of Union Government:
Rules
Comments Chapter I
Title and Interpretation of these Rules 1.
These Rules shall be called the Myanmar Investment Rules.
2.
Save as expressly provided in these Rules, terms defined in the Myanmar Investment Law have the same meaning when used in these Rules. In addition, the following definitions apply:
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Application means any of a Proposal, Endorsement, Tax Incentive, Land Rights Authorisation or Investment Screening application;
Approval means any approval granted by the Commission under the Law or these Rules, including the grant of a Permit, Endorsement, Tax Incentive and Land Rights Authorisation;
Associate has the meaning given in the Myanmar Companies Law [●];
[Note: MCL based definitions to be updated if new MCL is not passed by the date of implementation of these Rules. Refer to latest draft MCL on DICA website for explanation of definitions]
Authority means any Union, state, regional or local government or governmental, administrative, fiscal, judicial or government owned body, Ministry, department, commission, committee, agency or enterprise; EIA Type Project has the meaning given in the Environmental Impact Assessment Procedure made under Notification 616/215 pursuant to the Environmental Conservation Law, or any replacement or similar law;
Environmental Compliance Certificate has the meaning given in the Environmental Impact Assessment Procedure made under Notification 616/215 pursuant to the Environmental Conservation Law, or any replacement or similar law; Environmental Conservation Law means the Environmental Conservation Law 9/2012 or any replacement law;
Environmental Management Plan has the meaning of either a Construction Phase EMP or Operational Phase EMP given in the Environmental Impact Assessment Procedure made under Notification 616/215 pursuant to the Environmental Conservation Law, or any replacement or similar law
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Comments
Foreign Company has the meaning given in the Myanmar Companies Law [●]; HS Codes means the Harmonized System or Harmonized Tariff Schedule developed by the World Customs Organization, as in use by the Union customs authorities from time to time; Holding Company has the meaning given in the Myanmar Companies Law [●]; IEE Type Project has the meaning given in the Environmental Impact Assessment Procedure made under Notification 616/215 pursuant to the Environmental Conservation Law, or any replacement or similar law; Investment Monitoring Department means the department within the Commission Office formed under rule [●] and having the primary responsibilities outlined in rule [●];
Investment Screening application means an application made under rule 42; Investor Assistance Department means the department within the Commission Office formed under rule [●] and having the primary responsibilities outlined in rule [●];
ISIC means International Standard Industrial Classification of All Economic Activities developed by the United Nations Statistics Division and as revised from time to time; Land Rights Authorisation means a right to obtain a long-term lease of land or buildings under section 50 of the Law;
Law means the Myanmar Investment Law (40/2016); Myanmar Company means a company incorporated in Myanmar and registered under the Myanmar
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Companies Law [●] which is not a Foreign Company;
One Stop Service Centre means the centre within the Commission office formed under rule [●] and having the primary responsibilities outlined in rule [●] Prior Permission means has the meaning given in the Environmental Impact Assessment Procedure made under Notification 616/215 pursuant to the Environmental Conservation Law, or any replacement or similar law; Promoted Sectors means the sectors set out in the notification issued by the Commission in accordance with section 43 of the Law from time to time, including a list of promoted business activities; Proposal Assessment Team means the assessment working group established under rule 68; Related Body Corporate has the meaning given in the Myanmar Companies Law [●]; Small Company has the meaning given in the Myanmar Companies Law [●]; State or Regional Committee means a State or Regional Investment Committee established with the approval of the Commission for the purpose of considering an Application and granting an Approval under these rules [●]; State or Regional Committee Office means the state or regional office of the Directorate of Investment and Company Administration which is responsible for carrying out the administrative activities of the relevant State or Regional Committee; State or Regional Secretary means the head of the Directorate of Investment and Company Administration for a state or region from time to time.
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Submission means any Application, notification, document or other information required to be submitted by or on behalf of an Investor to the Commission or other Authority under this Law; Subsidiary has the meaning given in the Myanmar Companies Law [●]; Tax Incentive means an exemption or relief from certain taxes under sections 76, 77 and/or 78 of the Law;
Transition Period means the period of [24] months commencing on the date that these Rules take effect; Working Days means any day (other than a Saturday, Sunday or a public holiday) when the Commission Office is open; 3.
A reference in these Rules to a section of a law is a reference to that section of the Law and a reference to a rule is to one of these Rules.
4.
Any reference in the Law or these Rules to land shall be read to include any body of water or any airspace located within territory of the Union.
5.
Any reference in the Law or these Rules to a Foreign Investor or related expression includes a Foreign Company.
6.
Any reference in the Law or these Rules to a Myanmar Citizen Investor or related expression includes a Myanmar Company.
7.
Any reference in the Law or these Rules to a monetary amount expressed in United States Dollars or $ shall include the Myanmar Kyat equivalent of such amount at the official exchange rate prevailing at the relevant time.
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Rules 8.
Comments
In the exercise of its powers under section 100 of the Law the Commission may update any monetary amount or other quantitative measure expressed in these Rules. Types of Investment
Investments where a Permit is required 9.
An Investor must submit a Proposal to the Commission and may only invest after receiving a Permit if the proposed Investment meets any of the criteria in section 36 of the Law, including as clarified below.
10.
The Investor must comply with all conditions of the Permit and other applicable laws when proceeding with its Investment.
11.
For the purpose of section 36(a) of the Law, an Investment is taken to be strategic to the Union if: (a)
it is made in the communications, technology, transport infrastructure, energy infrastructure, urban development infrastructure, extractive/natural resources, agricultural, urban land or media sectors [and has an expected Investment value exceeding $[20] million];
(b)
it is made pursuant to the grant of a concession, agreement or similar authorisation by an Authority [and has an expected Investment value exceeding $[20] million];
(c)
it is made in a border region or conflict affected area [and has an expected Investment value exceeding $[10] million];
(d)
it will be conducted across the national border [and has an expected Investment value exceeding $[20] million];
(e)
it is made for primarily agriculture related purposes and includes rights to occupy or use more
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An Investment may meet more than one criteria.
In relation to rule 11(b), the Commission will have regard to the decision of the relevant Authority in relation to the Investment where the grant, agreement or approval was made following a transparent and competitive procurement process In relation to rule 11(d), the Investment will not be considered to be conducted across the border if the only cross border activity is to distribute goods and there is no material physical infrastructure used by the Investor or an Associate in relation to the Investment outside the one country.
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than [1000] acres of land; or (f)
it is made for primarily non-agricultural related purposes and includes rights to occupy or use more than [100] acres of land.
12.
For the purpose of section 36(b) of the Law, an Investment is taken to be capital intensive if the expected investment value exceeds $[100 million].
13.
For the purpose of section 36(c) of the Law, an Investment is taken to have a large potential impact on the environment and the local community if: (a)
it has been or is likely to be classified as [an EIA Type Project];
(b)
the project is located under a designated protected area or biodiversity area under the Environmental Conservation Law; or
(c)
it includes rights to occupy or use land which: a.
has been is or likely to be acquired through expropriation, compulsory acquisition procedure or by agreement in advance of such expropriation or compulsory acquisition procedure in accordance with the laws of the Union and will either cause the relocation of at least [100] individuals permanently residing on such land or comprise an area of more than [100] acres;
b.
comprises an area of more than [100] acres and would be likely to cause involuntary restrictions on land use and access to natural resources to any person having a legal right to such land use or access;
c.
comprises an area of more than [100] acres and which is the subject of a pre-existing bona fide claim or dispute (as determined by the Commission) by a person regarding rights to occupy or use such land in a way which would conflict with the proposed
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Investment; or d.
would otherwise adversely impact the legal right of at least [100] individuals occupying such land to continue to occupy such land.
14.
Subject to rule 14, for the purpose of section 36(d) of the Law, an Investment is taken to use stateowned land and buildings if an Authority has the land, building or relevant land rights and is authorised to transfer or deal in such land, building or rights in the capacity of an owner or occupier. It does not include land use rights arising from the grant, alteration or other administration of land rights pursuant to a statutory land administration process within the responsibility of the Authority.
For example, this rule does not cover the application of land grant or other administration process under the Farmland Act or Vacant, Fallow or Virgin Land Law (noting that these may still be covered by other rules in this chapter).
15.
The Investor is not required to apply for a Permit under section 36(d) of the Law if:
Rule 15(a) will apply where the Investor obtains rights to use multiple areas of state-owned land and buildings as part of the Investment the aggregate consideration for all such rights issued by any Authority shall be used.
(a)
the consideration or value of other payments to be made in respect of the acquisition and use of such land rights by the Investor is less than $[5] million in aggregate and the Investor is leasing or licensing the land or building for a term of 5 years or less (including any option the Investor may have to an extension of such land rights); or
(b)
the Investor sub-leases or licences such state-owned land or buildings from a person who: a.
has previously obtained the right to use the state-owned land or building from an Authority in accordance with the laws of the Union (including this Law); and
b.
is authorised to sub-lease or sub-licence the state-owned land or buildings in accordance with the rights granted from the Authority; and
the land and buildings are to be used by the Investor in a manner permitted under the lease, agreement or other instrument by which the land rights were granted by the Authority to the person.
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16.
The duty to obtain a Permit under section 36 of the Law does not apply in respect of an Investment for which the Investor has obtained all required permits, licences and has satisfied all other requirements under the Laws of the Union to commence construction or operation of their Investment prior to these rules becoming effective, including a permit under the previous Foreign Investment Law (21/2012) or Myanmar Citizens Investment Law (18/2013).
17.
Notwithstanding rule 16, if an Investor who has commenced construction or operation of their Investment prior to these rules coming into effect makes any changes to their Investment and any such changes considered separately from the original Investment would require the Investor to submit a Proposal, then the Investor shall submit a Proposal to obtain a Permit prior to making such changes to their Investment.
18.
Any Investor who was not required to obtain a Permit when initially making their Investment who subsequently meets the requirements of section 36 due to a change in their Investment must submit a Proposal to obtain a Permit prior to making such changes.
19.
Any reference in rules 11, 12, 13 and 15 to monetary amounts, land areas or numbers of affected individuals will be taken to mean an aggregate amount when looking at the Investment and the related business of the Investor and its Associates as a whole.
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The purpose of this Rule is to enable the Investment to be looked at in holistic terms, including where the direct activities of the Investor may be supported by its Associates, to ensure that the spirit of the Rules are followed.
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Rules 20.
Comments
Nothing in these rules limits the Commission from prescribing: (c)
other forms of Investment which require the Investor to submit a Proposal and acquire a Permit, including under section 36(e);
(d)
the circumstances in which a Proposal will be submitted to the Pyidaungsu Hluttaw for approval under section 46;
(e)
other criteria or conditions which may apply to the assessment of a Proposal or grant of a Permit, including determining a minimum cash investment that must be made as a proportion of the total investment amount.
Subject to the special circumstances of a particular Investment, the Commission intends to publicise any other determinations of types of Investment to which section 36 and/or section 46 would apply.
Prohibited Investments 21.
With the approval of the Government the Commission from time to time may issue notifications of Prohibited Investments under section 41 of the Law.
22.
Without limiting the application of any other law, an Investment which is not subject to a notification referred to in rule 21 will not be considered to be a Prohibited Investment under the Law.
23.
No person may make an investment which is a Prohibited Investment.
24.
For the purpose of section 41(a) of the Law, hazardous and poisonous waste means all substances listed or prohibited under the Prevention from Danger of Chemical and Associated Materials Law (28/2013), the Environmental Conservation Law (9/2012) or otherwise determined by the Ministry of Industry, Ministry of Natural Resources and Environmental Conservation or other competent Authority as prohibited from being imported, exported, stored, traded, manufactured or otherwise produced within the Union. The production or use of such substances in connection with an Investment is prohibited, subject to any
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A separate notification specifying types of prohibited investments will be issued by the Commission.
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express statutory exception or dispensation or approval of a competent Authority. 25.
The purpose of sections 41(b), (c), (d), (e) and (f) of the Law is to ensure that Investments are conducted in accordance with the laws of the Union, including the Environmental Conservation Law, Public Health Law and Consumer Protection Law. These sections do not prevent an Investment to the extent it is carried out in accordance with the laws of the Union.
26.
Without limiting any other power, the Commission: (a)
may request information from any Investor whom it believes may be engaging in a Prohibited Investment or related activity; and
(b)
may order the suspension or cessation of any Investment if it believes that a Prohibited Investment has occurred.
Restricted Investments 27.
With the approval of the Government the Commission from time to time may issue notifications of Restricted Investments under section 42 of the Law and amend these under section 44 of the Law.
28.
Section 45 of the Law does not limit the matters which the Commission may discuss when considering an amendment to a notification referred to in rule 27, nor require any particular form of consultation.
29.
Without limiting the application of any other law, an Investment which is not subject to a notification referred to in rule 27 will not be considered to be a Restricted Investment under the Law.
30.
Any person making an Investment which is a Restricted Investment must do so in accordance with the
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A separate notification specifying types of restricted investments will be issued by the Commission.
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Law and other applicable laws, including as clarified below. 31.
For the purpose of section 42(a) of the Law, and subject to other applicable laws, in connection with such an Investment activity the Government may contract with an Investor, and the Investor’s involvement in the Investment activity is permitted to that extent.
32.
Without limiting the application of the section, Investment activities specified under section 42(b) of the Law may be made by Myanmar Companies.
33.
For the purpose of section 42(c) of the Law, subject to any express exception in the relevant notification, the minimum direct shareholding or interest of a Myanmar Citizen Investor (or group of them) in the joint venture is 20%.
34.
Without limiting the application of section 42(c) of the Law or rule 30, the minimum direct shareholding or interest of a Myanmar Citizen Investor in the joint venture may be held by a Myanmar Company (or group of them).
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Note that under the new Myanmar Companies Law a Myanmar Company will be able to have a degree of foreign investment (expected to be up to 35%). Such a Myanmar Company would not be restricted from making investments covered by section 42(b).
When considering the maximum foreign ownership threshold in a joint venture only the direct ownership interest will be considered. An interest that a foreign investor may have in a Myanmar Company participant in the joint venture will therefore not be considered in determining the joint venture ownership ratios.
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Promoted Sector Investments 35.
36.
With the approval of the Government the Commission from time to time may issue notifications of: (a)
Promoted Sectors under section 43 of the Law and other Investment activities which may receive tax exemptions or relief; and
(b)
Places in the Union which are to be designated under section 75 of the Law as Zone 1, Zone 2 or Zone 3 depending on their level of development.
Without limiting any other power or rule, the Commission may prescribe minimum investment criteria to be satisfied before an Investment is eligible to receive a Tax Incentive and may prescribe a maximum value of Tax Incentives that may be granted to any Investment, Promoted Sector or generally in any period. The eligibility criteria could include a minimum cash investment that must be made as a proportion of the total investment amount.
Separate notifications specifying types of promoted investments and places in the different investment zones will be issued by the Commission.
Other minimum investment criteria could include any one or combination of factors such as the proposed Investment value, the anticipated level of job creation and the application of new or enhanced technology.
Investment Submissions
Submissions Generally 37.
An Investor shall make all Submissions to the Commission in accordance with the Law and these Rules.
38.
Every Submission must: (a)
be in writing;
(b)
be in Myanmar or English language;
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The Commission may publish summary information about Proposals received (eg on its website)
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39.
Comments
(c)
where it is a Proposal, include a summary of the proposed Investment in English and Myanmar language;
(d)
be signed by an authorised representative of the Investor and each other applicant where relevant;
(e)
be completed on the prescribed form where applicable;
(f)
contain the information as specified by the Commission;
(g)
contain information which is true and complete in all respects and not misleading;
(h)
be lodged with the Commission Office or relevant State or Regional Committee Office; and
(i)
be lodged with the relevant Submission fee.
A summary of proposed Investment, prepared in accordance with rule 38(c) shall include information on: (a)
(b) (c)
(d) (e)
the Investor, and any other person holding a significant direct or indirect interest in the Investment; the principal location or locations of the Investment; a description of the sector in which the Investment is to be made and the activities and operations to be conducted; the proposed amount of the Investment; a description of the plan for the implementation of the Investment (including expected timetable); and
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Comments
such other information as prescribed by the Commission from time to time.
If an Investor has not yet been legally established, the party responsible for establishing the Investor may submit the Application on behalf of the Investor. The establishment of the Investor will be a condition of being issued the Approval and will not alter any of the obligations of the Investor under the Law.
This Rule will apply to Applications under rules 42, 53, 73, 91 and 121. Establishment will occur in accordance with section 65(b) of the Law.
41.
Without limiting any of its other powers, the Commission may consult with any Authority in considering a Submission, and in relation to any Application may consult with and obtain information which it considers relevant to its determination from other stakeholders and persons affected by the determination.
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Investment Screening Applications 42.
An Investor may submit an Investment Screening application to the Commission for non-binding guidance on whether its proposed Investment is of the kind: (a)
where a Proposal to the Commission is required to be submitted under section 36 of the Law;
(b)
likely to be submitted to the Pyidaungsu Hluttaw for approval under section 46 of the Law prior to the issue of the Permit;
(c)
which is a Prohibited Investment under section 41 of the Law and any related notification;
(d)
which is a Restricted Investment under section 42 of the Law and any related notification; or
(e)
which is a Promoted Investment under section 43 of the Law and any related notification.
The Investment Screening guidance will not express a likelihood of an Approval being granted.
Investment Screening Procedure 43.
Once the Investment Screening application has been submitted and the correct application fee paid, it shall be assessed. Once the assessment is complete the Commission shall issue the guidance. Such guidance is non-binding and may be conditional.
44.
The maximum duration for assessing a complete Investment Screening application shall not exceed [10] Working Days, or [20] Working Days where guidance is sought under rule 42(b). The assessment period can be extended if the Commission requires additional information from the Investor.
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Rules 45.
Comments
An Investment Screening application will lapse if information requested by the Commission is not provided by the Investor within 10 Working Days from the date that it was requested, or such extended timeframe as may be approved by the Commission.
Change of Guidance 46.
If the Commission determines at any time that guidance issued under rule 42 should be amended, it may inform the Investor. The Investor is required at all times to comply with the Law and take whatever action is necessary in response to the amended guidance.
47.
Provided that the Investor: (a)
fully disclosed the nature of the Investment in the Investment Screening application;
(b)
disclosed all information which a reasonable person would consider material to the Commission’s assessment of the Investment Screening application; and
(c)
acted in good faith and did not mislead the Commission or act fraudulently or wilfully conceal any information,
it shall not be subject to any penalty for taking action in response to guidance issued under rule 43 which may be subsequently amended under rule 45. The Investor shall be given a period of 6 months (or such extended timeframe as may be approved by the Commission) to take whatever action is necessary in response to the amended guidance.
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Restricted Investment Notice 48.
Subject to rule 51, an Investor proposing to make a Restricted Investment under section 42 of the Law must notify the Commission of its Investment in the prescribed form.
49.
The notice under rule 48 must be submitted within 3 months of the commencement of implementation of the Investment.
50.
The notice may be submitted to the Commission Office or State or Regional Commission Office as notified by the Commission.
51.
Rule 48 does not apply to a Small Company or to an Investor who is submitting a Proposal or Endorsement application in respect of the Investment within the time period referred to in rule 49.
52.
Unless a Permit for the Investment is required, and subject to overall compliance with the Law and other applicable laws, no determination or approval of the Commission is required to proceed with an Investment which must be notified under rule 48.
Proposals 53.
An Investor must submit a Proposal to the Commission if the Investment requires a Permit under section 36 of the Law.
54.
When submitting the Proposal, the following persons must apply: (a)
the Investor;
(b)
any Subsidiary involved in the Investment, including those applying for a Land Rights
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Authorisation or a Tax Incentive in relation to the Investment. 55.
A relevant Authority may submit the Proposal if the Authority: (a)
holds a significant ownership interest in the Investor;
(b)
has granted or intends to grant the Investor a concession which forms the basis of the Investment;
(c)
has entered a contractual agreement with the Investor which forms the basis of the Investment; or
(d)
is otherwise required or authorised by law to do so.
56.
Without limiting any of its other powers, the Commission will publish a summary of the Proposal, which may include information to be disclosed pursuant to rule 39 and such other information that the Commission considers beneficial to the interests of the Union to publish. The Commission may also consider Investor requests to refrain from publishing commercial-in-confidence or other sensitive information regarding the Investment.
57.
A Land Rights Authorisation and / or Tax Incentive application may be submitted concurrently with the Proposal.
Proposal Assessment Procedure 58.
Once a Proposal has been submitted and the correct application fee paid, it shall be screened for eligibility and completeness at the Commission Office (or other place designated by the Commission). If determined that the Proposal is eligible and complete it will be accepted and the Proposal shall undergo substantive assessment by the Proposal Assessment Team and then be submitted to the Commission for
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The Permit and Land / Tax Incentive application processes will in effect be done as the one process.
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review and determination at the meeting of its Members (or other person or body to whom authority is delegated under rule 68). The assessment, review and determination will be made having regard to the Proposal Assessment Criteria in rule 70 and the following rules. 59.
Within [15] working days of receipt the Commission may reject the Proposal if it is considered to be incomplete, ineligible for approval or on other relevant grounds. If a Proposal is rejected the Commission will give the Investor notice of the rejection and an explanation of the grounds of rejection within a further [10] working days. If the Proposal is not rejected it will be deemed to be accepted.
60.
Subject to rules 61 and 62, if the Proposal is accepted (or deemed to be accepted) the Commission will have up to a further [60] Working Days to complete its assessment and make its determination.
61.
The time period for the assessment of the Proposal under rule 60 can be suspended if: (a)
the Commission requires additional information from the Investor or other party to make its assessment and determination on the Permit and any related Application; or
(b)
the Proposal is one which is to be referred to the Pyidaungsu Hluttaw for approval under section 46 of the Law.
The time period may be suspended more than once under this rule and the Investor will be notified of the suspension. Subject to rule 65, the time period will resume once the additional information is received or once the decision of the Pyidaungsu Hluttaw has been communicated to the Commission. 62.
The time period for the assessment of the Proposal under rule 60 may be extended if the Secretary of the Commission determines that the complexity or novelty of the Proposal or other circumstances mean that it is beneficial to the interests of the Union to make an extension. The time period may be extended more than once under this rule and the Investor will be notified of the extension.
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63.
The Commission may require that an authorised representative of the Investor attend meetings of the Proposal Assessment Team or the Commission at which the Proposal is being considered.
64.
The Commission may require the Investor to provide more information relevant to the Proposal at any stage of the process, including prior to acceptance for substantive consideration or before submitting the Proposal to the Commission for review at the meeting of Members.
65.
Proposals will lapse if the information requested from the Investor by the Commission is not provided within [20] Working Days from the date that it was requested, or such extended timeframe as may be approved by the Commission. If the Proposal lapses an Investor who wishes to continue making the Investment will need to re-submit the Proposal and pay the correct application fee.
66.
The Commission will consult with other Authorities as necessary or desirable in the conduct of the assessment of a Proposal, and all such Authorities shall be required to make relevant personnel and other resources available to ensure that the timeframes prescribed for the assessment of the Proposal are met.
67.
The Commission may reject a Proposal at any time if it is not considered to be in compliance with law or is otherwise ineligible for Approval.
68.
The Commission will establish a Proposal Assessment Team to conduct the primary review of Proposals, which may include officials from other Authorities. The Commission may also delegate the authority for assessing the Proposal and issuing a Permit to a State or Regional Committee if the value of the Investment is less than $5 million.
69.
The Commission may issue further guidelines on the Permit application and assessment procedure.
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Proposal Assessment Criteria 70.
The Commission must in accordance with section 25(c) of the Law assess every Proposal and determine if it is beneficial to the interests of the Union. In making its assessment the Commission will have regard to the objectives, principles, rights and responsibilities in the Law, including in sections 3, 47 and 65. It shall also consider whether the Investor and/or the Proposal satisfies the following criteria: (a)
the Investor is acting, and the Investment will be made, in accordance with the laws of the Union;
(b)
the Investment is one for which a Permit is required;
(c)
the Proposal is in accordance with the Law;
(d)
the Investor has demonstrated a commitment to carry out the Investment in a responsible and sustainable manner, including by, as relevant, limiting any potentially adverse environmental and social impacts;
(e)
the Investor or Holding Company or an Associate involved in the management of the Investment have business experience and acumen relevant to the Investment;
(f)
the Investor has demonstrated its financial commitment to the Investment;
(g)
the Investor is of good character and business reputation; and
(h)
the Investment is compatible with national development, security, economic, social and cultural policies, taking into consideration development, security, economic, social and cultural policy objectives announced by the Government or the government of any State or Region affected by the Investment.
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In relation to the criterion in rule 70(e), an Investor may include reference to its management, staff and consultants to seek to demonstrate that it has the required experience and acumen.
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Rules 71.
72.
Comments
In assessing the Proposal in accordance with rule 70 the Commission: (a)
must consider all criteria and determine of the criteria in rules 70(d) to (h) are most relevant to the Investor and the Proposal (with the criteria in rules 70(a) to (c) being mandatory criteria); and
(b)
must determine whether the mandatory criteria are met and the relevant non-mandatory criteria are substantially met.
For the purposes of rule 70(g), in assessing whether the Investor is of good character and business reputation the Commission may consider (without limitation) whether the Investor or any Associate with an involvement or interest in the Investment has committed an offence or other contravention of the law of the Union or another jurisdiction, including any environmental, labour, anti-bribery and corruption or human rights law.
Endorsement Applications 73.
Any Investor who is not required to submit a Proposal under section 36 of the Law but who wishes to apply for a Land Rights Authorisation and / or Tax Incentive may apply for an Endorsement.
74.
When submitting the application for an Endorsement, the following applicants must apply: (a)
the Investor;
(b)
any Subsidiary involved in the Investment, including those applying for a Land Rights Authorisation or a Tax Incentive in relation to the Investment.
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The Commission will consider the seriousness of any offence or contravention and its relevance to the Investment when making this assessment.
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75.
The relevant Land Rights Authorisation and / or Tax Incentive application should be submitted concurrently with the Endorsement application.
The Endorsement and Land / Tax Incentive application processes will in effect be done as the one process.
76.
As required by section 38 of the Law all recommendations, approvals, licences, permits and similar authorisations relevant to the initial implementation of the Investment must be submitted with the Endorsement Application, provided that where such a recommendation or authorisation necessarily follows the implementation of the Investment or relates solely to ongoing operational matters then such authorisation shall be obtained after the submission of the Endorsement Application in the ordinary course.
A hotel licence and construction approval is an example of this – the recommendation letter of the Ministry of Hotels and Tourism is required before construction of a hotel can commence. The hotel licence itself will not be issued until after construction is complete. The Endorsement may be applied for once he recommendation letter is issued by the Ministry, with the licence to follow.
Endorsement Application assessment procedure 77.
Once the Endorsement application has been submitted and the correct application fee paid, it shall be screened for eligibility and completeness at the Commission Office (or other place designated by the Commission). If determined that the application is eligible and complete the application for Endorsement shall be submitted for review and determination at the meeting of Members (or other person or body to whom authority is delegated under rule 87). The assessment, review and determination will be made with regard to the Endorsement assessment criteria in rule 89 and the following rules.
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While the Endorsement assessment procedure mirrors that used for a Permit, the intention is that it will occur in a far more streamlined way if the content of the application and associated Land / Tax Incentive application is simpler. Flexibility exists to delegate decision making authority to DICA staff and, consistent with the Government’s policy towards decentralisation, to State and Regional Government bodies (se Rule 87). Subject to further Government consideration it is possible that following a transitional period
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Rules
Comments applications involving investment amounts of less than $5 million will be handled at the State/Regional level, with the close involvement of senior DICA staff stationed in the State/Region. It is also likely that most other Endorsement applications (and related Tax and Land Rights Authorisation applications) will be efficiently determined by designated DICA officials. Further guidance on this will be provided as procedures are developed.
78.
Within [15] working days of receipt the Commission may reject the Endorsement application if it is considered to be incomplete, ineligible for approval or on other relevant grounds. If an application for an Endorsement is rejected the Commission will give the Investor notice of the rejection and an explanation of the grounds of rejection within a further [10] working days and an explanation of the grounds of rejection within. If the Endorsement application is not rejected it will be deemed to be accepted.
79.
Subject to rules 80 and 81, if the Endorsement application is accepted (or deemed to be accepted) the Commission will have up to a further [60] Working Days to complete its assessment and make its determination.
80.
The time period for the assessment of the Endorsement application under rule 79 can be suspend if the Commission requires additional information from the Investor or other party to make its assessment and determination of the Endorsement application and any related Application. The time period may be suspended more than once under this rule and the Investor will be notified of the suspension. Subject to rule 84, the time period will resume once the additional information is received.
81.
The time period for the assessment of the Endorsement application under rule 79 may be extended if the Secretary of the Commission (or delegate) determines that the complexity or novelty of the Endorsement
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application or other circumstances mean that it is beneficial to the interests of the Union to make an extension. The time period may be extended more than once under this rule and the Investor will be notified of the extension. 82.
The Commission may require that an authorised representative of the Investor attend meetings of the Commission at which the Endorsement application is being considered.
83.
The Commission may require the Investor to provide more information relevant to the Endorsement application at any stage of the assessment process.
84.
Endorsement applications will lapse if the information requested from the Investor by the Commission is not provided within [20] Working Days from the date that it was requested, or such extended timeframe as may be approved by the Commission. If the Endorsement application lapses an Investor who wishes to continue making the Investment will need to re-submit the Endorsement application and pay the correct application fee.
85.
The Commission will consult with other Authorities as necessary or desirable in the conduct of the assessment of an Endorsement application, and all such Authorities shall be required to make relevant personnel and other resources available to ensure that the timeframes prescribed for the assessment of the Endorsement application are met.
86.
The Commission may reject an Endorsement application at any time if it is not considered to be in compliance with law or is otherwise ineligible for approval.
87.
The Commission may delegate the authority for assessing the Endorsement application and issuing an Endorsement to a State or Regional Committee if the value of the Investment is less than $5 million or to another officer of the Commission of Director level or above or committee of Commission officials formed for that purpose.
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Comments
The Commission may issue further guidelines on the Endorsement application and assessment procedure.
Endorsement Application assessment criteria 89.
90.
The Commission must in accordance with section 25(d) of the Law assess every application for an Endorsement, and determine whether to issue an Endorsement, after considering the objectives, principles, rights and responsibilities in the Law, including in sections 3, 47 and 65, and applying the following criteria: (a)
the Investor is acting, and the Investment will be made, in accordance with the laws of the Union;
(b)
the application for an Endorsement is in accordance with the Law;
(c)
the applicant is an Investor as defined by the Law;
(d)
the application relates to an Investment as defined by the Law; and
(e)
the Investor is eligible to receive one or both of the Land Rights Authorisations or Tax Incentives applied for with the Endorsement application.
In assessing the Endorsement application in accordance with rule 89 the Commission must determine whether the criteria are met.
Tax Incentive Application 91.
Any Investor: (a)
proposing to make an Investment in a Promoted Sector or in respect of any other Investment
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activities which have been notified as being eligible for Tax Incentive; and (b)
who has been issued a Permit or an Endorsement, or who is in the process of applying for a Permit or Endorsement, in relation to the Investment,
may apply for a Tax Incentive. 92.
Applications for a Tax Incentive may be submitted together with a Proposal or application for an Endorsement. Applications for a Tax Incentives under section 77(c) or 78(a) of the Law may also be submitted subsequently. The precise Tax Incentives applied for must be specified in the Application.
93.
Without limiting other information which may be required, a Tax Incentive application comprising the income tax exemption under section 75 of the Law must state the Zone in which the Investor considers that more than 65% of the value of the Investment will be invested or carried out, calculated in accordance with rule 103.
94.
Without limiting other information which may be required, if an Investors is applying for a Tax Incentive comprising a custom duty exemption under section 77(a) and (d) of the Law the Investor must provide: (a)
a list of machinery, equipment, instruments, machinery components, spare parts and construction materials to be imported for the construction and implementation of the Investment. The level of detail regarding these items should reflect the HS Code chapter (four-digit HS Code); and
(b)
a calculation of the total value of all such imports for which the Tax Incentive comprising a custom duty exemption is being applied.
These details may be amended by the Investor following the grant of such Tax Incentive, subject to the approval of the Commission.
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Tax Incentive Application assessment procedure 95.
Rules in respect of the Permit or Endorsement assessment procedure set out above shall apply in the same way to the assessment of a Tax Incentive application with all necessary changes and save that the assessment, review and determination will be made having regard to the Tax Incentive assessment criteria in rule 98.
96.
The Commission may delegate the authority for assessing the Tax Incentive application to a State or Regional Committee if the value of the Investment is less than $5 million or to the Secretary of the Commission or committee of Commission officials formed for that purpose.
97.
The Commission may issue further guidelines on the Tax Incentive application and assessment procedure.
Tax Incentive assessment criteria 98.
The Commission must in accordance with section 74 of the Law assess every Tax Incentive application, and determine if the Investor is eligible for any Tax Incentives applied for, after considering the objectives, principles, rights and responsibilities in the Law, including in sections 3, 47 and 65. It shall also consider whether the Investor and/or the Investment satisfies the following criteria: (a)
the Investor is acting, and the Investment will be made, in accordance with the laws of the Union;
(b)
the application for Tax Incentives is in accordance with the Law;
(c)
the Investment is in a Promoted Sector or in respect of other Investment activities which have been notified as being eligible for a Tax Incentive and the Investment forms all or substantially all of the business of the Investor;
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Note: Additional guidance to be provided on how these criteria are to be applied to ensure incentives are efficiently used to meet the Government’s economic development objectives relating to the promoted sectors. In respect of the criterion in rule 98 (c), to give effect to the intention of the Government’s policy on tax incentives the Investor’s business must consist only of the Investment, or the Investment and some insubstantial ancillary or other activities.
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99.
100.
Comments
(d)
the Investor holds or is to be granted a Permit or Endorsement in respect of the Investment;
(e)
the Investment is being made in a place designated under a Commission notification as Zone 1, Zone 2 or Zone 3 (or combination of them);
(f)
the requirements and authorisations contained in rules 101 to 111;
(g)
the Investment will assist with the creation of new employment opportunities in the Union and the development of a skilled labour force;
(h)
the Investment will bring into the Union new or enhanced technology or business skills;
(i)
the Investment will lead to added market competition, greater efficiency or productivity, or provision of enhanced infrastructure or services, in the Union; and
(j)
the Investment will increase export receipts for the Union.
In assessing the Tax Incentive application in accordance with rule 98 the Commission: (a)
must consider all criteria and determine which of the criteria in rules 98(g) to (j) are most relevant to the Investor and the Proposal (with the criteria in rules 98(a) to (f) being mandatory criteria); and
(b)
must determine whether the mandatory criteria are met and the relevant non-mandatory criteria are substantially met.
The Commission may Approve or refuse some or all of the Tax Incentives applied for by the Investor, and may grant a Tax Incentive in whole or in part and subject to any conditions, including that any transactions between the Investor and its Affiliates that are relevant to the Investment be on arms’ length terms.
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101.
The Commission may refuse to grant a Tax Incentive if the Investor or an Associate has within the previous [3] years discontinued or significantly reduced a prior Investment for which a tax incentive was given under any law.
102.
The Tax Incentive granted will only apply in relation to the portion of the Investment in a Promoted Sector or in respect of other Investment activities which have been notified as being eligible for a Tax Incentive, and not to income earned or other actions taken in respect of other activities of the Investor and any Subsidiary in respect of the Investment.
103.
Where the Investor makes or undertakes its Investment in more than one Zone, if more than 65% of the value of the Investment is invested or carried out in:
104.
(a)
Zone 1, the Investment is considered to be made in Zone 1;
(b)
Zone 1 and Zone 2, the Investment is considered to be made in Zone 2; and
(c)
Zone 1, Zone 2 and Zone 3, the Investment is considered to be made in Zone 3.
The Commission may only grant a Tax Incentive comprising a customs duty exemption under section 77(a) and (d) of the Law for machinery, equipment, instruments, machinery components, spare parts and construction materials required for the construction of the Investment or during the Investment implementation period.
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Per the guidance above in relation to rule 98 (c), the Investor’s business must consist only of the Investment, or the Investment and some insubstantial ancillary or other activities. The Tax Incentives apply to the Investment activities only.
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105.
The Commission may make it a condition of granting the Tax Incentive comprising a customs duty exemption under section 77(a) and (d) of the Law that a contractor named on the Tax Incentive Approval pursuant to rule 114 confirm the accuracy of the list of goods to be imported.
106.
Tax Incentives comprising customs duty exemptions or relief under section 77(b) of the Law may only be granted if at least 80% of the income expected to be earned from the Investment is in foreign currency from exports, and may be granted on a pro-rata basis based on the percentage of income in excess of this amount expected to be earned from the Investment in foreign currency from exports.
107.
Tax Incentives comprising a reimbursement of customs duty under section 77(c) of the Law will be calculated by the Commission on a pro-rata basis of the entire custom duties paid by the Investor based on the proportion of income from the Investment earned in foreign currency from exports. The reimbursement can be applied for at the end of an assessment year for the custom duties paid in the assessment year. The reimbursement may be in the form of a customs duties credit which can be offset against future customs duties to be paid by the Investor, or by such other means as may be determined by the relevant Authority in consultation with the Commission.
108.
The Commission may grant a Tax Incentive comprising the exemption or relief from income tax under section 78(a) of the Law if the following additional conditions are met: (a)
the profits reinvested are from earnings received by the Investor in the assessment year in which the income tax exemption under section 78(b) is being claimed;
(b)
the re-investment has occurred in the assessment year following the assessment year in which the income tax exemption under section 78(b) is being claimed;
(c)
the reinvestment is made in capital items or other expenditure for the purpose of increasing the productive capacity of and earnings from the Investment or a similar, related Investment. In this regard, the payment of operating expenses is not considered reinvestment of profits for the
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purpose of this rule; and (d)
all income tax and other taxes due in respect of the assessment year in which the income tax exemption under section 78(b) is being claimed have been duly paid.
109.
The Commission may grant the Investor a Tax Incentive comprising the right to depreciate its assets at a rate equal to 1.5 times the rate permitted under the relevant laws of the Union or such other rate as may be notified from time to time.
110.
The Commission may grant the Investor a Tax Incentive Comprising the right to deduct research and development expenses from its assessable income under section 78(c) of the Law if:
111.
(a)
the research and development activity is carried out within the Union;
(b)
the research and development activity relates solely to the Investment;
(c)
the research and development is required for the economic development of the Union; and
(d)
the research and development expenses are recognised as such under the applicable accounting standards in the Union.
The Commission may prescribe additional limits or criteria concerning the amount of or procedure for applying or administering the Tax Incentive comprising the right to deduct research and development expenses from its assessable income under section 78(c) of the Law.
Other matters relevant to Tax Incentive Applications and Approvals 112.
The Tax Incentive comprising the income tax exemption under section 75 of the Law shall commence from the earlier of the year of assessment in which the Investor commences commercial operation or the year of assessment in which the Investment earns income which would otherwise be assessable.
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[Note: these additional limits are being considered]
[Note: these additional limits are being considered]
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Comments
Where a Tax Incentive comprising the income tax exemption under section 75 of the Law is granted, after three and five years of operation the Zone(s) in which more than 65% of the value of the Investment is invested or carried is to be re-assessed, and if the value of actual Investment in the Zone(s) is different from the way assessed when granting the Tax Incentive, the Commission may amend the Tax Incentive to reflect the Zone in which the actual Investment is made in accordance with the formula in rule 103. Any re-assessment will be retrospective and if the Investor is found to have received a greater amount of Tax Incentive than it was eligible for based on the re-assessment it will be deemed to have incurred a tax liability in respect of this amount, which will be payable in its next annual tax assessment. No adjustment will be made if the Investor is found to have received a lesser amount of Tax Incentive than it may have been eligible for based on the re-assessment.
114.
Where a contractor is required by an Investor to import goods for the construction and implementation of the Investment and title is to be transferred to the Investor after the goods are imported, the Commission may, by listing the contractor on the Investor’s Tax Incentive Approval, grant the contractor the right to benefit from the Tax Incentive comprising the customs duty exemption under section 77(a) and (d) of the Law when importing the goods for the Investment.
115.
Unless prior Approval is granted by the Commission, if the machinery, equipment, instruments, machinery components, spare parts and construction materials covered by the Tax Incentive comprising a customs duty exemption under section 77(a) and (d) are used for any other purpose than the construction or implementation of the Investment, the Investor is required to pay all applicable customs duties which would have been payable but for being granted the Tax Incentive comprising the customs duty exemption. If a contractor was listed on the relevant Tax Incentive Application, the contractor will be jointly and severally liable with the Investor for the payment of any customs duty under this rule.
116.
Prior to granting the Tax Incentive comprising a custom duty exemption under section 77(a) and (d) of the Law the Commission may assess whether the goods imported are to be used in the construction and implementation of the Investment.
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[Note: re-assessment tests based on the Zone where income is earned are also being considered]
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117.
If a Tax Incentive comprising a custom duty exemption is granted under section 77(b) of the Law and the percentage of income actually earned in foreign currency from exports in an assessment period is less than the expectation stated in the Tax Incentive Application, the customs duty exemption will be reduced to a pro-rata exemption based on the actual earnings from exports in that period, and the Investor will be required to repay any excess customs duties which were incorrectly exempted under the Tax Incentive Approval.
118.
If a Tax Incentive comprising a right to accelerated depreciation is granted under section 78(b) of the Law The Investor must apply such depreciation rate from the earlier of the year of assessment in which the Investor commences commercial operation or the year of assessment in which the Investment earns income that would otherwise be assessable.
Land Rights Authorisation Application 119.
Any Investor who has been issued a Permit or an Endorsement, or who is in the process of applying for a Permit or Endorsement, in relation to the Investment may apply for a Land Rights Authorisation.
120.
Without limiting other information which may be required, a Land Rights Authorisation application must state: (a)
to the extent known, the area, type and location of the land or buildings;
(b)
to the extent known, the landlord(s) of the land or buildings;
(c)
if available, a recommendation letter or similar document or approval from a State or Regional Government Authority or other Authority endorsing any proposed change in use of the land to allow it to be used as contemplated in the Investment;
(d)
to the extent known, whether the Investors proposed use of the land will require any significant
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If export income is less than 80% of the total then the full value of the incentive is to be repaid.
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alteration of topography or elevation of the land, as contemplated in section 65(f) of the Law; and (e)
the period of the Land Rights Authorisation requested (which, subject to section 50(f) of the Law, may not exceed 50 years for the initial lease and not more than two consecutive periods of not more than 10 years each).
Land Rights Authorisation Application assessment procedure 121.
Rules in respect of the Permit or Endorsement assessment procedure set out above shall apply in the same way to the assessment of a Land Rights Authorisation application with all necessary changes and save that the assessment, review and determination will be made having regard to the Land Rights Authorisation assessment criteria in rule 124.
122.
The Commission may delegate the authority for assessing the Land Rights Authorisation application to a State or Regional Committee or to an officer of the Commission of at least Director level or committee of Commission officials formed for that purpose.
123.
The Commission may issue further guidelines on the Land Rights Authorisation application and assessment procedure.
Land Rights Authorisation assessment criteria 124.
The Commission must in accordance with section 25(d) of the Law assess every application for a Land Rights Authorisation and determine whether to issue a Land Rights Authorisation after considering the objectives, principles, rights and responsibilities in the Law, including in sections 3, 47 and 65. It shall also consider whether the Investor and/or the Investment satisfies the following criteria: (a)
the Investor is acting, and the Investment will be made, in accordance with the laws of the Union;
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(b)
the application for Land Rights Authorisations is in accordance with the Law;
(c)
the Investor holds or is to be granted a Permit or Endorsement in respect of the Investment;
(d)
the land over which the Investor has applied for Land Use Rights is able to be used for the purposes contemplated in the Investment under applicable laws, whether presently or following the completion of a change of use or similar statutory procedure; and
(e)
if the Investors proposed use of the land will or may be likely to require any significant alteration of topography or elevation of the land, whether such alteration is likely to have a material adverse effect on the environment which cannot be reasonably mitigated.
125.
In assessing the Land Rights Authorisation application in accordance with rule 124 the Commission must determine whether the criteria are met.
126.
The Commission may Approve or refuse some or all of the Land Rights Authorisations applied for by the Investor, and may grant a Land Rights Authorisation in whole or in part and subject to any conditions, including conditions to inform the Commission of any matters referred to in rule 120 which are not fully known at the time of the Application but which subsequently become known. .
Other matters relevant to Land Rights Authorisation Applications and Approvals 127.
Subject to compliance with any other applicable law and any conditions imposed by the Commission, where the Investor has a received a Land Rights Authorisation the Investor will be able to enjoy the rights stated in the Land Rights Authorisation. Each relevant Authority will be required to give effect to this rule.
128.
Subject to compliance with any other applicable law and any conditions imposed by the Commission, where the land the subject of the Land Rights Authorisation requires the completion of a change of use or similar statutory procedure to allow it to be used as contemplated in the Investment and a
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recommendation letter or similar document or approval from a State or Regional Government Authority or other Authority endorsing such proposed change in use has been obtained, the Investor shall be able to implement the change of use procedure in accordance with law and each relevant Authority will be required to give effect to this rule. 129.
Without limiting the Commissions powers or discretions in relation to its assessment of other Applications, where land for which the Investor is applying for a Land Rights Authorisation is located in a designated industrial zone, the Commission is not required to consult with any Authority in order to issue the Land Rights Authorisation. Approval of Applications
130.
An Approval under the Law and these Rules shall be granted after the Commission or the relevant delegated Authority approves the relevant Submission. The Approval shall be issued within 10 Working Days of the Submission being approved.
131.
An Approval will be granted to the Investor and may include any Subsidiary or other relevant applicant included in the Application.
132.
Without limiting any other rule, an Approval may be:
133.
(a)
unconditional or subject to the conditions that the Commission or relevant delegated Authority think appropriate; and
(b)
granted retrospectively.
Without limiting any other rule, the issuing of a Permit or the Approval of a Tax Incentive may be: (a)
granted in respect of a proposed or specified Investment;
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granted in respect of classes of Investments;
(c)
granted subject to the payment of a bond;
(d)
granted for a specified duration; or
(e)
granted in whole or in part.
Comments
134.
A Tax Incentive issued by the Commission in accordance with the Law grants the Investor the right to benefit from the specified incentive. Prior to the Investor being able to benefit from any Tax Incentive under sections 75 and 78 of the Law, the Investor must submit, and the Internal Revenue Department must accept, the tax assessment for the relevant assessment year.
135.
In evaluating a tax assessment of an Investor benefiting from a Tax Incentive under sections 75 and 78 of the Law the Internal Revenue Department may review whether the Investor is complying with the provisions of the Law relating to the Tax Incentive and any conditions specified in the Tax Incentive granted to the Investor.
136.
The Commission may revoke an Approval if in the Commission’s reasonable opinion the Approval has been obtained through fraud or other misleading conduct or the Investment has not been carried out substantially in accordance with the Application and no Approval permitting the variation has been granted by the Commission.
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Comments
Without limiting any other rule, the Commission may: (a)
vary an Approval granted under the Law with the agreement of the Investor;
(b)
vary or add any conditions of an Approval with the agreement of the Investor; and
(c)
revoke a condition of an Approval.
An application for a variation of an Approval or a condition of an Approval may be made by the Investor by written notice to the Commission accompanied by the applicable fee. 138.
139.
It is a condition of every Approval, whether or not it is stated in the Approval that: (a)
the information provided by the Investor to the Commission in connection with the Application was correct at the time it was provided;
(b)
the Investor, and each other applicant where relevant, must comply with the representations and plans submitted in support of the Application, unless compliance shall reasonably be excused; and
(c)
the Approval is granted subject to continuing compliance with all applicable laws.
Without limiting any applicable law, an Investor making an Investment under this Law may import any equipment, goods or materials relevant to the Investment without requiring any specific Approval from the Commission. Where any licence or other approval is required under an applicable law to proceed with such an import, the Investor will be entitled to apply to the relevant Authority for and the relevant Authority must give effect to this rule and issue such a licence if the relevant legal requirements are met. The Commission
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Conduct of Members 140.
Without limiting section 21 or section 22 of the Law, any Member of the Commission who has an interest in any matter specified in sections 21 and 22 of the Law (including as an Associate of an Applicant) shall expressly declare such interest. Any such declaration will be recorded in the meeting minutes of the Commission or, if the matter is not discussed at a meeting, the Member shall lodge such declaration with the Commission Office.
141.
In relation to any matter where the Member has an interest, the Member shall: (a)
not influence nor seek to influence any decision to be made in relation to the matter;
(b)
absent themselves from that part of any meeting during which the matter is discussed;
(c)
not vote on a decision relating to the matter; and
(d)
not otherwise take part in any deliberation of the Members or work of the Commission Office or delegate of the Commission relating to the matter.
Commission Reporting 142.
An annual investment report must be prepared by the Commission in accordance with section 24(g) of the Law. Within 20 Working Days of submitting the annual investment report to the Pyidaungsu Hluttaw a version of the annual investment report in Myanmar and English must be published by the Commission. The annual investment report shall include information from the reporting period on: (a)
investment trends;
(b)
the principal activities of the Commission, including a summary of the activities of the Investment
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Monitoring Department, Investor Assistance Department and the One Stop Service Centre; (c)
a summary of Investor grievances; and
(d)
list of all administrative penalties issued to Investors.
Delegation of powers 143.
The Commission may delegate its powers, duties and functions in accordance with the Law, including section 27. Any delegation:
Certain powers will, for example, be delegated by the Commission to:
(a)
must be in writing;
-
(b)
(c)
unless otherwise expressly provided by the Law, must be approved by the Commission and signed by the Chairman or Secretary; may be made generally or in relation to a specific matter or class of matters;
(d)
may be made to:
the MIC secretary state and regional governments Committees or departments in DICA other DICA officials.
(i)
a specified person;
(ii)
persons of a specified class;
(iii)
the holder for the time being of a specified office or appointment; or
(iv)
the holders of offices or appointment of a specified class;
(a)
may impose conditions and limits to the delegation;
(b)
must be made subject to any express restrictions in the Law, these Rules, or other applicable
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laws; and (c)
may be revoked at any time.
144.
Subject to the conditions and restrictions given or imposed by the Commission, the person (or group of persons) to whom a power or function is delegated may exercise that power or function in the same way and with the same effect as if it had been exercised directly by the Commission in accordance with the Law or Rules.
145.
In performing the delegated functions the delegate will be subject to the same duties and obligations as would apply if the functions were performed by the Commission, including those in sections 96 and 97 and rule 141. Delegates will also be subject to the same protections as Members, including under section 95.
146.
A person who purports to act under a delegation is presumed to act in accordance with the terms of the delegation, unless the contrary is proved.
147.
A delegation does not prevent the Commission or other duly authorised delegate from exercising the power or function that has been delegated.
148.
Subject to the conditions and restrictions given or imposed in the delegation or under the Law or Rules, if the person the person acting under a delegation is the Secretary, he or she may further delegate the delegated power or function.
Proposal Assessment Team 149.
As provided in rule 68, the Commission shall by notification form a Proposal Assessment Team within the Commission Office to assist the Commission to review Proposals. The Proposal Assessment Team may comprise officers from the Commission Office, the Ministry or other Authority, as determined by the Commission. In carrying out is delegated duties the Proposal Assessment Team may require the
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assistance of other officials, whether generally or in respect of a particular Proposal. 150.
The Role of the Proposal Assessment Team includes reviewing all Proposals submitted to the Commission, providing recommendations to the Commission on the application of the assessment criteria in rule 70 and an assessment of whether these assessment criteria have been satisfied, as required under rule 70.
151.
The Proposal Assessment Team may require the Investor who has submitted a Proposal to attend a meeting of the Proposal Assessment Team to respond to questions regarding the Investment.
152.
To assess if the Proposal satisfies the assessment criteria, the Proposal Assessment Team may request specific additional information from the Investor.
153.
In carrying out its duties the Proposal Assessment Team may consult with any Authority.
154.
The Secretary may issue such other orders and procedures as may be necessary for the efficient operation of the Proposal Assessment Team.
State or Regional Committees 155.
During the Transition Period, with the support of the Commission and the Commission Office, every State and Region of the Union shall form a State or Regional Committee, which shall have such powers and functions as may be set out in the Law, these Rules or as may be delegated by the Commission.
156.
The State or Regional Secretary will manage the affairs and perform the administrative tasks of the State or Regional Committee.
157.
In performing its functions the State or Regional Committee must cooperate with the Commission Office. The Chairman of the State or Regional Committee may also request additional support or guidance from the Commission Office whenever it feels it necessary to do so.
158.
The State or Regional Secretary, with the approval of the Chairman of the State or Regional Committee
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and the Secretary of the Commission, may issue such other orders and procedures as may be necessary for the efficient operation of the State or Regional Committee.
Formation of the State Regional Committee 159.
The State or Regional Committee will consist of the following members: (a)
the Chief Minister of the State or Region, who will be appointed as the Chairman;
(b)
the head of the State or Regional Committee Office, who will be appointed as the State or Regional Secretary; and
(c)
up to five further members appointed by the Chairman of the State or Regional Committee with the approval of the Chairman of the Commission, who shall all be suitably qualified persons from State or Regional Ministries or other Authorities.
160.
The tenure of members of the State or Regional Committee, except for the State or Regional Secretary, is the same as the tenure of the state or region government. The tenure of the State or Regional Secretary shall be governed by the Civil Servant Law.
161.
With the exception of members appointed in accordance with rule 159(a) and (b), the members of the State or Regional Committee shall not serve for more than two consecutive tenures.
162.
The state or regional government shall reconstitute the State or Regional Committee within two months from the date of assuming office.
Resignation, dismissal from the State or Regional Committee and appointment for vacancy 163.
If the Chairman of the State or Regional Committee resigns from their position voluntarily during their tenure, they may resign as Chairman with approval of the Chairman of the Commission.
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Comments
The provisions of chapter V of the Law shall apply in respect of the resignation, appointment and removal of members of the State or Regional Committee, together with such changes or further provisions as may be specified by the Commission.
Conduct of State and Regional Committee Members 165.
Members of the State and Regional Committee shall be subject to the same requirements of the Law and these Rules governing the conduct of Members of the Commission. This includes the requirements under sections 21, 22, 96 and 97 of the Law and rule 140.
Use of third party service providers 166.
Pursuant but without limitation to section 25(j) of the Law, the Commission may engage an independent contractor, advisor or other third party service provider to assist it in performing its duties and functions under the Law and these rules. This rule does not permit the Commission to delegate and of its powers or authorities to such an independent contractor, advisor or other third party service provider. Investor Assistance
One Stop Service Centre 167.
A One Stop Service Centre will be established pursuant to section 27 of the Law to: (a)
provide guidance to Investors on the implementation of their Investments;
(b)
accept on behalf of Authorities who have assigned officers to the One Stop Service Centre under rule 170 applications and submissions as may be required under an applicable law in relation to the implementation of an Investment;
(c)
accept requests for information as may be made under section 48(a) of the Law on any measures
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or decisions taken by any Authority;
168.
(d)
assist the Investor Assistance Department to resolve grievances and provide assistance to Investors; and
(e)
assist the Investment Monitoring Department in the performance of its duties.
Any application or other submission made to the One Stop Service Centre will be considered duly submitted if all the conditions specified in the relevant application or other submission process have been satisfied. The One Stop Service Centre may decide not to accept, or may subsequently reject, any application or other submission: (a)
(b) (c)
which requires the payment of a fee or the granting of other type of security to the relevant Authority; if the applicable application or submission requirements have not been met; or if officers from the relevant Authority authorised to assess the application or submission have not been appointed under rule 170.
169.
The One Stop Service Centre may require an Authority to provide information on any measure or decision which has a significant impact on an Investor in accordance with section 48(a) of the Law. The request for information shall be made in writing to the relevant Authority and the relevant Authority shall respond in writing within [15] Working Days.
170.
The One Stop Service Centre will be staffed by staff of the Commission Office. Pursuant to section 25(j), the Chairman may also request that a relevant Authority assign one or more suitably experienced and duly authorised officers to the One Stop Service Centre to provide approvals on procedural or regulatory matters relevant to the Investor.
171.
Without limiting rule 170, officers from the following Authorities (or any successor Authority) should be
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generally available at the One Stop Service Centre: (a)
Central Bank of Myanmar;
(b)
Internal Revenue Department;
(c)
Customs Department;
(d)
Directorate of Trade;
(e)
Department of labour;
(f)
Department of Immigration and National Registration;
(g)
Directorate of Industrial Supervision and Inspection;
(h)
Directorate of Investment and Company Administration;
(i)
[Natural Resource and Environmental Impact Assessment Division]
(j)
[Food and Drug Administration]
172.
The Secretary will appoint a Deputy Director General of the Commission Office to oversee the operations of the One Stop Service Centre and may issue such other orders and procedures as may be necessary for its efficient operation.
173.
The Commission will provide the necessary facilities for the One Stop Service Centre at the Commission Office or other suitable location.
Investor Disputes
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Rules 174.
175.
Comments
An Investor who believes in good faith that:
Investor rights under rule 174(c) could include rights to:
(a)
a decision of an Authority in respect of their Investment was incorrectly made;
(b)
that an application for a permit, licence, registration or approval was incorrectly refused by an Authority; or
(c)
that any right, protection or Approval benefiting them under the Law has been frustrated
(d)
may submit notice of their grievance or dispute to the Investor Assistance Department.
Notices given under rule 174 must be prepared and submitted in accordance with rule 38. The Investor Assistance Department may refuse to accept any notice not meeting these requirements and if doing so it will notify the Investor of this.
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(a)
implement their Investment in accordance with an Approval;
(b)
equivalent treatment section 47 of the Law;
(c)
the investment guarantee and related protections in chapter XIV of the Law;
(d)
obtain information pursuant to section 48(a) of the Law;
(e)
employ Citizens and nonCitizens in accordance with section 51(a) and (d) of the Law; and
(f)
transfer funds under chapter XV of the Law.
under
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Rules 176.
In accordance with section 83 of the Law, no court or arbitral proceedings in respect of a dispute between an Investor and an Authority in relation to an Investment may be brought by the Investor unless: (a) (b)
177.
Comments
a notice under rule 174 has been provided; and the steps to be taken under these Rules and any applicable notification for the settlement of the dispute have been taken.
For the purpose of section 83 of the Law, where a dispute is between Investors only and not with any Authority, Investors are encouraged to settle their disputes amicably and in accordance with the terms of any agreement between them. Neither this rule nor section 83 shall be taken to limit the Investors right to initiate dispute proceedings in accordance with applicable laws.
Investor Assistance Department 178.
Subject to these Rules, an Investor Assistance Department will be established within the Commission Office pursuant to section 27 of the Law to: (a)
coordinate with other Authorities to promote the efficient implementation of Investments in accordance with applicable laws;
(b)
receive notices from Investors of grievances, disputes and requests for assistance when dealing with other Authorities in the implementation of their Investment under rule 174;
(c)
assist with the establishment and administration of a grievance and dispute resolution mechanism pursuant to sections 25(n), 82 and 83 of the Law.
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Rules 179.
180.
Comments
In performing its duties the Investor Assistance Department is authorised to: (a)
Request such information from the Investor concerning the grievance or dispute as it may consider necessary. The Investor must submit such information in accordance with rule 38, and the Investor Assistance Department may suspend or discontinue its involvement in the grievance or dispute pending receipt of such information;
(b)
request support from the One Stop Service Centre;
(c)
require any Authority to provide information on any measure or decision referred to in section 48(a) of the Law. The request for information shall be made in writing to the relevant Authority and the relevant Authority shall respond in writing within [15] Working Days;
(d)
consult with any Authority following receipt of a Submission from an Investor under rule 174 on behalf of the Investor, including by outlining the nature of the grievance or dispute and suggesting a course of action to ensure the efficient resolution of the matter in accordance with applicable laws;
(e)
request that officials from the relevant Authority meet with the Investor to seek the efficient resolution of the grievance or dispute. In response to such a request the Authority shall assign officials to attend the meeting who have the authority to resolve the grievance or dispute;
(f)
propose that the Chairman consult with the Minister responsible for the relevant Authority where this may be necessary to efficiently resolve the grievance or dispute, including in cases where proceedings may be threatened under section 83 of the Law; and
(g)
obtain advice on the matters the subject of the grievance or dispute from the Union Attorney General’s Office or third party professional advisor.
Any resolution of a grievance or dispute following the implementation of the processes in rule 179 must
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be made in accordance with applicable laws. 181.
Prior to the end of the Transition Period the Commission will establish detailed procedures for the handling of disputes which may be brought: (a)
in relation to the investment guarantee in chapter XIV of the Law, including in respect of the conduct of inquiries under section 55 and the determination of compensation of which may be payable under sections 52 and 53; or
(b)
any other significant dispute to be brought against an Authority by an Investor in connection with an Investment, including for the conduct of settlement discussions under section 83 of the Law.
The Government shall not be required to determine any claims brought under chapter XIV pending the establishment of these procedures. 182.
In implementing a grievance mechanism pursuant to section 82 of the Law, including pursuant to the procedures to be developed under rule 181, the Commission may replace the Investor Assistance Department with another body responsible for the manging of disputes under section 83 of the Law.
183.
The Secretary may issue such other orders and procedures as may be necessary for the efficient operation of the Investor Assistance Department.
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The Investment Monitoring Department 184.
An Investment Monitoring Department will be established within the Commission Office pursuant to section 27 of the Law to: (a)
receive Applications for amendments to Approvals;
(b)
receive Applications for additional Approvals from an Investor in relation to an existing Permit or Endorsement;
(c)
receive Investor reports;
(d)
audit an Investor’s compliance with the Law;
(e)
arrange and conduct inspections pursuant to section 65(p) of the Law;
(f)
make recommendation to the Commission regarding any administrative penalties which should be imposed under section 85 of the Law; and
(g)
assist other Authorities requiring information on Investors.
185.
The Investment Monitoring Department’s role in auditing Investor and Investment compliance is limited to ensuring that the Investor complies with its obligations under the Law and any Approval that it has received.
186.
Applications for amending Approvals and for additional related Approvals must follow the procedures and be subject to the criteria as specified in the Law and these Rules.
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Rules 187.
Comments
When recommending to the Commission that an administrative penalty be imposed on an Investor under s85 of the Law, the Investment Monitoring Department shall provide to the Commission a report on: (a)
the act or omission of the Investor which constituted the breach of the Law or the conditions of the Approval;
(b)
the steps taken by the Investment Monitoring Department to investigate the breach of the Law or the conditions of the Approval;
(c)
whether the Investor has been informed of the breach of the Law and whether any request has been made to the Investor to remedy the breach of the Law or the conditions of the Approval;
(d)
whether the Investor has previously breached the Law or the conditions of the Approval and if an administrative penalty was issued; and
(e)
any actions taken by the Investor to remedy the breach of the Law.
188.
The Investment Monitoring Department shall include in its report to the Commission under rule 187 an explanation as to how the recommended administrative penalty is proportionate to the breach in the circumstances, and confirm whether the administrative penalty is consistent with other administrative penalties issued in similar circumstances.
189.
The Commission’s duty and authority to monitor compliance with the Law and issue administrative penalties for non-compliance will not derogate from the powers of any other Authority to act in response to a contravention of any applicable law, and it remains the responsibility of the relevant Authority to enforce the laws of the Union for which it has responsibility.
190.
In assisting Authorities pursuant to rule 184(g), the Investment Monitoring Department may provide any information it has available on an Investor or Investment. It may also request additional information from an Investor for this purpose in accordance with rule 192.
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191.
The Investment Monitoring Department may request support from the One Stop Service Centre.
192.
The Investment Monitoring Department may request additional information from the Investor and may carry out site inspections to monitor the Investment. Requests for additional information shall be limited to information it is authorised to request in accordance with the Law. An Investor must promptly submit such information in accordance with rule 38.
193.
The Investment Monitoring Department may request from Authorities additional information, support in reviewing an Investment and support in carrying out site inspections. The relevant Authority shall provide the necessary information and support.
194.
In performing its duties the Investment Monitoring Department may require an Authority to provide information on any measure or decision in accordance with section 48(a) of the Law. The request for information shall be made in writing to the relevant Authority and the relevant Authority shall respond in writing within [15] Working Days.
195.
The Commission may, by notice in writing, require an Investor to provide such information or certifications as it believes is reasonably necessary to for the purpose of: (a) (b)
(c)
monitoring compliance with the Law and the conditions of any Approval; confirming that the information provided in a Submission, including information contained in any accompanying documents, is correct; and compiling statistical information relating to investment in the Union.
The request must relate only to the matters referred to in this Rule and be limited to the extent necessary for the Commission to perform its duties. An Investor shall not be required to disclose any privileged information in response to such a request but shall otherwise comply with the Commission’s request within the specified timeframe.
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Rules 196.
Comments
The Secretary may issue such other orders and procedures as may be necessary for the efficient operation of the Investment Monitoring Department. Investor Responsibilities
197.
Save as expressly provided in these or any subsequent Rules or notifications, the obligations of the Investor under sections 65(a) to (o) and 71 of the Law apply only to the extent that they are obligations pursuant to the laws of the Union. These provisions do not seek to derogate from these laws nor impose additional obligations.
198.
An Investor to whom section 65(e) of the Law applies must notify the Commission by promptly lodging a Submission containing all relevant information concerning the discovery.
199.
An Investor to whom section 65(f) of the Law applies must seek the Commission’s Approval through making a relevant Application or, if not making an Application, by promptly lodging a Submission containing all relevant information concerning the proposed alteration.
200.
The requirement to keep records and information under section 65(h) of the Law relates to financial records and information to be kept under applicable company and tax laws of the Union and in accordance with the standards prescribed by them. If the Investor has received a Tax Incentive, the Investor shall retain all relevant financial records and information for the longer of: (a)
[7] years; or
(b)
the period required by any other applicable law,
following the assessment year in which the Investor benefited from the Tax Incentive.
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Specific documents and information may be notified following consultation with relevant Authorities.
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201.
Section 65(f) of the Law does not impose any liability on the Investor for any contravention of an applicable law, rule, order, directive, custom or tradition by a foreign employee or other person referred to in the section. Without limiting any other means of compliance, an Investor will be taken to comply with its obligation to supervise such persons if it provides the person with a means to access information about such applicable laws, rules, orders, directives, customs and traditions and informs the person of their obligation to follow these.
202.
The Commission’s right to undertake an inspection under section 65(p) of the Law includes a right to inspect records relating to the Investment and to interview any director, manager or employee of the Investor. Reasonable notice of such inspection shall be given, which may be immediately prior to an inspection if the Commission reasonably believes that a serious contravention of the Law has occurred.
203.
An Investor to whom section 65(q) of the Law applies shall Submit confirmation of its compliance with the applicable requirements of the Environmental Conservation Law to undertake, obtain and implement an environmental examination, assessment, certificate and management plan as those requirements are met.
204.
The requirement under section 68 of the Law for an Investor to repay the benefit of relevant tax exemptions or relief on the discontinuation of an Investment during its permitted period:
205.
(a)
applies to exemptions or relief obtained under section 77(a) or 77(d) of the Law; and
(b)
does not apply where the discontinuation results from either: (i)
the sale or transfer of the Investment to another Investor who intends to continue the Investment; or
(ii)
the involuntary winding up of the Investor.
Sections 69 and 70 of the Law apply to contracts that require the Investor to obtain a Permit or
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Endorsement before they can be performed, and not contracts which may be entered into in the ordinary course of the development or operation of an Investment. Contracts to which those sections of the Law apply may be entered into subject to receipt of the Permit, Endorsement or Approval of extension or amendment. 206.
An Investor to whom section 70 of the Law applies must seek the Commission’s Approval by lodging a Submission containing all relevant information concerning the proposed extension or amendment.
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letters of intent, memoranda of understanding, short term leases and supply contracts.
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207.
Subject to rule 208, an Investor to whom section 72 of the Law applies must give notice of the sub-lease, mortgage or transfer by lodging a Submission within 15 Working Days of the relevant event, provided that registration or notification of a mortgage or share transfer with the Commission Office under the provisions of another applicable Law will be taken to satisfy the notice requirements of this Rule.
208.
It is a condition of every Permit that the Commission’s prior Approval is required if a transfer of shares or business referred to in section 72 would result in a person who is not a Related Body Corporate of the Investor acquiring: (a) majority ownership or control of the Investor; or (b) more than 50% of the assets of the Investor; and (c) the proposed transferee has not separately applied for a Permit in relation to the proposed acquisition.
209.
An Investor to whom rule 208 applies must seek the Commission’s Approval by lodging a Submission containing all relevant information concerning the proposed transaction, including information concerning the proposed transferee’s satisfaction of the criteria referred to in rules 70(d) to (g) and the Investor’s compliance with the conditions of the Permit. The Commission will give its Approval if it is satisfied that these requirements are met or if it is otherwise satisfied that the transfer is not contrary to the interests of the Union. In considering the Investors Submission the Commission may consult and share information with any other relevant Authority. Reporting
210.
An Investor who has been issued a Permit or Tax Incentive Approval must within 3 months of the end of the financial year submit an annual report to the Commission in the prescribed form which gives details of:
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Comments
its progress in implementing the Investment; any material variations to the Investment as implemented from the description presented in the Application, including, as relevant: (i)
the amount of the Investment and any changes in capital invested;
(ii)
any change in shareholders or parties with an interest in the investor;
(iii)
the employment performance of the Investment;
(iv)
the impact of the investment on the environment and local community; and
(v)
the land used in the investment and changes to land or land uses;
(c)
how the Investor and the Investment is supporting the relevant objectives of the Law, as set out in section 3 of the Law;
(d)
the Investor’s compliance with the conditions of the Approval and any instances of noncompliance;
(e)
the material operating licences, permits and approvals obtained by the Investor since the Approval or date of the previous annual report; and
(f)
in the case of an Investor with a Permit, how it has demonstrated its commitment to carry out the Investment in a responsible and sustainable manner;
(g)
in the case of an Investor with a Tax Incentive Approval: (i)
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the estimated value of the Tax Incentives that the Investor has claimed or benefited from in the year and a breakdown of these by type of incentive;
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211.
212.
Comments
(ii)
any recalculation and reimbursement of Tax Incentives required due to the operation of these Rules or confirmation that no such recalculation and reimbursement is required;
(iii)
confirmation of the applicable Zone of the Investment if the Investor benefits from an exemption in accordance with section 75 of the Law;
(iv)
the export earnings of the Investment; and
(h)
the audited financial statements of the Investor;
(i)
such other matters as may be prescribed by the Commission.
An Investor who has been issued a Land Rights Authorisation shall within 20 Working Days of: (a)
entering into a land or building lease agreement covered by the Land Rights Authorisation, submit details of the such to the Commission;
(b)
extending the term of a land or building lease agreement covered by the Land Rights Authorisation, submit details of such to the Commission; and
(c)
obtaining an approval of a change of land use covered by the Land Rights Authorisation, submit a copy of the relevant document to the Commission.
The Commission may prescribe other periodic or ad hoc reporting requirements as it considers necessary or desirable, any may apply these generally to all Investors or to only certain classes of Investors in relation to Investments in a particular sector or a particular type. Employment of staff and workers
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213.
Save as expressly provided in these or any subsequent Rules or notifications, the obligations of the Investor under sections 51 (d) to (f) of the Law apply only to the extent that they are obligations pursuant to the other applicable laws of the Union. These provisions do not seek to derogate from these laws nor impose additional obligations.
214.
Where a foreign person is appointed by an Investor under section 51(a) of the Law to undertake a professional or technical role, the person must hold the relevant professional and technical qualifications. Transfer of funds
215.
Save as expressly provided in these or any subsequent Rules or notifications, the obligations of the Investor under sections 57 and sections 59 to 61 of the Law apply only to the extent that they are obligations pursuant to the other applicable laws of the Union. These provisions do not seek to derogate from these laws nor impose additional obligations.
216.
Without limiting section 59 of the Law, where a Foreign Investor: (a) proposes to transfer funds of the type referred to in section 56(c), (e) and (f) of the Law; and (b) has any outstanding tax obligations, or any contingent or disputed obligations, within the Union, it must seek the Commission’s Approval by lodging a Submission containing all relevant information concerning the proposed transfer, including information concerning the tax obligations and the proposed manner of dealing with these. The Commission will give its Approval if it is satisfied that these obligations will be met or if it is otherwise satisfied that the transfer is not contrary to the interests of the Union. In considering the Investors Submission the Commission may consult and share information with any other relevant Authority.
217.
The reference to legal work permits under section 60 of the Law shall be interpreted to mean any visa or other authorisation issued by an Authority which permits the person to earn income or conduct business
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within the Union. Insurance 218.
For the purpose of section 73 of the Law, by the end of the Transition Period every Investor must have taken out the following types of insurance in respect of its Investment: (a)
damage to third party property;
(b)
death and injury to third parties (including employees); and
(c)
such other insurances as the Commission may prescribe,
In relation to prescribing insurance for a particular class of Investors, the Commission could for example prescribe that Investors with professional services Investments take out professional indemnity insurance, or that Investors undertaking EIA Type Projects take out insurance to cover environmental clean up or remediation costs.
provided always that such insurance is available in the Union on reasonable commercial terms. This rule does not limit the obligation of the Investor to take out any other insurance policy required under any other applicable law. 219.
In prescribing additional types of insurance to be taken out under rule 218(c), the Commission may require the insurance be taken out generally by all Investors or by only certain classes of Investors in relation to Investments in a particular sector or a particular type.
Service Fees 220.
Pursuant to section 26 of the law the Commission may prescribe fees to be charged to Investors for the
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In relation to prescribing insurance for a particular class of Investors, the Commission could for example prescribe that Investors with professional services Investments take out professional indemnity insurance, or that Investors undertaking EIA Type Projects take out insurance to cover environmental clean up or remediation costs.
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performance of relevant function or which apply to specific acts, including Application and Approval Fees. In connection with this the Commission must ensure that:
221.
(a)
a schedule of all current fees is published in Myanmar and English on a website used by the Commission;
(b)
a schedule of all current fees is displayed at any place where an Investor may submit an Application;
(c)
no fees are charged other than those listed or provided for in the published schedule of fees;
(d)
subject to rule 221, fees are charged on a non-discriminatory basis and are not discretionary; and
(e)
receipts are issued upon the payment of the applicable fee.
The Commission may provide differential fees or relief from fees based on objective criteria and consistent with the objectives of the Law, including fees which vary because the Investor is a Small Company, or the Investment is of a particular size or type. Administrative penalties
222.
Any administrative penalties imposed under section 85 of the Law must be proportionate to the breach in the circumstances, and shall be consistent with administrative penalties imposed on other Investors in similar circumstances.
223.
Prior to imposing any administrative penalty the Commission must: (a)
consider the report prepared by the Investment Monitoring Department under rule 187;
(b)
decide on the proposed administrative penalty;
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Rules (c)
224.
Comments
in accordance with section 85(b) of the Law, issue the Investor with a written notice outlining: (i)
the act or omission of the Investor which constitutes the breach of the Law or the conditions of the Approval;
(ii)
the proposed administrative penalty; and
(iii)
the reasons for this decision;
(d)
if the Commission reasonably believes that the contravention is capable of remedy by the Investor, include in the notice the steps which the Investor may take to remedy the contravention and a timeframe in which to complete such steps;
(e)
if the proposed administrative penalty is a temporary suspension under sections 85(a)(ii) or (iii) of the Law, include in the notice the conditions which need to be met for the temporary suspension to be revoked;
(f)
include in the notice the names of any Associate or other person that the Commission intends to extend the administrative penalty to because of their role in the contravention, including any proposed inclusion of the Associate or person on the blacklist referred to in section 85(a)(v); and
(g)
provide the Investor with not less than 10 Working Days to respond to the notice and the proposed administrative penalty as required by section 85(b) of the Law, provided that a shorter period may be given where the Commission reasonably believes that more immediate action is required to deal with the effect of the contravention.
The Investor may lodge a Submission with the Commission in response to the notice issued under rule 223 within the time period set out in the notice setting out their views on the contravention and the proposed administrative penalty, or undertaking to meet the steps set out by the Commission to cure the contravention.
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Rules 225.
Comments
Following consideration of the Submission made by the Investor under rule 224, or the expiry of the time period set out in the notice if no Submission is made, the Commission will notify the Investor of its final decision to either impose an administrative penalty, which may be different to the administrative penalty initially proposed in the notice issued under rule 223, or take no further action. The notice will state the day on which the penalty will be applied, which must be not less than 20 Working Days after the date of the notice, provided that a shorter period may be given where the Commission reasonably believes that immediate action is required to deal with the effect of the contravention.
226.
Within the timeframe allowed by section 86(a) of the Law, the Investor may appeal the decision of the Commission notified under rule 225 by notice in writing to [the Minister of Planning and Finance], or such other person or Authority as may be prescribed under the Law. Pending their decision on the appeal, the Minister or other person or Authority deciding the matter may suspend the imposition of the administrative penalty if it reasonably believes the Investor has submitted the appeal in good faith and immediate imposition of the penalty is not required to deal with the effect of the contravention.
227.
Any decision under section 86(b) of the Law and rule 226 will be in writing and addressed to the Commission. The Commission shall notify the Investor, any other named party and any relevant Authority once the decision is received and take the necessary actions in response.
228.
The Investor any other named party must comply with the terms of the administrative penalty as finally determined.
229.
The Commission may remove an Investor or Associate from the blacklist referred to in section 85(a)(v) if the Commission believes it is in the interests of the Union to do so and the Investor or Associate has demonstrated to the reasonable satisfaction of the Commission that a further contravention and any other significant breach of the Law is unlikely to occur.
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230.
The Commission shall only be required to provide written notice under rule 223 once in relation to the act or omission of the Investor which constitutes the breach and is not required to provide a further notice with respect to the same or related breach of the Law.
231.
Nothing in Chapter XX of the Law shall be taken to limit the rights or powers of the Commission or other Authority to take action against an Investor in respect of a breach of the Law or other applicable law. The Commission may recommend to a relevant Authority that it prosecute or take other relevant action an Investor in accordance with the laws of the Union Transitional and Miscellaneous Provisions
232.
In accordance with section 92 of the Law, any permit issued to an Investor under a previous investment law shall remain effective until the permit expires. To the extent that the Law does not conflict with the terms of the permit, the Investor shall comply with the Law.
233.
Notwithstanding an Investor continuing to hold the benefits of incentives in accordance with a permit granted under a previous investment law, to the extent that the Investor wishes to benefit from any additional or discretionary incentives available under this Law, the Investor shall apply for such incentives in accordance with the Law.
234.
An Investor granted a permit under a previous investment law shall be considered to be holding a Permit for the purposes of the Law and will comply with the provisions applicable to the maintenance and holding of a Permit.
235.
Any Approval given under the Law prior to the commencement of these Rules is taken to be valid.
236.
Any Investor who at the date of commencement of these Rules: (a)
holds an Investment to which section 42 of the Law applies; and
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These provisions include the reporting obligations and obligations in relation to share transfers.
DRAFT 3: 4/2/17 Tranche 1, 2 and 3: Interim version for review.
Rules (b)
Comments
does not hold a valid authorisation or approval in respect of that Investment (including of the type referred to in section 93 of the Law),
must during the Transition Period take the necessary steps to ensure compliance with the Law and these Rules, provided that where this rule would require an Investor to give notice of a Restricted Investment under rule 48, then the notice must only be given if the Investor is a Foreign Investor. 237.
238.
In connection with section 48(b) of the Law: (a)
if an Investor reasonably believes that the Commission has made an incorrect decision in respect of an Application due to a failure to correctly apply the decision making criteria set out in these Rules or which otherwise may apply, it may Submit an appeal in writing to the Chairman or such other person, group of persons or Authority as may be prescribed setting out the grounds for this belief;
(b)
the Submission must be made within 10 Working Days of the date of the initial decision on the Application by the Commission, or 15 Working Days in the case of a decision with respect to a Permit.
(c)
The Chairman or other prescribed person or Authority will review the Investor’s Submission with the cooperation of the Commission and inform the Investor in writing whether it will refer the matter back to the Commission for reconsideration or uphold the terms of the Commission’s decision.
The Law does not apply to Investments made under the Special Economic Zone Law (2014, The Pyidaungsu Hluttaw Law No. 1/2014), or to Investors in respect of such Investments.
Singapore.557979.5/SCHP
68
COSTOF DOING BUSINESS IN MYANMAR SURVEY REPORT 2017
Printed in:
Yangon in January 2017 (Also available on the DICA website indicated below)
Conducted by:
Directorate of Investment and Company Administration (DICA) – Yangon Office Ministry of Planning and Finance No 1 Thitsar Road, Yankin Township Yangon Tel: 95 1 658134 Fax: 95 1 658145 URL: http://www.dica.gov.mm
Supported by:
Japan International Cooperation Agency (JICA)
(Myanmar Office) # 701 Sakura Tower 339 BogyokeAung San Road Kyauktada Township, Yangon Tel: 95 1 255473 ~ 6 Fax: 95 1 255477 URL: http://www.jica.go.jp/english/index.html
Implemented by:
Myanmar Survey Research Yangon Central Railways Station Building Kungyan Street, MingalaTaungnyunt Township Yangon Tel: 95 1 370464 Fax: 95 1 254263 Email:
[email protected] URL: www.myanmarsurveyresearch.com
© COPYRIGHT: Directorate of Investment and Company Administration, Ministry of Planning and Finance, 2017 1
ACRONYMS AGM AOA CUSDEC - 2 DICA DISI ECD EIA EMP FED Form FIL FOB IEE IRD IZ JICA MACCS MCIS MEPE MFTB MIC MIL MITS MNREC MOA MOPF MPE NRC OSS PAT RFP SEZ SIA TOR UMFCCI
Annual General Meeting Articles of Association Export Declaration Form Directorate of Investment and Company Administration, Under MOPF Department of Industrial Supervision And Inspection, Ministry of Industry Environmental Conservation Department (for EIA/SIA), Under MNREC Environmental Impact Assessment (Environmental Survey) Environmental Management Plan Foreign Exchange Declaration Form Foreign Investment Law Free on Board Initial Environmental Examination Internal Revenue Department, Ministry of Planning And Finance Industrial Zone Japan International Cooperation Agency Myanmar Automatic Cargo Clearance System Myanmar Customs Information System Myanma Electric Power Enterprise Myanma Foreign Trade Bank, Ministry of Planning And Finance Myanmar Investment Commission Myanmar Investment Law Myanmar Inspection and Testing Services Ltd Ministry of Natural Resources and Environmental Conservation Memorandum of Association Ministry of Planning And Finance Myanma Petrochemicals Enterprise National Registration Card (= Citizenship Certificate of Myanmar Nationals) One Stop Service Proposal Assessment Team (DICA) Request for Proposal Special Economic Zone Social Impact Assessment (Part of Environmental Survey) Terms of Reference Union of Myanmar Federation of Chambers of Commerce and Industry
2
TERMS U
“U” is a Myanmar honorific used before the name of a man—single or married. It is an equivalent of Mr.
Daw
“Daw” is a Myanmar honorific used before the name of a woman—single or married. It is an equivalent of Mrs/Ms.
Myanma Viss
“Myanma” (Myanmar without “r”) is used as an adjective. It is found mostly on the names of the government economic enterprises. Myanmar traditional weight measuring unit. There are 100 ticals in a viss. 1 viss = 3.6 lb = 1.65 kg
CURRENCY EXCHANGE RATES Other currencies
In short
Unit
Myanmar kyat (MMK) equivalent to 1 unit of the respective currency November 2016
United States dollar Chinese yuan Thai baht Indian rupee Japanese yen Korean won Singapore dollar Euro British pound
December 2016
January 2017
USD
1 dollar
1,286
1,370
1,355
CNY THB INR JPY KRW SGD EUR GBP
1 yuan 1 baht 1 rupee 1 yen 1 won 1 dollar 1 euro 1 pound
189 37 19 12.26 1.1274 925 1,410 1,517
197.22 38.077 20.194 11.687 1.1425 946.43 1,432.2 1,683.7
195.10 37.818 19.884 11.540 1.1203 934.48 1,418.3 1,664.9
http://forex.cbm.gov.mm/index.php/fxrate(Reference exchange rate - Central Bank of Myanmar)
Inflation rates from 2010 to 2020 (Estimation: 2017 – 2020)1 The following chart shows the inflation rates from 2010 to 2016 with estimation until 2020.
1
https://www.statista.com/statistics/525770/inflation-rate-in-myanmar/
3
CONTENTS Acronyms ------------------------------------------------------------------------------------------------- 2 Terms, currency exchange rates and inflation rates (2017-2020)---------------- 3 Preface by Director-General of DICA ---------------------------------------------------------- 6 Executive summary ----------------------------------------------------------------------------------- 7 Demographic information – Myanmar -------------------------------------------------------- 9 Introduction --------------------------------------------------------------------------------------------- 12
1
Land, space and building 1.1 1.2 1.3 1.4 1.5 1.6
2
Human resources 2.1 2.2
3
3.2
3.3
Business establishment process 3.1.1 Company registration procedures --------------------------------------- 46 3.1.2 Compliance with legal requirements after registration -------------- 51 3.1.3 Essential documents for company registration renewal ------------ 52 Investment process 3.2.1 Applying for MIC permit ---------------------------------------------------- 55 3.2.2 Further information on investment --------------------------------------- 57 3.2.3 Post-permit activities -------------------------------------------------------- 65 Taxation --------------------------------------------------------------------------------- 72
Export/import and logistics 4.1 4.2 4.3 4.4 4.5 4.6
5
Employment ---------------------------------------------------------------------------- 33 Human resource development ----------------------------------------------------- 42
Government sector 3.1
4
Land lease ------------------------------------------------------------------------------ 15 Space for lease ------------------------------------------------------------------------ 17 Condominium--------------------------------------------------------------------------- 22 Land sales------------------------------------------------------------------------------- 24 Space for sales ------------------------------------------------------------------------ 28 Construction costs -------------------------------------------------------------------- 31
Customs and clearance -------------------------------------------------------------- 75 Export &import ------------------------------------------------------------------------- 80 Overseas logistics --------------------------------------------------------------------- 87 Cross-border logistics ---------------------------------------------------------------- 94 Domestic logistics --------------------------------------------------------------------- 94 Cargo handling cost------------------------------------------------------------------- 94
Infrastructure usage 5.1 5.2 5.3 5.4 5.5 5.6 5.7
Electricity -------------------------------------------------------------------------------- 96 Water and sewage -------------------------------------------------------------------- 99 Waste disposal and treatment ---------------------------------------------------- 100 Gas --------------------------------------------------------------------------------- 107 Fuel --------------------------------------------------------------------------------- 108 Generator ----------------------------------------------------------------------------- 110 Telecommunications 5.7.1 Mobile phone --------------------------------------------------------------- 110 5.7.2 Landline phone ------------------------------------------------------------- 112 5.7.3 Internet ----------------------------------------------------------------------- 113
4
6Business services and others 6.1
6.2
6.3
6.4
6.5
7
Thilawa Special Economic Zone 7.1 7.2 7.3
8
Finance and insurance 6.1.1 Finance Opening accounts --------------------------------------------------------- 115 Export and import ---------------------------------------------------------- 115 Remittance, bank guarantee and FC withdrawal ------------------- 116 Cheques and cards and miscellany ----------------------------------- 117 Bank guarantee service, remittance and costs --------------------- 117 6.1.2 Insurance Myanma Insurance -------------------------------------------------------- 119 IKBZ services --------------------------------------------------------------- 121 Business services 6.2.1 Lawyer’s services ---------------------------------------------------------- 134 6.2.2 Accounting services ------------------------------------------------------- 135 6.2.3 Translators/interpreters--------------------------------------------------- 136 6.2.4 Business consultancy ----------------------------------------------------- 136 Engineering services 6.3.1 Environment (EIA/SIA) --------------------------------------------------- 137 6.3.2 Inspection of building ----------------------------------------------------- 141 6.3.3 Inspection of fire prevention --------------------------------------------- 142 6.3.4 Industrial registration ------------------------------------------------------ 144 6.3.5 Inspection of electricity --------------------------------------------------- 145 6.3.6 Inspection of escalator and elevator ---------------------------------- 146 6.3.7 Inspection of boiler -------------------------------------------------------- 147 6.3.8 Registration of SMEs ----------------------------------------------------- 147 Mission costs 6.4.1 Hotel room rates Hotels in downtown Yangon -------------------------------------------- 149 Hotels in high-class and suburban areas in Yangon -------------- 154 6.4.2 Rent-a-car rates ------------------------------------------------------------ 156 6.4.3 Visas -------------------------------------------------------------------------- 159 Expatriate’s living costs ------------------------------------------------------------ 167 Overall procedures for commencement of business ------------------------ 176 One Stop Service Centre ---------------------------------------------------------- 184 Myanmar Japan Thilawa Development Ltd ----------------------------------- 185
Appendices 8.1 8.2 8.3 8.4 8.5 8.6
Head Office and regional offices of DICA-------------------------------------- 186 Business associations in Myanmar --------------------------------------------- 187 Market research companies ----------------------------------------------------- 188 EIA/SIA companies in Myanmar ------------------------------------------------- 188 Sample calculations of income tax ---------------------------------------------- 191 References 8.6.1 Interviews -------------------------------------------------------------------- 192 8.6.2 Printed materials (published and unpublished) --------------------- 194 8.6.3 Websites (URLs) ----------------------------------------------------------- 194 8.6.4 Survey Team---------------------------------------------------------------- 195
5
PrEfaCE M
YANMAR has been working on a series of reform towards
creating sound investment climate for foreign direct investment (FDI) over the past several years. The new Myanmar Investment Law was enacted on 18 October 2016 and the new Myanmar Companies Law is expected to be promulgated soon. The Investment Policy, formed under the new government in November 2016, clearly identifies that the foreign investment is very crucial for national development. Annual FDI amount approved by Myanmar Investment Commission (MIC) in the fiscal year 2015-2016 recorded 9.48 billion USD, which is more than seven times larger than that of the fiscal year 2012-2013. As a part of such effort to nurture favourable business environment, we consider it is inevitable to provide existing and potential foreign investors with appropriate information for doing business. Lack of proper information including doing business cost is considered to be one of the obstacles for foreign business to invest in Myanmar. We are receiving voices from foreign investors on needs of such data. Directorate of Investment and Company Administration (DICA), which is under the Ministry of Planning and Finance and also acts as the secretariat of the MIC, is in the position to provide those who are doing business or willing to do so with such information and services as the Union’s investment promotion agency. Although many of neighbouring countries publish a kind of doing business cost survey report by their agencies, Myanmar has not issued such report yet so far. Against this background, the Survey on Cost of Doing Business in Myanmar was planned and conducted by DICA, with the support of Japan International Cooperation Agency (JICA), which currently dispatches a JICA Advisor on investment promotion in DICA. The Myanmar Survey Research (MSR) as the JICA consultant has been implementing the survey. This report covers multiple dimensions of business cost such as land and building, human resources, government procedures, export/import logistics, infrastructure and utilities, business services and others. This report is also available on our DICA website (http://www.dica.gov.mm). As this is the very first report of its kind in Myanmar, we welcome readers’ feedbacks and continue to improve how to provide necessary quality data for investors. We tried to collect such data systematically with appropriate data sources so that it is easier to update the data later on. We also aim to standardize the survey exercise and internalize it in DICA for periodical and continuous updates for the future. We sincerely hope this Survey Report 2017 on Cost of Doing Business in Myanmar helps investors to consider investment in Myanmar. With best wishes,
U Aung Naing Oo Secretary Myanmar Investment Commission Director-General Directorate of Investment and Company Administration
6
EXECUTIVE SUMMarY Methodology and process The Survey on the Cost of Doing Business in Myanmar was conducted from September to December 2016. The process included set-up of the survey including preliminary discussions between DICA, JICA and MSR, held a consultation/coordination meeting with relevant government departments, private sector associations and others in total more than 50 participants on September 16, compilation of a list of interviewees, conducting interviews including making appointments, compilation of report and seeking confirmation of the data and information from some government departments and enterprises. In doing this survey, the following methods were employed: 1 Indepth interviews (IDIs) for acquiring primary data 2 Desk study—using established websites for acquiring secondary information, and 3 Using published materials In the IDI part, there were three divisions—(1) government departments/enterprises, (2) associations and (3) private businessmen. As the rules and regulations for making investments in Myanmar are mainly concerned with the government departments and enterprises, official data and information constitutes the largest part of this survey report. Data and information provided by the respondents of the government departments and enterprises from IDIs were reinforced with the information from the websites concerned. All the websites accessed are established ones. Some respondents handed some documents related to their work process and pamphlets to the data-collectors. All the data and information were scrutinized, edited and put in the report with care for accuracy and efficient use of space. All pieces of information had to be scrutinized so that they would be appropriate with or fulfill the purpose of the publication. In the final stage, the data and information put in the report were sent in parts to the respective respondent for confirmation.
Explanation of chapters As the title of this report suggests, costs are mainly reported in the publication. However, the costs are usually coupled with the procedures, which cannot be ignored. There are 7 main chapters in this publication—(1) Land, space and building; (2) Human resources; (3) Government sector; (4) Export-import and logistics; (5) Infrastructure usage; (6) Business services and others; and (7) Thilawa Special Economic Zone. The last part of the report are the appendices. In the beginning of the report, demographic information is given with reference to the Results of the 2014 Myanmar Population and Housing Census of the Ministry of Labour, Immigration and Population. Chapter 1 deals with prices of industrial land, commercial land and residential land, with focus mainly on Yangon City, along with the costs for renting office space, commercial space and residential space. Construction costs are included in this chapter so that potential investors would have some idea of constructing a building and the cost of construction materials. In Chapter 2, there are two main parts—employment and human resource development. In the employment sector, minimum, median and maximum salaries of five industries, including benefits and allowances, are provided. The human resource development part starts with a brief explanation of the Myanmar education system, followed by fees collected by private vocational and technical schools and private international schools are detailed.
7
Chapter 3 (Government Sector) provides the costs and basic information about the process of establishing a business and investment process. The first part details the costs and processes of registering foreign companies, branch companies/representative offices and joint-venture companies and fulfillment of legal requirements. The second part—Investment Process—contains procedure for applying for permit from the Myanmar Investment Commission, documents to be attached with proposal forms and post-activities. Chapter 4 explains customs and clearance, import clearance system, export and import procedures and the second part is the logistics section—overseas logistics, cross-border logistics, domestic logistics and cargo handling costs. Chapter 5 mentions the cost of utilities—electricity, inspection of water and sanitation, waste disposal, gases, fuels, generators along with installation costs and telecommunication— mobile phone, landline phone and the Internet costs and their installation costs. Other business services are summed up in Chapter 6 which includes financial and insurance services and individual services such as lawyer’s service fees, accounting service fees, business consultancy fees, engineering services and inspection charges—inspection for fire safety, inspection of electricity, inspection of elevator and escalator, and inspection of boiler. In the second part are some hotel rates, car rental rates, and kinds of visas and visa fees. In the last part, the living costs of an individual expatriate and a family expatriates are estimated. The last chapter, Chapter 7, exclusively mentions costs and procedures of Thilawa Special Economic Zone which has its own specific nature. Chapter 8 provides listings of DICA branch offices in Myanmar, business associations, some marketing research companies and EIA/SIA companies, sample calculation of income tax, and finally, references—interviews, associations, printed materials, and websites used in this survey.
8
DEMOGraPHIC INfOrMaTION BASIC INFORMATION
Republic of the Union of Myanmar2 Head of State – President: State Counsellor and Minister for Foreign Affairs Vice-President Vice-President Political system:
U HtinKyaw DawAung San SuuKyi U MyintSwe U Henry Van Thio Parliamentary democracy
Capital: Area: Population density: Population: Male: Female: Urban population: Rural population:
Nay Pyi Taw (NPT) 676,552 sq-km (261,218 sq-miles) 76.1 per sq-km 51,486,253 24,824,586 48.2% 26,661,667 51.8% 14,877,943 30% 35,401,957 70%
Currency: Official language:
Myanmar kyat (MMK) Myanmar
NOTE: Male population + female population = enumerated plus estimated national population------------51,486,253 Urban population + rural population = enumerated national population only ---------------------------50,279,900
Union population– State/Region-wise State/ Region 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Kachin Kayah Kayin Chin Sagaing Tanintharyi Bago Magway Mandalay Mon Rakhine Yangon Shan Ayeyarwady Nay Pyi Taw
State State State State Region Region Region Region Region State State Region State Region Region
Total 2
Population
Population
1,642,841 286,627 1,504,326 478,801 5,325,347 1,408,401 4,867,373 3,917,055 6,165,723 2,054,393 2,098,807 7,360,703 5,824,432 6,184,829 1,160,242
(Plus estimated data) 1,689,441 286,627 1,574,079 478,801 5,325,347 1,408,401 4,867,373 3,917,055 6,165,723 2,054,393 3,188,807 7,360,703 5,824,432 6,184,829 1,160,242
50,279,900
51,486,253
(Enumerated data)
Remark With estimated data With estimated data
With estimated data
(a) Myanmar President Office (www.president-office.gov.mm/(b) The 2014 Myanmar Population and Housing Census, The Union Report, Ministry of Immigration and Population, May 2015
9
At the time of census-taking in April 2014, the entire country, there was insecurity in three States—Kachin, Kayah and Rakhine—due to insurgency. Census could not be taken in some parts of these three States, and so the immigration officials had to estimate the population in these parts. The estimated population has been added to the enumerated population data.
Myanmar – Seven States, Seven Regions and NPT Union Territory Myanmar is geographically divided into 7 States and 7 Regions—totaling 14 major territorial divisions of equal status and rights—and the Nay Pyi Taw Union Territory in which the government is seated. The distinction is that each of the States is resided by a particular indigenous ethnic race. For example, Shan State is resided by the majority Shan nationals, mingling with other ethnic races. In Kachin State, the majority residents are Kachin nationals. In the eight Regions, the majority residents are Bamar, mingling with other ethnic races.
10
Population ratios of States and Regions
Sector-wise GDP GDP at current producers’ prices by sector of activity – (2010-11 – 2014-15)3 Sectors
3
2010-11
2011-12
2012-13
2013-14 (pa)
2014-15 end of Mar
Agriculture Agriculture Livestock /fishery Forestry Industry Energy Mining Processing /manufacturing Electric power Construction Services Transportation Communications Financial institutions Social and admin services Rental and other services Trade
14,658,961.3 11,108,404.4 3,392,103.2 158,453.7 10,528,139.7 66,994.9 299,433.4
15,048,295.7 11,113,043.0 3,758,635.4 176,617.3 14,490,501.6 2,241,424.3 469,268.8
15,680,310.0 11,349,615.2 4,141,221.1 189,473.7 16,594,170.9 2,745,827.8 418,323.5
17,132,958.0 12,316,081.8 4,631,945.9 184,930.3 18,773,850.0 2,919,975.0 547,645.2
18,249,950.5 12,872,823.6 5,238,746.8 138,380.1 22,540,987.4 4,011,431.0 783,798.4
7,900,494.0
9,132,523.0
10,299,192.0
11,553,545.4
13,043,707.7
421,882.7 1,839,334.7 14,589,663.9 4,594,356.4 332,227.1 37,715.4
481,449.4 2,165,836.1 16,769,090.4 5,511,332.4 401,983.3 65,318.2
614,929.5 2,515,898.1 18,984,779.1 6,112,723.9 605,796.9 85,345.7
695,854.6 3,056,829.8 22,105946.5 6,926,880.1 913,831.7 114,385.1
924,959.1 3,777,091.2 24,646,157.4 7,508,543.4 1,220,955.2 135,790.5
915,719.6
989,005.8
1,326,076.7
1,683,301.2
2,025,534.2
738,484.2
883,290.7
1,095,645.8
1,323,897.9
1,537,311.7
7,971,161.2
8,918,160.0
9,759,190.1
11,143,650.5
12,218,022.4
Annual GDP
39,776,764.9
46,307,887.7
51,259,260.0
58,012,754.5
65,437,095.3
Department of Planning, 2015 Myanmar Statistical Yearbook
11
INTrODUCTION BACKGROUND In order to attract Foreign Direct Investment (FDI), it is inevitable to provide existing/potential foreign investors with appropriate information for doing business. Lack of proper information including doing business cost is considered to be one of the obstacles for foreign business to invest in Myanmar. Directorate of Investment and Company Administration (DICA), which is under the Ministry of Planning and Finance and also acts as the secretariat of Myanmar Investment Commission (MIC), is in the position to provide those who are doing business or willing to do so with such information and services as the Union’s investment promotion agency (IPA). Although many of neighbouring countries publish a kind of doing business cost survey report by their IPAs, Myanmar has not issued such report yet so far. Against this background, “Myanmar Doing Business Cost Survey” is planned by DICA with the support of Japan International Cooperation Agency (JICA), which currently dispatches a JICA Advisor on investment promotion in DICA. For this purpose, JICA contracted with Myanmar Survey Research (MSR) as the consultant team, which implemented the Surveyalong with the separately prepared Terms of Reference (TOR). As the deliverable of the Survey, “Myanmar Doing Business Cost Survey Report” has been published as the first report of its kind in Myanmar.
OBJECTIVES The major objectives of this survey are: To collect systematically cost information necessary for existing/potential foreign investors to do business in Myanmar To disseminate doing business cost information for existing/potential foreign investors to utilize their business decision/practice To standardize the survey exercise and internalize it in DICA for periodical and continuous updates for the future
COST ITEMS COVERED IN THIS SURVEY 1 Land, space and building Land --------------------------------Rental space----------------------Building construction -----------2 Human resources Employment -----------------------
Industrial, commercial, residential and others; multiple locations; industrial zones Office space, commercial space, warehouse, residential place, etc. e.g. factory with reinforced concrete structure Minimum wage, basic salary, overtime, typical allowances, social security etc.
12
Human resource development 3 Government Investment process -------------Business establishment --------process Taxation ---------------------------4 Export-Import logistics Customs and clearance --------Export/Import ---------------------Overseas logistics ---------------Cross-border logistics ----------Domestic logistics ---------------Cargo handling cost-------------5 Infrastructure usage Utilities ------------------------------
Telecommunication --------------
(Unskilled workers, skilled workers, engineers, supervisors, managers, etc. Vocational training, business management training etc. Company registration and investment approval (DICA/MIC/SEZ) Governmental obligatory registrations and licenses for business start-up (by labor/immigration offices, line ministries, local governments and designated associations) Corporate tax, commercial tax, withholding tax, stamp duty, income tax etc. Tariff rate, handling fee, documentation, COO etc. Licensing, documentation etc. 20ft container maritime/aviation freight cost with major destinations Land transportation via major borders with neighboring countries Truck, railway, inland water between major cities, toll road fee, etc. Loading/unloading cost, warehouse etc. Electricity, water, sewage, waste treatment, gas, fuel, generator etc.: for each item, installation/initial cost, tariff table, running cost, service fee etc. Mobile phone, landline, internet; subscription, rate for call/SMS/data
6 Business services and others Finance and insurance ---------- Bank account, loan, transfer, saving and other financial services Business services ---------------- Lawyers, accountants, translators/interpreters, business consultants etc. Engineering services ------------ Environment (EIA/IEE), building/fire/electricity inspection, IT etc. Mission costs ---------------------- Hotel room rates, rent-a-car rates, visas etc. Foreigner’s living cost ----------- Accommodations, commodities, medical and education costs, vehicles, etc.
Places of study Yangon
To be surveyed most as the center of business
Bago
Considered to be extension of Yangon business area
Thilawa
As the Myanmar’s the only one operational SEZ
Mandalay
As one of the two polar cities and the second largest business center
Taunggyi
To be utilized in Shan State Investment Fair to be held in Feb. 2017
Dawei
Southern Myanmar where DICA branch is located
13
RESEARCH METHODOLOGY The survey has been conducted with the methods mentioned below. 1 Desk study method (secondary data and information) 2 In-depth interview method (primary data and information
Desk study method MSR has its own databank, and the MSR survey team conducted desk study prior to and during field visits. The study covered secondary data gleaned from records at MSR data bank, Statistical Yearbooks issued by the Central Statistical Organization (CSO), and documents issued by the government departments. MSR databank has stored data and information, especially on market, FDI, economy and politics of the country, gleaned by monitoring the media, for the last 20 years. Secondary data are also retrieved from established websites and the data and information so obtain are later confirmed with the respective government department/ministry or association.
In-depth interview method (IDI) In-depth Interviews (IDIs) were conducted with related institutions, organizations and individuals in Yangon and five other places. The questionnaires (checklists of information) were developed in accordance with the data and information requirements mentionedin the “Cost items covered in this survey.”
Limitations of survey This survey report is intended to be a means of guide and aid to potential foreign investors in Myanmar and not a book containing comprehensive information. However, as we had to cover a diversity of topics, we were limited by time. Actually, a chapter is equal to a research project which normally takes about one and a half months, and we had exerted efforts to be able to complete it within the four-month period (from September to December 2016). It was not always smooth in acquiring data and information—which are appropriate to the report— as the cooperation of the respondents played a great role in the accomplishment of this task.
SURVEY PERIOD The implementation of this survey project started in September, 2016 and was continued until December 2016.
14
1 |LaND, SPaCE aND BUILDING The listed land and space properties are just samples at the timing of the survey. 1 square-foot = 0.092903 square-meter
1.1 LAND LEASE 4
1.1.1 Industrial land lease in Yangon Sr 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
4
Industrial Zone (IZ)
Township
Area (Sq-ft)
2
3
4
Hlaingtharyar IZ Hlaingtharyar IZ Hlaingtharyar IZ Hlaingtharyar IZ Hlaingtharyar IZ Hlaingtharyar IZ Shwe Linban IZ Shwe Linban IZ Shwe Linban IZ Dagon Seikkan IZ Dagon Seikkan IZ Dagon Seikkan IZ East Dagon IZ East Dagon IZ East Dagon IZ Shwe Thanlwin IZ North Okkalapa IZ North Okkalapa IZ North Okkalapa IZ North Okkalapa IZ Thaketa IZ Thaketa IZ Thaketa IZ Shwepyitha IZ Shwepyitha IZ Wartayar IZ — South Dagon IZ South Okkalapa IZ Thilawa zone
Hlaingtharyar Hlaingtharyar Hlaingtharyar Hlaingtharyar Hlaingtharyar Hlaingtharyar Hlaingtharyar Hlaingtharyar Hlaingtharyar Dagon Seikkan Dagon Seikkan Dagon Seikkan East Dagon East Dagon East Dagon Hlaingtharyar North Okkalapa North Okkalapa North Okkalapa North Okkalapa Thaketa Thaketa Thaketa Shwepyitha Shwepyitha Shwepyitha Hmawbi South Dagon South Okkalapa Thanlyin
50,000 65,000 64,800 10,000 87,120 43,560 34,348 43,560 130,680 55,300 81,457 108,900 43,560 11,250 43,560 74,052 7,200 30,800 50,000 15,000 34,348 2,400 21,780 4,000 12,000 217,800 392,040 87,120 7,500 108,900
https://www.shweproperty.com/
15
Package price per month (MMK) 5
Price per square-foot (MMK) 6 (=5/4)
17,000,000 18,000,000 16,000,000 2,200,000 18,000,000 2,000,000 5,000,000 6,000,000 13,000,000 20,000,000 15,000,000 15,000,000 8,000,000 4,000,000 2,000,000 20,000,000 3,000,000 5,000,000 12,000,000 5,000,000 5,000,000 2,000,000 9,000,000 2,000,000 4,000,000 17,000,000 16,000,000 12,000,000 4,000,000 18,000,000
340 280 250 220 210 100 150 140 100 360 180 140 180 360 50 140 330 160 240 330 280 830 410 150 330 80 40 340 530 170
1.1.2Commercial land lease in Yangon5 Location
Township
Area (Sq-ft)
2
3
4
3 Street Shwegondaing Road Waizayatar Road Pyay Road Bayintnaung Road Moe Gaung Street Laydauntkan Road Thanthumar Road Than Thu mar Road Parami Road Aye-yar-won Road Lan Thit Road Kan Road Shwe Taunggyar Pyay Road
Mingaladon Bahan South Okkalapa Dagon Mayangon Tamwe Yankin Thingangyun South Okkalapa Bahan South Okkalapa Mayangon Thaketa Insein Hlaing Bahan Mingaladon
Sr 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
rd
Package priceper month (MMK in millions) 5
407 11000 3600 9000 7500 4050 8000 10115 2700 13200 3600 15640 7200 12000 9800 7040 47250
3 25 6 14.5 12 6 8 10 2.5 12 3 12 4.5 7.5 6 4 5
Price per square-foot (MMK) 6 (=5/4) 7,400 2,300 1,700 1,600 1,600 1,480 1,000 990 930 910 830 770 630 625 610 570 110
1.1.3 Residential land lease in Yangon (No rental exists for residential land.)
1.1.4 Bago Industrial Zone6 Bago Industrial Zone is currently separated into 2 parts—Foreign Industrial Zone and Local Industrial Zone. All the land plots in these industrial zones are sold out at MMK 40 million per acre. However, the new Regional Government has a plan to take back the land plots which are not operated by the owners. After that, the Bago Regional Government will rent these land plots again. According to the chief minister, the leasing price by Bago Regional Government has not yet been set.
Land lease in Bago Bago Industrial Zone7 Location Foreign Industrial Zone Local Industrial Zone Near Industrial Zone
5
Unit Acre/year Acre/year Acre/year
lbid
6
U Win Thein, Minister, Bago Region Government U Thein Zaw, Real Estate agent, Bago
7
16
Price (USD) 10,000 – 15,000 10,000 – 15,000 10,000 – 15,000
1.1.5 Land lease in Mandalay8 Location
Unit
Industrial zone 1, 63rd Street Industrial zone 1 Industrial zone 1 Industrial zone 1 Industrial zone 1 Industrial zone 1 Industrial zone 2 Industrial zone 2
100-ft x 100-ft 1.5-acre 1-acre 50-ft x 50-ft 1.5-acre 1-acre 1-acre 1-acre
Monthly rental rate (MMK in million) 10.0 8.00 6.0-8.0 6.0 5.0 18 5.0 2.0
1.1.6 Land lease in Taunggyi9 Location
Unit
—
1-acre
Price (MMK in millions) 0.2
Government land lease Department of Urban and Housing Development (DUHD)10 The main cost from Department of Urban and Housing Development DUHD) is land lease fee. DUHD rents land at USD 5 – 7 per square meter per year. However, the lands owned by DUHD have already occupied. Therefore, investors need to rent from the private sector. The fee of lands rented by private is USD 8-15 per square meter per year. Property tax is collected by respective City Development Committee. The estimated tax for a factory is USD 10,000 per year. In Mingaladon Industrial Park, DUHD collects USD 0.345 per square meter per year for land tax. In MIP, management fee is collected at USD 0.4 per square meter per year. In Hlaingtharyar IZ, Shwepyitha IZ, Anawrahta IZ, Mya Sein Yaung IZ, DUHD collects MMK 2,000 – 3,000 per square meter per year as land tax to local business owners. Currently, DUHD does not collect land tax from Thilawa SEZ. But in future, DUHD will collect USD 0.1 – 0.3 per square meter per year for local government’s fund.
1.2SPACEFOR LEASE 11
1.2.1 Office space for lease in Yangon Sr
Location
Township
Area (Sq-ft)
1
2
3
4
8
Package price per month (MMK) 5
U Khin Maung Hla, President, Industry Zone Supervisory Committee U Myint Kyi, President, Industry Supervisory Committee, Ayethayar Industrial Zone 10 Daw Moe Thida, Deputy Director, Department of Urban and Housing Development 11 Zaygwet Journal, No 988, Nov 17, 2016; Ahkyosaung Journal, No 905, Dec 1, 2016 9
17
Price per square-foot (MMK) 6 (=5/4)
Lower Kyimyindaing
1 Street 2 Strand Road 3 U Chit Maung Street 4 Thitsar Street 5 Kaba Aye Street 6 Yuzana Tower 7 Kan Street 6½ miles 8 Olympic tower 9 Pyay Street 10 FMI 11 Sea Green Tower 12 Shwe Hinthar Street
Kyimyindaing
1,000
5,500,000
5,500
Lanmadaw Tamwe South Okkalapa Mayangon Bahan Hlaing Kyauktada Kamayut Hlaingthayar Botahtaung Hlaing
1,575 2,400 1,200 2,400 3,000 1,170 1,780 4,200 2,400 2,000 4,900
6,000,000 8,500,000 2,500,000 3,500,000 2,000,000 850,000 1,100,000 2,500,000 1,500,000 1,000,000 1,500,000
3,800 3,500 2,000 1,400 700 700 600 600 600 500 300
Package price per month (MMK) 5 5,000,000 3,500,000 7,000,000 5,000,000 14,000,000 2,000,000 4,000,000 1,500,000 5,000,000 2,000,000 8,000,000 10,000,000 2,000,000 7,500,000 4,000,000 1,300,000
Price per square-foot (MMK) 6 (=5/4)
Package price (MMK in millions) 5 3,000,000 5,000,000 6,500,000 11,000,000 4,500,000 6,000,000 1,200,000 2,000,000
Price per square-foot (MMK) 6 (=5/4)
1.2.2Commercial space for lease in Yangon12 Township
Area (Sq-ft)
2
3
4
Strand (Kanna) Road Thanthumar Street Pyay Road — Saya San Street Hledan Street — Yaw Mingyi Street Waizayantar Street Ledauntkan Street 8 miles, Pyay Road Ledauntkan Street Ledauntkan Street Parami Street Bayintnaung Street Shu Khin Thar Street
Kyimyindaing South Okkalapa Hlaing South Okkalapa Yankin Kamayut South Okkalapa Dagon Thingangyun Thingangyun Mayangon Thingangyun Thingangyun Hlaing Bayintnaung Thaketa
Sr
Location
1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1200 1200 3375 2600 7500 1080 2400 900 3600 1500 6400 7500 1820 8000 8800 4000
4,200 2,900 2,000 1,900 1,900 1,800 1,700 1,700 1,400 1,300 1,300 1,300 1,000 900 500 300
1.2.3 Warehouse for lease in Yangon13 Sr 1 1 2 3 4 5 6 7 8 12 13
Location (Industrial Zones) 2 Shwepyitha IZ Shwe Paukkan IZ Shwepyitha IZ Mingaladon IZ Mingaladon IZ Mingaladon IZ Shwe Paukkan IZ Hlaingtharyar IZ
Township
Area (Sq-ft)
3
4
Shwepyitha Shwe Paukkan Shwepyitha Mingaladon Mingaladon Mingaladon Shwe Paukkan Hlaingtharyar
3,200 8,100 14,400 21,600 8,400 11,200 2,400 4,800
lbid Ibid
18
900 600 500 500 500 500 500 400
9 10 11 12 13 14 15
Hlaingtharyar IZ Shwepyitha IZ Hlaingtharyar IZ Shwepyitha IZ Shwepyitha IZ East Dagon IZ South Dagon IZ
Hlaingtharyar Shwepyitha Hlaingtharyar Shwepyitha Shwepyitha East Dagon South Dagon
2,500,000 2,500,000 3,000,000 3,000,000 3,000,000 5,500,000 1,000,000
6,300 6400 9,600 9,000 10,000 20,700 4,800
400 400 300 300 300 300 200
1.2.4 Residential place for lease in Yangon14 Sr
Location
Condominiums — 1 C — 2 C — 3 C — 4 C — 5 C — 6 C — 7 C Apartments 8 A Parami Street 9 A Manawhari Yeiktha 10 A Yaw Mingyi Street 11 A — 12 A Strand Road Stand-alone units 13 S Phonegyi Street 14 S Pyay Road 15 S Tekkatho Yeikmon Housing 16 S Thukhawady Street 17 S Inya Myaing Street 18 S Dhamma Zedi Street 19 S Kanbawza Yeiktha Street 20 S Pyay Road 21 S Pho Sein Street
Township
Area (Sq-ft)
Package price/per month (MMK)
Price per squarefoot (MMK)
Mayangon Bahan Dagon Bahan Mayangon Bahan Mayangon
1450 1250 1700 1250 2200 1800 1500
2,000,000 1,700,000 2,100,000 1,500,000 2,500,000 1,700,000 1,200,000
1,400 1,400 1,200 1,200 1,100 900 800
Yankin Ahlone Dagon Hlaing Botahtaung
1300 800 900 1000 1000
2,000,000 600,000 750,000 600,000 450,000
1,500 800 800 600 500
Lanmadaw Kamayut Bahan Yankin Bahan Bahan Bahan Bahan Bahan
1,250 2,800 3,600 7,200 3,500 3,000 4,200 10,000 10,000
5,000,000 6,000,000 4,000,000 7,500,000 3,000,000 2,500,000 3,000,000 5,500,000 4,500,000
4,000 2,000 1,100 1,000 900 800 700 600 500
1.2.5 Office and commercial space for lease in Bago15 New City and Old City Location
Unit
Downtown space Space off highway Space off main roads downtown Space downtown (1 storey)
14 15
40-ft x 80-ft 40-ft x 80-ft 40-ft x 60-ft 40-ft x 60-ft
Ibid
U Thein Zaw, Real Estate agent, Bago
19
Price (MMK in millions) 2 1 0.6 0.3
1.2.6 Warehouse for lease in Mandalay16 Location
Unit
— — —
40-ft x 60-ft 50-ft x 50-ft 40-ft x 60-ft 40-ft x 60-ft 40-ft x 60-ft 50-ft x 50-ft
Industrial zone 1 Industrial zone 1 Industrial zone 1
Monthly rental rate (MMK in million) 1.50 6.00 18.0 1.50 18.0 6.0
1.2.7 Office space for lease in Mandalay17 Location
Unit
In front of Diamond Plaza, Chanayethazan Township
40-ft x 60-ft
73rd Street, between 35th Street and 36th Street, Mahaaungmyae Township 73rd Street, between 33rd Street and 34th Street, Chanayethazan Township Aungmyaethazan Township 80th Street, East Amarahtani, Aungmyaethazan Township, Manawhari Street, Chanmyathasi Township —
30-ft x 70-ft 3-storey building 27-ft x 70-ft 3-storey building 2-storey building
Monthly rental rate (MMK in million) 5.00 3.00 2.50 2.00 1.50
40-ft x 60-ft 20-ft x 30-ft
1.20 1.00
1.2.8 Commercial space for lease in Mandalay18 Location
Unit
Man Myanmar plaza 2nd floor Man Myanmar plaza 3rd floor Diamond plaza ground floor Diamond plaza 1st floor Diamond plaza 2nd floor Diamond plaza 3rd floor Diamond plaza 4thfloor Diamond plaza 5thfloor
1 sq-ft 1 sq-ft 1 sq-ft 1 sq-ft 1 sq-ft 1 sq-ft 1 sq-ft 1 sq-ft
Monthly rental rate (MMK) 800 600 6,500 3,000-5,000 3,000-5,000 2,000-3,000 1,800-2,500 1,500-2,000
1.2.9 Residential space forlease in Mandalay19 Location
Unit
16
Monthly rental rate (MMK in million)
(1) U Khin Maung Hla, President, Industry Zone Supervisory Committee (2) MMM Real Estate Agency, Shwe Mandalay Real Estate Agency 17 MMM Real Estate Agency 18 U Than Win, President, Man Myanmar Plaza 19 U Khin Maung Than, Advocate, High Court, Daw Cho Zar Win, Sales Manager, MMM Real Estate Agency, U Nay Lin Aung, Owner, Shwe Mandalay Real Estate Agency
20
Myothit, Chanmyathasi Township Near Zaycho Market Corner of 69th Street and 38th Street 21st Street, between 87th Street and 86th Street Aungmyaethazan Township, corner of 88th Street and 14th Street
40-ft x 60-ft 30-ft x 70-ft 30-ft x 100-ft -
0.85 5.00 1.50 0.70-0.9.0
2-storey building
1.00
40-ft x 40-ft 20-ft x 30-ft
2.00 1.00
— —
1.2.10 Warehouse for lease in Taunggyi20 Location
Unit
Ayethayar Industrial Zone Ayethayar Industrial Zone Ayethayar Industrial Zone
210-ft x 52-ft 130-ft x 40-ft 125-ft x 40-ft
Price (MMK in millions) 2 1 0.6
1.2.11 Office space for lease in Taunggyi21 Location
Unit
Taunggyi Township Near BEHS 1, Thittaw Ward West Myopat Street
1sq-ft 40-ft x 30-ft 13-ft x 40-ft 10-ft x 25-ft
Price (MMK in millions) 0.087 3.5 0.7 0.5
1.2.12 Commercial space for lease in Taunggyi22 Location
Unit
Price (MMK in millions)
40-ft x 30-ft 20-ft x 30-ft
West Myopat Street
2
1.2.13 Residential space for lease in Taunggyi23 Location
Unit
Taunggyi Township Pinsin Shwethahtaykone Ward Yayayekwin Ward
2-storey building 2-storey building 2-storey building
Price (MMK in millions) 1-2 0.5 1-1.5
1.2.14 Office for lease in Dawei24 Location 20 21 22 23
24
Unit 20-ft x 40-ft 1 storey building 20-ft x 40-ft 2 storey building
Monthly rental rate (MMK in million) 0.60 0.50-2.00
President, Industry Supervisory Committee Myoma Tower Condominium, Daw Naw Zar Myint, Dr Sai Aung Kyaw, President, Real Estate Agent Dr Sai Aung Kyaw, President, Real Estate Agent Dr Sai Aung Kyaw, President, Real Estate Agent
U Soe Thein, Secretary of Industrial Supervisory Committee, Dawei
21
1.2.15 Commercial space forlease in Dawei25 Location
Monthly rental rate (MMK in million) 0.12-0.14
Unit
‘Gold Coast’ high-rise condo
1 sq-ft
1.2.16 Warehouse lease in Dawei26 Location
Unit
Remote area
40-ft x 90-ft
Monthly rental rate (MMK in million) 1.5
1.3 CONDOMINIUM27 Analysis of set condo prices in Yangon28 MSR has a detailed list of township-wise condo prices set by the Condo Prices Scrutiny and Setting Committee(CPSSC) (2015) for the purpose of taxation. In the following table, the highest to the lowest condo prices—shown against respective townships—are extracted from the detailed list, and in the next table, the detailed prices are represented by three levels—mode, minimum and maximum. Highest to lowest set prices (for taxation) Condo prices vary, depending on the location and internal space. The following is an extraction from the detailed list of condo prices set by the CPSSC for taxation in 2015. Price per square-foot in MMK
Botataung Dagon Hlaing Tamwe Ahlon Lanmadaw Yankin
400,000 360,902 350,000 304,762 300,000 280,000 272,727
Sanchaung Thanlyin Pabedan Mayangon Bahan Kamayut Kyimyindaing
266,667 265,193 260,000 257,353 250,000 233,333 212,766
Mingala Taungnyunt Pazundaung Thingangyun Latha Thaketa Insein
211,111 205,882 200,000 196,429 142,857 125,858
Mostly prices per sq-ft are highest in the first-class areas. The second-rate condos are in the second-class areas. Although downtown townships are not in the first-class area, the condos in them are not rated low because of their locations in the hub. Prices set by Condo Price Scrutiny and Setting Committee for taxation (2015) Township
Mode
Minimum
Maximum
Location
PRICE PER SQ-FT IN MMK 25 26 27
Ibid Ibid
The Condominium Law, which partially allows foreigners to own property, was enacted on 22 January 2016, however, it has not been effective in reality as its rules and regulations have not been prepared yet. Therefore, prices presented in this section are just for reference. 28 Condo Prices Scrutiny and Setting Committee
22
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Pazundaung Botataung Kyauktada Pabedan Latha Lanmadaw Ahlone Kyimyindaing Mingala Taungnyunt Tamwe Thingangyun South Okkalapa Insein Mayangon Hlaing Yankin Kamayut Bahan Sanchaung Dagon
250,000 250,000 300,000 300,000 300,000 250,000 250,000 250,000 175,000 250,000 150,000 150,000 150,000 250,000 100,000 150,000 330,000 330,000 250,000 330,000
90,000 150,000 200,000 175,000 175,000 175,000 65,000 65,000 50,000 55,000 40,000 60,000 35,000 50,000 80,000 90,000 75,000 180,000 60,000 180,000
300,000 300,000 300,000 300,000 300,000 300,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
Downtown townships
Suburban townships
High-class townships
According to the above table, the CPSSC has grouped the townships in the Yangon City into three—downtown, high-class and suburban.
23
1.4 LAND SALES The following land prices for sale are only for reference as foreigners are not yet allowed to buy properties.
1.4.1 Industrial landfor sale in Yangon29 Industrial land prices vary depending on location. Even within an industrial zone, there are different prices. Sr 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Industrial Zone (IZ) 2 Hlaingtharyar IZ Hlaingtharyar IZ Hlaingtharyar IZ Hlaingtharyar IZ South Dagon IZ South Dagon IZ South Dagon IZ South Dagon IZ South Dagon IZ South Dagon IZ South Dagon IZ Dagon Seikkan IZ Dagon Seikkan IZ Dagon Seikkan IZ Shwe Paukkan IZ North OkkalapaIZ MingaladonIZ Shwe Linban IZ Shwepyitha IZ Shwe Thanlwin IZ
Township
Area (Sq-ft)
3
4
Hlaingtharyar Hlaingtharyar Hlaingtharyar Hlaingtharyar South Dagon South Dagon South Dagon South Dagon South Dagon South Dagon South Dagon Dagon Seikkan Dagon Seikkan Dagon Seikkan Shwepaukkan North Okkalapa Mingaladon Hlaingtharyar Shwepyitha Hlaingtharyar
47,916 76,230 50,965 43,560 2,800 2,400 4,800 28,314 21,600 4,800 174,240 87,120 43,560 108,900 4,800 13,200 87,120 87,120 254,826 98,010
Package price (MMK in millions) 5
Price per square-foot (MMK) 6 (=5/4)
1,500 1,800 1,200 1,000 250 150 250 1,400 950 180 1,200 2,200 750 1,000 310 600 1,700 1,600 3,500 1,360
31,300 23,600 23,600 23,000 90,000 62,500 52,000 50,000 44,000 37,500 6,900 25,000 17,200 9,200 65,000 46,000 20,000 18,400 14,000 13,880
1.4.2Commercial land for sale in Yangon30 Sr 1 1 2 3 4 5 6
Location 2 Near Maha Bandoola Bridge th Marlar Myaing 8 Street nd Marlar Myaing 2 Street Bogon, Tharyar Street Inya Road Inya Road
Township
Area (Sq-ft)
3
4
Dawbon Hlaing Hlaing Insein Kamayut Kamayut
29 30
https://www.shweproperty.com/ Ibid
24
Package price (MMK in millions) 5
Price per square-foot (MMK) 6 (=5/4)
1,250
160
128,000
1,250 1,250 1,800 4,050 5,000
350 280 75 3700 1,900
280,000 224,000 42,000 914,000 380,000
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Shwe Taunggyar Nyaungbin Road Kanna (Strand) Road Near Capital Hyper Mart Thukhita Road Thudamma Road Makyikyi Street — Thanthuma Road Waizayanta Road Near Waizayanta Road rd South Okkala 3 Ward Arrkatha Street Near Waizayanta Road and Parami Road Myindawtha Road th 16 Ward Thuwunna Kyaukkon Myintzu Street
Kamayut Kyimyindaing Kyimyindaing North Dagon North Okkalapa North Okkalapa Sanchaung Sanchaung South Dagon South Okkalapa South Okkalapa South Okkalapa South Okkalapa South Okkalapa
6,011 1,250 1,000 2,400 2,400 1,200 1,600 1,500 2,400 2,880 2,880 2,400 2,400
1,900 400 800 300 290 280 600 950 900 780 680 550 260
316,000 320,000 800,000 125,000 121,000 233,000 375,000 633,000 375,000 271,000 236,000 230,000 108,300
1,200
120
100,000
Thaketa Thingangyun Thingangyun Yankin Yankin
2,400 1,800 2,520 2,875 3,710
530 400 480 1,300 870
221,000 222,000 190,000 452,000 235,000
1.4.3 Residential land for sale in Yangon31 Residential land for sale is available more in suburban townships than in downtown and high-class areas.
31
Sr
Location
Township
Area (Sq-ft)
1 1 2 3 4 5 6 7 8 9 10 11 12 13 14
2
3
4
Parami Yeiktha Malikha Housing Saw Maha Street Zanila Road — Mya Khwar Nyo Housing Bo Min Yaung Street Pinlon Street U Ngwe Gaing Street U TunMyint Road Yadana Housing Bayint Naung Road Taw Win Housing Yadana Road
Yankin Thingangyun Bahan Thingangyun North Okkalapa Thaketa East Dagon North Dagon North Dagon North Dagon East Dagon North Dagon East Dagon South Dagon
Ibid
25
3,600 2,160 2,700 2,500 1,200 6,400 2,400 2,400 2,400 2,400 10,000 2,400 10,000 1,200
Package price (MMK in millions) 5 700 320 400 260 120 600 200 180 160 150 500 120 320 35
Price per square-foot (MMK) 6 (=5/4) 194,000 148,000 148,000 104,000 100,000 93,750 83,000 75,000 67,000 62,500 50,000 50,000 32,000 29,200
1.4.4 Land prices for sale in Bago32 Bago Industrial Zone Location
Unit
Foreign Industrial Zone Local Industrial Zone
Acre Acre
Price (MMK in millions) 180 150
New City (Oktha Myothit) Location Land off highway Land off main roads downtown Downtown
Unit 40-ft x 80-ft 40-ft x 60-ft 40-ft x 60-ft
Price (MMK in millions) 350 100 – 150 30 – 50
Old City (Bago Myohaung) Location
Unit
Land near Myoma Market downtown Land off highway Land off main roads downtown Downtown
40-ft x 80-ft 40-ft x 80-ft 40-ft x 60-ft 40-ft x 60-ft
Price (MMK in millions) 1,500 700 100 – 150 50 – 70
1.4.5 Land prices for sale in Mandalay33 Location
Unit
Corner of 62nd Street and Manawhari Street, Chanmyaethasi Township 26th Street, between 80th Street and 86th Street, Chanayethasan Township Aungmyaethasan Township 12nd Street, Aungmyaethasan Township 32 33
40-ft x 60-ft 30-ft x 70-ft with building 40-ft x 60-ft 40-ft x 60-ft
Price (MMK in millions) 1,000 2,500 50-100 400-500
U Thein Zaw, Real Estate agent, Bago U Khin Maung Than, Advocate and U Khin Maung Hla, President, Industry Zone Supervisory Committee
26
Industrial zone 2 Industrial zone 1 Industrial zone 3 Industrial zone 1 Industrial zone 1 Ngwekyitaw Ward, 68th Street Corner of Manawhari Street, Chanmyathasi Township 26th Street, between 80th Street and 86th Street, Chanayethasan Township Aungmyaythasan Township 12th Street, Aungmyaythasan Township In front of Arrkasartheikpan In front of Arrkasartheikpan In front of Arrkasartheikpan
1-acre 1-acre 1-acre 1-acre 1-acre 60-ft x 160-ft
2,000 12,00 650-850 800 500 400
40-ft x 60-ft
100
30-ft x 70-ft
2,500
40-ft x 60-ft 40-ft x 60-ft 40-ft x 60-ft 40-ft x 60-ft 40-ft x 60-ft 40-ft x 60-ft
50-100 400-500 115 30 25 20
1.4.6 Land prices for sale in Taunggyi34 Location
Unit
Infront of Arrkasartheikpan Infront of Arrkasartheikpan Infront of Arrkasartheikpan Near Heho Airport Near Heho Airport Hopon Township Near Inle hotel Kyauktalone Street, Taunggyi Township Nyaung Shwe Township Taunggyi Township Between East Myopat Street and West Myopat Street Ayethayar Industrial Zone, Taunggyi Township Ayethayar Industrial Zone, Taunggyi Township —
40-ft x 60-ft 40-ft x 60-ft 40-ft x 60-ft 1-acre 40-ft x 60-ft 1-acre 1-acre 1-acre 1-acre 1 sq-ft 1 sq-ft
Price (MMK in millions) 30 25 20 250 10 5.0 100 20-30 30-50 0.3 0.2
1 sq-ft
0.1-0.2
40-ft x 60-ft 1-acre 1-acre
15-50 150 1500
1.4.7 Industrial land price in Dawei35 Location
Unit
Kamyawkin Street, Dawei Myothit Ward Arzarni Street
1-ft x 60-ft 1-ft x 60-ft
Price (MMK in million) 5.00 1.50
1.4.8 Commercial land price in Dawei36 Location
Unit
Remote area 34
35 36
1 acre
Price (MMK in million) 300
Dr Sai Aung Kyaw, President, Real Estate Agent Association, Taunggyi, U Myint Kyi, President, Industry Supervisory Committee
U Soe Thein, Secretary of Industrial Supervisory Committee, Dawei lbid
27
Maungmagan Beach
1 acre
100
1.4.9 Residential land price in Dawei37 Location
Unit
—
1-ft x 60-ft
Price (MMK in million) 10-30
1.5 SPACE FOR SALES Foreigners are not yet allowed to buy properties but the following prices are just for reference.
Office space for sales in Yangon38 Sr
Location
1 1 2 3 4 5 6 7 8 9 10
2 Min Dhamma Street (Address NA) (Address NA) (Address NA) (Address NA) (Address NA) (Address NA) (Address NA) (Address NA) (Address NA)
Township
Area (Sq-ft)
3 Mayangon Hlaing Hlaing Lanmadaw Bahan Mayangon Mayangon Ahlone Bahan Sanchaung
4 2,400 3,800 2,400 2,480 3,200 2,300 4,600 3,000 3,600 2,250
NA: Not available
Office space sales
37 38
lbid https://www.shweproperty.com/
28
Package price (MMK in millions) 5 550 800 480 500 650 400 800 500 590 360
Price per square-foot (MMK) 6 (=5/4) 230,000 210,000 200,000 200,000 200,000 170,000 170,000 170,000 160,000 160,000
Commercial space for opening shopsfor salein Yangon39
3,000 1,240 7,700 1,716
Package price (MMK in millions) 5 3,000 750 4,500 900
800
350
440,000
540 1,000 810
230 300 200
430,000 300,000 250,000
Sr
Location
Township
Area (Sq-ft)
1 1 2 3 4
2
3
4
5 6 7 8
Bayint Naung Street Laydauntkan Street Parami Street Kaba Aye Street Kamayut Railway Station Bo Thura Street Kyaikkasan Street Bo Thura Street
Mayangon Thingangyun South Okkalapa Mayangon Hlaing Kyimyindaing Thingangyun Kyimyindaing
Price per square-foot (MMK) 6 (=5/4) 1,000,000 600,000 580,000 520,000
Shop space sales
Warehouse for sale in Yangon40 Sr 1 1 2 3 4 5 6 39 40
Location (Industrial Zones)
Township
Area (Sq-ft)
2
3
4
Mingaladon Hlaingtharyar Shwepyitha Hlaingtharyar Hlaingtharyar Dagon Seikkan
16,000 25,000 7,000 16,000 7,000 20,000
Mingaladon Hlaingtharyar Shwepyitha Hlaingthayar Hlaingthayar Dagon Seikkan
Ibid Ibid
29
Package price (MMK in millions) 5 2,000 1,600 400 850 300 750
Price per square-foot (MMK) 6 (=5/4) 125,000 64,000 57,000 53,000 43,000 38,000
7 Dagon Seikkan 8 East Dagon
Dagon Seikkan East Dagon
800 290
25,000 11,250
32,000 26,000
Warehouse sales
Residential place for sale in Yangon41 Sr
Location
Condominiums 1 C Bo Yar Nyunt Street — 2 C — 3 C 4 C Hlaing Street 5 C Hlaing Street — 6 C — 7 C Apartments 8 A Shwegondaing Street 9 A Near Shwedagon Pagoda 10 A Baho Street 11 A Sanchaung Street 12 A — 13 A — 14 A — 15 A U Nyo Street Stand-alone units — 16 S — 17 S 18 S Inya lane 19 S Natmauk Lane 20 S Thanlwin lane 21 S Thanlwin Street 41
Area (Sq-ft)
Package price (MMK in millions)
Price per square-foot (MMK)
Dagon Dagon Sanchaung Hlaing Hlaing Thingangyun Sanchaung
1,500 1,500 1,190 1,350 1,450 1,600 1,200
380 300 220 210 215 160 95
250,000 200,000 180,000 160,000 150,000 100,000 79,000
Bahan Bahan Sanchaung Sanchaung Tamwe Tamwe Tamwe Sanchaung
810 687 1,500 900 1,000 900 750 864
800 150 200 110 70 60 40 41
990,000 220,000 130,000 120,000 70,000 67,000 50,000 47,000
North Okkalapa North Okkalapa Kamayut Bahan Kamayut Bahan
1,200 1,200 3,200 8,000 5,500 7,370
700 650 1,500 3,200 1,950 2,500
580,000 540,000 470,000 400,000 350,000 340,000
Township
Ibid
30
S S S S S S S S S S S S
22 23 24 25
26 27 28 29 30 31 32 33
— Inya Myaing Lane — Kan Yeiktha Street Tharthana Yeiktha Street — — — Opposite Inya Lake — Bauk Htaw Hlaingtharyar FMI
North Okkalapa Bahan Yankin Hlaing Bahan Hlaing Bahan Bahan Hlaing North Dagon Yankin Hlaingthayar
`
1,200 5,400 2,400 3,640 2,500 2,800 1,250 3,500 3,790 2,400 9,000 4,900
400 1,650 700 1,000 650 700 300 750 700 380 1,000 380
330,000 310,000 290,000 270,000 260,000 250,000 240,000 200,000 180,000 160,000 100,000 78,000
`
1.6CONSTRUCTION COSTS42 For engineering and construction services, the following costs will be charged generally:
Cost for a basic structure (Yangon) (Not including machines, interior fixings and furnishings) USD Factory with steel structure (average size) Factory with reinforced concrete (average size) Finishing process such as tile flooring and wooden ceiling (extra cost)
20,000 – 25,000 30,000 15,000
NOTE: Whether the building is a steel structure or a reinforced concrete structure, there will be an extra cost—estimated at USD 15,000—if the person wishes to use tile flooring and wooden ceiling.
Consultation of construction projects For consultation services, the following costs will be charged generally: For consultation service such as preliminary work, architecture, drawing and calculation of estimated cost
5 – 8 % of project cost
Third party QC service
2 % of project cost
For training services, MES charges MMK 70,000 for teaching all engineering subjects. In other private teaching schools, it costs about MMK 200,000 for a student.
Prices of major construction materials The following prices, obtained from the Myanmar Engineering Society in December 2016, are subject to change: Sr
Material 1 2 3
42
Cement Reinforcing steel bar Structural steel
Unit
Price (USD)
Ton Ton Ton
87.36 370.97 443.55
U Kyi Lwin, CEC member, Myanmar Engineering Society
31
Remark 1 ton = 1,000 kg, 1 bag = 50 kg
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Sr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Angle steel U steel Steel plate H-section steel Plywood Timber single door Timber double door Steel single door Steel double door Aluminium door Glass single door Glass double door Steel louver Aluminium louver Timber ceiling Timber flooring Steel balustrade Basin Carpet
Ton Ton Ton Ton 3 m 2 m 2 m 2 m 2 m 2 m 2 m 2 m 2 m 2 m 2 m 2 m m Nos 2 m
Material
Unit
Sand Gravel Low-quality timber Brick Broken brick 6-in x 9-in boulder Binding wire Nail Wire mesh Teak beating Safety net Lime Bamboo Sand paper Binding agent Welding rod Steel brush Paint brush Paint roller
m 3 m Ton piece 3 m 3 m kg ton m m 2 m Bag Nos Doz Ton Ton Nos Nos Nos
3
443.55 443.55 524.19 486.29 9.29 195.16 195.16 282.88 282.88 170.11 264.42 264.42 254.59 153.09 16.13 20.50 99.71 38.10 27.05
Price (MMK) 12,400 35,300 700,000 120 13,500 46,000 1,544 1,867,000 500 1,000 3,200 2,000 3,000 12,000 456,000 3,000,000 500 600 1,500
Remark
(37mm x 37mm)
Myanmar Engineering Society (MES) Myanmar Engineering Society is a non-profit organization founded for the development of engineering and construction sector. MES is providing engineering services, construction services, consultation services and training services.
32
2 | HUMaN rESOUrCE 2.1 EMPLOYMENT 2.1.1 Wages43 Salaries in Myanmar are paid in Myanmar kyat (MMK) or United States dollar (USD). However,92% of locally owned companies, 93%of local-foreign joint ventures, and 79 %of foreign owned companies pay in MMK.
Currencies paid for salary in Myanmar Company payment MMK pay USD pay MMK & USD pay
Local companies
Local-foreign JVs
92% 1%
90% 3%
7%
7%
Wholly foreign owned companies 79% 17% 4%
MSR gathered salary data from 235 companies in 13 industries and the data are analyzed into minimum, median and maximum levels. In this report, (1) overall analysis of the 13 industries (MMK payment), (2) overall analysis of the USD-pay companies (USD payment), and (3) analyses of five industries—manufacturing, trading, engineering, construction and sales/marketing companies are mentioned.
MMK payment Sr
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 43
Position/rank (Local staff)
Managing Director Director General Manager Manager Assistant Manager Supervisor Accountant Assistant Accountant Secretary Receptionist Office Staff Sales Staff Driver Security Guard General Worker Cleaner
All the companies Minimum
Median
1,500,000 1,000,000 600,000 375,000 250,000 170,000 220,000 180,000 165,000 150,000 150,000 150,000 160,000 120,000 100,000 90,000
MMK 5,000,000 1,500,000 1,000,000 600,000 400,000 350,000 450,000 250,000 300,000 200,000 200,000 200,000 250,000 140,000 125,000 100,000
Maximum
Minimum
Median
Maximum
9,000,000 5,000,000 2,500,000 1,800,000 1,200,000 730,000 1,000,000 700,000 750,000 350,000 400,000 600,000 450,000 230,000 210,000 180,000
4,000,000 2,000,000 1,200,000 700,000 500,000 300,000 400,000 200,000 250,000 180,000 180,000 200,000 220,000 140,000 120,000 90,000
MMK 7,000,000 3,500,000 1,500,000 1,200,000 700,000 500,000 600,000 400,000 450,000 250,000 300,000 300,000 320,000 180,000 150,000 120,000
9,000,000 5,000,000 2,500,000 1,800,000 1,200,000 730,000 1,000,000 700,000 750,000 350,000 400,000 600,000 450,000 230,000 210,000 180,000
Salary Survey Report 2016, Myanmar Survey Research Company Ltd
33
Top ten companies
Daily wage 17 Unskilled/hard labor
3,500
5,000
MMK per day 8,000 4,500
6,000
8,000
USD payment Sr 1 2 3 4 5 6 7 8 9 10 11 12 13
Position/rank (Local staff) Managing Director Director General Manager Manager Assistant Manager Supervisor Accountant Assistant Accountant Secretary Office Staff Sales Staff Driver General Worker
Companies of payment in USD Minimum Median Maximum USD 3,000 5,000 8,000 2,000 3,000 6,000 1,200 2,200 5,100 750 1,700 4,200 500 880 1,500 400 750 1,200 350 720 1,385 250 500 950 300 553 1,100 200 370 500 150 350 600 200 360 450 100 210 300
Salary payments in five industries Sr
Position/rank (Local staff)
All the companies Minimum
Median
Maximum
Top ten companies MaxiMinimum Median mum
MMK
MMK
Manufacturing companies (other than garment industry) 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Director General Manager Manager Assistant Manager Supervisor Assistant Supervisor Production Worker Accountant Assistant Accountant Secretary Office Staff Driver Security Guard Cleaner
900,000 450,000 350,000 300,000 180,000 150,000 105,000 250,000 165,000 150,000 150,000 150,000 120,000 90,000
1,500,000 700,000 550,000 500,000 300,000 210,000 150,000 350,000 200,000 200,000 200,000 250,000 150,000 105,000
5,000,000 1,500,000 1,200,000 1,000,000 600,000 450,000 250,000 600,000 400,000 400,000 400,000 300,000 200,000 130,000
1,000 500 300 250 200 150 120 225 150 150 150 160 110 100
3,000 800 500 400 300 220 170 300 200 225 200 250 160 150
5,000 2,500 1,500 850 410 350 300 600 350 500 500 500 250 180
1,000,000 600,000 500,000 400,000 250,000 200,000 250,000 220,000 150,000 150,000 150,000 100,000
1,500,000 1,000,000 750,000 500,000 500,000 250,000 300,000 260,000 200,000 200,000 250,000 130,000
3,000,000 2,000,000 1,800,000 1,000,000 1,000,000 350,000 700,000 450,000 450,000 400,000 350,000 180,000
1,000 550 450 350 250 200 250 200 150 130 150 100
2,000 800 700 470 450 250 350 280 200 200 230 150
3,500 2,200 1,700 1,355 1,200 350 600 500 400 400 320 180
Trading companies 1 2 3 4 5 6 7 8 9 10 11 12
Director General Manager Manager Assistant Manager Purchaser Trade & Port Clearance Accountant Assistant Accountant Secretary Office Staff Driver General Worker
34
Engineering companies Engineering staff
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Chief Engineer Engineer Assistant Engineer Heavy Machine Operator Mechanic Technical sales staff Manager Supervisor Sales Representative Administrative staff Finance & Account Manager Accountant Secretary Office Staff Driver General Worker
600,000 300,000 200,000
800,000 500,000 300,000
1,700,000 1,000,000 600,000
700 350 250
1200 600 350
2,200 1,000 600
250,000
350,000
550,000
300
350
600
200,000
300,000
450,000
200
280
400
350,000 250,000 300,000
500,000 350,000 450,000
780,000 500,000 750,000
400 300 350
750 400 480
1,000 600 700
300,000
450,000
600,000
350
600
1,050
250,000 200,000 180,000 180,000 100,000
350,000 250,000 250,000 250,000 135,000
500,000 350,000 350,000 350,000 240,000
250 230 200 180 100
400 300 250 250 150
750 425 350 400 200
750,000 500,000
1,000,000 750,000
2,500,000 1,500,000
400,000
550,000
1,000,000
500 450 400 400 350 350 350 200 180 200 180
1,500 1,300 1,000 500 450 400 400 250 225 250 225
2,300 1,800 1400 1000 800 700 500 400 330 350 330
Construction companies 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9
Director General Manager Deputy General Manager Manager Assistant Manager Architect Civil Engineer Supervisor Accountant Office Staff Store Keeper General Worker Driver Daily wage worker Carpenter Mason In-charge Mason Worker Bar Bender In-charge Bar Bender Worker Electrician In-charge Electrician (Worker) Plumber In-charge Plumber Worker
300,000 270,000 350,000 300,000 250,000 250,000 150,000 180,000 120,000 200,000
500,000 400,000 500,000 450,000 350,000 400,000 220,000 250,000 150,000 300,000 MMK per day 6,000 8,000 6,000 8,000 4,500 6,000 6,000 8,000 4,000 6,000 6,000 7,000 4,000 6,000 5,000 6,500 4,000 5,500
800,000 650,000 800,000 700,000 600,000 600,000 310,000 300,000 180,000 400,000 15,000 13,000 8,000 13,000 8,000 10,000 7,000 7,500 7,000
Sales and marketing companies 1 2 3 4 5 6 7 8 9 10 11
General Manager Factory Manager Admin Manager Marketing Manager Sales Manager Brand Manager Assistant Manager Sales Supervisor Sales Staff Supervisor Assistant Supervisor
500,000 400,000 400,000 350,000 300,000 300,000 300,000 200,000 150,000 170,000 150,000
1,700,000 1,500,000 900,000 450,000 400,000 400,000 400,000 250,000 200,000 250,000 220,000
35
2,200,000 2,000,000 1,500,000 900,000 600,000 500,000 500,000 400,000 300,000 320,000 300,000
12 13 14 15 16 17 18 19 20 21
Accountant Assistant Accountant Cashier Secretary Office Staff Phone Operator and Receptionist General Worker Driver Security Cleaner
200,000 180,000 150,000 160,000 150,000
300,000 220,000 160,000 200,000 180,000
450,000 300,000 200,000 300,000 250,000
200 175 150 200 150
325 250 180 280 200
500 325 250 400 300
150,000
180,000
250,000
150
175
240
125,000 150,000 130,000 120,000
150,000 200,000 150,000 150,000
180,000 350,000 200,000 200,000
120 150 130 130
150 200 170 160
180 400 300 300
Comparison of minimum wages between Myanmar and selected countries The committee concerned has announced a national minimum wage of 3,600 Kyat or USD 3 for 8 working hours per day under Notification No. 1/2015 dated 29 June 2015 effective from 1 September 2015. The company with fewer than 15 employees will be exempted from the wage. The new law applies to all businesses in all sectors. Comparison of minimum wages between Myanmar and selected countries is presented in the following chart:44
Minimum monthly salaries of Myanmar and eight other countries
Median monthly salaries of companies of USD payment (of local staff) Sr
Position
1 2 3 4 5 6 7
General Manager Manager Supervisor Accountant Secretary Office staff Driver
2010 800 500 350 325 250 160 125
2011 800 600 400 400 250 171 150
2012 1,000 700 400 400 300 195 175
2013 1,200 800 450 460 380 220 200
Trend of monthly salaries in USD of local staff 44
www.thanhniennews.com › Business, ThanhNiên, Nov 21, 2015 www.wageindicators.org › Minimum Wages › 28 January 2016
36
2014 1,500 800 450 500 420 300 285
2015 2,000 1,500 600 600 500 350 300
2016 2,000 1,700 750 720 553 370 360
2.1.2 Overtime charges45 Overtime may be carried out by agreement between the employer and employees in accordance with the provisions of the law. Any implementation of a constant overtime policy requires permission of the relevant authorities, eg the Factories and General Labour Law Inspection Department. Every work in excess of 8 hours per day or 48 hours per week is considered overtime. Accordingly, even if an employee only works 40 hours per week, the ninth hour on a working day would be considered overtime, even if the weekly working hours do not exceed 48 hours. Overtime pay shall be calculated as double the basic wage/salary, to be calculated as follows:
(Monthly salary x 12 months)/52 weeks/44hours (or 48 hours) x 2 Example calculation: Suppose a person gets MMK 300,000 per month: MMK His/her yearly income His/her weekly income His/her hourly income His/her one-hour overtime wage
MMK 300,000 x 12 months MMK 3,600,000 / 52 weeks MMK 69,230.77 / 48 hours MMK 1,442.308 x 2
3,600,000 69,230.77 1,442.308 2,885
Pursuant to the Shops and Establishment Law (2016), overtime is limited to a maximum of 12 hours per week, or 16 hours in cases of special needs. For work on the weekly rest day, the employee shall further be granted a substitute rest day. Different stipulations are found in sector specific laws, such as the Factories Act (1951) and the Oilfields (Labour and Welfare) Act (1951).
45
Labour Law 2016
37
2.1.3 Benefits
Type of allowance
No of companies that provide the allowance
Most of the kinds of benefits provided to employees in various industries are similar. However, there are variations in quantities or amounts. The following benefits are one provided at companies in the manufacturing industries other than garment industry.
Description
Manufacturing companies (other than garment industry) Allowance Meal Transportation
13 4
Lunch provided at work or MMK 300~500 per day or MMK 15,000~150,000 per month in cash Mostly ferry bus provided or car provide for foreign expatriate or provide MMK 10,000~60,000 per month in cash MMK 5000~30000 or house provided for higher positions and foreign expatriates Pre-paid card provided for higher position for dealing with customers MMK 30,000~45,000 per year or 2~3 pairs provided Local or overseas training depending on employee’s performance
12 5 6 11 4
MMK 200~5,000 per hour MMK 10,000~80,000 or depend on monthly sales amount MMK 10,000~20,000 or double/triple of basic salary MMK 50,000~400,000 or double/triple of basic salary 5~15% commission depending on the sales target.
7 13
Accommodation
5
Phone bill
3
Uniform Training
Bonus Overtime Monthly bonus Seasonal bonus Yearly bonus Sales commission
Benefits Medical
9
Retirement Gratuity
1
Insurance
3
Social Security
2
Long Service
1
A clinic for minor case in the factory or MMK 1,000~200,000 allowance depending on health situation Depending on royalty and prolong service, monthly saving varies from MMK 50,000 to 100,000, the person concerned unknown. Body insurance or life insurance or USD 15~$4,000 depending on position. According to government’s social security policy Provide gold 0.25 tical for 5~6 year service, gold 1 tical for 10~11 year service, gold 1.5 ticals for 15~16 year service and gold 3 ticals for 25 year and above service
Leave Length of Service Annual leave Casual leave Maternal leave Paternal leave Sick leave Unpaid leave Leave refund Married leave
10 10 11 13 3 8 5 5 2
Up to 12 days with over 1 year service 6~21 days depending on service but no leave for probation staff 3~10 days 30~98 days Only one company provide 7 days 10 days~90 days with health records 1 day per month 10 days salary refund per year 3~7 days
38
Vacation Vacation
3
Staff party
9
Group vacation one trip per year to Chaungthar Beach or other local places. Staff party 1~2 times per year
Increment Yearly increment
11
The Salary Increment is mainly based on performance. Minimum 5% to maximum 25% increment of original salary.
Social Security Board46 According to Social Security Law 2012, Social Security Board has implemented Social Security Scheme to support the development of the State's economy through the increase of production to enjoy more security in social life and health care of workers who are major productive force of the Union by the collective guaranty of the employer, worker and the Union for enabling to fulfill health and social needs of the workers.
Wages
Minimum wages Sr
Description
MMK per hour
1 Minimum wage
450
MMK per day 3,600
The minimum wage is revised biennially (once in every two years) by the committee formed with employers, employees and technical expertise. However, every company—with 15 employees and above—needs to pay the wage as per its proposal to the MIC.
Allowances and benefits
Leave allowances Sr
Kind of leave
1 Medical leave
2 Maternal leave 3 Paternal leave
Leave period Treatment up to 26 weeks 6 Weeks 8 Weeks
Remark If the insured persons who need to the treatment up to 52 weeks or to a period specifically stipulated by the Social Security Board; Before birth After birth 15-days leave for infant care on confinement of his insured wife
15 days
According to Social Security Law 2012,the following establishments shall be applied with the provisions for compulsory registration for social security system and benefits contained in this Law if they employ minimum number of workers and above determined by the Ministry of Labour, Immigration and Population in co-ordination with the Social Security Board: (i)
46
industries which carry out business whether or not they utilize mechanicalpower or a certain kind of power, businesses of manufacturing, repairing and servicing, or engineering businesses, factories, warehouses and establishments; U Myo Aung, Permanent Secretary, and U Tun Than, Director-General, Social Security Board, Ministry of Labour, Immigration and Population
39
(ii)
Government departments, Government organizations and regional administrative organizations which carry out business;
(iii)
development organizations;
(iv)
financial organizations,
(v)
companies, associations, organizations, and their subordinate departments and branch offices which carry out business;
(vi)
shops, commercial establishments, public entertaining establishments;
(vii) Government departments and Government organizations which carry out business or transport businesses owned by regional administrative body, and transport businesses carried out with the permission of such department, body or in joint venture with such department or body; (viii) constructions carried out for a period of one year and above under employment agreement; (ix)
businesses carried out with foreign investment or citizen investment or joint ventured businesses;
(x)
businesses relating to mining and gem contained in any existing law;
(xi) businesses relating to petroleum and natural gas contained in any existing law; (xii) ports and out-ports contained in any existing law; (xiii) businesses and organizations carried out with freight handling workers; (xiv) Ministry of Labour, Immigration and Population and its subordinate departments and organizations; (xv) Establishments determined by the Ministry of Labour, from time to time, that they shall be applied with the provisions of compulsory registration for SocialSecurity System and benefits contained in this Law in co-ordination with theSocial Security Board and with the approval of the Union Government According to Social Security Law 2012, the following insurance systems are included in Social Security Allowances: 1 Health and social care insurance system 2 Family assistance insurance system 3 Invalidity benefit, superannuation benefit and survivors’ benefit insurance system 4 Unemployment benefit insurance system 5 Other social security system (Housing Plan) 6 Employment Injury Benefit insurance System
Benefits in insurance systems However, only three insurance systems are currently provided by Social Security Board— Health and social care insurance system, family assistance insurance system, employment injury benefit insurance system.
Health and social care insurance In health and social care insurance system, according to the Social Security law 2012,When the insured is sickness due to any other cause, they can have the right to get both of medical care and cash benefit as follow; I. Sickness Benefit (60% of average wage of the previous 4 months for 26 weeks) II. Maternity Benefit (70% of average wage of a year for 14 weeks to 18 weeks) III. Maternity expense for female insured person(50% of average for single delivery,75% of average wage for twin delivery and 100% of average wage for triplet delivery)
40
IV. Miscarriage Benefit (70% of average wage of a year for 6 weeks) V. Benefit for Adoption the child under 1 year of female insured worker (70% of average wage of a year for up to maximum 8 weeks VI. Paternity Benefit (70% of Average Wage for 15 days with leave) VII. Maternity expense of the male insured person ( has the right to entitled half of maternity expense) VIII Medical treatment for her child up to one year after confinement of the female insured person IX Funeral expense for deceased of any other cause (from one time up to maximum of 5 times) X. If it had paid contribution for 180 months and above under the combined of the social security law 2012 and social security act 1954, the insured person has the right to take medical care after retirement.
Family assistance insurance In family assistance insurance system, the following benefits are included: I. Scholastic stipend for the children of the insured couple earn less than stipulated amount of income (10% of average wage for a child living schools age of academic years) II. Family Assistance for natural disaster of insured worker (40% of average wage of a month) III. Appropriate benefit for dependent family members in accord with stipulate.
Employment injury benefit insurance system In employment injury benefit insurance system, the Social Security Board shall manage, in accord with the stipulation, the employment injury benefit insurance system in order to avoid from giving the employment injury benefit by the employer in lump sum and to enable the worker to enjoy the following benefits: I. medical treatment II. Temporary Disability Benefit due to Employment Injury (70% of average wage ofa month for 52 weeks) III. Permanent Disability Benefit due to Employment Injury (5 years to 9 years in lump sum with calculation based on 70% of average wage of a month of the practical capacity and total loss of capacity for work due to employment injury IV. Survivors Benefit for deceased of Employment Injury (for 30 times to 80 times based on contribution) To ensure benefits of these insurance systems, both employers and employees need to pay registration fees to Social Security Board as follow:
Sr
Premium (per total monthly income of employee)
Type of insurance system
Employer 1 Health and Social Care Insurance System 2 Family assistance insurance system 3 Employment Injury Benefits Insurance System Total
41
Employee
Total
2% — 1%
2% — —
4% — 1%
3%
2%
5%
2.2 Human Resource Development
Public education sector Overview of education system in Myanmar47
Basic Education A child can enter the primary school at age 5. In Basic Education system, primary level is from grade 1 to 5, lower secondary level from grade 6 to 9 and upper secondary level from grade 10 to 11. A student has to do the matriculation examination in grade 11. The Basic Education system is a 5-4-2 structure. Level
No of years
Primary Secondary
Lower Upper Total years of study in Basic Education level
Age
Grade
5 4 2
5+ 11+ 15+
to to to
10+ 14+ 16+
1 6 10
to to to
5 9 11
11
5+
to
16+
1
to
11
Higher Education This system is a 4-1-2 structure — 4 years for a bachelor’s degree, 1 year for qualifying class (preparation class to a master’s degree) and 2 for a master’s degree. There are also doctoral programmes for master’s degree holding students. In the entire country, there are 168 institutions of higher learning (colleges and universities). Of them, 120 are vocational/technical institutions and 48 are non-vocational.48
Numbers of vocational and non-vocational institutions of higher learning Sector
Vocational
Non-vocational
Total
Public (government) sector
120
48
168
Numbers of vocational and technical institutions of higher learning49 Sr 1 2 3 4 5 6 7 8 9 10 11 12 47
48
49
University/college Institutes of Economics Institutes/Colleges of Education Institutes of Foreign Languages National Management College Universities of Medicine Universities of Dental Medicine Universities of Nursing Universities of Medical Technology Universities of Pharmacy University of Community Health University of Traditional Medicine University of Public Health
No of institutions 3 23 2 1 4 2 2 2 2 1 1 1
http://www.myanmar-education.edu.mm/dhel/education-system-in-myanmar/education-structure/ Non-vocational includes defense and religious institutions and simple major courses such as physics, chemical, history, geography, etc.
Compiled from the prospectus for students who would be joining various institutions of higher learning, published by the Ministry of Education 2015
42
13 14 15 16 17 18 19 20 21 22 23
Technological Universities/Colleges Universities of Computer Studies Myanmar Aerospace Engineering University National Universities of Arts and Culture University of Forestry Agriculture University University of Veterinary Science Universities/Colleges of Cooperatives Lacquer ware Technology College Nationalities Development Colleges Marine University/College Total
Private education sector Type of institution
35 25 1 2 1 1 1 4 1 3 2 120
In the private sector too, there are Basic Education level schools such as vocational and technical schools and also Higher Education institutions. Course duration
Main subject
Tuition fee per course (MMK)
m = month(s), w = week(s), d = day(s), h = hour(s)
Tuition fees of schools for high-school and university graduates (vocational)
Pharmacist &nurse aid
Accountancy
Engineering
Computing
Pharmacist Nurse aid Pharmacist & nurse aid Pharmacist & nurse aid Nurse aid & pharmacy (basic) Nurse aid & pharmacy (advance) Certificate of pharmacist & nurse aid Diploma of pharmacist & nurse aid LCCI level I & II (Book-keeping & Account) LCCI level III (per subject) LCCI level I & II (Book-keeping & Account) LCCI level III Engineering (per month) Certificate of civil engineering Diploma of civil engineering Certificate of electrical engineering Diploma of electrical engineering Certificate of electronic engineering Diploma of electronic engineering Certificate of mechanical engineering Diploma of mechanical engineering Certificate of mechatronic engineering Diploma of mechatronic engineering Certificate of mechanical & electrical engineering Diploma in mechanical & electrical engineering Computing (per month) Special effect Web page creation Auto CAD Database management C++ programming Visual basic Java programming System admin
43
1m 1m 5m 12 m 3m 6m 5m 12 m 5m 5m 6m 6m 1m 6m 6m 6m 6m 6m 6m 6m 6m 6m 6m
80,000 100,000 200,000 300,000 95,000 150,000 200,000 300,000 54,000 54,000 80,000 65,000 300,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
6m
800,000
6m
800,000
1m 2.5 m (100 h) 2.5 m (100 h) 2.5 m (100 h) 2 m (80 h) 2 m (80 h) 2 m (80 h) 2.5 m (100 h) 2 m (80 h)
300,000 55,000 60,000 50,000 60,000 50,000 50,000 70,000 80,000
Logistics
Tourism & Hospitality
Marine
Information Technology Trade
Language
Logistics and multi-modal transport Logistics and supply chain management Foods & beverages Front office Flight attendant Housekeeping Tourism management Foods & beverages Housekeeping operation International cookery Front office & customer service International bakery & pastry Hotel & tourism English International hospitality management Basic safety Pre-sea (Deck) rating Pre-sea (Engine) rating Ship security awareness Work-shop skills Efficient engine rating Basic level (IT) Advanced level (IT) Systematic distribution & management Practical approach to International trade Business English Financial Management Basic English Intermediate level Advanced level
2.5 m 6.5 m 3m 3m 3m 3m 9m 2.5 m 2.5 m 2.5 m 2.5 m 2.5 m 2.5 m 3m 2w 1m 1m 1d 5m 2w 3m 4.5 m 3m 1.5 m 2.5 m 2.5 m 6m 6m 6m
480,000 176,000 300,000 150,000 150,000 150,000 500,000 150,000 150,000 150,000 300,000 300,000 50,000 500,000 100,000 100,000 100,000 20,000 1,300,000 40,000 55,000 110,000 40,000 40,000 40,000 40,000 80,000 90,000 100,000
10 d 2m 3.5 m 3.5 m 2 m (80 h) 2.5 m (100 h) 2.5 m (100 h) 1 m (60 h) 1 m (60 h) 2.5 m (100 h) 2.5 m (100 h) 1 week 2m 2m 1m 1m
68,000 35,000 18,000 15,000 35,000 40,000 40,000 30,000 35,000 35,000 35,000 7,000 300,000 300,000 150,000 150,000
3.5 m
12,000
3.5 m
25,000
1m 2m
30,000 40,000
Tuition fees of private basic schools level (vocational)
Computing
Mobile Repairing
Accountancy Language
Special class Computing Regular computing class (basic) Computing class (part time basic class) Office 2010 Desktop publishing Graphic design Advanced excel Accounting (MYOB) Computer for kids (basic) Computer for kids (advance) Using email & internet Mobile phone software Mobile phone hardware Mobile phone software Mobile phone hardware Regular accountancy and practical accounting (basic) Accountancy and practical accounting (advance) Basic level Intermediate level
44
International schools There are around 15 to 20 international schools in Yangon. The following are the fees collected by International School of Myanmar (ISM): School fees ofISM for annual 2016 – 201750 Semester-wisetuition Fees (In USD)
Grade Level Pre-school Pre-Kindergarten 4 Kindergarten Grade 1 to Grade 5 Grade 6 to Grade 8 Grade 9 to Grade 11 Grade 12
2,326 3,619 3,792 5,266 6,057 6,606 7,173
Type of fee
Uniform
Registration fee Late fee first month Late fee after first month Uniform Fees
Fee in USD
Per-day Polo shirt: PE:
MMK 9,000 MMK 7,000
Elementary and Middle School Only Participation Fees
Multi-Child Enrollment 5% Discount After first Child (In USD) 2,210 3,438 3,602 5,003 5,754 6,276 6,814
Band, Art, Field Trips, Week Without Walls Require Additional Participation Fees
1,000 100 10 MAP testing fee (Gr 2-11) USD 40 per Year Girl's long pants: MMK 7,500 Skirt: MMK 5,000 Deposit for returning students Last payment date 27 May 2016 USD500
Note: Application fee of USD 100 per application must be paid in cash in Dollars at the Business Office located on the ground level of the middle school building.
50
ISM website (http://www.ismyanmar.com/fee_structure.php)
45
3 | GOVErNMENT SECTOr 3.1 BUSINESS ESTABLISHMENT PROCESS51 3.1.1 Company registration procedures
Registration of foreign companies There will be costs involved in going through the process for obtaining registration certificate as a foreign company: Steps 1 2 3 4 5 6 7
Process
USD
Name check form Company registration forms Signed company registration documents Registration fee Temporary registration and permit to trade (if desired) Minimum capital transfer (service companies) Minimum capital transfer (other foreign companies) Permanent incorporation certificate and permit
50,000 150,000
MMK 1,000 5,100 0 500,000 0 0 0 0
Foreign companies wishing to obtain company registration certificate have to go through the following 7 steps:
STEP 1
Check availability of company name 1 Submit signed name check form to DICA. Requirements: Name check form – purchased from DICA or downloaded from DICA website Payment: MMK 1,000 DICA: Directorate of Investment and Company Administration
STEP 2
Obtain company registration forms from DICA or through DICA website 2 Obtain company registration forms from DICA or through DICA website 3 Pay stamp duty at OSS or IRD Requirements: 1 Application cover letter 2 Declaration of registration (Form 1) 3 Situation of registered office form 4 Declaration of Legal Version 5 Certificate of translation 6 Directors’ details (Form 26) 7 Memorandum of Association 8 Articles of Association 9 Application form for permit (Form A)
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(1) How to register your company in Myanmar, updated in 2016, DICA (2) http://www.dica.gov.mm/ (Provided by Daw Nilar Mu, Director (Company Division), DICA
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10 Statement of company objectives and undertaking not to conduct trading activities Other documents to be provided by the applicant: 11 Copy of passport of shareholder (if an individual) or directors’ resolution (if a company) 12 Copy of passport of foreign directors or copy of the NRC for local directors Payment: MMK 5,100 OSS: One stop service; IRD: Internal Revenue Department; NRC: National Registration Card
STEP 3
Submit signed company registration documents to DICA 4 Submit completed and signed forms to DICA Requirements: 1 Application cover letter 2 Declaration of registration (Form 1) 3 Situation of registered office form 4 Declaration of Legal Version 5 Certificate of translation 6 Statement of company objectives and undertaking not to conduct trading 7 Directors’ details (Form 26) 8 Memorandum of Association 9 Articles of Association 10 Application form for permit (Form A) 11 Copy of passport of shareholder and directors’ resolution 12 Copy of passport of foreign directors or copy of the NRC for local directors NRC: National Registration Card
STEP 4
Pay registration fee 5 Pay registration fee to OSS Requirements: Payment acceptance letter issued by OSS Payment: MMK 500,000
STEP 5
Obtain temporary registration and Permit to Trade (if desired) 6 Obtain temporary incorporation certificate and temporary permit from DICA (if desired) Requirements: 1 Conditions letter issued by DICA 2 Temporary incorporation certificate issued by DICA 3 Temporary Permit to Trade issued by DICA
STEP 6
Transfer minimum capital and submit other documents 7 Confirm registered office address (within one month of registration) 8 Submit proof of minimum capital transfer and signed conditions letter to DICA
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Requirements: 1 Credit advice confirming transfer of minimum capital required 2 Submit conditions letter signed by company Minimum capital required: 1 USD 50,000 minimum capital required for service companies 2 USD 150,000 minimum capital required for other foreign companies
STEP 7
Permanent incorporation certificate and permit 9 Obtain permanent incorporation certificate and permanent Permit to Trade from DICA Requirements: 1 Incorporation Certificate (Permanent) issued by DICA 2 Permit to Trade (Permanent) issued by DICA
Registration of branches or representative offices of foreign companies There will be costs involved in going through the process for obtaining registration certificate as a foreign branch company or a representative office: Steps 1 2 3 4 5 6
Process Application documents Submit signed application documents to DICA Registration fee Temporary registration and Permit to Trade Minimum capital transfer (service companies) Minimum capital transfer (other foreign companies) Permanent incorporation certificate and permit
USD
50,000 150,000
MMK 1,000 0 500,000 0 0 0 0
Foreign companies wishing to obtain branch office registration certificate or representative office certificate have to go through the following 6 steps:
STEP 1
Prepare application documents for submission to DICA 1 Obtain application documents from DICA or through the DICA website Requirements: 1 Application cover letter 2 Declaration of registration (Form 1) 3 Situation of registered office form 4 Declaration of legal version 5 Authorized persons’ details (Form 18) 6 Application form for permit (Form A) 7 Statement of company objectives and undertaking not to conduct trading activities Other documents to be provided by applicant, company – Directors’ resolution of applicant company – List of directors of applicant company – Copy of passport or NRC of authorized person – * Memorandum and Articles of Association of applicant company (in English) – * Annual report or audited financial statements of applicant company for previous two years – *Appointment letter/power of attorney for authorized persons * indicates documents that must be notarized and certified by the appropriate authorities of the resident country and by the Embassy of Myanmar in that country
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DICA: Directorate of Investment and Company Administration
STEP 2
Submit signed application documents to DICA 2 Submit completed and signed application documents to DICA Requirements: 1 Application cover letter 2 Declaration of registration (Form 1) 3 Situation of registered office form 4 Declaration of legal version 5 Authorized persons’ details (Form 18) 6 Statement of company objectives and undertaking not to conduct trading activities 7 Application form for permit (Form A) 8 Directors’ resolution of applicant company 9 List of directors of applicant company 10 Copy of passport or NRC of authorized person 11 * Memorandum and Articles of Association of applicant company (in English) 12 * Annual report or audited financial statements of applicant company for previous two years 13 Appointment letter/power of attorney for authorized persons
STEP 3
Pay stamp duty and registration fee 3 Pay stamp duty at OSS or IRD 4 Pay registration fee at OSS Requirements: Payment acceptance letter issued by OSS Payment: MMK 500,000 OSS: One stop service; IRD: Internal Revenue Department
STEP 4
Obtain temporary registration and Permit to Trade 5 Obtain temporary incorporation certificate and temporary permit from DICA (if desired) Requirements: 1 Conditions letter issued by DICA 2 Temporary incorporation certificate issued by DICA 3 Temporary Permit to Trade issued by DICA DICA: Directorate of Investment and Company Administration
STEP 5
Transfer minimum capital and submit other documents 6 Confirm registered office address (within one month of registration) 7 Submit evidence of minimum capital transfer and signed conditions letter to DICA Requirements: 1 Credit advice confirming transfer of minimum capital required 2 Submit conditions letter signed by company Minimum capital required: 1 USD 50,000 minimum capital required for service companies
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2 USD 150,000 minimum capital required for other foreign companies DICA: Directorate of Investment and Company Administration
STEP 6
Permanent incorporation certificate and permit 8 Obtain permanent incorporation certificate and permanent Permit to Trade from DICA Requirements: 1 Incorporation Certificate (Permanent) issued by DICA 2 Permit to Trade (Permanent) issued by DICA
Registration of joint venture companies (Incorporated under 1950 Special Companies Act) There will be costs involved in going through the process for obtaining registration certificate as a foreign branch company: Steps 1 2 3 4 5
Process Name check form Obtain company registration forms Submit company registration application Pay registration fee Obtain incorporation certificate
USD
MMK 1,000 0 0 500,000 0
Foreign companies wishing to establish a joint-venture company have to go through the following 5 steps:
STEP 1
Check availability of company name at DICA 1 Submit signed name check form to DICA or through DICA website Requirements: Name check form – purchased from DICA or downloaded from DICA website Payment: MMK 1,000 DICA: Directorate of Investment and Company Administration
STEP 2
Obtain company registration forms 2 Obtain joint venture company registration forms from DICA or through DICA website Requirements: 1 Company registration form 2 Declaration of registration (Form 1) 3 Situation of registered office form 4 Declaration of legal version 5 Certificate of translation 6 Directors’ details (Form 26) 7 Forms of Articles of Association (AoA) 8 Form of Memorandum of Association (MoA) DICA: Directorate of Investment and Company Administration
STEP 3
Submit company registration application and pay stamp duty 3 Prepare and submit completed and signed company registration application documents at DICA
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4
4. Pay stamp duty at OSS or IRD Requirements: i Application letter ii AoA form (completed and signed) iii MoA form (completed and signed) iv Draft JV Agreement v Recommendation letter from the Union Attorney-General’s Office vi Letter for incorporation (from relevant government agency) 1 Citizens of Myanmar: Copies of national registration cards of all directors 2 Myanmar-based companies: i Copy of company certificate ii BOD resolution iii Proposed representative of company 3 Foreigners/foreign companies: i Copy of passport of director/shareholders, ii If one investor is institutional investor, a resolution of BOD of the institution + authorized letter of person DICA: Directorate of Investment and Company Administration; IRD: Internal Revenue Department
STEP 4
Pay registration fee 5 Pay the registration fee to OSS Requirements: Payment acceptance letter from OSS Payment: MMK 500,000 OSS: One-stop service
STEP 5
Obtain Incorporation Certificate 6 Obtain company Incorporation Certificate 7 Receive notification from Ministries regarding incorporation (also published In government gazette) Requirements: Company incorporation certificate signed by DICA
3.1.2 Compliance with legal requirements upon successful registration Upon incorporation, companies must act in accordance with all applicable laws and regulations. Below are some of the provisions of the Myanmar Companies Act of 1914 which companies are required to comply with: Every company must register the allotment of shares (Form VI) within one month of the allotment date. The registration fee: MMK 25,000. Companies must register details of their director(s), manager(s) and/or managing agent(s) and notify the authorities of any changes to the composition of their general management (Form XXVI) within 14 days of the appointed date or the date on which the changes occurred. The registration fee: MMK 25,000.
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Companies are required to notify the authorities of the location of their registered office to which all communication and notices can be addressed. The address of the initial registered office must be provided to DICA when filing the registration documents. All companies must inform DICA of any change of address within 28 days of the date on which the change occurred. The registration fee: MMK 25,000. A company must hold its first annual general meeting (AGM) within 18 months from the date of its incorporation and then at least once every calendar year and within no more than 15 months of the previous meeting. To comply, companies are required to submit the records of the AGM, an annual list of members, and the summary of share capital (Form E) within 21 days of the AGM. The lodge fee is MMK 25,000 Every company is required to submit a copy of every extraordinary and special solution resolution of the company with DICA within 15 days from the date of the resolution. Notice of extraordinary meetings must be given at least 21 days before the date on which such a meeting is to take place. Foreign branch offices are required to submit their head office’s financial statements, their representative office’s financial statements and annual general reports for each financial year. The registration fee: MMK 75,000.
3.1.3Essential documents to be submitted for company registration renewal Company registration certificates for all types of companies in Myanmar are only valid for five years. This includes companies run by citizens of Myanmar, foreign companies, branches of foreign companies, joint ventures and non-profit organizations. Companies are required to renew their registration with DICA before a business registration certificate expires. When applying for renewal, companies must include the documents listed below: Documents required for foreign companies 1 2 3 4 5 6 7 8 9 10
Application for renewal of registration Form A, completed and signed Specific business activities of the company A list of directors/share-holders Form E (updated), completed and signed Audited financial statements for the last two years Credit advices relating to any capital brought in A copy of the permit issued by MIC for the foreign company licensed by MIC A tour licence (updated) (tourism companies only) A certified copy of the income tax clearance from the Internal Revenue Department
Documents required for branches and representative offices of foreign companies 1 2 3 4
Application for renewal of registration Form A, completed and signed A detailed list of the company’s business activities Audited financial statements (balance sheets, profit-and-loss statements) of the branch, audited financial statements (statements) of the parent company and annual reports of the head office 5 Credit advices relating to minimum capital brought in (only for the first renewal companies) 6 A licence from the Central Bank of Myanmar (representative offices of banks only)
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7 A certified copy of the income tax return from the Internal Revenue Department 8 A copy of the permit issued by the MIC to the foreign company permitted by MIC What types of companies may be registered in Myanmar?
1
The Myanmar Companies Act of 1914 provides for several types of entities to conduct business in Myanmar. When the shares of the company are owned by the government, it must be incorporated under the 1950 Special Companies Act. There are two main types of companies in Myanmar—private limitedliability companies and public limited-liability companies. Companies may be registered in one of the following forms: As a private company (Myanmar citizens only) As a public company (Myanmar citizens only) As a foreign company As a branch or representative office of a foreign company As a joint venture company in which a Myanmar Government entity holds shares As an association
What is the company registration fee?
2
The company registration fee is MMK 500,000 for all types of private companies and MMK 2,500,000 for public companies. In addition, applicants are required to pay MMK 1,000 to by a name check and MMK 5,100 for the company registration. Registration fees are the same for all types of companies, that is, both for companies run by citizens of Myanmar and for foreign companies. Applicants are also required to pay stamp duty from the Internal Revenue Department. The stamp duty fees range from MMK 65,000 to MMK 165,000 depending on the authorized capital of the applicant company. Applicants need to pay the fees of stamp duty according to the defined time-frame of IRD. Associations are not required to pay stamp duty on registration.
How long does it take until a company incorporation certificate is issued? For local companies, company incorporation certificates will be issued within three days upon payment of the registration fees to DICA.
3
For foreign companies, permanent certificates for businesses that do not need an MIC certificate will be issued within as few as three days upon receipt of a bank credit advice by DICA relating to capital that has been transferred to the company’s account. Permanent certificates for business that do need an MIC certificate will be issued immediately upon issuance of the MIC permit. (In accordance with the Foreign Investment Law, applications for MIC permits are reviewed and approved within 90 days of the date on which the application is received.)
What is the minimum capital requirement when registering a company? In general, there is no minimum capital requirement when registering a company in Myanmar. Minimum capital requirements for banking, insurance and securities companies should refer to regulations of the Central Bank of Myanmar and the Ministry of Planning and Finance respectively. However, there are initial capital requirements for Myanmar public companies and foreign companies. This capital remains with the respective company and can be used by this company according to their operational needs.
4
Myanmar public companies: -----MMK 50,000,000 Foreign companies, branches or representative offices: MIC-permitted companies: -USD 150,000 MIC-permitted companies are expected to bring in their initial capital according to their investment plan. Proof of the initial capital brought in needs to be provided only when renewing the registration after 5 years.
Others: --------------------------USD 50,000
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Upon registration, other companies are required to provide a credit advice from a bank account in Myanmar that states that 50% of the initial capital has been transferred. The remaining 50% is due no later than five years upon receipt of the registration certificate.
When registering a company as a joint venture, are there any provisions regarding the share proportion or the percentage applicable to foreign investors?
5
DICA has no restrictions regarding the share proportion for joint ventures between Myanmar citizens and foreigners. For MIC permitted companies, Notification No 16/2016 under the Foreign Investment Law 2012 provides a list of economic activities in which foreign investors may invest only in the form of a joint venture with a local partner, a local company, or citizens of Myanmar. For non-MIC permitted companies, the share proportion can be regulated depending on the main objectives of companies and specific regulations from relevant ministries. For detailed information or allowed share proportions for joint ventures, please visit the Company Registration Division at DICA or write an email to
[email protected].
What are the minimum and the maximum number of shareholders in a private company and in a public company?
6
In a private company, the transfer of shares is restricted, and the number of shareholders may range from a minimum of two to a maximum of fifty. Public limited-liability companies must have a minimum of seven shareholders.
Can companies begin operations immediately after registration?
7
Unless further licences are required form other relevant ministries and/or departments, private companies may begin operations immediately after they have received their company incorporation certificate. Information regarding required licences for different economic activities can be inquired directly at the Company Registration Division at DICA or via email to
[email protected]. Public companies must apply for a Certificate for Commencement of Business before they can begin operation. Detail for how to apply for the Certificate for Commencement of Business for public companies are provided in Section 3.1.1 (Company registration procedures). These documents are also available for download from the DICA website.
What documents are required for registering a company
8
There are different types of documents required for registration, depending on the type of company or entity. Details on what documents are required for each type of company are provided in Section 3. The documents are available for download from DICA website.
How long are company registration certificates valid?
9
The company registration certificates are valid for 5 years. After the initial five-year period, companies must have their certificates renewed. Details of registration renewal procedures are provided in Section 3.1.3.
REMARK: The Myanmar Companies Law has been drafted, is on the approval process and is expected to be enacted in the first half of 2017 to replace current Myanmar Companies Act (1914). Please note the process indicated in the “3.1 BUSINESS ESTABLISHMENT PROCESS” here will change accordingly and ask DICA for the updated information.
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3.2 INVESTMENT PROCESS52 3.2.1 Applying for MIC permit The Myanmar Investment Commission (MIC) is responsible for approving investment proposals and for issuing investment permits—also called MIC permit—in Myanmar.
Application procedure
REMARK: The procedures mentioned above and information in the section 3.2.2 and 3.2.3 may change when the new Myanmar Investment Law (18 October 2016) which comes into effect in April 2017 with new rules and regulations currently being drafted. New procedures under the new Myanmar Investment Law will follow the Investment Policy below with the role of Myanmar Investment Commission and new processes indicated below. Further details will be delivered after the rules are promulgated and enacted.
52
U Win Tin, Director (Monitoring Section), DICA
55
Investment Policy The Investment Policy published in November 2016 supports the implementation of the Government of the Republic of the Union of Myanmar’s 12-point Economic Policy published on 29 July 2016. 1 Responsible and mutually beneficial foreign investment are welcomed. 2 The Myanmar Investment Commission and relevant government agencies will facilitate foreign investment through transparent, clear and expeditious procedures. 3 The establishment of supportive environment for all investors with macroeconomic stability, rule of law, credible dispute settlement procedures, and a reliable banking system the proper functioning of economic infrastructure will be carried out. 4 As foreign investments is very crucial for national development, the Union Government will(a)
establish a predictable regulatory framework with non- discriminatory treatment between foreign and local businesses.
(b) protect businesses from disputed seizures. (c)
protect the right to transfer profits and other repatriations in accordance the law after payment of taxes and other payment obligations.
(d)
provide long- term land lease for approved investments in the law.
accordance with
5 Local and foreign investors must comply with the principles of responsible business conduct including in relation to environmental and natural resources matters. 6 Foreigners are not permitted to conduct certain businesses relating to national security, and culture and social affairs. These restricted business activities will be made publicly available. 7 The following investments will particularly be welcomed and encouraged: (a)
Productivity-enhancing and value-adding agro-based industries with linkages to regional and global supply chains.
(b)
Activities that enable technology transfer and value added domestic production.
(c)
Activities that support the development of small and medium enterprises.
(d)
Investments for rapid infrastructure development.
(e)
Investments that create job opportunities and delivery of vocational education support development of human capacity.
(f)
Investments to be made in economically less developed regions.
(g)
Investment to develop industrial cities and special economic clusters.
(h)
Investments related to tourism.
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Role of Myanmar Investment Commission
New process under the Myanmar Investment Law
3.2.2 Investment procedures and its cost Under Directorate of Investment and Company Administration, there are four investment divisions. The following information is acquired from the four divisions: Please note the following information will change under the new Myanmar Investment Law and associated new rules.
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Investment Division 153 Documents to be attached with Proposal Form (1) in making Investment
Agriculture sector, livestock & fisheries sector, (wood-based industry, food processing and beverages business manufacturing sector) 1 2 3 4 5 6 7 8 9 10 11
Company Registration Certificate (Copy) National Identification Card (Copy) and Passport (Copy) Evidence on financial and business landscape of the promoter accompanying economic justification Joint Venture Agreement (Draft) and Recommendation of the Union Attorney General’s Office if the proposed investment is related to the State Memorandum of Association and Articles of Association of the Company Certificate on Land Ownership with land location map Land Lease Agreement (Draft) and Recommendation of the Union Attorney General’s Office if the proposed investment is related to the State Recruitment of employees (Local/Foreign) Plans for Social Security and Welfare for employees Environmental Impact Assessment Socio-economic Impact Assessment
Related department/ministries
Food and Drug Administration (FDA) Ministry of Natural Resources and Environmental Conservation (related to timber) Ministry of Agriculture, Livestock and Irrigation Ministry of Health and Sport (Food and Drug Administration FDA) Ministry of Industry Ministry of Home Affairs
Checklist for doing investment under FIL54 and MIL55 Sr
53 54 55
Step
1
Preparing for proposal
2
Related Documents for Proposal
2
Machinery & equipment
4
Economic Justification
Required documents Proposal from 1 (brought from DICA or download form DICA website) Necessary payment: 5000 Kyat (for foreign investment form) To submit Industrial Grant if the investment business is carried out in Industrial Zone. For business carried out on own land, to submit La Na/30 document/ Applying evidence/Land Used form 105-106 Form 15(A). Land lease agreement (Draft) for leasing private land and building. Detail list of machinery and equipment to be purchased in local. Detail list of machinery and equipment to be imported. Lists of raw material (Purchase in local/foreign) Annually services. Plan for services. Profit & loss (to enclose detail calculation) Cash flow statement, Profit & loss (to enclose detail calculation) Benefit to the Union (Income Tax/Commercial Tax) Employment opportunities (No. of employee from local and abroad, Designation and Salary)
U Min Zaw Oo, Director, Investment Division 1, DICA Foreign Investment Law Myanmar Investment Law
58
5
Financial statements
6
Miscellaneous
7
Contracts related to the business
To submit bank statement for local purchased (exclude the value of have been purchased). If the investment includes foreign currency, submit bank statement of MFTB/MICB Application for exemption and reliefs for tax. Undertaking for new investment project. National identification card/passport copy of the investor. Location map. Fire hazard prevention and protection plan. Social security and welfare plan. Photo of the constructed building. Conceptual design for the building to be constructed. Memorandum of association and articles of association of the registered company/form 6/form 26. CMP contract made with the buyer company to work with and Memorandum of Association and Articles of Association
Investment Division 256 Documents to be attached with Proposal Form (1) in making Investment
Manufacturing 1 2 3 4 5 6 7 8 9 10 11
Company Registration Certificate (Copy) National Identification Card (Copy) and Passport (Copy) Evidence on financial and business landscape of the promoter accompanying economic justification Joint Venture Agreement (Draft) and Recommendation of the Union Attorney General’s Office if the proposed investment is related to the State Memorandum of Association and Articles of Association of the Company Certificate on Land Ownership with land location map Land Lease Agreement (Draft) and Recommendation of the Union Attorney General’s Office if the proposed investment is related to the State Recruitment of employees (Local/Foreign) Plans for Social Security and Welfare for employees Environmental Impact Assessment Program according to the laws, rules and regulations of Ministry of Natural Resources and Environmental Conservation Detail Programme for Corporate Social Responsibility (CSR) and Fire Hazard
Related industries
Steel Cement Vehicle production
Investment Division 357 Checklist for doing investment under FIL and MIL
Hotel and tourism Required Stage
Stage 1
56 57
Step
Preparing for proposal
Required documents Document for La Na 30 for own land and form 105 for proposed documents Land lease agreement (Draft) for leasing private land and building Submit from related ministry for Government Land and Buildings by taking the prior approval of the union government and comments from Union Attorney office.
Dr Nyi Nyi Maung, Deputy Director, Investment Division 2, DICA Dr Min Zaw Oo, Deputy Director, Investment Division 3, DICA
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Machinery & equipment
Economic Justification
Financial statements
Additional requirements
Miscellaneous
Agreements for proposed business Stage 2 Stage 3 Stage 4
Submitting to PAT Taking comments from related Ministries Submitting by amending requirements
Stage 5
Submitting to MIC
Stage 6
Issuing MIC permit
Lists of machinery to be imported Lists of machinery for local purchase Lists of raw materials (local/foreign) Annually targeted production Profit and loss Cash flow statement Cost and benefit for country (income tax and commercial tax) employment of labor and staff (lists of staff for local/foreign, salary) Bank statement for local Bank statement for MFTB/MICB if foreign currency is obtained. Resolution letter to follow up the instructions (regulations) from respective departments for preserving National Culture If use National Heritage Building―resolution letter to follow up requirement and regulations concerning with Heritage Conservation. Tax exemption and reliefs to Myanmar Investment Commission Letter of undertaking to carry out business activity Identity cards of investors Business Activity and function Fire outbreak prevention and Safety plan Job satisfaction and social welfares for Employees Photocopy of building Layout design for propose building Company registration card @ form 6, form 26 Joint venture Agreement (Draft) if the investment is related with the union BOT Contract (Draft) and comments of Union Attorney General’s Office for Government land and buildings To send 25 sets of proposals To send related ministries by sending proposals from 15 sets of proposals.
According to PAT meeting and relevant ministries comments, investors shall have to amend and submit the requirements. To send 10 or 12 sets of complete proposals Power point to present the proposed business PDF for proposal Getting permit by one of directors Showing Identity card or passport Lists of directors Bank statement for US$ 75,000 for foreign Investment 7 sets of proposals to distribute for related ministries Environmental management plan
Checklist for doing investment under FIL and MIL Transportation—airline, airport service and port Required Stage Stage 1
Step
Required documents
Preparing for proposal
Submit from Transportation Ministry to Union Government and forward to MIC Submit from related ministry for Government Land and Buildings by taking the prior approval of the union govern-
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Machinery & equipment
Economic Justification
Financial statements
Miscellaneous
Agreements for proposed business Stage 2 Stage 3 Stage 4
Submitting to PAT Taking comments from related ministries Submitting by amending requirements
Stage 5
Submitting to MIC
Stage 6
Issuing MIC permit
ment and comments from Union Attorney office. Lists of machinery to be imported Lists of machinery for local purchase Lists of raw materials (local/foreign) Annually targeted production Profit and loss Cash flow statement Cost and benefit for country (income tax and commercial tax) employment of labor and staff (lists of staff for local/foreign, salary) Bank statement for local Bank statement for MFTB/MICB if foreign currency is obtained. Tax exemption and reliefs to Myanmar Investment Commission Letter of undertaking to carry out business activity Identity cards of investors Business Activity and function Fire outbreak prevention and Safety plan Job satisfaction and social welfares for Employees Photocopy of building Layout design for building Company registration card @ form 6, form 26 Joint venture Agreement (Draft) if the investment is related with the union BOT Contract (Draft) and comments of Union Attorney General’s Office for Government land and buildings To send 25 sets of proposals To send related ministries by sending proposals from 15 sets of proposals.
According to PAT meeting and relevant ministries comments, investors shall have to amend and submit the requirements. To send 10 or 12 sets of complete proposals Power point to present the proposed business PDF for proposal Getting permit by one of directors Showing Identity card or passport Lists of directors Bank statement for US$ 75,000 for foreign Investment 7 sets of proposals to distribute for related ministries Environmental management plan
Related industries
Hotel High-rise building Renting office space Development of industrial zone
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Port (airport/port) Warehouse Communications Road (BOT system
Investment Division 358 Checklist for doing investment under FIL and MIL
Other service sectors Required Stage
Step Preparing for proposal
Related Documents for Proposal
Machinery & equipment
Economic Justification Stage 1
Financial statements
Miscellaneous
Agreements for proposed business Stage 2 58
Submitting to PAT
Required documents Proposal from 1 (brought from DICA or download form DICA website) Necessary payment: 5000 Kyat (for foreign investment form) To submit Industrial Grant if the investment business is carried out in Industrial Zone. For business carried out on own land, to submit La Na/39 document/ Applying evidence/Land Used form 105. Land lease agreement (Draft) for leasing private land and building. To submit land lease (Draft) with the recommendation letter of Union Attorney General’s Office for the land owned by the government body/ the proposal shall be submitted through the relevant ministry. Detail list of machinery and equipment to be purchased in local. Detail list of machinery and equipment to be imported. Lists of raw material (Purchase in local/foreign) Annually services. Services program. Profit & loss (to enclose detail calculation) Cash flow statement, Internal Rate of Return (IRR), Recoupment Period (to enclose detail list) Benefit to the Union (Income Tax/Commercial Tax) Employment opportunities (No. of employee from local and abroad, Designation and Salary) To submit bank statement for local purchased (exclude the value of have been purchased). Bank statement for foreign currency. If the investment includes foreign loan, submit loan agreement (Draft) and loan repayment schedule. Application for exemption and reliefs for tax. Undertaking for new investment project. National identification card/passport copy of the investor. Project plan. Explanation of the nature of the project. Fire hazard prevention plan. Waste water treatment system. Social security and welfare plan. Evaluation of environmental impact. Undertaking for corporate social responsibility―CSR Conceptual design for the building to be constructed. Location map. Memorandum of association and articles of association of the registered company/form 6/form 26. Joint venture Agreement (Draft) for the business joint venture with relevant government body. BOT agreement (Draft) and recommendation letter of the Union Attorney General Office if the land is related to the Union. To submit at least 20 copies of proposals
Dr Lin Htut, Director, Investment Division 4, DICA
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Stage 3 Stage 4
Requesting Recommendation from relevant Ministries Submitting by amending requirements
Stage 5
Submitting to MIC
Stage 6
Issuing MIC permit
To send related ministries by sending proposals (at least 20 sets proposal) According to PAT meeting and relevant ministries’ comments, investors shall have to amend and submit the requirement. To send 10 or 12 sets of complete proposals. Power point to present the proposed business. PDF format proposal. Getting permit by one of directors. Showing Identity card or passport. Bank statement for US$ 75,000 for foreign Investment. 7 sets of proposals to distribute for related ministries. Environmental management plan.
Checklist for doing investment under FIL and MIL
Power sector—heavy power plant Required Stage
Step Preparing for proposal
Related Documents for Proposal Machinery & equipment
Economic Justification Stage 1 Financial statements
Miscellaneous
Required documents Proposal from 1 (brought from DICA or download form DICA website) Necessary payment: 5000 Kyat (for foreign investment form) To submit through the relevant Ministry or Region or State To submit BOT Agreement (Draft) (amended in accord with the comment of Union Attorney General Office) To submit Joint Venture (JV) with local people for small & medium power generation Detail list of machinery and equipment to be purchased in local. Detail list of machinery and equipment to be imported. Lists of raw material (Purchase in local/foreign) Annually targeted production Profit & loss (to enclose detail calculation) Cash flow statement, Internal Rate of Return (IRR), Recoupment Period (to enclose detail list) Benefit to the Union (Income Tax/Commercial Tax) Employment opportunities (No. of employee from local and abroad, Designation and Salary) To submit bank statement for local purchased (exclude the value of have been purchased). Bank statement for foreign currency. If the investment includes foreign loan, submit loan agreement (Draft) and loan repayment schedule. Application for exemption and reliefs for tax. Undertaking for new investment project. National identification card/passport copy of the investor. Project plan. Explanation of the nature of the project. Fire hazard prevention plan. Waste water treatment system. Social security and welfare plan. Evaluation of environmental impact. Undertaking for corporate social responsibility―CSR Conceptual design for the building to be constructed. Location map. Memorandum of association and articles of association of the registered company/form 6/form 26.
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Agreements for proposed business Stage 2 Stage 3 Stage 4
Submitting to PAT Requesting Recommendation from relevant Ministries Submitting by amending requirements
Stage 5
Submitting to MIC
Stage 6
Issuing MIC permit
Joint venture Agreement (Draft) for the business joint venture with relevant government body. BOT agreement (Draft) and recommendation letter of the Union Attorney General Office if the land is related to the Union. To submit at least 20 copies of proposals To send related ministries by sending proposals (at least 20 sets proposal) According to PAT meeting and relevant ministries’ comments, investors shall have to amend and submit the requirement. To send 10 or 12 sets of complete proposals. Power point to present the proposed business. PDF format proposal. Getting permit by one of directors. Showing Identity card or passport. List of directors. Bank statement for US$ 75,000 for foreign Investment. 7 sets of proposals to distribute for related ministries. Environmental management plan
Checklist for doing investment under FIL and MIL
Mining sector Required Stage
Name of steps Preparing for proposal
Requirements for Oil & Gas
Machinery & equipment Stage 1 Economic Justification
Financial statements
Miscellaneous
Required documents Proposal from 1 (brought from DICA or download form DICA website) Necessary payment: 5000 Kyat (for foreign investment form) Application letter from Ministry of Energy. The approval of the Union Cabinet (letter submitting by the Ministry of Mines to Union Cabinet). Agreement (Draft) with the recommendation letter of Union Attorney General’s Office. Process depending on the type of contract. Area, location map of the block. Detail list of machinery and equipment to be purchased/have been purchased in local. Detail list of machinery and equipment to be imported. Lists of raw material (Purchase in local/foreign) Annual services. Plan for services. Profit & loss (to enclose detail calculation) Cash flow statement, Internal Rate of Return (IRR), recoupment Period (to enclose detail list) Benefit to the Union (Income Tax/Commercial Tax) Employment opportunities (No. of employee from local and abroad, Designation and Salary) To submit bank statement for local purchased (exclude the value of have been purchased). Bank statement for foreign currency. If the investment includes foreign loan, submit loan agreement (Draft) and loan repayment schedule. Evaluation of environmental impact. Undertaking for corporate social responsibility―CSR National identification card/passport copy of the investor. Fire hazard prevention plan.
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Agreements for proposed business
Stage 2 Stage 3 Stage 4
Submitting to PAT Requesting Recommendation from relevant Ministries Submitting by amending requirements
Stage 5
Submitting to MIC
Stage 6
Issuing MIC permit
Memorandum of association and articles of association of the registered company/form 6/form 26. Agreement (Draft) with the recommendation letter of Union Attorney General’s Office. BOT agreement (Draft) and recommendation letter of the Union Attorney General Office if the land is related to the Union. Land lease agreement (Draft) for carrying out in private land. Joint venture Agreement (Draft) for the business carried out by joint venture with relevant government body. To submit at least 20 copies of proposals From 20 copies of the proposal, same will be used in seeking the recommendation of the relevant Ministry. In accord with the decision of the PAT members and the recommendation of the relevant ministry, to submit the revised proposal after completing the requirement. 10 copies of proposals. Power Point files to make a presentation in MIC meeting. To submit PDF file format proposal. To come and get MIC permit by Managing Director/Director. To submit 7 sets of proposals to forward relevant government body.
Related ministries
Ministry of Electricity and Energy Ministry of Mine
3.2.3 Post-permit activities Investment/capital
Change in total investment If investors want to increase the investment amount of the business, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (including reasons for increasing the investment, original investment amount, increase investment amount and total investment amount) 2 Board of Directors' resolution 3 If investors want to import machineries and equipment when increasing the investment, they need to attach a list of machineries and equipment (If investors want to decrease total investment, this fact is not necessary.) 4 Copy of loan agreement (If investors want to increase the investment with loan) 5 Copy of MIC permit 6 Power of Attorney (if investors cannot come to office) Cost to amend permit MMK 250,000
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Expansion of business (type of business) If investors want to expand type of business, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons) 2 Board of Directors’ resolution Investment amount increase or not List of Machineries to be imported List of increased product, raw materials, employee list and invested area Loan Agreement if increased investment with loan (Draft is acceptable) Balance of machineries Power of Attorney (if investor cannot come to office) Cost to amend permit MMK 250,000
Approval for loan If investors want to get a loan, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (describe the specific reasons) 2 Amount of Capital that has already invested 3 Board of Directors' resolution 4 Loan agreement (attached with the repayment schedule) 5 Copy of MIC permit 6 Power of Attorney (if investors cannot come to office)
Amendment of loan If investors want to Amend of loan amount, lender and repayment schedule, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter 2 Board of Directors' resolution 3 List of amendment of Loan (amount, borrower, repayment schedule) 4 Amendment of Loan Agreement with repayment schedule (Draft is acceptable) 5 Amount of Capital that has already invested (with copy of credit advice) 6 Power of Attorney (if investor cannot come to office)
Share transfer (fully or partly) If investors want to transfer shares, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter 2 Board of Directors' resolution 3 Form 6 (list of shareholders) and form 26 (list of directors) 4 Transfer of all shares (submit with form 6) 5 Complete transfer of part of shares (submit with form 7) 6 Recommendation letter for the clearance of taxes
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7 Copy of MIC permit 8 Power of Attorney (if investors cannot come to office)
Reinvestment of profits If investors want to reinvest their profits, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter 2 Mention budget year to reinvest profit 3 Form 10 4 Audit report 5 Recommendation letter for the clearance of taxes 6 Copy of MIC permit 7 Power of Attorney (if investors cannot come to office)
Transfer of foreign currency (transfer of shares, dividend and profit share repatriation) If investors want to transfer the foreign currency (transfer of shares, dividend and profit share repatriation), they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter 2 Board of Directors' resolution 3 Audit Report 4 Bank Statement 5 Form 13 (form for transfer of foreign currency) 6 Recommendation letter for the clearance of taxes 7 Copy of MIC permit 8 Power of Attorney (if investors cannot come to office)
Mortgage of land and building permitted for investment If investors want their mortgage of land and building permitted for investment, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons) 2 Form 5 3 Mortgage agreement (draft) (to enclose recommendation of the Union Attorney General's Office for government Organization) 4 Copy of MIC permit 5 Power of Attorney (if investors cannot come to office)
Business operation
Import of machinery and equipment If investors want to import machinery, equipment, instruments, machinery components, spare parts or materials used in the business, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents:
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Required documents for attachment 1 Cover letter 2 Pro forma invoice 3 Recommendation form related Ministry (If necessary) 4 Sales contract 5 Balance of Machinery and Equipment 6 Copy of MIC permit 7 Copy of original proposal (only the page which includes the list of machinery, equipment, instruments, machinery components, spare parts and materials used in the business relevant for this request) 8 Power of Attorney (if investors cannot come to office)
Import of raw materials If investors want to import raw materials, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (initial raw materials or yearly raw materials need to be mentioned 2 Pro forma invoice 3 Sales contract 4 Progress in Construction, renovation 5 Copy of MIC permit 6 Copy of original proposal (only the page which include the list of raw materials relevant for this request) 7 Power of Attorney (if investors cannot come to office)
Issue recommendation letter for export If investors want to export product mentioned in their proposal, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter 2 Pro forma invoice 3 Import license and import declaration for raw materials 4 Amount of capital already invested (Cash, machineries) 5 List of exportation of product 6 Power of Attorney (if investor cannot come to office)
Issue confirmation for commencement date of business operation If investors want to report the date of the commencement of business operation, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter 2 Form 11 [Download link to file] 3 Copy of MIC permit 4 Copy of Credit Advice 5 Bill of Lading(BL) or Export Declaration (ED) or similar documents used in international trade for the export of manufacturing business 6 If the company sales locally—the date of the income first-derived from the local sales of the manufacturing business
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7 the date on which the service business commences 8 Power of Attorney (if investors cannot come to office)
Extension of construction period If investors requests for extension of construction period, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (describe the specific reasons) 2 Progress in Construction, Renovation 3 Amount of Capital that has already invested 4 Copy of MIC permit 5 Power of Attorney (if investors cannot come to office)
Extend land lease agreement and MIC permit duration If investors want to extend land lease agreement,the duration of investment of the business and duration of MIC's Permit, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons) 2 Board of Directors' resolution (or) recommendation letter from relevant ministries 3 Copy of MIC permit 4 Power of Attorney (if investors cannot come to office)
Appointment of expatriate for stay permit If investors want to apply for the permission of work for the foreign employee, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (Name, Passport number, position, duration) 2 Copy of passport 3 Form 8 (application form for the permission of work) 4 Recommendation letter from representative of company 5 Recommendation letter from relevant industrial zone (if the business is in industrial zone) 6 Number of already appointed employees (local, foreign) 7 Copy of MIC permit 8 Power of Attorney (if investors cannot come to office)
Newrecruitment of expatriate for foreign employee The following documents are necessaries on application for the permission of work for the foreign employee and need to attend to the Chairman of MIC: Required documents for attachment 1 Cover letter (Name, Passport number, position of the foreign employee and duration of work) 2 Copy of passport 3 Form ( ) (application form for the permission of work) 4 Form ( ) (application form for the stay permit) 5 Recommendation letter from representative of Board of Director)
69
6 List of appointed employee (Local and foreign) (Local employees must be listed as Managerial level, Supervisory level, skilled, semi-skilled and unskilled level) 7 Copy of MIC permit and Decision 8 Authorization letter (If investors cannot come to office) 9 Copy of latest Quarterly Performance Report 10 CV form of applied foreign employee
Liquidation of business If investors want to liquidate the business, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons for liquidation) 2 Board of Directors' resolution 3 Capital amount have been invested 4 Recommendation letter for the clearance of taxes 5 Copy of MIC permit 6 Power of Attorney (if investors cannot come to office)
Application for a certified true copy of MIC permit If investors want to apply for a certified true copy of their MIC permit, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons) 2 Board of Directors' resolution 3 Advertisement in newspaper 4 Recommendation letters from relevant police station 5 Copy of MIC permit 6 Power of Attorney (if investors cannot come to office) Payment: MMK 750,000
MIC permit amendments
Amendment of permit: Change name of investor or promoter If investors want to change the name of Investor or Promoter, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons) 2 Board of Directors' resolution 3 Form 6 (list of shares holder) and form 26 (list of directors) 4 Copy of MIC permit 5 Power of Attorney (if investors cannot come to office) Payment MMK 250,000
Amendment of permit: Change of address If investors want to amendment of permit in changing of address, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents:
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Required documents for attachment 1 Cover letter (reasons) 2 Map (concerned original and applied area) 3 Land lease Agreement for applied area (Draft is acceptable) 4 Land lease Agreement for permitted area (if it is already signed, termination agreement will be needed) 5 Land grant for applied area 6 Board of Directors’ Resolution 7 Recommendation letter for the clearance of taxes 8 Power of Attorney (if investor cannot come to office) Payment MMK 250,000
Amendment of permit: Change of permitted duration of investment If investors want to extend land lease agreement, the duration of investment of the business and duration of MIC's permit, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons) 2 Board of Directors' resolution (or) recommendation letter from relevant ministries 3 Copy of MIC permit 4 Power of Attorney (if investors cannot come to office) Payment MMK 250,000
Amendment of permit: Change of type of investment If investors want to change the type of investment (from Citizen Investment to Foreign investment or from Foreign investment to Citizen Investment), they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons) 2 Board of Directors' resolution 3 If the type of investment will change from Citizen Investment to Foreign investment: share ratio (JV or 100%) according to notification 26/2016 and particulars relating to foreign company 4 If the type of investment will change from Foreign investment to Citizen investment: particulars relating to Myanmar Company 5 Recommendation letter for the clearance of taxes 6 Copy of MIC permit 7 Power of Attorney (if investors cannot come to office) Payment MMK 250,000
Amendment of permit: Change of company name If investors want to change the name of business, they need to address to the chairman of the Myanmar Investment Commission attached with the following documents: Required documents for attachment 1 Cover letter (reasons for name change) 2 Board of Directors' resolution 3 Copy of MIC permit
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4 Power of Attorney (if investors cannot come to office) Payment MMK 250,000
Amendment of permit: Change of type of business If investors want to change the type of business, they need to address to the chairman of the Myanmar Investment Commission attached with the following document: Required documents for attachment 1 Cover Letter (reasons) 2 Board of Directors’ resolution 3 Investment amount increase or not 4 List of Machineries to be imported 5 List of amended products, raw materials, employee list and invested area 6 Balance of machineries 7 Power of Attorney (if investor cannot come to office) Payment MMK 250,000
Amendment of contracts The following documents are necessaries on application for the permission of amendment of Land and Building Lease Agreement, BOT Agreement, 100% Foreign Agreement, Joint Venture Agreement and need to attend to the Chairman of MIC: Required documents for attachment 1 Cover Letter 2 Letter from relevant Ministry 3 Board of Directors’ resolution 4 Amendment of Agreement (Draft is acceptable) 5 Recommendation letter for the clearance of taxes 6 Power of Attorney (if investor cannot come to office)
Reporting Necessary reports required to be submitted 1 Quarterly Report 2 Audit Report
3.3 TAXATION59 Kind of tax 1
Commercial tax
2
Income tax
Subject Rent of building, flat and land Employee (including expatriates)
Calculation base
Percentage of the calculation base
Monthly rental Yearly income after deducting all tax reliefs
5% (See range below)
See sample calculations of income tax at Appendix 8.5 Exemption:
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1
If the annual income of a salaried person does not exceed MMK 4,800,000, he/she will be exempted from income tax
U Tun Than, Director, IRD
72
Annual income
Tax reliefs
61
Range to be taxed
2
Exemption from the income tax will be granted on the income from the sal60 ary of a Myanmar citizen earned in a foreign country.
3
Although the income from the annual salary is above MMK 4,800,000, the exemption from income tax shall be granted if the remaining income does not exceed MMK 2,000,000 after deducting from the total one-year income the basic relief and relief for parents, spouse and siblings.
The annual income includes the following: 1 Income from the salary earned within one year 2 Additional benefits such as commission fee, annual fee, honorarium, etc. The reliefs from the taxes mentioned below shall be deducted from the total yearly income: MMK Basic relief (20% of the total income – not to exceed MMK < 10,000,000 10,000,000) A parent living together 1,000,000 A spouse 1,000,000 A child 500,000 Life insurance (for employee and wife) — Employee’s contributions to social welfare fund — Remaining income after Amount to Accumulated tax relief deductions Rate Fixed tax be taxed total From To 1 2,000,000 2,000,000 0% — — 2,000,001 5,000,000 3,000,000 5% 150,000 150,000 5,000,001 10,000,000 5,000,000 10% 500,000 650,000 10,000,001 20,000,000 10,000,000 15% 1,500,000 2,150,000 20,000,001 30,000,000 10,000,000 20% 2,000,000 4,150,000 30,000,001 and above 25%
Taxes during operation of business Tax and percentage Commercial tax
5%
Withholding tax
2%
Withholding tax
3.5%
Withholding tax
2%
Tax to be calculated on Service fee paid for construction of buildings, formation of rooms, setting up networks, etc Service fee paid for construction of buildings, formation of rooms, setting up networks, etc Service fee paid for construction of buildings, formation of rooms, setting up networks, etc Value of goods purchased within the country if the value exceeds MMK 300,000
To be paid by Investor Company owner (Myanmar national) Company owner (Foreigner) Buyer of goods
If the importer is the businessman on whom MIC has not approved or the businessman who has exceeded enjoying the limit of the MIC-granted rights, he/she has to pay a 2% advance income tax imposed on the CIF value. Import duty will be levied according to the type of the goods if the imported goods are not entitled to freedom from duty.
60 61
Under Section 33, Sub-section (d) of the Union Tax Law 2016 Section 6, the Union Tax Law 2016
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Import duty for exceptional commodities Duty has to be paid according to the following table if goods such as alcohol, beer, wine, oil, tobacco, etc are imported into Myanmar: Special commodity Various kinds of cigarettes
Spot price level Up to MMK 400 per 20-cigarette package MMK 401 – 600 per 20-cigarette package MMK 601 – 800 per 20-cigarette package
Various kinds of cigarettes (if imported from abroad) Tobacco Processed Virginia tobacco Cheroot Cigar Tobacco for smoking pipe Kinds of tobacco for chewing
Of the CIF value
Alcoholic drinks
Up to MMK 500 per litre MMK 501 – 1,000 per litre MMK 1,001 – 1,500 per litre MMK 1,501 – 2,000 per litre MMK 2,001 – 2,500 per litre MMK 2,501 – 3,000 per litre MMK 3,001 – 3,500 per litre MMK 3,501 – 4,000 per litre MMK 4,001 – 5,000 per litre MMK 5,001 – 6,000 per litre MMK 6,001 – 7,000 per litre MMK 7,001 – 8,000 per litre MMK 8,001 – 9,000 per litre MMK 9,001 – 10,000 per litre MMK 10,001 – 20,000 per litre MMK 20,001 and above per litre
Alcoholic drinks (if imported from abroad)
Of the CIF value
Various wines
Of the CIF value Up to MMK 500 per litre MMK 501 – 1,000 per litre MMK 1,001 – 1,500 per litre MMK 1,501 – 2,000 per litre MMK 2,001 – 2,500 per litre MMK 2,501 – 3,000 per litre MMK 3,001 – 3,500 per litre MMK 3,501 – 4,000 per litre MMK 4,001 – 5,000 per litre MMK 5,001 – 6,000 per litre MMK 6,001 – 7,000 per litre MMK 7,001 – 8,000 per litre MMK 8,001 – 9,000 per litre MMK 9,001 – 10,000 per litre MMK 10,001 – 20,000 per litre MMK 20,001 and above per litre
Wines (If imported from abroad) Teak and hardwoods, 10inch-square and above teak and hardwood planks
Tax rate (MMK) MMK 3 per cigarette MMK 8 per cigarette MMK 12 per cigarette 120%
60%
MMK 56 per litre MMK 169 per litre MMK 281 per litre MMK 394 per litre MMK 506 per litre MMK 619 per litre MMK 731 per litre MMK 844 per litre MMK 1,013 per litre MMK 1,238 per litre MMK 1,463 per litre MMK 1,688 per litre MMK 1,913 per litre MMK 2,138 per litre MMK 3,375 per litre 60% of 1 litre value 60% 60% MMK 50 per litre MMK 150 per litre MMK 250 per litre MMK 350 per litre MMK 450 per litre MMK 550 per litre MMK 650 per litre MMK 750 per litre MMK 900 per litre MMK 1,100 per litre MMK 1,300 per litre MMK 1,500 per litre MMK 1,700 per litre MMK 1,900 per litre MMK 3,000 per litre 50% of 1 litre value
Of the CIF value
50%
Of the CIF value
25%
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4 | EXPOrT/IMPOrT aND LOGISTICS 4.1 CUSTOMS AND CLEARANCE62
Head Office export/import clearance procedure Going through the following 5 steps takes
Step 1:
Step 2:
If complete
Recording in the entry register. Doing calculation by the levying officer. Checking by the responsible official. It takes 29 minutes.
Setting the value (if necessary)
The process of scrutinizing to approve the value takes 42 minutes.
Import Computer Section
Step 5:
Accepting the data from ICT and checking completeness and correctness of documents Giving ID number Checking with the manifest Sending the documents to the respective groups. It takes 30 minutes.
Levying (if necessary)
Step 4:
minutes.
Registration at the central
Step 3:
106
Asking for the required documents. Finding out the prices. Calculating and setting the value. It takes 1 to 2 days. Entering the final data. It takes 5 minutes.
Matters on which decision is difficult to make have to be submitted to respective higher levels—deputy director, director, deputy directorgeneral, director-general, etc.
Port export/import clearance procedure Going through the following 6 steps takes
Step 1:
Submission of the file which the levying official has checked to the officer-in-charge. Giving sanction to inspect (On-the-spot check by unpacking or inspection or X-ray scanning). It takes about 5 minutes.
Inspection Team
62
Registering the documents sent from the Head Office. (ID, IL, ED, EL, B/L, Invoice, Packing List, B/E) It takes 2 minutes.
Officer-in-charge
Step 3:
minutes.
Port customs services
Step 2:
50
Inspecting by forming an inspection team (On-the-spot check by unpacking or inspection or X-ray scanning). Writing endorse-
U Thet Naing Oo, Director, Customs Department
75
ment on the findings. It takes 35 minutes.
Step 4:
Senior Inspection Officer
Step 5:
Officer-in-charge
Step 6:
Approving the findings by the Inspection Team. Proceeding to submit them to the officer-in-charge. It takes about 3 minutes. Checking for correctness by officer-in-charge. It takes 3 minutes. If there is something wrong on inspection, the officer-in-charge submits the case to the Head Office. It takes 1 to 2 days.
Collecting the goods and embarking them onboard
Collecting the goods and embarking them onboard after signing the DL if everything is correct.
Airport warehouse import clearance procedure Going through the following 7 steps takes
Step 1:
Collecting the warehouse fee and the tax due takes 10 minutes.
Officer-in-charge
Step 7:
Calculating the tax to be levied on the contents in the CA Form and the fee for warehouse. It takes about 15 minutes
Collecting the warehouse fee and the tax due
Step 6:
Checking by unpacking under Risk Management. It takes about 15 minutes.
Levying officer
Step 5:
Signing the CA Form and assigning for inspection by the Inspection Team. It takes about 5 minutes.
Inspection Team
Step 4:
Registering the files submitted together with ID and opening CA Form (ID, IL, Invoice, Packing List, Airway Bill) It takes about 10 minutes.
Officer-in-charge
Step 3:
minutes.
Airport customs services
Step 2:
90
Checking the CA Form payment receipt and giving permission for collecting goods. It take 5 minutes
Issuing goods
Issuing goods takes 30 minutes.
Online clearance system – MACCS Customs Department of the Ministry of Planning and Finance introduced the Myanmar Automated Cargo Clearance System (MACCS) and Myanmar Customs Information System (MCIS)) with the support of the Government of Japan and Japan International Cooperation Agency (JICA) to be used in Yangon Region in its first phase. MACCS is an online cargo clearance system that saves time in undergoing the Myanmar Customs Department’s export and import clearance procedures, aimed at joining the ASEAN Single Window. What is significant about MACCS is that it is available for 24 hours. Whereas it takes 3 to 4 days in manual services to process the documents, MACCS takes just 3 seconds to do the
76
same. It can accept the declaration documents outside the office hours. Taxes can be paid from bank deposits and through bank guarantee system. It has changed the pay-tax-andcollect-goods system to check-goods-and-pay-tax system. It changed to the practice of the Weekly Exchange Rate from the Daily Exchange Rate, issued daily by the Central Bank of Myanmar, for calculation of various taxes. Altogether 14 points in the network have been kept ready. It will handle international trade along the Yangon Port including the Thilawa Special Economic Zone and exported and imported goods via ports and airports.
Taxes collected by MACCS There are 10 taxes which can be collected by MACCS: 1 2 3 4 5
Customs Duty Commercial Tax Security Free (for X-ray) Redemption Deposit or Post Value Revenue Deposit (RD or PVRD) Specific Goods Tax Transit Duty
6 7
Advanced Income Tax MACCS Service Fees
8
Redemption Fine (RF)
9 Direct Penalty (DP) 10 License Fee
Work for extension The shortcomings in the manual or paperwork system are delay, high costs, difficulty in compiling trade statistics, hindrances in trading, and emergence of corrupt cases as the employees and the public are in direct contact. To lessen and get rid of them, the MACCS and MCIS are implemented, based on the Nippon Automated Cargo and Port Consolidated System (NACCS) and Customs Intelligence System (CIS). Ten taxes, including Customs Duty, are collected through MACCS. In the second phase, the system will be extended to the border posts, to be implemented in the years after 2018. The Customs Department has been installing Local Area Network (LAN) and Wide Area Network (WAN) and as of October 2016, has completed 14 LANs and 13 WANs apart from the airport warehouse still under construction.
Organizations linked up As MACCS is supportive to the National Single Window implementation, it will be linked up with other governmental associations (OGAs). The first phase being involved in export/import clearance procedures,it has links with the Ministry of Commerce, Myanma Port Authority, Food and Drug Administration, Pant Quarantine, Livestock and Veterinary Department, Fisheries Department and the Myanma Economic Bank.
Customs Tariff of Myanmar Classification of HS Code 1 2 3 4 5 6 7
HS Group 1 (Chapter 1-49) Live animal Foodstuff Chemical Medicines Plastic Paper Rubber
Notes:
1 2
1 2 3 4 5
HS Group 2 (Chapter 50-83) Textile Footwear, headwear Ceramic products Glassware Hardware (Base metal & articles)
1 2 3 4 5 6
HS Group 3 (Chapter 84-98) Heavy machines Electrical goods Medical appliance Vehicles Furniture Special Classification Provisions
World Customs Organization (WCO) HS version at 6 digit level ASEAN AHTN version at 8 digits level
77
3
Myanmar version at 10 digits level
Myanmar Customs Tariff Rate 2012 Sr Rate No
MCT 2012
1
0
2
0.1
2
3
0.5
123
4
1
2919
5
1.5
1219
6
2
219
7
3
813
8
4
101
9
5
877
10
7.5
625
Live animals, fertilizers, pesticides, agricultural and livestock breeding machinery, etc Newsprint Sugar, wads of textiles, kerosene, cinematographic films, aircraft engines Cement, pumps, air-conditioners, heavy machines, printing presses, generators, sports equipment, chemical-based goods, etc Calculator, computer, typewriter, recording tape, video-tape, medical equipment, batteries of various types, etc Yachts, sports equipment for physical exercise, thread, etc Condensed milk, canned fish, butter, yoghurt, paper, passenger car (pick-up, bus, truck), ballpoint pen, pencils, etc Tyres, coarse cotton cloth, etc Motorcar spare parts, asbestos sheets, laminated sheets, toothbrushes, etc Paints, linoleum, electrical appliances for household use, fans, thermo flasks, batiks, etc Refrigerators, washing machines, video-players, watches, musical instruments, soft drinks, etc Televisions sets, radio, camera, furniture, canned foods, etc Perfume, cosmetics, sewn-up synthetic silk wear, record players, microphones, amplifiers, etc Vans and saloons under engine power 2000 CC, cigarettes, etc Vans and saloons over engine power 2000 CC, all kinds of alcoholic drinks, etc
380
11
10
626
12
15
1151
13
20
333
14
30
112
15
40
58
Total
9,558
Goods
CO form for tax reduction in export The Certificate of Origin Section is under the Department of Trade, Ministry of Commerce. This section issued a Certificate of Origin for the foreign investors. In exporting products, the investors from the various countries can achieve tax reduction by applying the following Certificate of Origin (CO) forms from CO Section of Department of Trade, Ministry of Commerce. Sr
Name of CO Forms System
of
Preferences
Privilege countries
Issued date
37 developed countries with 11 programs
1-8-1990
1
Generalized (Form A)
2
Preferential Treatment for LDCs from Korea
Republican of Korea
3
Duty Free Tariff Preference (DFTP Scheme) from India (Form DFTP)
India
4
ASEAN Free Trade Area (AFTA) (ATIGA Form D)
10 ASEAN Countries
5
ASEAN-China Free Trade Area (Form E)
China and 10 ASEAN Countries
78
21-8-2000 24-4-2009 23-11-1998/ 1-7-2010 6-9-2005/ 1-7-2010
6
ASEAN-Korea Free Trade Area (Form AK)
Republic of Korea and 10 ASEAN Countries
1-7-2007
7
ASEAN-Japan CEP (Form AJ)
Japan and 10 ASEAN Countries
1-12-2008
8
ASEAN-Australia & New Zealand Free Trade Area (Form AANZ)
Australia, New Zealand and 10 ASEAN Countries
1-1-2010
9
ASEAN-India Free Trade Area (Form AI)
India and Countries
15-1-2010
10
ASEAN
Related procedures and costs for applying CO Forms 1 The investors need to fill the CO forms correctly (MMK 300 for CO Form) 2 The investors need to pay registration fees (MMK 3,000 for registration fees and MMK 300 for receipt) 3 If the investors want to amend the CO form, it will cost MMK 1,000 per one time amendment 4 If the investors want to apply True Copy of CO form, it will cost MMK 5,000 per True Copy.
Required documents for applying CO Forms 1 CO Form (to apply with company letter head to Director General of CO Section) 2 If the products are local products, (a) Acknowledgement for the 100% local products 3 If the products are CMP products, (a) Acknowledgement for CMP products 4 For the CMP products (a) Raw material lists per one unit of CMP products (b) Cost Sheet per one unit of CMP products (c) Manufacturing process of CMP products 5 CO Form in English Language without have any correction (Managing Director or Director need to sign in Form XXVI) 6 Bill of landing Certificate 7 Invoice and Packing list 8 Export Declaration Form from Customs Department (Original and Copy) 9 Export License (Copy) 10 Business Registration Card and Form XXVI (Copies)
Trend of annual revenue from taxes In the trade in Myanmar, border trade accounts for 20%, trade by water and air ways 80%, in which waterway trade is much greater than the airway trade).
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Fiscal year
MMK in billions
2010-2011
283
2011-2012
158
2012-2013
402
2013-2014
412
2014-2015
549
2015-2016
514
4.2 EXPORT AND IMPORT63 4.2.1 Exporter-Importer registration The Department of Trade is now issuing the Exporter-Importer Registration (without separately issuing exporter registration or importer registration) as the only one certificate. If the companies wish to do export and import of products, they can carry them out only with the one registration certificate.
Procedures regarding exporter-importer registration Types of registration a b c d
Applying for new registration Extending current registration Amending registration Applying for true copy registration
Places to apply for registration of exporter-importer business
1
2
3
Office 3: Department of Trade, Ministry of Commerce
Ministry of Commerce (Yangon Branch Office)
Nay Pyi Taw
Strand Road, Yangon
One Stop Service Directorate of Investment and Company Registration Yankin Township, Yangon
Documents needed for new registrations of export business 1 2 3 4 5 63
Application form with company’s letter head (Online form) Letter from company registration office, DICA (original and copy) Certificate of registration of documents (CRD) (original and copy) Certificate of registration of company (original and copy) Names of Board of Directors (Form 26) (original and copy)
U Zaw Min, Director, Directorate of Trade, Ministry of Commerce
80
4 One Stop Service Thilawa Special Economic Zone
6 7 8 9
Shares of Board of Directors (Form 6) (original and copy) Photo table of Director/EC members Association book for rules and regulations (original) Permission from Myanmar Investment Commission (only for the companies who apply with MIC permission) 10 Form of permit (only for the foreign companies who apply with MIC permission) 11 Copy of passport of Managing Director of Director (only for the foreign companies who do not have MIC permission)
Related costs for new registration of exporter importer business Payment categories
Costs (MMK)
Payment for online registration Payment for online registration (If the department needs to type the documents) Payment for registration card Registration fees for 6 months Registration fees for 1 year Registration fees for 2 years Registration fees for 3 years Registration fees for above 3 to 5 years
2,500 1,000 500 50,000 50,000 100,000 150,000 200,000
Note: There is no cost for export license. The life span of export license is 3 months from the registration date.
Documents needed for extending current registration 1 2 3 4 5
Application form with company’s letter head (Online form) Letter from company registration office, DICA (original and copy) Certificate of registration of company (original and copy) Certificate of current exporter importer registration (original and copy) Lists of BODs/Shareholders (original and copy)
Documents needed for amending current registration 1 2 3 4 5 6
Application form with company’s letter head (Online form) Letter from company registration office, DICA (original and copy) Certificate of registration of company (original and copy) Proofs issued by the company registration office for changes and amendments Names of Board of Directors (Form 26) (original and copy) Shares of Board of Directors (Form 6) (original and copy)
Related costs for amending registration a b c d
Amending the names of BODs Amending company’s address Amending company’s name Amending purpose of business
Regarding costs for amending the points (a) to (c), the investor needs to pay MMK 1,000 for every amendment. Regarding costs for amending the point (d), the investor needs to pay MMK 1,000 for each amendment.
Documents needed for applying for certified copy of exporter-importer registration 1 Application form with company’s letter head (Online form) 2 Letter from company registration office, DICA (original and copy)
81
3 4 5 6 7 8
Certificate of registration of company (original and copy) Certificate of current exporter-importer registration (original and copy) Names of Board of Directors (Form 26) (original and copy) Shares of Board of Directors (Form 6) (original and copy) Notice for loss in the newspaper (original) Recommendation from ward administrator and police station
Related costs for applying certified copy of exporter importer registration When the investor lost or damaged the export license, he/she can apply for the true copy by paying MMK 3,000 and related documents. Fee in MMK Applying for a true copy the export license that has been lost (together with related documents)
3,000
4.2.2 Procedures Regarding Import and Export License Export License There is no cost for export license. The validity of export license is three months from the date of issue. The extension for license validity is allowed and the extension period is two months for the first time and one month for the second time.
Related costs for amending current export license Costs for amendment
Related costs to be paid after export license has expired
1 2 3 4
Apply within 1 month Apply within 1 month to 3 months Apply within 3 months to 6 months Apply after 6 months
Costs for penalty
Per amendment (MMK) 3,000 — 3,000
500
3,000
1,000
3,000
5,000
Related costs for applying certified copy of export license When exporter lost or damaged the export license, he/ she can apply for the copy by paying MMK 5,000 and related documents. Fee in MMK Applying for a certified copy the export license that has been lost or damaged (together with related documents)
5,000
Import license The validity of import license is three months from the date of issue. The extension for license validity is allowed and the extension period is two months for first time and one month for second time. The importer needs to pay license fees for import as follows: CIF values (In MMK) 1 - 10,000
License fees for import (MMK) 250
82
10,001 - 25,000 25,001 - 50,000 50,001 - 100,000 100,001 - 200,000 200,001 - 400,000 400,001 - 1,000,000 1,000,001 and above
625 1,250 2,500 5,000 10,000 20,000 50,000
Related costs for amending current import license Costs for amendment
Related costs to be paid after import license has expired
1 2 3 4
Apply within 1 month Apply within 1 to 3 months Apply within 3 to 6 months Apply after 6 months
Per amendment (MMK) 5,000 or 2.5 % of license’s value whichever is lesser 5,000 or 2.5 % of license’s value whichever is lesser 5,000 or 2.5 % of license’s value whichever is lesser 5,000 or 2.5 % of license’s value whichever is lesser
Costs for penalty 500 1,000 5,000
Related costs for applying certified copy of import license When the importer lost or damaged the import license, he/ she can apply for the certified copy by paying MMK 5,000 and related documents. Fee in MMK Applying for a certified copy the import license that has been lost or damaged (together with related documents)
5,000
Related costs for surrender of the import license to the department Sr.
Subject
1
Costs for penalty
Related costs to be paid after the import license has expired (In MMK) Apply within Apply within Apply within Apply after 1 month 1 to 3 months 3 to 6 months 6 months -
500
1,000
5,000
4.2.3 Export and import inspection64
Inspection of export and import goods MITS is conducting the inspection and testing services for exported goods and imported goods very precisely, swiftly and correctly.Export & Import commodities inspection is carried out by experienced personnel of MITS for the following commodities: a Agricultural crops: such as rice and rice products, beans and pulses, maize, sesame, oil cakes and other agriculturalproducts, chilly, onion, ginger etc: b Forestry products: rubber, cane/rattan, bamboo and its products etc: 64
Col Win Swe, Managing Director (Retd), Myanmar Inspection and Testing Services Ltd (MITS)
83
c d e f g h i j k l m n o p q
Mineral products: such as petroleum coke etc: Manufacturing products: fertilizer glasses and cement etc: Animal products: hides & skins, duck feather, bones and horns etc: Marine products: fish and prawn, live-crabs etc: Fruits and vegetables: such a mangoes, apples, limes, lychee etc: Machinery and its spare parts. Food stuff and general commodities: such as cooking oil, wheat, cashew nut and preserved mango etc: Lubricants: raw oil, fuel oil. Motor vehicle and its spare parts. Construction and project bridge materials. Electrical goods. Textile goods and Handicraft products. Dairy products: such as condensed milk, evaporated milk etc: Palm Oil (In bulk & in drums) Industrial oil for making soap (In bulk)
MITS Provides the high quality services on inspection as follows:
Quality control: Weight control: Supervision: Inspection:
Sampling inspection, marking and packing conditions. Weighing and checking the weight and tonnage loaded. Supervise the loading throughout. Inspection of ship holds/tanks for cleanliness.
Insurance claims MITS is a recognized insurance surveyor and operates independently. With MITS surveys and appraisals, the customers (importers) can assume a fair assessment should the imported cargo be damaged or lost. All analytical works, as and when necessary, are done by the MITS and in some cases, with the cooperation of the Central Research Organization and other government laboratories.For all inspection and survey job conducted and undertaken by the MITS, Views, Suggestions and Inspection Certificates are given strictly in accordance with the contractual terms and specifications independently and impartially.
Fees for inspection a Fees for inspection services done abroad shall be claimed in United States dollar. b Fees for inspection services done locally shall be claimed in MMK or USD.
Export and import inspection fees Sr No 1
Description
Unit
Agricultural and farm products (Except rice) a Up to 50MT minimum fee Above 50 MT to 200 MT minimum fee (up to 100) b Above 50 MT to 200 MT minimum fee (up to 200) c Above 200 MT d Tally charges e
Container sealing
f
Container inspection
g Container inspection (empty) For rice shipment a Up to 50 MT minimum fee b Above 50 MT to 200 MT minimum fee (up to 100 MT)
84
per MT per MT per FCL per valve per 20’ FCL per 40’ FCL per FCL
Inspection fees (MMK)
30,000 40,000 50,000 300 100 2,500 1,500 30,000 40,000 5,000 40,000 50,000
2
3 4
5
6
Above 50 MT to 200 MT minimum fee (up to 200 MT) c Above 200 MT Additional service charges a For usual service with 20% random Check weighing Minimum fee b For usual service with 100% weighing Minimum fee c Quality inspection at warehouse Minimum fee d Physical analysis charges (Sample brought by clients) e Sampling & analysis charges (Sample drawn by us) f Splitting of document & extra document g Re-insurance of certification charges h Report insurance charges for weight list i Report insurance charges for custom clearance Hatch survey (on board) Up to 2 hatches 3 hatches & over Forest products a Rubber up to 300 bales minimum fee b Rattan / handicraft Sampling for analysis a Rbd palm olein (in drum) edible oil & industrial oil b Rbd palm olein(in bulk) other edible & industrial oil c Tank cleanliness survey d Milk & milk products e Bitumen Mineral & chemical products a Cement/fertilizer/urea Minimum fee b Mineral Minimum fee Destination survey a Rbd palm olein (in drum) (other edible & industrial oil) b Rbd palm olein (in bulk) Other edible & industrial oil Minimum fee Milk & milk products up to 50 MT Above 50 MT to 100 MT Above 100 MT d Petroleum (in bulk) Minimum fee e Bitumen Up to 5 FCL minimum fee Over 5 FCL Industrial products c
7
8
perMT perMT perMT per sample per lot per sheet per sheet per sheet per sheet
10,000 2,000 2,000 1,000 1,500
12,000 25,000
per consignment per consignment per tank per consignment 65 per sample
20,000 50,000 10,000 10,000 20,000
per MT
150 15,000 150 15,000
per MT per MT per20’ FCL per 40’ FCL perMT
a
Motor vehicle (G = government; P = private)
perMT
b
Heavy trucks
perMT per intervention per company perMT per intervention per company
Up to 50 MT minimum fee
300 60,000 600 120,000 300 15,000 5,000
per intervention
perMT
Other jobs (Destination survey)
60,000 350
150,000 200,000
per item per item per item perMT
Up to 50 MT minimum fee Above 50 MT Other job (Destination survey)
65
perMT
120 10,000 15,000 100 10,000 10,000 15,000 20,000 150 15,000 20,000 200 20,000 G 30,000 P 25,000 G 40,000 P 10,000 G 10,000 G 200 G 15,000 P 15,000 P
According to ASTM Bitumen sampling method, add MMK 5000/- for each more than one sampled container.
85
Above 50 MT Other job (outside Yangon) – 12 hour shift
perMT per man/day
9
Goods imported into Myanmar
10 11 12
Re-export Service charges for Rac, Afla, Radiation… etc Travelling charges at cost
Up to USD 5000 5001—15000 15001—25000 25001—50000 50001—100000 100001—250000 250001—500000 500000 & above per item per item
Sr. No
Description
Unit
Fumigation (export of agricultural and farming products) a Up to 60,000 Ton b Above 60,000 Ton
1
Inspection fees (MMK)
per sq-ft per sq-ft
7 5
200 P 15,000 G 20,000 P 10,000 15,000 20,000 30,000 50,000 75,000 100,000 120,000 20,000 20,000 2,000 Remarks
Cargo ton 1 ton = MMK 250
Export and import inspection fees of FDA laboratory Sr No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
Analysis fees (MMK)
Commodity Condensed milk Milk Palm oil Margarine Butter oil Butter/cheese Shortening/ bakery fat/ coating fat Non-dairy creamer/ coffee creamer/ coffee mate Lactogen/ skim milk/ milk powder/ whole milk Whey powder Modified starch Donut mix Artificial meat Coffee powder Sodium cyclamate/ bicarbonate Citric acid Chicken sausage/Pork sausage/Can (chicken/pork) Lemon tea Suman rose powder Cream cracker Pepsi/juice Sunflower oil/ soy bean oil Soy protein Corn starch/ potato starch/ pop cora Coconut cream Instant coffee Milo/horlicks Sodium glutamate/ chicken powder Ice cream powder Fruit gel Soy sauce Chicken flavoured rice/ san pyoke Glucose
86
17,550 22,550 24,000 31,100 31,100 31,100 31,100 21,650 21,650 12,400 9,050 9,050 15,000 15,400 6,950 5,300 12,300 11,950 12,650 13,600 13,600 24,000 10,500 7,100 7,900 15,400 18,050 12,500 21,650 12,000 11,100 8,900 8,000
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
Maltodextrin Dry yeast Vitamin “c” yummy gummy Malt cereal Golden raisin Coffee flavour Bread crumb Coffee Mix 3 in 1 Seaweed Chocolate Vanilla powder Refined sugar Oat Flour Malt-extract cereal Noodle Foreign-chicken Plaste C Coconut oil Potato crisps Tana with chilts Surimi products Tomato paste Flavour Pure extract (health-plus) Collagen Ice cream Bean sauce Natural water Soy post Soy sauce 3 Bread flavour Milk fat/omega classic dry Glycerin Tin grease
8,200 4,900 13,700 6,150 6,500 13,000 9,150 11,650 9,750 10,950 8,000 6,650 7,150 6,150 15,500 12,300 13,700 24,000 91,500 12,300 12,300 24,000 8,000 8,000 8,000 14,150 24,000 9,500 9,450 8,950 6,500 24,000 8,000 24,000
4.3 OVERSEAS LOGISTICS Procedure (Export and import) First the data are keyed into the MACCS (Myanmar Automated Cargo Clearance System). After getting the shipment approval for export shipment and examination by the Customs officer at the port, the cargoes can be moved out. In the import process also, after getting the release order and examination by the Customs officer, cargoes can be taken out from the warehouse.
Freight chargesby sea and by air66 Example: Destination
Means of transport
Cargo size
Yangon (RGN) to Tokyo (TYO) Yangon (RGN) to Tokyo (TYO) Yangon (RGN) to (HAM)
By sea By sea By sea
20-foot container 40-foot container GP 20-foot container
66
Daw Thit Thit Htet, Vice-President, Myanmar International Freight Forwarders Association
87
Charge in USD 500 800 1,500
Yangon (RGN) to (HAM) Yangon (RGN) to (NWK) Yangon (RGN) to (NWK) BL fee (per BL)
By sea By sea By sea
40-foot container 20-foot container 40-foot container
3,000 3,000 4,000 50
The rates vary depending on the destination. Destination Yangon (RGN) to Narita International Airport (NRT) Yangon (RGN) to (HAM) Yangon (RGN) to (SYD) Yangon (RGN) to (LAX) Yangon (RGN) to (SIN) Yangon (RGN) to (DEL) AWB fee (Per AWB):
Means of transport
Cargo size
Unit cost (per kg)
Charge in USD
By air
1,000 kg
1.45
1,450
By air By air By air By air By air
1,000 kg 1,000 kg 1,000 kg 1,000 kg 1,000 kg
2.65 1.90 3.30 1.00 1.50
2,650 1,900 3,300 1,000 1,500 30
Express worldwide67
DHL EXPRESS
The rates are subject to change.
From Myanmar Weight
Zone 1
Zone 2
Zone 3
Zone 4
33.44 37.90 42.36 46.82
36.95 41.65 46.35 51.05
39.85 46.83 53.81 60.79
39.85 48.82 57.79 66.76
Kg
Zone 5
Zone 6
Zone 7
Zone 8
63.27 74.90 86.53 98.16
72.43 86.91 101.39 115.87
77.99 94.75 111.51 128.27
USD
0.5 1.0 1.5 2.0
63.27 75.95 88.06 100.17
For DOC shipments weighing above 2.0 kg, please refer to the chart below.
Bulky and lightweight shipments:
Customs duties, fuel surcharges, value added surcharges and other relevant government charges and taxes are not included in rates. This charge is applicable, depending on origin or destination postal codes. There can be different rates for shipments above 1,000 kg. Regarding this, DHL complies with IATA regulations and charges the greater of either—the volumetric or actual weight.
Commercial tax 5%:
Effective from July 1, 2015
Additional charges: Remote area surcharge: Shipments > 1,000 kg:
Non-DOC Weight (kg) 0.5 1.0 1.5 2.0 67
Zone 1 44.55 49.01 53.47 57.93
Zone 2 45.60 52.15 56.85 61.55
Zone 3 46.93 53.24 59.55 65.86
Zone 4
Zone 5
Zone 6
Zone 7
Zone 8
USD 46.93 68.63 55.38 81.31 63.83 93.42 72.28 105.53
68.63 80.26 91.89 103.52
80.89 94.90 108.91 122.92
86.26 102.45 118.64 134.83
DHL website (http://dct.dhl.com)
88
2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 20.5 21.0 21.5 22.0 22.5 23.0 23.5 24.0 24.5 25.0 25.5 26.0 26.5 27.0 27.5 28.0 28.5 29.0 29.5 30.0
62.39 66.38 70.37 74.36 78.35 82.34 85.14 87.94 90.74 93.54 96.34 99.14 101.94 104.74 107.54 110.34 113.14 115.94 118.74 121.54 124.34 127.14 129.94 132.74 135.54 138.34 141.14 143.94 146.74 149.54 152.34 155.14 157.94 160.74 163.54 166.34 169.14 171.94 174.74 177.54 180.34 183.14 185.94 188.74 191.54 194.34 197.14 199.94 202.74 205.54 208.34 211.14 213.94 216.74 219.54 222.34
66.25 70.57 74.89 79.21 83.53 87.85 91.55 95.25 98.95 102.65 106.35 110.05 113.75 117.45 121.15 124.85 128.55 132.25 135.95 139.65 143.35 147.05 150.75 154.45 158.15 161.85 165.55 169.25 172.95 176.65 180.35 184.05 187.75 191.45 195.15 198.85 202.55 206.25 209.95 213.65 217.35 221.05 224.75 228.45 232.15 235.85 239.55 243.25 246.95 250.65 254.35 258.05 261.75 265.45 269.15 272.85
72.17 77.63 83.09 88.55 94.01 99.47 104.17 108.87 113.57 118.27 122.97 127.67 132.37 137.07 141.77 146.47 151.17 155.87 160.57 165.27 169.97 174.67 179.37 184.07 188.77 193.47 198.17 202.87 207.57 212.27 216.97 221.67 226.37 231.07 235.77 240.47 244.93 249.39 253.85 258.31 262.77 267.23 271.69 276.15 280.61 285.07 289.53 293.99 298.45 302.91 307.37 311.83 316.29 320.75 325.21 329.67
80.73 87.71 94.69 101.67 108.65 115.63 122.23 128.83 135.43 142.03 148.63 155.23 161.83 168.43 175.03 181.63 187.23 192.83 198.43 204.03 209.63 215.23 220.83 226.43 232.03 237.63 243.23 248.83 254.43 260.03 265.63 271.23 276.83 282.43 288.03 293.63 298.95 304.27 309.59 314.91 320.23 325.55 330.87 336.19 341.51 346.83 352.15 357.47 362.79 368.11 373.43 378.75 384.07 389.39 394.71 400.03
89
117.64 129.37 141.10 152.83 164.56 176.29 185.31 194.33 203.35 212.37 221.39 230.41 239.43 248.45 257.47 266.49 273.33 280.17 287.01 293.85 300.69 307.53 314.37 321.21 328.05 334.89 341.73 348.57 355.41 362.25 369.09 375.93 382.77 389.61 396.45 403.29 409.89 416.49 423.09 429.69 436.29 442.89 449.49 456.09 462.69 469.29 475.89 482.49 489.09 495.69 502.29 508.89 515.49 522.09 528.69 535.29
115.15 124.69 134.23 143.77 153.31 162.85 170.26 177.67 185.08 192.49 199.90 207.31 214.72 222.13 229.54 236.95 243.26 249.57 255.88 262.19 268.50 274.81 281.12 287.43 293.74 300.05 306.36 312.67 318.98 325.29 331.60 337.91 344.22 350.53 356.84 363.15 369.61 376.07 382.53 388.99 395.45 401.91 408.37 414.83 421.29 427.75 434.21 440.67 447.13 453.59 460.05 466.51 472.97 479.43 485.89 492.35
136.93 148.33 159.73 171.13 182.53 193.93 204.19 214.45 224.71 234.97 245.23 255.49 265.75 276.01 286.27 296.53 306.79 317.05 327.31 337.57 347.83 358.09 368.35 378.61 388.87 399.13 409.39 419.65 429.91 440.17 450.43 460.69 470.95 481.21 491.47 501.73 511.46 521.19 530.92 540.65 550.38 560.11 569.84 579.57 589.30 599.03 608.76 618.49 628.22 637.95 647.68 657.41 667.14 676.87 686.60 696.33
151.02 164.65 178.28 191.91 205.54 219.17 229.90 240.63 251.36 262.09 272.82 283.55 294.28 305.01 315.74 326.47 337.20 347.93 358.66 369.39 380.12 390.85 401.58 412.31 423.04 433.77 444.50 455.23 465.96 476.69 487.42 498.15 508.88 519.61 530.34 541.07 551.71 562.35 572.99 583.63 594.27 604.91 615.55 626.19 636.83 647.47 658.11 668.75 679.39 690.03 700.67 711.31 721.95 732.59 743.23 753.87
Non-DOC above 30 kg (Multiplier rate per kg) Weight (kg) 30.5 70.5 300.5
70 – 300 – – 99,999
Zone 1
Zone 2
Zone 3
Zone Zone 4 5 USD
Zone 6
Zone 7
Zone 8
6.46 5.40 5.40
8.86 7.82 7.82
10.20 8.36 8.36
14.28 11.96 11.96
16.04 14.18 14.18
21.66 18.56 18.56
24.88 22.70 22.70
17.18 14.62 14.62
Origin and destination countries zoning table DHL delivers to over 220 countries and territories fast and on-time. Find the latest transit times to your specific destination on http://dct.dhl.com. Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antigua Argentina Armenia Armenia Aruba Australia Austria Azerbaijan Bahamas Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia and Herzegovina Botswana Brazil Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canary Islands, The Cape Verde Cayman Islands Central African Rep. Chad Chile China Colombia
Express worldwide 8 7 8 8 7 8 8 8 8 7 8 3 7 7 8 7 3 8 7 6 8 8 8 3 8 8 7 8 8 2 7 8 8 2 8 5 8 8 8 8 8 8 3 8
Import express worldwide Zones 8 7 8 8 7 8 8 8 8 7 8 3 7 7 8 7 3 8 7 6 8 8 8 3 8 8 7 8 8 2 7 8 8 2 8 5 8 8 8 8 8 8 3 8
90
Comoros Congo Congo (Dem. Republic of) Cook Islands Costa Rica Cote D’lvoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic East Timor Ecuador Egypt EI Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guyana Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Republic Guinea Bissau Guyana (British) Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati
8 8 8 8 8 8 7 8 8 7 7 7 8 8 8 3 8 8 8 8 8 7 8 8 7 8 7 6 8 8 8 7 6 8 7 7 7 8 8 8 8 7 8 8 8 8 8 3 7 7 3 2 7 8 7 8 6 8 4 7 7 7 8 8
8 8 8 8 8 8 7 8 8 7 7 7 8 8 8 3 8 8 8 8 8 7 8 8 7 8 7 6 8 8 8 7 6 8 7 7 7 8 8 8 8 7 8 8 8 8 8 3 7 7 3 2 7 8 7 8 6 8 4 7 7 7 8 8
91
Korea, North Korea, South Kosovo Kuwait Kyrgyzstan Lao PDR Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Macedonia (FYROM) Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands Netherlands Antilles Nevis New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania
3 3 8 7 7 2 7 7 8 8 8 7 7 6 2 7 8 8 2 3 8 7 8 8 8 8 8 5 8 7 7 3 7 8 8 8 – 8 8 3 6 8 8 8 3 8 8 8 8 7 7 3 8 8 8 8 8 2 7 7 8 7 8 7
3 3 8 7 7 2 7 7 8 8 8 7 7 6 2 7 8 8 2 3 8 7 8 8 8 8 8 5 8 7 7 3 7 8 8 8 – 8 8 3 6 8 8 8 3 8 8 8 8 7 7 3 8 8 8 8 8 2 7 7 8 7 8 7
92
Russian Federation Rwanda Saipan Samoa Saint Helena San Marino Sao Tome & Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia Somaliland (North Somalia) South Africa Spain Sri Lanka St. Barthemy St. Eustatius St. Kitts St. Lucia St. Maarten St. Vincent Sudan Suriname Swaziland Sweden Switzerland Syria Tahiti Taiwan Tajikistan Tanzania Thailand Togo Tonga Trinidad & Tobago Tunisia Turkey Turkmenistan Trucks & Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United States of America Uruguay Uzbekistan Vanuatu Venezuela Vietnam Virgin Islands (British) Virgin Islands (U.S.) Yemen Zimbabwe Zambia Zimbabwe
7 8 8 8 8 6 8 7 8 7 8 8 2 7 7 8 8 8 8 7 3 8 8 8 8 8 8 8 8 8 7 7 7 8 2 7 8 1 8 8 8 8 7 7 8 8 8 7 7 6 5 8 7 8 8 3 8 8 7 8 8 8
7 8 8 8 8 6 8 7 8 7 8 8 2 7 7 8 8 8 8 7 3 8 8 8 8 8 8 8 8 8 7 7 7 8 2 7 8 1 8 8 8 8 7 7 8 8 8 7 7 6 5 8 7 8 8 3 8 8 7 8 8 8
93
4.4 CROSS-BORDER LOGISTICS68 Procedure Customs officer checks the documents and examines the cargoes. Then they release the cargoes. Invoice, packing list and license are required to do the Customs clearance at the border. It takes maximum 2 days for the local handling at the border if the documents are in order.
Transportation cost Destination Myawaddy border to Yangon
Means of transport
Cargo size
Charge in USD
By land
20-foot container
1,500
4.5 DOMESTIC LOGISTICS69 There are no specific procedures for the transportation of cargoes within regions and to border checkpoints. Cargoes are transported mainly by truck. Railway is sometimes used and water way is rarely used.
Truck charges From
To
MIP/AWPT
Mingaladon Industrial Zone Shwe Pyithar Industrial Zone Hlaingtharyar Industrial Zone
Cargo size
Charge (USD)
20-foot-container
200
40-foot-container
400
Subject to empty container return charges, laden night stop charges and day-over charges. In addition to these charges, there will be toll fees to be paid.
4.6 CARGO HANDLING COSTS70 Description
Cargo size
Loading and unloading fees
20-foot-container 40-foot-container
Warehouse charge
1 CBM per day
Warehouse (cold storage) charge
Fee(USD)
---
50 70 0.50 ---
Normally, there are no labour charges, but there will be labour charges and forklift charges for heavy cargo.
68
Daw Thit Thit Htet, Vice-President, Myanmar International Freight Forwarders Association Ibid 70 Ibid 69
94
Major logistics companies in Myanmar 1 Ownership: Address: Email:
2 Ownership: Address: Email:
3 Ownership: Address: Email:
4 Ownership: Address: Email:
5 Ownership: Address: Email:
6 Ownership: Address: Email:
7 Ownership: Address: Email:
8 Ownership: Address: Email:
9 Ownership: Address: Email:
Premium Sojitz Logistics (PSL)
Cold chain
JV between Premium Distribution Co Ltd, Sojitz Corporation and Sojitz Logistics Corporation 39 B1, Shwe Pinlon Housing, North Dagon Township — Tel: —
KOSPA Cold Chain Logistics Co Ltd
Cold chain
Kokubu & Co Ltd and Yoma Strategic Holdings Ltd nd 2 floor, Building 9 MICT Park, Hlaing Township
[email protected] Tel: 95 1 230 5227
shop.com.mm (Branch of German company)
E-commerce
100% local 82-C, Shwe Min Wun Sasana Yeiktha Street, Bahan Township
[email protected] Tel: 09 970140004,01 544434
rgo47
E-commerce
100% local —
[email protected]
Tel:
Magnate Group Logistics (MGL)
09 250195211, 09 73186667
Express courier
100% local 46/47, Myaing Hay Won Estate, 8 mile, Mayangon Township — Tel: 95 1 9669586~88, 95 1 651627
Speedy Business Services Co Ltd (SBS)
Express courier
100% local 65 Kyaunggyi Street (near Kyimyindaing Railway Station), Kyimyindaing Township
[email protected] Tel: 951 230 1865, 95 9 73233773
United Courier Services (UCL)
Express courier
100% local th Bldg 4, Room 42, Myopya Housing, Pyay Road, 8 Mile, Mayangon Township
[email protected] Tel: 959 73073099, 95 9 43190199
Royal Express
Express courier
100% local 1243 Wayzayantar Road (Between Thitsar Road and Parami Road), South Okkalapa Township, Yangon
[email protected] Tel: 951 8500856~60
Yangon General Post Office
Express courier
Government 39 Bo Aung Kyaw Street, Corner of Strand Road, Ward 9, Kyauktada Township — Tel: 95 1 380342, 95 1 380257
95
5 | INfraSTrUCTUrE USaGE 5.1 Electricity
Installation fees71 Meter installation Related costs for installation of:
Cable connection
Supervision
Registration
Deposit
6,000
4,000
Meter fixing cost
Cost for meter box
Total
Home use New meter
New power meter (10 kW) New power meter (20 kW) New power meter (30 kW)
4,000
15% of wiring service
4,000
15% of wiring service
4,000
15% of wiring service
8,000
15% of wiring service
8,000
15% of wiring service
2,000
2,000
2,000
4,000
4,000
4,000
65,000
800,000
1,000,000
1,200,000
15,000
90,000
40,000
85,000 +15% of wiring service
40,000
1,050,000 +15% of
40,000
1,250,000 +15% of
wiring service
wiring service
Commercial use New power meter (10 kW) New power meter (20 kW) New power meter (30 kW)
71
8,000
950,500 20,000
20,000
0
20,000
82,500
157,500
232,500
800,000
1,000,000
1,200,000
15% of wiring service
40,000
40,000
1,225,500 +15% of
40,000
1,500,500 +15% of
wiring service
Daw Sandar Win, Director, Economic Planning Division, Department of Electric Power, Ministry of Electricity and Energy
96
wiring service
Transformer installation
1,800,000 2,100,000 2,400,000 2,400,000 2,700,000 3,000,000 3,300,000 3,300,000 3,900,000 4,200,000 4,500,000 5,800,000 6,300,000 6,800,000 7,800,000 8,300,000 9,300,000 18,000,000 21,000,000 25,000,000 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000
307,500 607,500 907,500 967,500 1,207,500 1,507,500 1,807,500 1,897,500 2,407,500 2,707,500 3,007,500 4,207,500 4,507,500 5,407,500 6,007,500 6,607,500 7,507,500 12,007,500 15,007,500 18,007,500 30,007,500 60,007,500 90,007,500 120,007,500 150,007,500 180,007,500
Supervision Fee
50 100 150 160 200 250 300 315 400 450 500 700 750 900 1,000 1,100 1,250 2,000 2,500 3,000 5,000 10,000 15,000 20,000 25,000 30,000
Deposit
Electricity connection
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Infrastructure
Cable connection
Sr
Types of Transformer (kVA)
Related costs for installing transformers
Registration Fee
MMK
MMK
6,000
2,000
20,000
Has a different fee according to the location and wiring service
Power consumption costs (unit costs) Meters Monthly costs for home use meter Meter service charge 1 – 100 units 101 – 200 units 201 and above units
MMK MMK MMK MMK
500 35 per unit 40 per unit 50 per unit
Monthly costs for home use power meter —10 KW, 20 KW, 30 KW) Meter service charge 1 – 5,000 units 5,001 – 10,000 units 10,001 – 50,000 units
Total
MMK MMK MMK MMK
97
2,000 75 per unit 100 per unit 125 per unit
2,135,500 2,735,500 3,335,500 3,395,500 3,935,500 4,535,500 5,135,500 5,225,500 6,335,500 6,935,500 7,535,500 10,035,500 10,835,500 12,235,500 13,835,500 14,935,500 16,835,500 30,035,500 36,035,500 43,035,500 80,035,500 160,035,500 240,035,500 320,035,500 400,035,500 480,035,500
50,001 – 200,000 units 200,001 – 300,000 units 300,001 and above units
MMK MMK MMK
150 per unit 125 per unit 100 per unit
Monthly costs for commercial use power meter —10 KW, 20 KW, 30 KW) Meter service charge 1 – 5,000 units 5,001 – 10,000 units 10,001 – 50,000 units 50,001 – 200,000 units 200,001 – 300,000 units 300,001 and above units
MMK MMK MMK MMK MMK MMK MMK
5,000 75 100 125 150 125 100
per unit per unit per unit per unit per unit per unit
MMK MMK MMK MMK MMK MMK MMK
200 75 100 125 150 125 100
per HP per unit per unit per unit per unit per unit per unit
Transformers Monthly costs for transformers Transformer service charge 1 – 5,000 5,001 – 10,000 10,001 – 50,000 50,001 – 200,000 200,001 – 300,000 300,001 and above
units units units units units units
Electricity tariffs and installation fee (Dawei)72 In Dawei, electricity is supplied by DDPC Holding under supervision of Ministry of Energy. Distribution of electricity and collection of payment for meter bill are done by DDPC.
Charge in MMK 300 per unit
Electricity charge
Installation fees (Dawei) Related costs for installation of:
Supervision
6,000
15% of wiring service
New power meter (20 kW)
6,000
15% of wiring service
2,000
4,000
1,000,000
34,000
New power meter (30 kW)
6,000
15% of wiring service
2,000
4,000
1,200,000
34,000
Registration
Deposit
Meter fixing cost
Cost for meter box
Cable connection
Total
Home use
New power meter (10 kW)
72
2,000
4,000
800,000
34,000
846,000 +15% of wiring service
1,046,000 +15% of wiring service
1,246,000 +15% of
U Ye Min Htet, Electrical Engineer, District Electric Engineer Department, Dawei, U Thet Lwin, Director, DDPC
98
wiring service
Commercial use New power meter (10 kW) New power meter (20 kW) New power meter (30 kW)
8,000
15% of wiring service
8,000
15% of wiring service
8,000
944,500 20,000
20,000
0
20,000
82,500
800,000
157,500
1,000,000
232,500
1,200,000
15% of wiring service
34,000
34,000
1,219,500 +15% of
34,000
1,494,500 +15% of
wiring service
wiring service
Note: For industrial use power meter, there should have a business license and an approval from respective ministry.
5.2 Waterand sewage
Rates for inspection of water and sanitation73 No
Category
1
Inspection charges for sanitary fixture a Bath tub b Water closet c Urinal lip d Basin e Kitchen sink and laboratory sink f Water heater g Tap, bib cock, stop cock h Shower i Hose reel j Water tank Inspection charges for swimming pool Inspection charges for every septic tank or soak pit Inspection charges for ground water tank Installation fees for pump with motor (water & sanitation) a 1 HP to 1.5 HP b Excess of every 0.5 HP over 1.5 HP Design approval charges Fees for pipe laying (water supply line) Inspection fees for water meter Fees for lateral sewer line including manhole chambers Fees for water connection (¾” to 2” ) Fees for water connection (3” ) Fees for water connection (4” ) Fees for water connection (6” ) Water charges at construction period (with water meter) Water charges at construction period (with water meter) Water charges for domestic use
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 73
YCDC charges (USD) 10 5 5 3 3 10 3 10 15 10 500 250 250
per No per No per No per No per No per No per No per No per No per No per No per No per No
100 50 200 14 1 50 10 31 48 64 0.23 4 2
per No per No (lus)p per No (per storey) per No per No
U Thein Min, Deputy Chief Engineer, Water and Sanitation Department, YCDC
99
per No per No per No per No per square-foot per 1000 gal per 1000 gal
Charges for water and sanitation Commercial Condo Factory
MMK 880 MMK 880 MMK 880
Collect from all foreign companies at MMK 880. Calculate per cubic-meter (1 cu-m = 220 gallons)
5.3Waste disposal and treatment
Waste disposal Waste disposal is carried out by the following two departments under YCDC:
Waste disposal
carried out by:
Domestic waste Industrial waste
Water and Sanitation Department, YCDC Pollution Control and Cleansing Department, YCDC
Up to the present time, fee is collected only for water treatment, not for disposal.
Permissions for water piping 1
Temporary water connection permission
When wishing to use the water in the construction a new building
Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant 4 Copy of estate ownership document of the applicant Tax clearance recommendation of respective EO or recommendation of no 5 taxation 6 Copy of construction order 7 Copy of sewage pond and septic pipe permit or apply with attached
2
Final water connection permission
When wishing to use water continuously after the construction was completed
Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant 4 Copy of estate ownership document of the applicant Copy of construction order (if different from the original building construction 5 order, copy of renovation order) 6 Temporary water connection permission 7 Copy of sewage pond and septic pipe permit or apply attached
3
Old house water connection permission
When wishing to use the water without renovating the building
Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature
100
3 4
6
Copy of NRC of the applicant Copy of estate ownership document of the applicant Tax clearance recommendation of respective EO or recommendation of no taxation Copy of sewage pond and septic pipe permit or apply with attached
4
Multiple water connection permission
5
When wishing to use the water diverse from the original
Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant 4 Copy of estate ownership document of the applicant 5 Copy of origin water piping order or copy of water tax receipt 6 Agreement of origin water piping order holder
5
Extra water connection permission
Using water through a particular pipeline without taking water from the original pipeline
Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant 4 Copy of estate ownership document of the applicant 5 Copy of origin water piping order or copy of water tax receipt 6 Agreement of land owner or origin water connection permit holder Recommendation of respective ward and township authorized organization if 7 unable to submit the agreement Using water by moving the pipeline because of Moving the water pipeweak water flow through the pipe and wishing line and connection to close it permission Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant Copy of estate ownership document of the 4 applicant Engineering Department Copy of origin water piping order or copy of 5 (Water & Sanitation) water tax receipt Document of water pumping fixing comple- City Hall. Tel: 01 382990 6 tion
6
7
Scraping the water pipe permission
When wishing to scrape the existing allowed pipeline for weak water flow
Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant 4 Copy of estate ownership document of the applicant 5 Copy of origin water piping order or copy of water tax receipt
101
6
Document of completion of fixing water meter
8
Fixing pumping motor permission
Wishing to fix the water pumping motor
Documents to be submitted 1 Application form designated by department 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant 4 Copy of real estate ownership document of the applicant Copy of original water connection permission if use the committee owned wa5 ter or water tax receipt Document of completion to fix the water meter if use the committee owned 6 water For more details, please contact Engineering Department (Water & Sanita7 tion), City Hall, Tel: 01 382990
9
Septic tank permission
Septic tank construction permission—To construct the septic tank in the premises of single-owned or committee-owned back lane Temporary toilet construction permission—To use the septic pipe while new building is constructed under way in the septic pipe area Septic pipe connection permission—To connect and use the septic pipe after the building was completed Documents to be submitted 1 Application form designated by departmentg pumping motor permission 2 Propose form 2 sets on which license piping engineer signed his signature 3 Copy of NRC of the applicant 4 Copy of real estate ownership document of the applicant 5 Copy of blue print of building Confession of owner expressed fully to take care in building it to meet the form 6 permitted by department For more details, please contact Engineering Department (Water & Sanita7 tion), City Hall, Tel: 01 382990 For the certificate of completed building, BBC which was four- or above-four 8 storey building, Engineering Department (Water & Sanitation) has issued the water & sanitation related recommendation.
10
Water &Sanitation Recommendation Certificate for BBC
Documents to be submitted 1 Water & sanitation related permission copy 2 Construction building permission copy Photos of placing the water meter, water motor, bathroom, toilet, water con3 nection pipe line, waste water pipe line, septic pipe line, and septic tank.
11
Water &Sanitation Recommendation Certificate for BCC
102
Documents to be submitted 1 Completion of water & sanitation related permission Completion of to fix water meter and motor at the building connecting to mu2 nicipal water Completion of to fix the water motor at the building which use the owned tube 3 well 4 Completion of to fix the cover pipe at the wire of water motor 5 Placing manhole at the hole of septic tank where septic pipe was down Level of pipe that coming down into septic tank which was down from septic 6 pipe was right or not 7 Fixing of air exhaust pipe to the septic pipeline 8 Fixing the waste water pipeline 9 Placing the manhole and air gauze 10 Septic tank was meet its capacity 11 Connection condition of septic pipe if it was in the area of septic pipe To left the land space 6-ft and 8-in for all low and high-rise buildings if it hasn’t 12 BDS back of it to construct the septic tank. There isn’t left any land space in owned land, then apply may made to con13 struct the septic at B.D.S for the low and high-rise building which has BDS at its back.
Quick study on waste management in Myanmar 74 Current situation and key challenges
Waste generation Currently there is no accurate and reliable data on the total waste generation in the country.
Solid waste generation in Myanmar (Estimation of World Bank 2012) Per-day generation 2012 2025
5,616 tons 21,012 tons Per-day generation
Per-capita/per-day generation 0.44 kg 0.85 kg %
Yangon Mandalay Nay Pyi Taw Other regions
1,981 955 160 2,520
tons tons tons tons
35% 17% 3% 45%
Total
5,616 tons
100%
Due to the rapid increase of waste generation, both Mandalay and City Development Committees have prioritized solid waste management as issues of immediate concern, both in terms of the environment and public health.
74
Paper (draft) by Institute for Global Environmental Strategies (IGES), Japan, with supprt from Environmental Quality Management Co Ltd, Myanmar, submitted to First National/City Workshops for Developing the National/City Waste Management Strategies, 13 – 17 June 2026
103
Waste collection and disposal Traditionally, waste collection and disposal in Myanmar have been the responsibility of local municipal authorities. In Yangon, Mandalay and Nay Pyi Taw, respective City Development Committees and their Pollution Control and Cleansing Departments (PCCDs) with their network of administrative branches and sub-units are tasked with solid waste management in municipal areas. In other parts of the country the respective Township Development Committees under the Local Government, which manage municipal waste collection and disposal. The wastes collected by respective City Committees are disposed of at dumping sites:
Landfill operation in Yangon and Mandalay75 Tons/ Mode of day dumping YCDC – Yangon City Development Committee Dump site
Hteinbin Dawechaung Shwe Pyithar Mingaladon Dala Seikkyi Khanaungto
1,080 843 61 43 33 4
Open dumping Open dumping Open dumping Open dumping Open dumping Open dumping
Status of the site Operating Operating Operating Operating Operating Operating
MCDC – Mandalay City Development Committee Kyarnigan (North) Thaung-in Myount-in (South) New Brewery Factory New Kandawgyi Lake New Zaungkalow pond Corner of N/E Mandalay
450 300 142 80 28 450
Open dumping Open dumping Open dumping Open dumping Open dumping Open dumping
Industrial waste The Ministry of Industry is responsible for managing Stateowned industries—18 industrial zones, 3 special economic zones—and coordinated with private industries. The Water and Air Pollution Control Plan was issued in 1995. However, all three major cities are faced with tremendous challenges with re75
YCDC/MCDC, 2016
104
Operating Operating Closed in 2009 Closed in 2009 Closed in 2007 Closed in 2013
gard to industrial waste. According to YCDC, approximately 150 tons of industrial waste is collected daily in the city. In Yangon, Dowa Eco‐System Co Ltd, a subsidiary of DowaHoldings Co Ltd of Japan has established and begun operating Myanmar’s first controlled landfill facility at the Thilawa Special Economic Zone. This area is jointly developed by Myanmar and Japan, with the development of Phase 1 Area (211ha) completed in June 2015. It is planned this site will receive industrial waste not only from the Thilawa Special Economic Zone but across the country. In addition to tackling different discharge sources, and managing the controlled landfill, the new company will provide comprehensive waste management services to cover the collection, transportation, intermediate treatment and recycling of waste according to their different characteristics. In so doing, the company will work to address the waste management needs of different industries whilst helping to contribute to the sustainable industrial development of the country.
Medical waste Overall, health-care waste management practices in Myanmar are substandard although there is basic awareness at each level about the importance of protecting health workers, visitors to health care facilities and communities living within the vicinity of health-care waste.
Flow of medical waste Large hospitals:
Collected on a daily basis
Smaller facilities:
Collected once a week or on an on-call basis
Waste separation by colour-coded bags
1
1
2
Non-hazardous healthcare waste or domestic waste: uncontaminated with infectious or pathogenic agents (food residues, paper, cardboard and plastic wrapping) Pathological waste, infectious waste as well as items that have been used for medical care Sharps, mainly, but not exclusively, auto-disable or disposal syringes with needles and pharmaceutical waste that consists of outdated drugs or expired unfinished medical solvents
1
Infectious waste: Incinerated or burned in cemeteries
Sharp waste: Buried underground in landfills.
Other waste: Treated as domestic waste.
2
Blue or green bags are used by YCDC Black bags are used by MCDC
Country-wise YCDC estimate:
779 tons per year
MCDC estimate:
280 tons per year
Infectious waste constitutes over 70%.
105
Paper waste Paper waste including old newspapers, cardboards, clean paper and books is purchased by door-to-door buyers. The door-to-door buyers re-sell the waste paper to retail buyers. Retail buyers resell the waste paperto wholesale buyers. The wholesale buyers resell the paper waste to recycling factories.
Liquid waste (waste water and sanitation) Withtheexceptionofcentralbusin essdistricts,thereisnoconvention alcentralwastewaterandsewerag ecollectionandtreatmentsystemi nthethreemajorcities—Yangon, Mandalay and NPT.Domesticwastewaterisusu allyreleasedintothestormwaterdr ainageandnaturalwaterways.InY angon,onlysixareasofthe city (7%oftotalpopulation)wereobser vedtomanagewastewaterandse wagewasteswithconnectiontothe treatmentplantdrainagefacilities wherebyactivatedsludgeisuseda
Centralized waste water treatment plant in NPT
sfertilizerandtreatedwaterisdispo DESIGN CRITERIA sedtoYangonRiver.Forotherpart Population: 10,000 Outlet BOD: 20 mg/L 3 Sewage volume: 1,600 m /day Daily BOD loading: 400 kg softhecity,septictankwastesaretr BOD/day ansportedbyvacuumtruckstothet reatmentpond.InMandalay,septi ctanksewagewastesarecollectedwithavacuumtruckanddisposedtoOxidationpondinthegroun dofAyeyatenyeincemetery,KyarNiKanvillage,PatheingyiTownship (old)andPatheingyiTownship(new).Theremainingsludgeafterevaporationisutilizedasfertilizer. Further,allindustriesgeneratingwastewaterhaveconstructedindividualtemporarytreatmentsys temstoconnectanddisposeliquidwasteviaa(10)10inchdrainagepipelinewhichissubsequentlyconnectedtotheDohteHtawaddyRiverwithoutanypri ortreatment.InNayiPyiTaw,thereisacentralizedwastewaterandseweragetreatmentfacilitywhic hisconnectedthepremisesinWunnaTheikdiQuartercomprising110unitsandapopulationof10,0 00.Thetreatmentplantmakesuseofananaerobicmicroorganismsystemandchlorinationprocess ingbeforedischargingtreatedwatertotheBukweCreek.
106
5.4 Gas
Myanma Oil and Gas Enterprise76 Estimated cost for 1 mile of pipeline laying and materials Exchange rate: 1 USD = 1200 MMK
No
Description (1 mile of pipe laying)
Pipe and materials cost (USD)
Pipe laying cost MOGE Price MMK
1 1 2 3 4 5 6
No
1 1 2 3 4 5 6
2 8-inch-diameter pipeline 10-inch-diameter pipeline 14-inch-diameter pipeline 20-inch-diameter pipeline 24-inch-diameter pipeline 30-inch-diameter pipeline
Description (1 mile of pipe laying) 2 8-inch-diameter pipeline 10-inch-diameter pipeline 14-inch-diameter pipeline 20-inch-diameter pipeline 24-inch-diameter pipeline 30-inch-diameter pipeline
3
USD 4
Pipeline & materials trading company price (USD) 5
Crop compensations MMK
USD 6
79,100
40,478,000
33,750
347,886
9,500,000
7,917
143,900
46,738,300
38,950
434,858
9,500,000
7,917
158,400
52,955,700
44,130
608,800
9,500,000
7,917
419,200
64,426,000
53,690
869,715
9,500,000
7,917
548,200
72,308,050
60,260
1,043,658
9,500,000
7,917
613,000
83,778,000
69,815
1,304,573
9,500,000
7,917
Total cost for MOGE (MMK)
Total cost for MOGE (USD)
Total cost for pipeline and materials trading company
7 (= 4 + 6)
8 (3 + 4 + 6)
9 (3 + 5 + 6)
49,978,00
120,767
434,903
56,238,300
190,767
586,675
62,455,700
210,447
775,117
73,926,000
480,807
1,296,832
81,808,050
616,377
1,599,775
93,278,000
690,732
1,925,490
Note: The above costs are estimated for 1 mile of pipe laying and materials. The actual costs may vary according to location, pipe size, compensation, time (quicker process), inspection and control system. MOGE sells CNG to motor vehicles at MMK 273.25 per 1 kg. MOGE sells inland gas to business industries at MMK 6060.61 per 1,000 cubic feet.
76
MOGE officials—U Tun Thwe, Director of Engineering Department, U Aung Min, Chief Engineer of Pipeline Department, U Maung Maung Khant, Director of Finance Department, U Than Sein, Director of Production Department
107
MOGE sells offshore gas from Shwe gas pipeline as follows: Location Kyauk Phyu Yenanchaung Taungtha Mandalay
Price per 1,000 cubic feet (USD) 7.5806 8.3150 8.7253 9.0327
MOGE sells offshore gas from Zaw Ti Ka Gas Pipeline to Yangon Region as follows: Customers Private Joint-venture
Price per 1,000 cubic feet (USD) 4.3086 4.7619
MOGE sells offshore gas from Yadana Gas Pipeline to Yangon Region as follows: Customers Private
Price per 1,000 cubic feet (USD) 4.8998
However, MOGE has not enough gas to supply for new industries.
Propane and butane gases77 Propane and butane gases are sold from the MPE retail outlets in Ahlone, Dagon and Insein Townships of Yangon Region, Mandalay, Magway and Minbu. The two gases are sold out in 25 kg cylinder for home use and 50 kg cylinder for hotel use. MPE sells propane gas at MMK 1,200 per kg to hotel.
5.5 Fuel
Prices of petrochemical products78 Sale system of petrochemical products 1. Petrol, diesel, aviation fuel and candle are sold out to Myanmar Petroleum Products Enterprise (MPPE) with transfer price. 2. Diesel, CGO and blue oil are sold out with floating price. 3. Slop oil, flushing oil, disqualified diesel, sugar cane wax are sold out with tender system. 4. Kerosene, CGO, blue oil and Turpentine are sold out to the related department. 5. Kerosene coal and oil dregs are sold out with open sale system. Some prices of petrochemical products from Myanmar Petrochemical Enterprise Sr 1 2 3 4 77 78
Product Petrol 92 Ron Diesel FO
Unit Gallon Gallon Gallon Gallon
Sales price to private companies MMK 2,500 2,450 2,550 2,500
MPE sales price 2,250 2,250 2,300 2,500
U Kyaw Soe Win, Director (Planning), Myanma Petrochemicals Enterprise (MPE) U Kyaw Soe Win, Director (Planning) and U Maung Maung Thaw, Deputy Director, Myanma Petrochemicals Enterprise
108
5 6 7 8 9 10 11 12 13 14 15
Kerosene Turpentine Oil dregs CGO Blue oil Kerosene coal Ammonia (100%) Ammonia (30%) LPG, C3 LPG, C4 Urea fertilizer
Gallon Gallon Gallon Gallon Gallon Ton Ton Ton Kg Kg Ton
2,500 2,880 2,000 2,700 2,570 250,000 2,000,000 30,000 800 600 288,000
2,500 4,500 2,000 2,700 3,500 250,000 2,000,000 240,000 1,200 – –
Max Energy fuel prices (private) —As of December 5, 2016 (Monday) Max Energy’s filling stations Station Name Hinthada Kyonpyaw Ngathaingchaung Pantanaw Pathein Yekyi Bago Indagaw Thakkala Thanatpin Mandalay -1 Meiktila Pyigyi Tagun Thaton NPT-1 Zabuthiri NPT-2 BawgaThiri Ahlone Aung Mingalar Bahan Dagon Ayar (Hlaingtharyar) Hlegu Hmawbi Kyundaw (Sanchaung) Laydauntkan Mingaladon Padaukchaung (Bayintnaung) Shwe Pyitha South Okkalapa Tamwe Thaketa Theinbyu Thuwunna
92 Ron Octane
Region
95 Ron Diesel Octane MMK per litre
Premium Diesel
Ayeyarwaddy Ayeyarwaddy Ayeyarwaddy Ayeyarwaddy Ayeyarwaddy Ayeyarwaddy Bago Bago Bago Bago Mandalay Mandalay Mandalay Mon NPT NPT Yangon Yangon Yangon
580.00 580.00 580.00 580.00 580.00 580.00 580.00 580.00 580.00 580.00 640.00 640.00 640.00 580.00 610.00 610.00 570.00 570.00 570.00
660.00 660.00 660.00 660.00 660.00 660.00 660.00 660.00 660.00 660.00 775.00 710.00 775.00 660.00 700.00 0 650.00 650.00 650.00
565.00 565.00 565.00 575.00 580.00 580.00 570.00 570.00 570.00 570.00 590.00 620.00 590.00 575.00 600.00 600.00 570.00 570.00 570.00
610.00 610.00 610.00 620.00 620.00 620.00 620.00 620.00 620.00 620.00 640.00 660.00 640.00 610.00 640.00 640.00 600.00 600.00 600.00
Yangon
570.00
650.00
570.00
600.00
Yangon Yangon Yangon Yangon Yangon
570.00 570.00 570.00 570.00 570.00
650.00 650.00 650.00 650.00 650.00
570.00 570.00 570.00 570.00 570.00
600.00 600.00 600.00 600.00 600.00
Yangon
570.00
650.00
570.00
600.00
Yangon Yangon Yangon Yangon Yangon Yangon
570.00 570.00 570.00 570.00 570.00 570.00
650.00 650.00 650.00 650.00 650.00 650.00
570.00 570.00 570.00 570.00 570.00 570.00
600.00 600.00 600.00 600.00 600.00 600.00
109
5.6 Generator79 There are 10 large-scale generator sales companies in Yangon. The following are the prices of generators sold by Myan Shwe Pyi Tractors Ltd. Industrial Business Rating Brand
Model
Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar
C13/450kVA C15/550kVA C15/660kVA C13/450kVA C15/550kVA C15/660kVA
Rating (kVA) Standby Prime 450 400 550 500 660 600 450 400 550 500 660 600
Enclosure Open Open Open Sound Attenuated Enclosure Sound Attenuated Enclosure Sound Attenuated Enclosure
Standard Prices USD 60,000 67,000 80,900 68,000 78,500 93,000
Small Business Rating Brand Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar
Model DE22E3 DE33E0 DE50E0 DE88E0 DE110E2
Rating (kVA) Standby Prime 22 20 33 30 50 45 88 80 110 100
Enclosure Sound Attenuated Enclosure Sound Attenuated Enclosure Sound Attenuated Enclosure Sound Attenuated Enclosure Sound Attenuated Enclosure
Standard Prices USD 11,000 14,000 16,000 19,500 22,500
5.7 Telecommunication There are 4 telephone service providers and around 6 Internet service providers in Myanmar. The following costs are acquired from the Myanma Posts and Telecommunications, a State-owned enterprise.
5.7.1 Mobile phone
Myanma Posts and Telecommunications services80 Base tariff service plan
Voice call tariffs: SMS tariffs: Internet tariffs: Other information:
79 80
To MPT lines To other lines
Peak: 7 am – 11 pm
Off-peak (11 pm – 7 am)
MMK 50 per minute MMK 50 per minute
MMK 25 per minute MMK 50 per minute
MMK 25 per SMS MMK 2 per minute For GSM users MMK 4 per minute For CDMA 800/WCDMA users This is the former service of MPT before Swe Thahar service plan was introduced. Nowadays, 90% of the subscribers re using Swe Thahar service to achieve better Internet access.
U Myo Myint Oo, Manager, EPG Retail & Rental, Energy & Transportation Division, MSP Tractors Ltd Myanma Posts and Telecommunications, Ministry of Transport and Communication (www.mpt.com.mm)
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Swe Thahar service plan Who can subscribe:
GSM and WCDMA users only
Usage periods:
23:00 – 07:00 daily
Features (Price for local numbers): Other Information:
Voice
SMS
Internet
MMK 10 per No activation Fee SMS All tariffs valid for calls, SMS and data access within Myanmar territory. Newly activated GSM/WCDMA SIM cards after August 10, 2015 are subscribed to Swe Thahar Plan. MMK 23 per minute
Overseas call service Tariff (MMK per min) 200 250 400 600 800
Zone Zone 1 Zone 2 Zone 3 Zone 4 Zone 5
ASEAN &Eight North America Other Asia and Oceania Europe Rest of the world
Zone 1: ASEAN & 8 (1) Bangladesh, (2) Brunei, (3) Cambodia, (4) China, (5) Hong Kong, (6) India, (7) Indonesia, (8) Japan, (9) Laos, (10) Macau, (11) Malaysia, (12) Philippines, (13) Singapore, (14) South Korea, (15) Taiwan, (16) Thailand, (17) Vietnam Zone 2: North America (1) USA, (2) Canada Zone 3: Other Asia and Oceania (1) Afghanistan, (2) Australia, (3) Bhutan, (4) Cook Islands, (5) Fiji, (6) French Polynesia, (7) Guam, (8) Kazakhstan, (9) Kyrgyzstan, (10) Kimbati, (11) Maldives, (12) Marshall Islands, (13) Micronesia, (14) Mongolia, (15) Nauru, (16) Nepal, (17) New Caledonia, (18) New Zealand, (19) Norfolk Islands (20) North Korea, (21) Pakistan, (22) Palau, (23) Papua New Guinea, (24) Russia, (25) Samoa, (26) Solomon Islands, (27) Sri Lanka, (28) Tajikistan, (29) Turkmenistan, (30) Timor-Leste, (31) Tokelau, (32) Tonga, (33) Tuvalu, (34) Uzbekistan, (35) Vanuatu, (36) Wallis and Futuna Zone 4: Europe (1) Albania, (2) Andorra, (3) Armenia (4) Austria, (5) Azerbaijan, (6) Belarus, (7) Belgium, (8) Bosnia and Herzegovina, (9) Bulgaria, (10) Croatia, (11) Cyprus, (12) Czech Republic, (13) Denmark, (14) Estonia, (15) Finland, (16) France, (17) Georgia, (18) Germany, (19) Greece (20) Hungary (21) Iceland (22) Ireland (23) Italy, (24) Latvia, (25) Liechtenstein, (26) Lithuania, (27) Luxembourg, (28) Macedonia, (29) Malta, (30) Moldova, (31) Monaco, (32) Montenegro, (33) Netherlands, (34) Norway, (35) Poland, (36) Portugal, (37) Romania, (38) San Marino, (39) Serbia, (40) Slovakia, (41) Sloveniam (42) Spain, (43) Sweden, (44) Switzerland, (45) Turkey, (46) Ukraine, (47) UK, (48), (49) Vatican City Zone 5: Rest of world Other countries not specified
This service provides voice calls made from Myanmar to foreign countries both fixed and mobile numbers, excluding special numbers. This service is valid for all MPT users and all MPT SIMs that have international calls activated by default.
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Tourist SIM MPT’s Tourist SIM is available at only MMK 10,000, and comes pre-loaded with credit and data. Allowance MMK 5,000 1.5 GB
Credit Data
Validity 10 days 10 days
Tourist SIM rates Call
SMS
Data
Pay-as-you-go
MMK Local
International
23 per min
10 per SMS
200 per min
150 per SMS
6 per MB You will only be charged once the preloaded allowance of 1.5 GB is fully consumed.
This rate is subject to an additional 5% commercial tax starting April 1, 2016. Tourist SIM are available at the locations below:
• MPT SHOP Yangon International Airport Terminal 1 (International arrival lounge)
• MPT SHOP Yangon International Airport Terminal 2 (International arrival lounge)
Those who staylonger than 10 days cantop-up with MPT.
5.7.2 Landline phone
Fixed line phone service81 Installation charges NEW INSTALLATION Private, government and fax phones Casual phone
PABX phone
New installation charge Advanced charge One-day charge Installation charge New installation charge Advancedcharge 1 Extension installation charge 2 Extension monthly fee
MMK 325,000 50,000 3,000 20,000 325,000 50,000 2,000 250
Change charges ADDRESS CHANGE Private, government and fax phones PABX phone 81
Shifting charges Shifting charges
www.mpt.com.mm
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MMK 25,000 25,000
1 Extension shifting charges NAME CHANGE Private phone PHONE NUMBER CHANGE
5,000 MMK 50,000 MMK 150,000
Name change charge Indicator change charge
PHONE TYPE CHANGE
MMK
Government phone to private phone (if no new phone line connection is needed) Government phone to government phone Private phone to government phone Auto phone to Junction phone Junction to Auto Phone Auto phone to fax phone Auto phone to fax phone
Free
(If respective government department needs a new phone line, installation charge must be paid.)
Free 50,000 50,000 50,000 500 Free
(only monthly fee)
Others VALUE-ADDED SERVICES Call waiting Call line identification Call forwarding Junction to auto phone 3-way calling OTHER SERVICES Bill address change Line open/close (local/STD/IDD) Post-paid to pre-paid
(Monthly fee) (Monthly fee) (Monthly fee) (Monthly fee)
MMK 500 500 1,000 5,000 1,000 5,000 3,000 Free
This rate is subject to an additional 5% commercial tax starting April 1, 2016.
5.7.3 Internet MPT ADSL basic services Class
512 kbps
1 Mbps
1.5 Mbps
2 Mbps
2.5 Mbps
MMK Initial setup fee Annual fee Monthly fee Free email account
50,000 50,000 17,000
1
50,000 50,000 34,000
4
50,000 50,000 50,000
8
50,000 50,000 65,000
50,000 50,000 80,000
10
15
This rate is subject to an additional 5% commercial tax starting April 1, 2016.
MPT fibre internet access service Class
1 Mbps
2 Mbps
4 Mbps
6 Mbps
8 Mbps
Initial setup fee Annual fee
200,000 60,000
200,000 60,000
200,000 60,000
300,000 60,000
400,000 60,000
Monthly fee
100,000
200,000
400,000
600,000
700,000
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Class
10 Mbps
Initial setup fee Annual fee Monthly fee
20 Mbps
500,000 60,000 800,000
50 Mbps
600,000 60,000 1,500,000
100 Mbps
800,000 60,000 3,500,000
1,000,000 60,000 7,000,000
Prices quoted for local company. Prices to foreign company are in dollars, and are 20% higher than local prices.It will require additional equipment cost and installation cost depending on locations of customer. This rate is subject to an additional 5% commercial tax starting April 1, 2016.
MPT ADSL value-added services Static IP Address
Service
Condition
Change Phone Number
Change Phone Number
Additional E-Mail Account
Additional E-Mail Account
Additional E-Mail Account
Additional E-Mail Account
Same Exchange
Different Exchange
up to 10 accounts
up to 20 accounts
up to 30 accounts
up to 50 accounts
MMK
Initial setup fee Annual fee
50,000
50,000
100,000 12,000
10,000
9,000
8,000
Prices quoted for local company. Prices to foreign company are in dollars, and are 20% higher than local prices.This rate is subject to an additional 5% commercial tax starting April 1, 2016.
Internet packages promotion Allocation + bonus Total allocation Package price (MMK) Validity How to buy
400 MB + 550 MB 2,800 30 days Send to 1332
1 GB + 350 MB 1.35 GB 6,500 30 days Send to 1332
5 GB + 1.5 GB 6.5 GB 25,000 30 days Send to 1332
Voice outbound roaming rate (MPT) Zone
Local call
ASEAN + neighbouring East/South Asia Middle of Asia Europe, Australia, Africa, America
Call back Call to rd to Myanmar 3 country MMK per minute
MTC–Mobile Terminating Call
1,200 1,400 1,800
3,000 3,500 4,500
4,000 4,000 5,000
1,200 1,400 1,800
2,000
5,000
5,000
2,000
SMS outbound roaming rate (MPT) Zone
Local call MMK per minute
ASEAN + neighbouring East/South Asia Middle of Asia Europe, Australia, Africa, America
400 500 700 700
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6 |BUSINESS SErVICES & OTHErS 6.1 Finance and insurance 6.1.1 Finance
MFTB’s section-wise services82 Account Department Opening accounts Accounts can be opened with the following currencies: 1 United States dollar --------- (USD) 2 Euro ----------------------------- (EUR) 3 Singapore dollar-------------- (SGD)
Clients who keep foreign currency accounts in MFTB Local Local firms National individuals Ministries State-owned economic enterprises
Foreign Embassies and staff members UN agencies International organizations Foreign firms Foreigner individuals Joint ventures corporations
Requirements for opening an account Foreigners
Application letter Passport, visa copy Two introducers Initial deposit (minimum USD 100, EUR100, SGD 100) Two photographs
Limited company (Myanmar/foreign), cooperative society, partnership
Application letter Board of Directors’ Resolution (Meeting minutes) Memorandum of Association and Articles of Association Company Registration Certificate Two introducers Initial deposit (minimum USD 100, EUR100, SGD 100) Form 6 and Form 26 Two photographs for each authorized person
Export and Import
Requirements for export by private company Application letter Import/Export Registration Company Registration Certificate 82
Daw Myint Myint Maw, Assistant General Manager, MFTB
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Export license Form 6 and Form 26 Bank passbook copy
Required documents for opening of Import Letter of Credit Private companies
Application letter Import License (original and copy) Copy of Pro Forma invoice Authorization to debit (Debit Note)
Bill releasing
Import License Application Debit authority for bill handling commission and bank charges Letter of Indemnity Form Tha-Ka
Remittance, bank guarantee and FC withdrawal
Requirements for remittance abroad Private Approval from Foreign Exchange Management Department of Central Bank of Myanmar Application Letter Fund Transfer Application/Draft Order Form Invoice / Firm Order / Sale Contract Release Order Notification (Formerly I.D) Bill of lading/ Airway Bill/ Cargo Receipt Packing List Bank passbook copy Import license
Bank guarantee Issuance of bank guarantee – Private
Application Required Guarantee Format 100% of Bank Guarantee Amount is to be deposited Copy of Firm Order / Contract
Cancellation of bank guarantee – Private Application Original Bank Guarantee Original Debit Advice (if funds were deposited from company’s FC account)
FC withdrawal from company and personal accounts (for travel abroad) (withdrawal for above USD 5,000)
Application Air Ticket Passport Foreign Currency Account Passbook Approval from Ministry of Planning and Finance
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Required documents for account transfer Application Debit Note FC Account Passbook Request from department concerned if the transfer is to be credited to Government Department account
Foreign Currency Supervision Department Cheques and cards Sr 1
2 3 4
Description Travelling cheque A Selling B
Buying
C
Value collection
Credit card Cheque collection Cash deposit
Fee collection rate 1% of the amount + USD 2 1 to 5 cheques Additional 5 cheques 1 to 5 cheques Additional 5 cheques 4% of the value USD 15 per cheque 0.3% of the deposit
Account Department Miscellany Sr
Description
Fee collection rate
1 2 3
Issue of account cash/issue of Payment Order Account transfer cheque Account transfer of other bank
4
Account closing cheque
5
7
Statement duplicate Bank passbook – MMK 3,000 For loss or Cheque book – MMK 500 new Form – MMK 1,000 Swift payment (For foreign branch bank)
8
Bill under collection
9
Shipping Guarantee Issuing Commission (must open Letter of Credit – L/C)
6
USD/EUR/SGD—1 unit USD/EUR/SGD—2 USD/EUR/SGD—3 USD 5 per person USD 10 per company MMK 10,000 MMK 10,000 USD 50 per transaction Maximum: 0.5% of the bill value Minimum: USD 50 0.25% of the bill value per 3 months Minimum: USD 50
Bank Guarantee Department Bank guarantee service Sr
Description
Fee collection rate
1
Guarantee Issuing/Confirming Commission
2 3 4
Guarantee Advising Commission Amendment Guarantee Advising Commission Amendment Commission a Renewal/increase of amount
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0.25% of the bank guarantee value per 3 months Minimum: USD 50 USD 50 USD 30 0.25% per 3 months
5
Minimum: USD 50 USD 50 USD 25
b Other amendment Claim under guarantee
Remittance Department Remittance services Sr
Description
Fee collection rate
1
Outward Remittance Commission
2
Inward Remittance Commission Stop Payment/Amendment/Return Payment/ Query/ etc.
3
0.125% of the amount Minimum USD 50 USD 15 USD 15
Costs in exporting Sr
Description
1 2 3
L/C Advising Commission Amendment Advising Commission L/C cancellation charges
4
Bill Handling Commission
Fee collection rate USD 30 USD 25 USD 25 0.25% of the bill value Minimum USD 50
Costs in importing Sr 1 2 3
4 5 6
Description
Fee collection rate 0.25% of L/C value per 3 months Maximum—USD 1,500 Minimum—USD 50
L/C Open Commission Standby L/C Issuing Commission (Collecting advance money) Amendment Commission a
If renewal/increase of amount
b
Other amendment
L/C cancellation charges (Trade Financing L/C) Discrepancy/Acceptance Charges (Accepting the discrepancy) Bill Handling Commission (Accepting bill and processing)
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1.5% of L/C value per year 0.25% of L/C value per 3 months Minimum—USD 50 USD 50 USD 30 (As per Financing Agreement) USD 50 USD 75
6.1.2Insurance
Myanma Insurance83 Major kinds of insurance offered by Myanma Insurance84
Myanma Insurance, a government economic enterprise under the Ministry of Planning and Finance, underwrites the following portfolios in local currency or in foreign currency.
Myanma Insurance provides the following insurances in which the main services are from serial No 1 to 5:
1 Life insurance
2
Third party liability insurance
3
Marine, aviation and travel insurance
4 Fire insurance
5 Engineer insurance 6
Government service personnel life insurance Army personnel life insurance Public life insurance Group life insurance Seamen life insurance Shore job life insurance Snakebite life insurance Sportsmen life insurance Health insurance Marine cargo insurance Marine hull & machinery insurance Travel insurance Foreign tourist travel insurance In addition to fire insurance, the following disasters can apply for insurance. Riot, strike and malicious damage Earthquake fire and earthquake shock Explosion Spontaneous combustion Storm, Typhoon, Hurricane, Tempest, Cyclone Flood and inundation Burglary War risk Contractor’s all risks insurance (CAR) Erection all risks insurance (EAR) Electronic equipment insurance (EEI) Machinery insurance
Comprehensive motor insurance
7 Liability insurance
Miner’s liability insurance Third party liability insurance/ Public liability insurance/ Comprehensive general liability insurance
8 Deposit insurance 9 Credit guarantee insurance 10 Reinsurance 83
U Aye Min Thein, Managing Director, Myanma Insurance, MOPF U Lwin Oo, Dy General Manager, Myanma Insurance, Ministry of Planning and Finance (http://www.mof.gov.mm/en/content/myanma-insurance) 84
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Fidelity insurance Cash in safe insurance Cash in transit insurance Burglary insurance Personal accident & disease insurance Workmen’s compensation insurance (WC)
11 Other different types of insurances
Travel insurance for foreigners Kind of travel insurance World tourist insurance
Premium
Validity
1 week’s travel 2 weeks’ travel 4 weeks’ travel 2 months’ travel 3 months’ travel
1 week to 3 months
Benefit
MMK 500 1,000 2,000 4,000 6,000
1 unit 1 unit 1 unit 1 unit 1 unit
Minimum MMK 500,000 for 1 unit to Maximum MMK 1,000,000 for 20 units
Foreigners can buy Foreign Tourist Travel Insurance up to 20 Units Kind of travel insurance Foreign tourist travel insurance
Premium 1 week’s travel 2 weeks’ travel 4 weeks’ travel 2 months’ travel 3 months’ travel
1 unit 1 unit 1 unit 1 unit 1 unit
Premium
Kind of travel insurance
Foreign tourist travel insurance
MMK 500 1,000 2,000 4,000 6,000
Benefit
1 week’s travel 2 weeks’ travel 4 weeks’ travel 2 months’ travel 3 months’ travel
USD 2.00 2.50 3.00 4.00 5.00
1 unit 1 unit 1 unit 1 unit 1 unit
MMK 500,000 per unit
Remark Additional air risk – MMK 1,000 per person
Benefit
Remark
USD 2,500 per unit
Additional air risk – USD 2.00 per person
Reinsurance Insurances for businesses under foreign investment can be bought from international insurance companies via Myanma Insurance. Myanmar Insurance collects 15% of the amount of the reinsurance as service commission.
Private insurance companies Type of insurance
1 2 3 4 5 6
General insurance
First National Insurance Co Ltd IKBZ Insurance Co Ltd Young Insurance Global Co Ltd Grand Guardian Insurance Co Ltd Global World Insurance Co Ltd Excellent Fortune Insurance Co Ltd
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Life insurance
7 8 9 10 11
Aung Thitsar Oo Insurance Co Ltd Ayeyar Myanmar Insurance Co Ltd Capital Life Insurance Co Ltd Citizen Business Insurance Ltd Aung Myint Moh Min Insurance Co Ltd
— — —
The following are the data and information provided by IKBZ Co Ltd which is one of the private insurance companies mentioned above:
Insurance services provided by IKBZ85 LIFE ASSURANCE Four kinds of life assurance
Public Life Assurance Group Life Assurance Sportsman Life Assurance Snakebite Life Assurance
Public life assurance Feature:
Public Life Assurance is to safeguard the interests of the insured person’s loved ones in the events of death of himself or herself.
Requirements: between 10 – 55 years Age: 5 years/10 years/15 years Period of insurance: Minimum required period: 5 years Minimum insured amount: at least MMK 50,000 MMK 50,000 to MMK 30,000,000 Sum of insured amount: Short-term life assurance: 5 – 12 years Long-term life assurance: 13 years and above Accept this insurance with medical check-up from the clinic approved by the agency. The agency’s rating table can be used to calculate the premium. The insured person can pay the premium once in every 3 months or 6 months or 1 year. Benefits of life insurance: Loan Surrender value Period ending Death Loan: When the premium is persistent, that is, when you pay the premium for 2 years continuously for short term life insurance, then you can get a loan with an interest of 6.25%. Surrender value: When the insured person pays the premium continuously for 2 years for short-term life insurance and he does not want to keep going the policy or he has no more condition to keep paying the premium, then the policy will 85
IKBZ Insurance Co Ltd (http://i-kbz.com/insurance/60)
121
come to an end and the agency will give back some amount of the premium he has put in with the calculation using the agency’s rating table. Period ending:
When the policy ends, i.e. the insured period is over,the agency will give back the whole sum of insured amount as saving.
If the insured person is dead, then the beneficiary will receive the insured amount.
Death:
Group life assurance Feature:
It is a kind of insurance which can be keptby the owners, bosses, employers or managers of the companies or the business for their workers or employees and also can be kept by the willingness of workers to recover the damage or the accidents or the death.
Requirements: Age: between 18 – 60 years Minimum number of workers for assurance: 5 Minimum required period: 5 years 18 to 45 years – accepted with free medical approval Over 45 years or sum insured is more than 1 million, accept with medical checkup. Sum insured can be at least MMK 10,000 to at most 5,000,000 for 1 labour. Premium: MMK 100 for MMK 10,000
Sportsman life assurance Feature:
It is a kind of life assurance kept by sport men to recover the injuries or accidents while training, practicing or within competition.
Requirements: Age: between 10 – 60 years Kept by students and sportsmen 1 year Insured period: Sum insured: MMK 1 million (1 unit) to MMK 5 million (5 units) Premium: MMK 5,000 for MMK 1,000,000 Accept with the exception of medical check-up
Snake bite life assurance Feature:
It is a kind of life assurance to recover the injuries or deaths caused by a snake bite.
Requirements: No limitation of age for insurance Sum insured: MMK 500,000 (1 unit) to MMK 5,000,000 (10 units) Premium: MMK 500 for MMK 500,000 Period of insurance: 1 year
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HEALTH INSURANCE Feature: By keeping health insurance, the cost for taking treatment at a hospital as an in-patient can be saved to some extent.
Requirements: It is applicable to Myanmar citizens and expatriates officially residing in Myanmar. Parents or guardians can buy this insurance for their children from 6 to 18 years of age. Those—aged between 18 and 65—can by this insurance for themselves. Premium: MMK 50,000 (1 unit) Maximum that can be bought: 5 units Period: 1 year Benefit: The person insured is entitled to MMK 15,000 per day for a maximum of 30 days if he/she is hospitalized (for one unit). In case of death from an accident, the benefit is MMK 1,000,000. In case of death from an accident while being hospitalized, the benefit including treatment costs is MMK 1,000,000. The amount of benefit depends on the number of units bought.
GENERAL INSURANCE General insurance Fire and peril insurance Comprehensive motor insurance Cash insurance — Cash-in-safe insurance — Cash-in-transit insurance — Fidelity insurance Special travel insurance
Fire and allied perils insurance Feature:
Life is full of unexpected events and not all of them are pleasant. Natural calamities such as an earthquake, avalanche, storm or fire can put human life and property at risk. The company offers the Standard Fire & allied Perils policy, which will support the person insured in such trying times. This insurance policy safeguards the client against the losses that can arise due to a fire and allied perils.
Properties that are covered The policy covers the following assets based on an agreed value or the market value: Building (excluding the value of land) Plant and machineries, equipment & accessories Stocks (Raw, Finished or In-process Goods and Belongings of Retailer, Wholesaler and Manufacturer)
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Furniture, Fixtures and Fittings and Other Contents Exception: Specific Items such as bullion, unset precious stones, curiosity and work of arts for an amount exceeding MMK 50,000, manuscripts, plans, drawings, securities, obligations or documents, stamps, coins or paper money, cheques, books of accounts, computer system records, etc ... Perils covered Basic covers This policy covers various immovable and movable assets mentioned above against loss or damage due to Fire, Lightning, and Explosion of home-used gas. Moreover, the following types of losses are covered by standard fire policy: Goods spoiled or property damaged by water or other used to extinguish the fire. Pulling down of adjacent premises by the fire brigade in order to prevent the progress of flame. Breakage of goods in the process of their removal from the building where fire is raging e.g. damage caused by throwing furniture out of window. Add-on covers The client can choose to extend his/her insurance to cover other perils: Riot, Strikes and Malicious Damage (RSMD) Air Craft Damage Impact Damage Subsidence and Landslide Earth–quake fire and Earth-quake shock Explosion Spontaneous combustion Strom, Cyclone, Tempest, Typhoon, Tornado, Hurricane (SCTTTH) Flood and Inundation Burglary War Risk Properties that are not covered Exclusion: Loss of or damage to the property insured directly or indirectly caused by or in consequence of fire: Theft during or after the occurrence of a fire Pollution or contamination Ionizing radiations and contamination by radioactivity Fermentation, natural heating, spontaneous combustion, its undergoing heating, drying process The burning of property by order of any public authority and subterranean fire Nuclear weapons material Forests, bush, prairie, pampas or jungle and clearing of lands by fire Other exclusions as defined in the Policy Who should take the policy? Any person/firm/organization/institution who may suffer financial loss in the event of operation of insurable perils may insure such property under the fire policy. They may be broadly categorized as under: 1 Owners, joint owners 2 Bailees, lessor, lessee, banks, financial institutions, mortgagors, mortgagees, pawnee, pawn broker 3 Warehouse keepers, custodians 4 Official receiver or assignee in insolvency proceedings 5 A person in lawful possession (E.g. common carrier/transporter, wharfing, commission agent, etc …) 6 Trustees, charitable institutions Premium Range of Premium Rate: Minimum – 0.13%; Maximum – 3.5%. The premium
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will be charged depending on : The class of building The occupation of the building The adjoining building of the insured building The sum insured No claim bonus No claim bonus is a discount on the premium as a bonus for not making a claim against the policy during preceding year. The first year -------------- 0% (No NCB) The second year -------- 25% The third year ------------ 25% (25% of no claim bonus is fixed throughout the policy terms.) Payment method Premium can be settled by a lump sum payment. Benefit For total loss The insured can obtain compensation up to the amount of sum insured for total loss of or damage to the property insured. For partial loss Compensation up to the actual loss of the property destroyed by fire or perils will be paid to the insured. In case of a change to be made, the client is to inform the insurance office or Changes agent if any change occurs during the terms of insurance policy, such as: Change of location of the insured property Change of ownership of the property insured Alternation of the value of the property insured Additional add on covers How to insure? For insuring any property under the fire insurance policy either manual or online, the steps to be done is as follows: 1 Filling of proposal form 2 Inspection of the property 3 Payment of premium 4 Issue of Cover note / Policy document in lieu of acceptance of the proposal For seeking assistance, the client can contact IKBZ or its agents. How to claim? Intimate such loss / damage immediately so that a Competent Surveyor may be deputed to minimize the loss. IKBZ office or IKBZ agent or the employee of the company will guide you the steps to be done for claims. You will usually be required to complete and return a claim form. Give an account of all properties damaged or destroyed with estimated amounts having regard to their values as on the date and place of loss. Cooperate with surveyors by providing all the necessary documents for assessment of loss and establishing liability. Cooperate with the insurer in all their activities of entering the premises, taking possession of properties, their examining, sorting, removing or selling to your account, without prejudice. Inform particulars of all other insurances existing on the property at the time of loss.
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Comprehensive motor insurance Feature:
With his/her motorcar insured,the client’s vehicle is protected against any unforeseen circumstances. The client can be rest assured of hassle-free service and street-wise support, backed by authorized workshops and end-to-end automated process which ensures fast track claim settlement. It helps protect the client, his/her staff, third party properties and his/her business motor assets (trucks, plants, and other vehicles). It can also help to protect the client in the event of a motor related lawsuit.
Vehicles that are covered The Policy covers the following vehicles based on (a) the agreed value or (b) the market value: (A) Motor vehicles 1 Private Car 2 Vehicle owned by Embassy, UN and its organizations 3 Commercial Vehicles 4 Hired Vehicles, Touring Vehicles 5 Goods Transport Vehicles 6 Bus, Coache or Taxi 7 Ambulance, Fire engine, Hearse and Vehicle owned by Religious organizations 8 Any other vehicles registered at Road Transport Authority (B) Mobile Plants (Crane, Fork -lift, Excavator, Dump Truck, etc...) (C) Motorcycles Types of coverage Basic covers Loss or Damage to your vehicle, third party’s property and liability to third parties, in circumstances: Collision and overturning Fire, Explosion or Lightning Malicious Act When In Transit (including loading and unloading) by road, rail or inland waterway Falling Objects unless caused by flood, storm, or natural disaster Add-on covers Vehicle owners can also buy additional covers for other perils by payment of extra premiums: Compulsory covers Strike, riot and civil commotion (3 days only) Wind screen Optional covers Acts of god (Flood, Wind storm, Earthquake, etc…) War risk Theft, etc...
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Major Exclusions under this Policy The following are some of the major exclusions under this Policy. This will ensure the client is not put to any kind of inconvenience while making his/her claim. Any loss/damage to the vehicle and/or its accessories will not be covered if caused by the following:
Normal wear, tear and general ageing of the vehicle Any consequential loss Mechanical or electrical breakdown, failure Vehicle being used otherwise than in accordance with limitations as to use Damage to / by a person driving the vehicle without a valid license Damage to / by a person driving the vehicle under the influence of drugs or liquor Damage to tyres and tubes, unless damaged during an accident Loss/damage outside Myanmar Who should take the policy? Any person / firm / organization / institution who may suffer financial loss in the event of operation of insurable perils may insure such vehicle under the Motor insurance policy. They may be broadly categorized as under:1 Owners, joint owners 2 Bailees, lessor, lessee, banks, financial institutions, mortgagors, mortgagees, pawnee, pawn broker, seller or buyer in hire purchase 3 A person supervising the vehicle or In-charge of the administration department in the institution or launch officer or any responsible person. 4 A person in lawful possession e.g. cargo carrier/transporter, commission agent, etc... 5 Trustees, charitable institutions 6 Any person liable to other vehicle related Insurable Interest Term of the insurance policy Motor insurance Policy is an annual policy generally but renewable each year. However, the terms can be minimum 3 months or maximum one year. Before the end of the term of the insurance, the policy can be renewed. Premium Range of Premium Rate: Minimum – 0.8%; Maximum – 1.5% on the sum insured. The premium to be charged may vary depending on: Usage of vehicle Value of vehicle , class of model, type and manufacturing date Engine cubic capacity Seating capacity No claim bonus If you do not make a claim during the Policy period, a No claim bonus (NCB) is offered on renewals. This discount can go as high as 40% for private vehicle and 25% for commercial vehicle. NCB will only be allowed provided the Policy is renewed within one month of the expiry date of the previous policy. % of discount on total premium Period of Insurance
Private Vehicle 25% 30% 40%
Commercial Vehicle / Motor Cycle 15% 20% 25%
Preceding year Preceding 2 consecutive years Preceding 2 consecutive years Payment method Premium can be settled by lump sum payment. Benefit Compensation for the own damage
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For the total loss of the insured vehicle; the claim payable is up to the amount of sum insured of the insured vehicle. For the partial loss of the insured vehicle; the claim payable is up to the total repair cost of the insured vehicle borne by the insured. Compensation for the third party liability a Death benefit For loss of one life of third party, the maximum claim payable amount is Ks 1 million. b Injury benefit Compensation is payable according to the schedules prescribed by the Insurance Business Supervisory Board. c Losses or damage of property owned by third property The claim payable is up to a reasonable cost of repair of the damaged property or value of the loss the property borne by insured. d Towing charges For motor vehicles: ---------up to Ks 100,000 For motor cycles: ------------ up to Ks 10,000 e Legal expenses Up to Ks 200,000 for each case. Maximum amount of third party liability Maximum amount of Third Party Liability for one event is limited as “Combined Single Limit” as follows: – For motor vehicles - limited to maximum amount of Ks 50 million for one event. – For motorcycles - limited to maximum amount of Ks 25 million for one event. To inform IKBZ office or agent if any change occurs during the terms of insurance polChanges icy. such as: Change in ownership of the insured vehicle Change for replacement with another vehicle Change in major parts, color, etc. of the insured vehicle Change in type and usage of insured vehicle How to insure? For insuring any vehicle under this policy, either manual or online, the steps to be done is as follows: 1 Filling of proposal form 2 Inspection of the vehicle 3 Payment of premium 4 Issue of Cover note / Policy document in lieu of acceptance of the proposal For seeking assistance, the client can contact IKBZ or its agents. How to claim? Intimate such loss / damage to us immediately so that a competent surveyor may be deputed to minimize the loss. The IKBZ staff will guide you the steps to be done for claims. In a claim for the accident due to your vehicle (including a third party claim and an own damage claim) and in a theft claim, report to the police. In a claim for the accident due to other vehicles (in a third party liability), must obtain the insurance details of that vehicle and then report it to the insurer of that vehicle. Cooperate with surveyors by providing all necessary documents for assessment of loss and establishing liability. Inform the particulars of all other insurances existing on the property at the time of loss.
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Cash insurance Cash-in-safe insurance Feature:
The cash-in-safe insurance policies are very much helpful in such undesirable situations as burglary or theft. This policy indemnifies the client against loss of money whilst kept within the premises. This policy covers cash, bank and currency note, coins, certified cheques, money orders, postage cheques, postal cheques, securities and postage stamps secured in a locked safe or vault/strong room in the premises of the insured.
Exclusion: Manuscripts, accounts or records Periods covered The following types of losses covered by this policy are: Burglary, robbery Any violent and forcible means Major exclusions under this policy To any loss due to any fraudulent act by the insured or a partner or an employee (except such acts by a messenger or custodian) discovered within three working days after the occurrence and in case of dishonest act committed several times before discovery, the date of discovery is assumed to be the first day of occurrence. To any loss due to forgery, payment of money in any exchange or purchase or accounting or arithmetical errors or omissions. To any loss due to any loss insured by fidelity guarantee. To any loss due to war ( whether war be declared or not ), civil war , terrorism, strike , riots , civil commotion to a popular rising, rebellion, revolution, acquisition of property by order of public authority. To any loss due to nuclear weapons, radiation or contamination by radio activity from any nuclear fuel or from any nuclear waste from the combustions of nuclear fuel. Any loss or damage by fire however caused Other exclusions as defined in the policy Who should take the policy? Any person / firm / organization / institution who may suffer financial loss in the event of insurable perils may insure such cash-in-safe under the Policy. They may be broadly categorized as under: 1 Government agencies 2 Cooperative societies 3 Banks (private as well as state) 4 Private business people and private enterprises Term of the insurance policy Cash-in-Safe insurance Policy is issued for one day or up to a year. Premium Range of Premium Rate: Minimum – 0.2%; Maximum – 1% on the sum insured. The premium to be charged may vary depending on: Location of building where the money is kept Safety measures of the building Safety measures concerning the strong room / vault Closeness or nearness to security people Systematic controls in book-keeping and non-loss situations in the past
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Payment method Premium can be settled by lump sum payment. Benefit The policy covers loss of money from within the locked safe or locked strong room due to burglary or robbery during working days or holidays will be compensated according to conditions under this Policy. Changes Please inform our office or agent if any change occurs during the terms of insurance policy, such as: Change in amount of sum insured Change in location of srong room / vault Change in name of custodian / vault keeper (probably changeable within a year) How to insure? For insuring any property under this insurance policy either manual or online, the steps to be followed are as follows: 1 Filling of proposal form 2 Inspection of the building / strong room / vault 3 Inspection of relevant documents of custodian 4 Payment of premium 5 Issue of cover note / policy document in lieu of acceptance of the proposal How to claim? Intimate such loss immediately so that a competent surveyor may be deputed to minimize the loss. IKBZ office or IKBZ agent or the employee of the company will guide you the steps to be done for claims. Inform immediately to the police Cooperate with surveyors by providing all necessary documents for assessment of loss. Inform the particulars of all other existing insurances at the time of loss.
Cash-in-transit insurance Feature:
The cash-in-transit insurance policies are very much helpful in such undesirable situations as burglary or theft. This policy indemnifies the client against loss of money whilst kept during transit. This policy covers cash, bank and currency note, coins, certified cheques, money orders, postage cheques, postal cheques, securities and postage stamps secured while in transit
Exclusion: Manuscripts, accounts or records Perils covered The losses of money in transit between the insured's premises and bank or post office, or other specified places occasioned by the following perils covered by this Policy are: Burglary, robbery Any violent and forcible means Major exclusions under this policy Loss of money directly or indirectly caused by: Earthquake ,Volcanic eruption, flood, typhoon, tornado, cyclone , hurricane, Other convulsion of nature or atmospheric disturbance War, invasion, Act of Foreign Enemy, hostilities or warlike operations (whether war be declared or not), mutiny, riot, civil commotion, insurrection, rebellion, revolution , conspiracy, military, naval or usurped power, Martial Law or
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state of siege Other exclusions as defined in the policy Who should take the policy? Any person / firm / organization / institution who may suffer financial loss in the event of insurable perils may insure such cash-in-transit under the Policy. They may be broadly categorized as under: Government agencies Cooperative societies Banks (private as well as state) Private business people and private enterprises Term of the insurance policy Cash-in-transit insurance Policy is issued for one day or up to a year. Premium Range of Premium Rate: Minimum – 0.017%; Maximum – 0.09 % on the sum insured. The premium to be charged may vary depending on distance from Premises to destination. Discount rate can be enjoyed according to the followings: Accompaniment of guards in transit Usage of own vehicle in conveying Safety of safe-box (kept under lock-and-key or sealed) Using public route (must be secured and common) Location of destination (should be in major places) Payment method Premium can be settled by lump sum payment. Benefit Any loss of money in transit between the insured's premises and bank or post office, or other specified places occasioned by Robbery or theft will be compensated according to conditions under this Policy. Changes To inform IKBZ or its agents in case of the need to make a change: Change in amount of sum insured Change in conveying vehicle Change in conveying route How to insure? For insuring any property under this insurance policy either manual or online, the steps to be followed are as follows: 1 Filling of proposal form 2 Inspection of the building/strong room/vault 3 Payment of premium 4 Issue of Cover note/ Policy document in lieu of acceptance of the proposal How to claim? Intimate such loss immediately so that a competent surveyor may be deputed to minimize the loss. IKBZ office or IKBZ agent or the employee of the company will guide you the steps to be done for claims. Inform immediately to the police. Cooperate with surveyors by providing all necessary documents for assessment of loss. Inform the particulars of all other existing similar insurances at the time of loss.
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Fidelity insurance Feature:
Despite the best internal control measures in any corporate activity, mishaps like misappropriation and embezzlements by employees do take place. Fidelity Insurance Policy protects employers against such exposures. This insurance is targeted to cover financial losses mentioned in the following by employees such as cashiers, finance or sales personnel and other such employees holding position or trust in your organization. 1 loss of money or money’s worth which is confidently entrusted by business, 2 loss of money or money’s worth accepted by employees in line of duty The term “Money” shall be deemed to mean and to include cash and/or any other financial instrument that is easily convertible into cash. Foreign currency shall be equivalent to local currency at the prevailing Central Bank Mean rate at the time of loss.
Exclusion: Manuscripts, accounts or records Types of coverage This policy provides coverage against any direct pecuniary loss sustained by the employer through the following acts committed by his employees in connection with their occupation and duties. Default, remissness Fraud, larceny Degeneration, dishonesty Negligence, embezzlement Forgery, fraudulent conversion Major exclusions under this policy Some of the major exclusions under the policy are: any fraudulent Claims, any loss due to war (whether war be declared or not), Civil war, terrorism, strike, riots, civil commotion to a popular rising, rebellion, revolution any loss due to acts of nature (flood, wind storm, earthquake, etc …) other exclusions as defined in the Policy Types of policies The cover may be required in respect of a single employee or a group of employees. There are three types of Policies normally issued by the Insurer for this clause of business namely “Individual Policy”, “Collective Policy” and “Position Policy”. Individual Policy: This Policy covers and individual for a stated amount. Collective Policy: This Policy covers a group of employees. The Insured decides the amount of guarantee required for each individual according to his or her responsibility and position. A schedule is included in the Policy. Position Policy: This Policy covers the amount of sum insured specified against position irrespective of number of people working in the position. The policy schedule contains “Positions” rather than the names of individuals, with the sum insured specified for each position. Who should take the policy? Any person / firm / organization / institution who may suffer financial loss in the event of insurable perils may insure such Fidelity Insurance under the Policy.
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They may be broadly categorized as under: Government agencies Cooperative societies Banks (private as well as state) Private business people and private enterprises Term of the insurance policy Fidelity insurance Policy is issued for one day or up to a year. Premium Range of Premium Rate: Minimum – 1%; Maximum – 2% on the sum insured. The premium to be charged may vary depending on types of the following institution. 1.0% on sum insured for government enterprise and bank. 2.0% on sum insured for private owned enterprise and companies. Payment method Premium can be settled by lump sum payment. Benefit This policy covers any direct pecuniary loss sustained by the insured (employer) through acts of fraud, dishonesty, forgery or larceny committed by his employees in connection with their occupation and duties. Changes
Please inform our office or agent if any change occurs during the terms of insurance policy, such as: Change of name of employee(s) Change of amount of sum insured (probably changeable within a year) How to insure? For insuring any property under the fidelity insurance policy either manual or online, the steps to be done is as follows: 1 Filling of proposal form 2 Inspection of relevant documents of employee 3 Payment of premium 4 Issue of Cover note / Policy document in lieu of acceptance of the proposal How to claim? Intimate such loss immediately so that a Competent Surveyor may be deputed to minimize the loss. IKBZ office or IKBZ agent or the employee of the company will guide you the steps to be done for claims. Take action or sue the defaulting employee in the case of the “act of infidelity”. Cooperate with surveyors by providing all necessary documents for assessment of loss. Inform the particulars of all other existing similar insurances at the time of loss.
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Special travel insurance Feature:
1
While travelling along the specified route from the beginning till the end with the vehicle stated in the ticket, the insured will get indemnity for his/her death/injury directly or indirectly due to the stated vehicle unless the insured suffers/commits the followings:
Pre-existing diseases and handicaps Insane Suicide Voluntary act of bodily injury Abortion Involvement in dangerous/reckless act Violation of law to commit a crime Usage of illegal drugs War, strike, riot and civil commotion
2
The beneficiary will be compensated up to 3,000,000 Kyats upon the death of the insured and up to 2,400,000 Kyats proportionally upon the extent of injury occurred to the insured.
3
The beneficiary is required to submit the claim during one year since the insured’s death and during two years since the injury occurred to the insured.
6.2 BUSINESS SERVICES There are various individual private companies/entities which are providing lawyer services, translation and interpretation services, accounting services and business consultancy services. The costs mentioned below are those which MSR has interviewed:
6.2.1 Lawyer’s services86
Service fees for trademarks USD Sr
Description
1 Registration of per trademark (multi class) per patent (invention, design) / per design 2 Registration of per domain name 3 Registration of assignment / record of change of name and address of registered per trademark / per patent 4 Renewal / re-registration (multi class)
86
Per trademark/ patent/design application
185 185 185 185
5 Publishing / re-publishing of caution notice
170
6 Search (multi class) per trademark
150
U Myint Lwin (Advocate and Trademarks Agent), U Myint Lwin Law Office
134
Official fee Stamp duty on power, declaration, registration
45
Expenses Publishing charges for caution notice in The Voice Weekly Journal (per 1/8 page)
150
Miscellaneous expenses
25
Requirements 1 A power of attorney notarized and legalized up to the Republic of the Union of Myanmar Embassy / Consulate. If there is no Embassy / Consulate in your country, the power of attorney may be legalized by the Republic of the Union of Myanmar Embassy / Consulate any country 2 One Declaration per trademark / patent / application 3 Specimen of the mark (12 copies) 4 Publishing of cautionary notice – one insertion in a local newspaper is our local practice
Service fees for advocate Sr 1
Description
USD
Establishment of a company (local, foreigner)
400
It may take about 3 months to do it. 2
Application for approval of MIC
7,000 – 40,000
It may take about 10 months to get approval. 3
Signing contract for leased land
4
Signing contract for joint venture in Yangon
5
Signing contract for joint venture in other cities rather than Yangon Depends on the distance
6
Application for business license
7 8
200 1,000 1,000 – 5,000 300
Preparing various contract and checking if written contracts are according to existing laws in Myanmar. (USD 500 per page) Doing works related to the government offices on behalf of the company
1,000 – 15,000 1,000 per year by contract
6.2.2 Accounting services87 Kyu Kyu Win and Associates Services Co Ltd provides the following services: 1 Auditing service 87
Daw Tin Tin Khaing, General Manager, Kyu Kyu Win and Associates Services Co Ltd (Accounting, Auditing, Financial and Legal Consultancy Services)
135
2 Accounting service 3 Tax consulting service 4 Financial and legal consulting service 5 Business registration and incorporation service The company provides auditing and accounting service for the investors with the following charges.
Fees for auditing and accounting service Type of company
USD
Newly formed company with zero or less business activities Medium size company with some business activities Big size company with many business activities
1,000 3,000 5,000
– – –
2,000 5,000 10,000
The service fees for auditing and accounting services are nearly the same. But, the investors need to pay separately for the two services.
6.2.3 Translators/interpreters Translation and interpretation fees vary, depending on the individual service providers. The following are the fees provided by Myanmar Translation Co Ltd: Service
Fee
English-Myanmar88 Translation fees Interpretation fees
Between English and Myanmar (Including editing and proof-reading) Simultaneous interpretation (between English and Myanmar)
USD 15 per 450-500 words
Consecutive interpretation
USD 300 per day
USD 400 per day
If the location is outside of Yangon, the service user needs to pay addition fees for transportation, meal and accommodation for the interpreter.
Japanese-Myanmar89 Translation fees Interpretation fees
From Myanmar to Japanese
MMK 20 per word
From Japanese to Myanmar
USD 20–50 per page
Between Japanese and Myanmar
USD 200 – 300 per day
If the location is outside of Yangon, the service user needs to pay addition fees for transportation, meal and accommodation for the interpreter.
6.2.4 Business consultancy
Service fees for consultant90 Sr 1 88 89 90
Description Senior level for a consultant
(Lawyer)
USD per hour 500 per hour
Ma Khaing Zar, Translation Section, Ma Kyaw Ohnmar, Interpretation Section, Myanmar Translation Co Ltd U Set Paing, Founder of Myanmar Erin Group U Myint Lwin (Advocate and Trademarks Agent), U Myint Lwin Law Office
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2 3 4
Junior level for a consultant Senior level for a consultant Junior level for a consultant
(Lawyer) (non-lawyer) (non-lawyer)
300 per hour 200 per hour 100 per hour
Financial and legal counselling91 Sr
Description
1
Tax consulting, financial and legal consulting services
2
Business registration and incorporation service
USD per hour 200 per hour 3,000 per hour
Investors need to pay for the other related costs for business registration and incorporation.
6.3 ENGINEERING SERVICES 6.3.1 Environment (EIA/SIA)92 A business company, be it local and foreign, has to contact a research agency in Myanmar to do environmental impact assessment (EIA) or initial environmental examination (IEE) or environmental management plan (EMP). The investor has to ask two questions first: 1 Is the project (construction of buildings or doing operations, eg mining) he/she plans to undertake needed to have Environmental Impact Assessment conducted? 2 If yes, what level of assessment should be conducted of the two levels—(1) EIA/SIA or (2) IEE? To be able to acquire answers to these questions, the business person can visit the ECD website(www.ecd.gov.mm) or contact direct to it. After getting a decisive answer as to the level of assessment to be conducted, the businessman is to acquire services from one of the research agencies in Myanmar. According to the Ministry of Natural Resources and Environmental Conservation (MNREC), as of July 25, 2016, there are 42 agencies and 117 individuals that have submitted application forms to ECD and the department is now planning to issue registration license. ECD accepted project proposals for EIA at Nay Pyi Taw from October 2011 to December 2015. Starting from December 2015, ECD has sent its two representatives to MIC to serve as One Stop Service (OSS). These representatives attend Project Assessment Team Meeting with other ministries concerned. The research agency has to follow guidelines in the EIA Procedures issued by MNREC in its Notification No 616/2015, dated December 29, 2015. The key government entity is the Environmental Conservation Department (ECD) under MNREC.
Difference between EIA/SIA and IEE93 There are specifications set by ECD to differentiate between IEE and EIA/SIA. The following
91 92 93
Daw Tin Tin Khaing, General Manager, Kyu Kyu Win and Associates Services Co Ltd (Accounting, Auditing, Financial and Legal Consultancy Services) U Tin Than, Head of EIA/SIA Department, Myanmar Survey Research Dr San Oo, Director, Environmental Conservation Department, MNREC
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is a size specification in hydro-electric power project that enables determination of IEE or EIA. In other words, IEE type business has lesser environmental impacts than EIA type. Rules for EIA related services are: 1. IEE and EMP services can be done by professional staffs of the company, the Environmental specialist who has close relation with the company and other specialists from outside of company. 2. EIA can only be done by Third Party—Research Agencies Regarding EIA license, the department is planning to issue license for the agencies and individuals who are currently providing EIA services. But, it may take time. Currently, the department is preparing to issue transitional certificates for agencies and individuals.
Steps to be taken before conducting an EIA Process before EIA/SIA assessment 1 The research agency can be selected on a tender basis or on negotiation basis. 2 Whether it is the invitation of tenders from multiple research agencies or the request for a proposal from a particular research agency, the following data and information are to be mentioned. — Project objectives — Project background — Project description — Project size and cost — Project site (with site map – coordinates) — Project plan — Project owner (project proponent) 3 Upon receiving terms of reference (specifications of data and information and other requirements), the research agency submits a proposal in which it mentions the research objective, scope of work, research methodology, timeline and payment and terms. 4 The businessman assesses and selects a research agency (if it is on a tender basis) and sends feedback to the research agency. Negotiations have to be held on the contents in the proposal before entering into a contract on conducting the EIA/SIA. 5 If all the contents in the proposal are mutually agreed, a contract is made between the two parties and assessment work starts. 6 Upon receiving the final assessment report from the research agency, the businessman has to gives feedback on the report. If the report is approved by the businessman, it is submitted to the Directorate of Investment and Company
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Administration under the Ministry of Planning and Finance.
Process on completion of the EIA/SIA Report 1 EIA/SIA Final Report is to be submitted to DICA under the Ministry of Planning and Finance. 2 DICA convenes a proposal assessment meeting, participated by the Ministries concerned including ECD under the Ministry of Natural Resources and Environmental Conservation 3 If the meeting deems that the report is still not perfect, ECD asks the research agency to make amendments to the report through the company which has submitted the application for establishing a company. 4 If the report is accepted by ECD, it issues a recommendation letter to the applicant company. 5 The company then submits the recommendation letter to DICA which checks all the necessary documents submitted by the applicant and forwards them to MIC. 6 It takes around 90 days from the submission of the Final Report to the DICA’s submission of necessary documents to MIC.
Costs for conducting EIA/SIA The amount of the fee charged by a research agency depends on: Travelling: The distance between Yangon (the location of research agency) and the project site The extent of work:Depending on the kind of industry, the research agency needs to acquire the input of an expert or experts on the related field (eg hydro power generation, chemicals, mining etc) to be able to assess the impacts during the implementation period and the operation period, and formulate Environmental Management Plan (EMP) to alleviate the impacts. Lab tests:Services for measuring soil quality, water quality and air quality before the implementation period. Prices differ according to the number of samples and the frequency of taking samples – open season, rainy season, cool season.
The tasks of a research agency 1 Literature review/secondary data collection 2 Travelling between Yangon and destination city and within destination city. The frequency of travelling to the site can be one to three – four. 3 Observation of the site according to criteria – flora and fauna, landscape change, etc
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4 Study of the industry to ascertain the possible impacts (with the aid of an expert/engineer) 5 Taking samples of soil, water and air for lab tests 6 Interviews with neighbours—families, monasteries, associations, etc 7 Interviews with key informants—local administrator, school head, health-care person, midwife, etc 8 Public Consultation Meeting (PCM)—attended by local authorities, departmental officials and local elders, etc. 9 Compiling the report Depending on the level of assessment and the size of the project, research fees range from minimum USD 20,000 or less to maximum USD 100,000 or more. The items for which the fees are charged vary and depend on the individual research agencies. Hence, the fees cannot be mentioned accurately. ECD does not fix the costs for conducting environmental impact assessment (EIA) or initial environmental examination (IEE) or environmental management programme (EMP). The following is a sample breakdown of the service fee charged by a research agency. Sr 1 2 3 4 5
6 7 8 9
Description Literature review/secondary data collection Travel cost (one time) Observation of the site Engagement of an expert/engineer (a) Lab test – soil (nutrient) (b) Lab test – soil (heavy metal (per sample) (c) Lab test – water (per sample) (d) Lab test – air Interviews with neighbours Interviews with key informants Public consultation meeting Data analysis and compilation of the report
Fee in USD
(per sample) (per sample) (per sample) (24 hours)
— 200 – 500 — 500 – 1,000 50 – 100 50 – 100 150 – 200 800 – 1,000 — — — 1,500 – 10,000
NOTES: 1 The amount of the fee for secondary data depends on the research agency. 2 Travelling can be more than one time. 3 The amount of the fee for observation of the site depends on the research agency. In observing the site, sometimes zoologists and botanists may have to be engaged. 4 The amount of the honorarium for the expert depends on the workload. 5 Samples can be more than one. 6 The amount of the fee for interviewing neighbours depends on the research agency. 7 The amount of the fee for interviewing key informants depends on the research agency. 8 The amount of the fee for holding the PCM depends on the research agency. 9 The amount of the fee for report compilation depends on the industry.
Assuming that the total cost of all the fees is USD 50,000, there will be a research agency fee, a percentage calculated on the total and commercial tax 5%, calculated on the sum of the total fee plus agency fee. The total of all fees Agency fee (10%) Commercial tax (5%)
on the sum of the total & agency fee Grand total
50,000 5,000 2,750 57,750
(In words: Fifty-seven thousand, seven hundred and fifty United States dollars only)
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6.3.2Inspection of building94 Inspection of new buildings is conducted by Yangon City Development Committee and two committees as mentioned below:
Inspection
carried out by:
1 to 8½ storeys
YCDC
9 to 12 ½ storeys
High-rise Building Inspection Committee
13 storeys and above
Committee for Quality Control of High-rise Building Construction Projects
Required documents for Building Completion Certificate (BCC) Under 3 ½ storeyed
Copy of the applicant’s National Registration Card (NRC) Copy of building permit
Copy of the receipt of inspection fee
Log Book Receipt of purchased bin from the Environmental Conservation and Cleansing Department
Department application form
If above 4 storeyed (Additional)
Recommendation of complete tax of Home Revenue Front, back and both sides photos of existing building and photo of electric meter, water motor, sewage existing Recommendation of Engineering Dept (Water and Sanitation) Recommendation of Engineering Dept (Road and Bridge) Recommendation of Fire Department Theodolite Reading for building inclination
Recommendation of Appraiser
Permit inspection fee MMK
Inspection fee Residential ------------------------ Commercial -----------------------
18 per sq-ft 36 per sq-ft
Fine for construction without permit Residential ------------------------ Commercial -----------------------
500 per sq-ft 2,500 per sq-ft
Extension permit fee 25% of permit inspection fee
BCC inspection fee MMK 94
Inspection fee U Kyaw Tha Sein, Deputy Chief Engineer, Engineering Department (Building), YCDC
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25% of permit inspection fee
Fine for premature usage of the building Residential ------------------------ Commercial -----------------------
120,000 per unit 240,000 per unit
Fine for exceed area
15,000 per sq-ft
6.3.3Inspection of fire prevention95
Requirements for construction of high-rise buildings 1 If a private individual or a construction businessman plans to construct a high-rise building, he has to obtain the paper on “Fire safety inspection and advice” from the Fire Services Department (FSD). 2 If asked, the FSD will issue the Form for Fire Safety Inspection and Advice. 3 The applicant is to prepare a Case File with the file cover with the application form issued by the FSD, together with the following documents, and submit it to the FSD. (A)
A copy of the blueprint of the building to be constructed and the following are to be included in the form. (1) The map indicating the location of the building to be constructed (layout plan) (2) The aerial view of the building (3) The front view of the building (4) The back view of the building (5) The right side view of the building (6) The left side view of the building (7) The image showing the height and floors of the building (8) The image showing the main staircases (9) The image showing the main door and windows and their measurements (10) The image showing emergency fire staircase (11) The image showing the plan for installation of fire security systems
(B)
A copy of the National Registration Card of the applicant or the proxy (representative) A copy of the map and land history General Power if the person is representative
(C) (D)
4 Having the applicant do a presentation for obtaining the fire safety inspection and advice document for the construction of a building, 8 floors and above, whether payment has been made to the government or not. 5 If the presentation is qualified, payment has to be made to the government and the Advice Letter is issued to the applicant. 6 On completion of the building, the applicant has to submit an already formatted application to the FSD so that SFD can inspect the building on site and issue the Fire Safety Certificate. 7 Fire Safety Certificate is issued to the applicant whose building is in conformity with the document on fire safety inspection and advice.
95
Daw Thein Kyi, Assistant Director,Fire Services Department, Head Office, Yangon
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Service fees for fire safety inspection The fees for fire safety inspection have been fixed for both foreign and domestic investors with effect from June 1, 2014: Group
Group 1
Group 2
Group 3
Sr
State/Region
1 2 3 1 2 3 4 5 1 2 3 4 5 6 7
NPT Council Region Yangon Region Mandalay Region Sagaing Region Tanintharyi Region Bago Region Magwe Region Ayeyarwaddy Region Kachin State Kayah State Kayin State Chin State Mon State Rakhine State Shan State
Unit
Outside downtown areas MMK
Downtown wards
Per sq-meter
1,000
500
Per sq-meter
500
200
Per sq-meter
200
100
Buildings on which 100% fee will be collected Offices where records and statistics are kept Economic buildings:
Mechanical and handicraft buildings:
Buildings prone to danger:
Commercial buildings:
Buildings where many people stay: Buildings where goods are stored (Warehouses)
Buildings where vocational or services industries are carried out Ban, hospitals, clinics, aviation control towers, universities and colleges, post offices, printing presses, motorcar showrooms, etc Buildings where goods are assembled or detached, manufactured, finished, invented, packaged and repaired Factories where vehicles of all kinds are manufacExamples: tured, foodstuff factories, electronics factories, mining, etc Buildings where goods physically and mentally detrimental are stored, manufactured and used. Storage of firecrackers, storage of chemicals which Examples: are explosive, etc Buildings where exhibitions are held, goods are traded and goods for sale are stored. Department stores, markets, showrooms, reExamples: tail/wholesale shops, etc Buildings where people stay with the purpose of sleeping in. Recreation centres, hotels, motels, apartments, moExamples: nasteries, nunneries, dormitories and residential buildings Buildings where goods for business use, not dangerous goods, are stored Hangars, furniture warehouses, automobile services, Examples: car parking lots, etc Examples:
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Buildings on which 50% fee will be collected Buildings where many people are gathered for the purpose of serving as aplace for rest and recreation, enjoying foods, travellers’ waiting place and social and religious matters. Examples: Cinemas, music halls, reception halls, restaurants, dancing theatres, amusement parks, stadiums, parking place for transportation vehicles
Buildings on which 25% fee will be collected
Educational buildings:
Buildings for training and caring for:
Buildings for general purposes:
Buildings where six or more students can be accommodated for the purpose of educational teaching and less than 100 persons can be accommodated for religious teaching and where there can be nurturing, caring and supervisions are undertaken. Also included are buildings where more than 5 children of older than 2.5 years of age can be taught, cared for and supervised. Examples: — Buildings for training and caring for are those where medical treatment is given to persons with physical limitations such as health or age; people are arrested and detained for their sentences; and the freedom of residents are confined. Training schools, rehabilitation centres, centres Examples: for caring for people Buildings are those which are not accurately categorized for the use as residence Buildings for livestock breeding, personal car gaExamples: rages, storage tan, towers, green houses, etc
Department of Industrial Supervision and Inspection (DISI) under the Ministry of Industry has four main responsibilities: 1 2 3 4
Industrial registration Boiler inspection Electricity inspection SME development
6.3.4Industrial registration96 Documents needed for industrial registration 1 2 3 4 5 6 7 8 9 10 11 12 13 96
MIC Permit Licenses from Ministries concerned EIA, SIA Report Factory Design Installed machine design Production technology Environmental protection plan Product quality Quality of raw material Sewage system No of products Marketing plan Human resources (Foreign and local)
U Soe Moe Kyaw, Deputy DG, Department of Industrial Supervision and Inspection (DISI), Ministry of Industry
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According to Private Industrial Law 1990, there are three types—large, medium, and small industries. The sizes of private industries are categorized as follows: Sr
Size
No of employees
1
Small
≤ 50
2
Medium
> 50
3
Large
Power (HP)
Capital outlay (MMK in millions)
≤ 25 to
≤100
≤1
> 25
to
> 100
≤ 50
>1
Production value(MMK in millions) ≤ 2.5
to
> 50
≤5 >5
> 2.5
to
≤ 10 > 10
Cost for industrial registration Costs for registration of the above industries are: Categories Registration Extension Changes Penalty
Industry Large
Medium
50,000 40,000 50,000 20,000
25,000 20,000 25,000 10,000
Small 12,000 10,000 12,000 5,000
6.3.5Inspection of electricity97 Electrical Inspection Department is responsible for electricity inspection, escalator and elevator inspection, and inspection of electrical devices, inspection of substation and electrician training.
Cost for inspection of electricity According to the government official interviewed, the inspectors charge MMK 500 for every point to which the tester is put. Documents needed for electricity inspection 1 Company or corporate name 2 Location for electricity installation General costsfor electricity inspection of building vary according to usage of electricity by the devices, size, area and number of storeys of the building. The average costs for 2-storey building is round about MMK 30,000—which means they put the tester to 60 points (60 x MMK 500 = MMK 30,000) Costs for electricity inspection of factory vary according to the usage of electricity by the machines installed, size and area of the factory. The average costs for a factory is between MMK 50,000 – MMK 100,000.
Procedure electricity installation98 1 The person who wishes to install electricity is to submit the application to the MEPE 99 Township Manager, according to the transformer capacity, together with other documents—evidence of ownership, National Registration Card, the registra97
98 99
U Khin Shwe, Director of Electrical Inspection Department, Ministry of Industry Interview with Yangon Electricity Supply Corporation (YESC) Myanma Electric Power Enterprise
145
2
3 4 5
6
7
8
9 10
tion of household members, the list of loads, the guarantee about the transformer, etc. The Township Manager Office has to prepare complete set of case documents including the facts such as branch power station or feeder which will supply electricity, the strength of loads of 11/6.6 kV feeder, conductor size, CT ratio, technical data, location map (GPS point), etc and submit the case to the District MEPE Office. The District Office scrutinizes the documents and submit them to the Technology Committee meeting of the YESC. The Technology Committee meeting checks the balance of the electricity supplied and the loads and the feasibility of connecting power and makes decisions. The Committee meeting permits supply of electricity if the transformer, under 1,000 kVA, can handle the loads. The cases above 1,000 kVA are to be submitted to the Management Committee Meeting, and then to Business-related Management Committee of the Ministry of Electricity and Energy, which makes the final decision for permits. After receiving permit, the applicant has to proceed with the transformer installation for which he has to pay infrastructure/administration fee, supervision fee, meter deposits, etc. After the installation of transformer, the applicant has to ask for the CT Meter to be used with the transformer, by applying toMaterialPlanning Department of the YESC (Head Office) through the Township and District Offices. The Township Office Manager has to inform the Electricity Inspection (EI) Department of the Ministry of Industry after the transformer and CT meterinstallation. After the EI, the EI Department issues a certificate after necessary changes in the installation, if any. For transformers under 1,000 kVA, for which LT meter has been installed, EI conducted and necessary fees paid, the respective Township/District Office starts to distribute power. In the case of the above-1,000-kVA transformer, to be used with HT meter, specifications of HT meter, PT and CT are to be submitted to the YESC (Head Office). The devices have to be sent to the Electricity Test and Inspection Department (Test Lab). If the Test Lab approves them, the applicant has to proceed with the installation of HT meter, conducting EI and paying in necessary fees. Afterwards, he has to apply to the YESC (Head Office), through the Township/District Office, for electricity distribution. After obtaining approval from the Management Committee meeting of the YESC has approved, permits for electricity distribution and meter use.
6.3.6Inspection of escalator and elevator Documents needed for escalator inspection 1 2 3 4 5 6 7
Licenses from related City Development Committee Location map of escalator in the building Drawing form Structure recommendation Specifications of escalator Quality certificate of engineers who is the focal person for escalator installation European standard certificate of steel wire
Documents needed for elevator inspection 1 2 3 4 5
Licenses from related City Development Committee Location map of elevator in the building Drawing form Recommendation for the foundation and structure of elevator Specifications of elevator
146
6 Quality certificate of elevator 7 Quality certificate of engineers who is the focal person for escalator installation 8 European standard certificate of steel wire
Cost for inspection of elevator and escalator Category
Cost (MMK)
Passenger Cargo Commercial
30,500 90,500 40,500
6.3.7Inspection of boiler Boiler Inspection Department is responsible for registration and inspection of boilers.
Cost for inspection of boiler The investors need to register new boiler at boiler inspection department. The department then issues a 1-year license and does the inspection services. The documents needed and fees for boiler inspection are as follows: Documents needed for boiler registration 1 2 3 4 5 6 7 8 Sr 1 2 3 4 5 6 7 8 9
Inspecting authority’s certificates of inspection during construction Constructor’s certificates of Manufacture and Test Material certificates (Chemical & Physical properties) Detail drawing of new boiler Radiographic examination results for welded seams Heat treatment test results Maker’s stamp (Name Plate) Plan of boiler and steam pipe Surface area (square meter) Up to 5 5 to 10 10 to 30 30 to 50 50 to 70 70 to 90 90 to 110 110 to 200 Over 200
Registration fees
Annual fees
30,000 40,000 50,000 60,000 70,000 80,000 100,000 120,000 150,000
20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000
6.3.8Registration of small and medium enterprises The costs for SME registration is not fixed yet. However, the department will charge for SME registration round about MMK 20,000.
147
6.4 MISSION COSTS 6.4.1 Hotel room rates100
Townships in Yangon Region
SIX DOWNTOWN TOWNSHIPS A Botataung Township B Seikkan Township C Kyauktada Township D Pabedan Township E Latha Township F Lanmadaw Township
100
ROOM RAES: https://www.expedia.com/HotelSearch#rfrrid=TG.LP.SeeAllHotels®ionId=2986&destination=Yangon
148
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Kyauktada Pabedan Latha Lanmadaw Dagon Ahlone Kyimyindaing Sanchaung Kamayut Bahan M. Taungnyunt Tamwe Thingangyun Botataung Pazundaung
Rating methodology and room rates101 In the following listing, star ratings were taken from the Yangon Hotel Directory 2015 of the Ministry of Hotels and Tourism, and the hotel room rates per double-room from www.expedia.com (accessed in November 2016).The star levels of the hotels are rated, based on the facilities they provide.
Hotels in downtown Yangon
Rating
USD
5
----
—
60
—
65
—
60
Sule Shangri-La Yangon 223 Sule Pagoda Road, Pabedan Township, Yangon. Tel: +95 1 242828 Email:
[email protected]
4
172
Meeyahta International Hotel Corner of Bogyoke Aung San Road and Sule Pagoda Road, Pabedan Township, Yangon.
4
----
1
Kyauktada Township
Strand Hotel 92 Strand Road, Kyauktada Township, Yangon. Tel: +95 1 243377, 243333 Email:
[email protected] Hotel K Yangon 190/194 Pansodan Street, Kyauktada Township, Yangon. Tel: +95 1 373904 Email:
[email protected] Asia Plaza Hotel 277 Bogyoke Aung San Road, Kyauktada Township, Yangon. Tel: +95 1 391071 — Hotel at Yangon Heritage 184/186 Sule Pagoda Road, Kyauktada Township, Yangon. Tel:+95 1 398262 Email:
[email protected]
2
101
Pabedan Township
HOTEL STAR-RAITING: Yangon Hotel Directory, 2015, Ministry of Hotels and Tourism
149
Tel: +95 1 256355 Email: — Clover City Center Plus nd 299, 32 Street (Upper Block), Pabedan Township, Yangon. Tel: +95 1 377975 — Clover City Center nd 217, 32 Street (Upper Block), Pabedan Township, Yangon. Tel: +95 1 377720 Email:
[email protected]
3
—
50
—
43
—
49
—
16
—
70
—
49
—
27
—
55
—
56
—
50
—
597
5
151
4
98
—
61
Lanmadaw Township
Best Western Chinatown Hotel 127-137 Anawrahta Road (Corner of Lanmadaw St), Yangon. Tel: +95 1 251080 — Hotel Esta 19/20 Bogyoke Aung San Street, Bahosi Compound, Landamaw Township, Yangon Tel:+95 1 223701 — Family Treasure Yangon th 93, 13 Street (Btw: Anawrahta St and Maha Bandoola St), Lanmadaw Tel: +95 1 228383 — Panda Hotel 205 Min Ye Kyaw Swa Road (Corner of Wadan St), Lanmadaw Township, Yangon Tel: +95 1 212850 — Diamond Crown Hotel 142-D Min Ye Kyaw Swa Street, Lanmadaw Township, Yangon. Tel:+95 1 2300136 — The RGN City Lodge 142-C Min Ye Kyaw Swa Street, Lanmadaw Township, Yangon. Tel: +95 1 2300150 Email:
[email protected]
5
59
Latha Township
Sky Hotel 58/60 Sin Oh Dan Street, Latha Township, Yangon. Tel: +95 9 43098888 — Hotel Grand United (Chinatown) 621 Maha Bandoola Road (Corner of Bo Ywe St), Latha, Yangon. Tel: +95 1 372256 — th 20 Street Hostel th 23, 20 Street (Lower Block), Latha Township, Yangon. Tel:+95 1 251931 Email: -
4
—
Dagon Township
Belmond Governor’s Residence 35 Taw Win Road, Dagon Township, Yangon. Tel: +95 1 229860 Email:
[email protected] Parkroyal Yangon 33 Alanpya Phaya Road, Dagon Township, Yangon. Tel: +95 1 250388 Email:
[email protected] Summit Parkview 350 Ahlone Road, Dagon Township, Yangon. Tel: +95 1 211888 Email:
[email protected] Yuzana Garden Hotel 44 Alanpya Pagoda Road, Dagon Township, Yangon.
150
Tel: +95 1 248941 — Alfa Hotel 41 Nawadei Street, Yaw Mingyi Quarter, Dagon Township, Yangon. Tel: +95 1 377960 Email:
[email protected] Pansea Hotel 33 Tawwin Road, Dagon Township, Yangon. Tel: +95 1 229862 — Yangon International Hotel 330 Ahlone Road, Dagon Township, Yangon. Tel: +95 1 533128~9 —
6
3
—
—
48
—
28
—
113
—
52
—
36
—
130
—
57
—
57
—
137
—
59
Kamayut Township
Novotel Yangon Max 459 Pyay Road, Kamayut Township, Yangon. Tel: +95 1 2305858 — Hotel Inya 24-A Inya Road, Kamayut Township, Yangon. Tel: +95 1 502506 — Summer Palace Hotel No 437 Pyay Road, Kamayut Township, Yangon. Tel: +95 1 527211 Email:
[email protected]
10
—
Sanchaung Township
Jasmine Palace Hotel 341 Pyay Road, Sanchaung Township, Yangon. Tel: +95 1 2304402 — Royal Khattar Hotel 13 Khattar Street, Sanchaung Township, Yangon. Tel: +95 1 534992 — Hotel Windsor 31 Shin Saw Pu Road, Sanchaung Township, Yangon. Tel:+95 1 510037 Email:
[email protected]
9
4
Kyimyindaing Township
Grace Treasure Hotel 43/44/45 Strand Road, Kyimyindaing Township, Yangon. Tel: +95 1 226027 Email:
[email protected]
8
85
Ahlone Township
Hotel Grand United (Ahlone Branch) 35 Min Ye Kyaw Swa Road, Ahlone Township, Yangon. Tel: +95 1 218061 Email:
[email protected]
7
—
Bahan Township
Melia Yangon 192 Kaba Aye Pagoda Road, Bahan Township, Yangon. Tel: +95 1 9345002 — Merchant Art Boutique Hotel 67/71 New Yedashe Street, Bahan Township, Yangon. Tel: +95 1 549442 —
151
Savoy Hotel Yangon 129 Dhamma Zedi Road, Bahan Township, Yangon. Tel: +95 1 526289 — Clover Suites Royal Lake Yangon 10 Nga Htat Gyi Pagoda Street, Bahan Township, Yangon. Tel:+95 9 5108703 — Cherry Hills Hotel 520/4-A Kaba Aye Pagoda Road, Bahan Township, Yangon. Tel: +95 1 559722 — Hotel M 29 Kanbawza Avenue Street, Bahan Township, Yangon. Tel: +95 9 252988867 — Clover Hotel 7A Wingaba Street, Bahan Township, Yangon. Tel: +95 1 430245 — Pleasant View Hotel 155 West Shwe Gon Taing Street, Bahan Township, Yangon. Tel: +95 1 552657 — Sky View Hotel Yangon 139 Dhamma Zedi Road, Bahan Township, Yangon. Tel: +95 1 527037 — Excel Treasure Hotel 520 Kaba Aye Pagoda Road, Shwegondaing, Bahan Township, Yangon. Tel:+95 1 559150 — Hotel Lavender 55 Yedashe Old Street, Bahan Township, Yangon. Tel: +95 1 543436 — Golden Butterfly Hotel 12 Komin Kochin Road, Bo Cho Ward 1, Bahan Township, Yangon. Tel: +95 1 541978 — Yuzana Hotel 130 Shwegondine Road, Bahan Township, Yangon. Tel: +95 1 549600 — Excel Palace Hotel 25 D-1 New University Avenue, Bahan Township, Yangon. Tel: +95 1 556601 — Goodliffe Guest House 44B Saya San Road, Bahan Township, Yangon. Tel: +95 1 541275 — Kaung Lay Inn 75-B Moe Ma Khan Lane, Bahan Township, Yangon. Tel:+95 1 548167 Email:
[email protected]
11
3
280
—
75
—
112
—
87
—
57
—
55
—
50
—
40
—
56
—
98
—
66
—
35
—
46
—
22
5
160
—
103
—
101
Mingala Taungnyunt Township
Kandawgyi Palace Hotel Yangon Kan Yeik Tha Road, Mingala Taungnyunt Township, Yangon.
[email protected] Tel: +95 1 249255 Rose Garden Hotel 171 Upper Pansodan Road, Mingala Taungnyunt Township, Yangon. Tel:+95 1 371992 Email:
[email protected] Esperado Lake View Hotel 23 U Aung Myat Street, Mingala Taungnyunt Township, Yangon. Tel: +95 1 8619486 Email:
[email protected]
152
Yuzana Garden Hotel 44 Alanpya Pagoda Road, Mingala Taungnyunt Township, Yangon. Tel:+95 1 248940 Email: —
12
5
146
—
73
—
120
—
24
—
36
—
37
—
32
—
46
—
67
—
55
—
51
—
35
—
22
—
21
Thingangyun Township
Myanmar Sports Hotel Laydauntkan Road, Thuwunna Soccer Stadium, Thingangyun, Yangon. Tel: +95 1 560145 — Mother’s Home Motel F-10 May Khan Housing, Laydauntkan Road, Thingangyun, Yangon Tel: +95 1 203500 — Asian Smile Hotel 324 Than Thumar Road, Thuwunna, Thingangyun Township, Yangon. Tel: +95 1 856 3664 Email:
[email protected]
14
—
Tamwe Township
Chatrium Hotel Royal Lake Yangon 40 Natmauk Road, Tamwe Township, Yangon. Tel: +95 1 544 500 Email:
[email protected] Best Western Green Hill Hotel 12 Pho Sein Road, Tamwe Township, Yangon. Tel: +95 1 209299 Email:
[email protected] Sky Star Hotel 51/B/1 East Horse Race Course Road, Tamwe Township, Yangon. Tel: +95 1 8604225 — Hotel YNO 791/792 Zeya Thukha Street, Myitta Nyunt Quarter, Tamwe, Yangon. Tel: +95 1 546152 Email:
[email protected] Green Leaf Hotel 27 U Chit Maung Housing Estate, U Chit Maung Road, Tamwe, Yangon. Tel: +95 1 8603851 Email:
[email protected]
13
3
Botataung Township
Vintage Luxury Yacht Hotel 6 Botataung Jetty, Botataung Township, Yangon. Tel: +95 9 250846974 — Grand Laurel Hotel th 153/159 Bogyoke Aung San Street (Corner of 46 St), Botataung Tel:+95 1 398771 — Millennium Hotel th 7, 54 Street, Botataung Township, Yangon. Tel:+95 9 250278018 — Hotel 63 nd rd Merchant Road (Btw: 62 and 63 Streets), Botataung, Yangon. Tel: +95 1 397865 — Good Time Hotel 114/116 Bo Aung Kyaw Street, Botataung Township, Yangon. Tel: +95 1 256620 — Hninn Si Budget Inn 213/215 Botataung Pagoda Road, Yangon. Email: reservaTel: +95 9 5012465
[email protected]
153
15
Pazundaung Township
Hotel 51 st 154/156, 51 Street, Pazundaung Township, Yangon. Tel:+95 1 293022 — MK Hotel 1 Wut Kyaung Street, Yay Kyaw, Pazundaung Township, Yangon. Tel: +951297274 — Ocean Pearl Inn 215 Botataung Pagoda Road, Pazundaung Township, Yangon. Tel:+95 1 296637 Email:
[email protected]
Hotels in high-class and suburban areas in Yangon 16
44
—
46
—
25
Rating
USD
—
43
—
29
—
27
—
85
—
83
—
99
4
73
—
109
—
42
—
26
—
60
Hlaing Township
Vega Star Hotel th 68 Okkyin Station Road, 16 Quarter, Hlaing Township, Yangon. Tel: +95 1 654808 — Royal White Elephant Hotel 11 Kan Street, Hlaing Township, Yangon. Tel: +95 9 250496699 — Shennoon’s House D2A Thazin Lane, Hlaing Yadana Housing, Insein Main Road, Hlaing Township, Yangon. Tel: +95 9 425015013 Email:
[email protected]
17
—
Mayangon Township
Hotel Parami 2 Parami Road, Mayangon Township, Yangon. Tel:+95 1 658118 — Royal Pavilion Hotel th 3-B Taw Win Road, 9 Mile, Mayangon Township, Yangon. Tel: +95 1 652123 — Avenue 64 Hotel 64-G Kyaik Waing Pagoda Road, Mayangon Township, Yangon. Tel: +95 1 656913 Email:
[email protected] Inya Lake Hotel 37 Kaba Aye Pagoda Road, Mayangon Township, Yangon. Tel: 9662857 Email:
[email protected] Hotel Kan Yeik Tha 4 Kan Yeik Tha Road, Mayangon Township, Yangon. Tel: +95 9 254377522 — The Rock Villa th 16/43 Weikza Street, 9 Mile, Mayangon Township, Yangon. Tel: +95 9 5004804 — Woodland Hotel 46 Thiri Mon Road, Ba Yint Naung, Mayangon Township, Yangon. Tel: +95 9 5185358 — Great Feel Hotel 384 Wireless Lane 1, Kaba Aye Pagoda Road, Mayangon, Yangon. Tel: +95 1 657933 Email:
[email protected]
154
18
Yankin Township
Sedona Hotel Yangon 1 Kaba Aye Pagoda Road, Yankin Township, Yangon. Tel: +95 1 8605377, 95 1 Email:
[email protected] 666900 Hotel Yankin 186 Lu Nge Thitsa Street (Kanbe Road), Yankin Township, Yangon. Tel: +95 1 8550283 — Real Link Hotel 248 Thit Sar Road, Ward 13, Yankin Township, Yangon. Tel: +95 1 564504 Email:
[email protected] MiCasa Hotel Apartments 17 Kaba Aye Pagoda Road, Yankin Township, Yangon. Tel: +95 1 650933 Email:
[email protected] Power Palace th 16 Pyitharyar St, Pyiharyar Yeiktha, 16 Ward, Yankin Township Tel: 95 1 548210, 549668 Email: —
19
—
43
—
42
4
125
—
—
—
85
—
50
—
75
—
27
—
65
—
39
—
50
North Okkalapa Township
Holly Hotel Myanmar Thiri Yadana Wholesale Market Compound, Thudhamma Road, North Okkalapa Township, Yangon. Tel: +95 9 968866687 Email:
[email protected]
21
143
Insein Township
Palm Spring Resort & Spa 7 (F) Mingala Street, Nant Thar Gone Quarter, Insein, Yangon. Tel:+95 1 646467 — Yangon Airport Hotel 45/55 (A) Airport Road, Insein Township, Yangon. Tel: +95 1 533354 — City Golf Resort Hotel th Thiri Mingala Street, 10 Mile, Opposite YCDC Golf Course, Insein. Tel: +95 1 641763 — Yaewaddy Motel 144 Thiri Mingala Street, Insein Township, Yangon. Tel: +95 1 642740 Email:
[email protected]
20
5
Mingaladon Township
Shwe Pyi San Yar Hotel 295/296 Ward 2/A Bo Min Khaung Street, Mingaladon Township, Yangon. Tel: +95 9 43337777 — Myanmar Life Hotel 41 Radio Station Road, Mingaladon Township, Yangon. Tel: +95 1 664135 E:
[email protected]
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6.4.2Rent-a-car rates
Myanmar Rent ACar102 Car rental rates Yangon Airport pick-up and send-off
Yangon Airport pick-up Yangon Airport send-off Note: 1 2 5
Corolla/Wish/Mark II class (USD) 30 30
Hiace/Alphard class (USD) 40 40
Yangon city area limited. (for Thilawa, Thanlyin, other suburbs are not included) Car, driver, fuel, toll fee, support fee are included. To pick up, in case of air plane delay more than 1 hour, USD 5 per hour will be charged.
Yangon-Golden Rock Pagoda (Kyaikhtiyo) round trip
1 day 2 days Bago sightseeing option Note: 1 2
Corolla/Wish/Mark II class (USD) 230 300 +40
Hiace/Alphard class (USD) 340 400 +50
Car, driver, fuel, toll fee, support fee, driver meal, driver accommodation (2 days only) are included. Even you start from Yangon Airport in the early morning, there is no need to pay airport pick-up fee.
Additional hour rate
Yearly rate
Monthly rate
Full day –max 10 hours’ rate
Model
No of persons
Brand
Half day—max 5 hours’ rate
The following rate includes rental of car, a driver and cost of fuel:
MMK in thousands
Yangon (Yangon Region) Lexus Hyundai Hyundai Honda Honda Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota 102
Bus Aero Queen Fit Accord Alphard Belta Wish Hilux Surf Hiace Conmuter Hiace Super Custom Corolla Crown Mark II Land Cruiser Prado
5 11 45 4-5 5 5-8 5 7 5 5-14 7-8 5 5 5 7
220 35 100 25-30 35 40-60 25-35 35-40 70-77 45-70 40-50 25-35 35-40 30-50 50
http://www.myanmar-rentacar.com/pvlist.php?p=0
156
330 66 180 45-55 60 70-100 45-55 60-70 120-132 80-130 70-80 50-60 67-70 62-80 90
1,550
17,400
1,700
19,200
1500 1200
16,800 13,200
33 9 20 5-6 6 8-11 5-9 6-7 10-15 7-13 8-9 5-7 6-11 4.2 -7 10
Toyota Toyota Toyota Toyota Toyota Toyota Nissan Mitsubishi Toyota Mitsubishi Nissan Toyota Nissan Toyota Toyota Toyota Toyota Toyota Toyota others Nissan
Land Cruiser Vigo Hilux Pickup Hiace Grand Cabin Celsior Harrier Cedric Pajero others Fuso Wingroad Probox Ad van Corona Fielder Se Saloon Caldina Premio Mark X N/A Altima
5 5 3 10-14 5 5 5 5 7-20 22-29 5 5 5 5 5 5 5 5 5 14 4-5
150 100 80 47-60 45 35 35 60 50-80 65-100 30 30 25-30 30 25 30 25-50 35 50 50 50
250 200 165 90-100 70 80 60 100 90-150 120-200 50 50-70 45-50 50 50 60 50-80 70 100 95 800
7-8
30-50
45 22 33 8 14 5 5 5 5 5 5 5 5
25 15 9 9-10 8 7 6 10-12 6-10 13-20 5 5 5 5 5 6 5-10 7 10 10 10
1,500
16,800
1,500
19,200
1,500
19,200
55-80
1,500
19,200
17-170 100 110 50 50 50 50 50 50 50 50 50 50
237 150 176 800 800 800 800 800 800 800 800 800 800
1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200
5.5 10 25 15 15 10 10 10 10 10 10 10 10 10 10
8 5 5 8 14 5 5 5 5 5 5 5 5
50-90 45-50 80 50 50 50 50 50 50 50 50 50 50
140-800 80-90 120 800 800 800 800 800 800 800 800 800 800
1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200
10-16 9-10 12 10 10 10 10 10 10 10 10 10 10
8 8 8 8 8
50 50 50 50 50
800 800 800 800 800
19,200 19,200 19,200 19,200 19,200
10 10 10 10 10
Mandalay (Mandalay Region) Toyota
Hiace super custom
Hyundai others Mitsubishi Toyota Toyota Toyota Toyota Nissan Nissan Honda Suzuki Mazda Mitsubishi
bus N/A Fuso Alphard Hiace commuter Mark X Land cruiser Sunny X-Trail CR-V Wagon R RX-8 Pajero
Nay Pyi Taw (NPT Union Territory) Toyota Toyota Toyota Toyota Toyota Toyota Toyota Nissan Nissan Honda Suzuki Mazda Mitsubishi
Alphard Crown Celsior Hiace super custom Hiace commuter Mark X Land cruiser Sunny X-Trail CR-V Wagon R RX-8 Pajero
Mawlamyaing (Mon State) Toyota Toyota Toyota Toyota Toyota
Alphard Hiace super custom Hiace commuter Mark X Land Cruiser
157
1,500 1,500 1,500 1,500 1,500
Nissan Nissan Honda Suzuki Mazda Mitsubishi
Sunny X-Trail CR-V Wagon R RX-8 Pajero
8 8 8 8 8 8
50 50 50 50 50 50
Bago (Bago Region) Pathein (Ayeyarwaddy Region) Monywa (Sagaing Region) Meiktila (Mandalay Region) Loikaw (Kayah State) Toyota Toyota Toyota Toyota Toyota Nissan Nissan Honda Suzuki Mazda Mitsubishi
Alphard Hiace super custom Hiace commuter Mark X Land cruiser Sunny X-Trail CR-V Wagon R RX-8 Pajero
800 800 800 800 800 800
1,500 1,500 1,500 1,500 1,500 1,500
19,200 19,200 19,200 19,200 19,200 19,200
10 10 10 10 10 10
19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200
10 10 10 10 10 10 10 10 10 10 10
Sittwe (Rakhine State) Magway (Magway Region) Taunggyi (Shan State) Dawei (Tanintharyi Region)
8 8 14 5 5 5 5 5 5 5 5
50 50 50 50 50 50 50 50 50 50 50
800 800 800 800 800 800 800 800 800 800 800
1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Some other car rental websites 1 Yangon Car Rental http://www.yangonrentacar.com/rental-rates 2 Hein Car Rental and General Service http://www.heincarrental.com/ 3 Green Myanmar Travel http://green-myanmar.com/car-rental.php 4 Europcar https://www.europcar.com/location/myanmar-burma 5 Khine Thazin Tours and Travels http://www.khinethazincarrental.com/carrental.htm 6 Nyan Myint Thu Car Rental and Travel Service http://www.nyanmyintthucarrental.com/our-vehicles/ 7 go-Myanmar.com http://www.go-myanmar.com/car-and-minibus-hire 8 Nay Chi La Min Travels and Tours http://www.naychilamintour.com/car-rental/ 9 Bravo Travels and Tours Co Ltd http://www.myanmarbravo.com/myanmar-travel/car-rental-services.html 10 PARK FLY RENT https://www.parkflyrent.com/ 11 Best Friend Forever Travels and Tours Co Ltd http://www.bfftravelmyanmar.com/car-rental/ 12 Pleasant Myanmar Travels and Tours Co Ltd http://www.pleasantmyanmar.com/carrental.htm
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13 Scapetour https://www.scapetour.com/booking/bagan-car-rental 14 Myanmar City Star Travel and Tours http://www.mcs-myanmartravel.com/services-2/myanmar-car-hire/ 15 Myanmar Visa https://www.myanmarvisa.com/carrentals_and_limousines.htm 16 Toe Toe Myanmar http://www.visitmyanmartravels.com/carrental.htm 17 Nay Chi and La Min Travels and Tours http://happymyanmartravel.com/index.php/en/transportation/car-rentalexpress-bus
6.4.3Visas There are two ministries issuing visa—the Ministry of Labour, Immigration and Population and the Ministry of Foreign Affairs (MOFA). MOFA has 44 diplomatic offices in various countries. All the Myanmar Embassies in the world nations takes responsibility for the following 12 types of Visa. Department of Immigration issues the 4 types of Visa (Visa on arrival) and “e Visa” for tourist and foreign investors.103 Twelve types of entry visa will be granted commencing from December 1, 2016 according to the following amended entry visa terms and conditions so that foreigners can apply for visa conveniently and smoothly:104
Entry visa – 12 types
Sr
103 104
Type
1 2
Gratis Diplomatic / Official Courtesy Visa Tourist Visa
3
Business Visa
4
Social Visa
5
Religious Visa
Visa fee (USD)
Singular or multiple
Overview of 12 types of visas, fees and period of stay
Period of stay
Gratis 40 50 200 400 600 50 150 300 450 50 150 300 450
— — S M M M S M M M S M M M
Duration of assignment 28 days 70 days 3 months 6 months 1 year 70 days 3 months 6 months 1 year 70 days 3 months 6 months 1 year
U Kyaw Myint, Deputy Director, and Daw Myint Myint Than Hlaing, Assistant Director, Department of Immigration, Ministry of Labour, Immigration and Population. (1) Kyemon Daily, December 2 – 3, 2016, pp. 7, 10 (2) Ministry of Immigration and Population (www.mip.gov.mm)
159
6
Transit Visa
7
Official Visa
8
Employment Visa
9
Education Visa
10
Journalist Visa
11
Crew Visa
12
Workshop/Seminar/ Meeting/Research Visa
20 50 200 400 600 50 50 200 400 600 40 50 200 400 600
— S M M M
40
—
— S M M M — S M M M
24 70 3 6 1 70
hours days months months year days
90 3 6 1 28
days months months year days
90 3 6 1
days months months year
28
days
Sr No
1
Type of visa
Gratis Diplomatic / Official Courtesy Visa (GDC/GOC)
Visa fee
Gratis
Period of stay
Single (S) or Multiple (M)
12 types of visas – detailed
Remark
Duration of assignment
—
—
1 Terms and conditions required for visa application
2
The order of assignment to Myanmar as a diplomat/ member of diplomatic mission by the country concerned Evidence of invitation from the ministry concerned
2
Tourist Visa USD 40 Terms and conditions required for visa application
— — 28 days 1 Vacation, visit and temporary stay only 2 Return air ticket
3
Business Visa (Single)
Can apply for stay extension according to the rules and regulations The applicant is to mention the business he/she 1 wishes to undertake or he/she is doing in Myanmar. Allow multiple entry and stay Can apply for stay extension according to the rules and reg3 months M (Validity) ulations Do not need to exit after staying 70 days Allow multiple entry and stay 6 months M Can apply for stay extension (Validity) according to the rules and reg-
USD 50
Terms and conditions required for visa application
Business Visa (Multiple)
USD 200
USD 400
70 days
160
S
USD 600
In addition to the documents for the single visa application, he/she has to submit the facts shown against:
4
Social visa
USD 50
Terms and conditions required for visa application
Social visa
USD 150
USD 300
USD 450
In addition to the documents for the single visa application, he/she has to submit the facts shown against:
ulations Do not need to exit after staying 70 days Allow multiple entry and stay Can apply for stay extension 1 year according to the rules and regM ulations (Validity) Do not need to exit after staying 70 days The applicant should not be the person who in1 itially (for the first time) enters the country. The applicant is to mention which multiple visa 2 he/she applies for—3 months, 6 months or 1 year. The applicant must submit the reason for reentering the country many times with valid evi3 dence. (e.g. The business matter which the applicant himself/herself can present) Can apply for stay extension according to the rules and regulations 1 Documents certifying that applicant is ExMyanmar citizen (if the applicant is an exMyanmar citizen). 2 If the applicant has relations with a Myanmar citizen, he/she must present documents certifying the relationship with the Myanmar citizen, the purpose of meeting, and full address of stay. Allow multiple entry and stay Can apply for stay extension 3 months according to the rules and regM (Validity) ulations Do not need to exit after staying 70 days Allow multiple entry and stay Can apply for stay extension according to the rules and reg6 months M (Validity) ulations Do not need to exit after staying 70 days Allow multiple entry and stay Can apply for stay extension 1 year according to the rules and regM ulations (Validity) Do not need to exit after staying 70 days 1 The applicant should not be the person who initially (for the first time) enters the country. 2 The applicant is to mention which multiple visa he/she applies for—3 months, 6 months or 1 year. 3 The applicant must submit the reason for reentering the country many times with valid evidence. (e.g. The business matter which the applicant himself/herself can present) 70 days
161
S
5
Religious Visa
USD 50
Terms and conditions required for visa application
Religious Visa
USD 150
USD 300
USD 450
In addition to the documents for the single religious visa application, he/she has to submit the facts shown against
6
Transit visa
USD 20
Terms and conditions required for visa application 7
Official Visa
Can apply for stay extension according to the rules and regulations 1 The applicant must mention the religious matter for which he/she wishes to visit, lay-person/ organization/ meditation centre/ temple and the full address of stay. Allow multiple entry and stay Can apply for stay extension according to the rules and reg3 months M (Validity) ulations Do not need to exit after staying 70 days Allow multiple entry and stay Can apply for stay extension 6 months according to the rules and regM (Validity) ulations Do not need to exit after staying 70 days Allow multiple entry and stay Can apply for stay extension 1 year according to the rules and regM ulations (Validity) Do not need to exit after staying 70 days The applicant should not be the person who in1 itially (for the first time) enters the country. The applicant is to mention which multiple visa 2 he/she applies for—3 months, 6 months or 1 year. The applicant must submit the reason for re3 entering the country many times with valid evidence. (e.g. The business matter which the applicant himself/herself can present) 70 days
S
24 hours
—
1
USD 50
Terms and conditions required for visa application
Official Visa
USD 200
Air ticket for a journey that will proceed forward not be retrospective Can apply for stay extension according to the rules and regulations Must be an international organization recognized by UN/the Government of the Union of Myanmar Must mention the place of activities/about the activities within Myanmar and undertaking to abide by the existing national laws
70 days 1
2
—
3 months (Validity)
162
S
M
Allow multiple entry and stay Can apply for stay extension according to the rules and regulations Do not need to exit after staying 70 days
USD 400
USD 600
In addition to the documents for the single international organizations visa application, he/she has to submit the facts shown against
8
Employment Visa
Allow multiple entry and stay Can apply for stay extension 6 months according to the rules and regM (Validity) ulations Do not need to exit after staying 70 days Allow multiple entry and stay Can apply for stay extension 1 year according to the rules and regM ulations (Validity) Do not need to exit after staying 70 days The applicant should not be the person who 1 initially (for the first time) enters the country. The applicant is to mention which multiple visa 2 he/she applies for—3 months, 6 months or 1 year. The applicant must submit the reason for re3 entering the country many times with valid evidence. (e.g. The business matter which the applicant himself/herself can present)
USD 50 1
Terms and conditions required for visa application
9
Education Visa
USD 50
Terms and conditions required for visa application
Education Visa
USD 200
USD 400
USD 600
Can apply for stay extension according to the rules and regulations Must present an invitation letter or an appointment letter of the company concerned Labour Registration Certificate issued by the Ministry of Labour, Immigration and Manpower
70 days
2
—
Can apply for stay extension according to the rules and regulations Recommendation from the respective universi1 ty/University of Foreign Languages in the event of schooling 2 Recommendation from the respective schools in the event of lecturing at the schools under the Ministry of Education Allow multiple entry and stay Can apply for stay extension 3 months according to the rules and regM (Validity) ulations Do not need to exit after staying 90 days Allow multiple entry and stay Can apply for stay extension 6 months according to the rules and regM (Validity) ulations Do not need to exit after staying 90 days Allow multiple entry and stay Can apply for stay extension 1 year M according to the rules and reg(Validity) ulations Do not need to exit after stay90 days
163
S
1
10
In addition to the documents for the single Education Visa application, he/she has to submit the facts shown against
2
Journalist Visa
— — 28 days Evidence that the applicant is a journal1 ist/mediaperson of the respective country 2 Must mention the purpose of visit, regarding the journalistic and media matter, the name of the contact person/organization/government department and the address of the place to stay. 3 Return air ticket
USD 40
Terms and conditions required for visa application
11
Crew Visa
Crew Visa
USD 200
USD 400
USD 600
In addition to the documents for the single Crew Visa application, he/she has to submit the facts shown against
Workshop/Seminar/ Meeting/Research Visa
3
USD 50
Terms and conditions required for visa application
12
ing 90 days The applicant should not be the person who initially (for the first time) enters the country. The applicant is to mention which multiple visa he/she applies for—3 months, 6 months or 1 year. The applicant must submit the reason for reentering the country many times with valid evidence.
USD 40
90 days
S
Can apply for stay extension according to the rules and regulations
1
Crew license that has not yet expired
2
Purpose of visit and the contact person/organization
Allow multiple entry and stay Can apply for stay extension 3 months according to the rules and regM (Validity) ulations Do not need to exit after staying 90 days Allow multiple entry and stay Can apply for stay extension 6 months according to the rules and regM (Validity) ulations Do not need to exit after staying 90 days Allow multiple entry and stay Can apply for stay extension 1 year according to the rules and regM ulations (Validity) Do not need to exit after staying 90 days The applicant should not be the person who 1 initially (for the first time) enters the country. The applicant is to mention which multiple visa 2 he/she applies for—3 months, 6 months or 1 year. The applicant must submit the reason for re3 entering the country many times with valid evidence. 28 days
164
—
Can apply for stay extension according to the rules and regulations
Terms and conditions required for visa application
1
Invitation from the ministry/organization concerned
Stay extension and Re-entry Visa From the 12types of entry Visa except Tourist Visa, Journalist Visa and Workshop/ Seminar/Meeting Visa, stay can be extended for other types. It is needed to initiate the application to the ministryconcerned. The ministry concerned sends anegotiation letter to the Ministry of Labour, Immigration and Population, Ifthe Ministry of Labour, Immigration and Population gives permission, extension of stay for up to 1 year is granted.
Stay extension — Collect USD 36 for up to 3 months — CollectUSD90 for 3months to 12months (or) not more than 12months with the recommendation from the ministry concerned.
Re-entry visa — Collect USD 54 for Special Re-entry Visa not more than 6 months for singleused. — Collect USD180 for Multi Journey Re-entry Visa not more than 12months
Visa on Arrival105
Sr
1 2 3 4
Single or multiple
The following 4 visas will be allowed under the Visa-on-Arrival system at Yangon, Mandalay and Nay Pyi Taw International Airports:
Kind of visa
Business Visa Workshop/Seminar/ Meeting/Research Visa Crew Visa Transit Visa
Visa fee (USD)
S — — —
50 40 40 20
Period of stay
70 28 28 24
days days days hours
The required terms and conditions for Visa on Arrival106 The applicant shall: Have a valid passport not expiring for at least 6 months from the date of entry into Myanmar. Bring two recent (4cm x 6cm) color photos taken within the past six months. Have the letter of invitation from the sponsoring company in the event of first trip of business study. (Stay cannot be extended.) Be required to produce copies of company registration/business license/ evidence of permission to do business issued by the ministries concerned together with the application if he is working in Myanmar. Fully mention the name of the factory, location, the sponsor and the position he holds if he is doing business with business visa.
105 106
Kyemon Daily, December 2 – 3, 2016, pp. 7, 10 http://www.mip.gov.mm/portfolio/the-required-terms-and-conditions-for-visa-on-arrival/
165
Apply for extension of visa with the recommendation of the ministries concerned as well as in accordance with the existing procedures if he is doing business with business visa. Produce letter of invitation by the ministries concerned if he is going to attend meetings, workshops, events and ceremonies. Not be allowed to engage in any sort of work with or without charges apart from the professions mentioned in the visa application form. Produce air ticket to the destination if he is applying for transit visa. Stay at the hotels, motels and guest houses holding legal licenses issued by Myanmar Government, and factories and workshops legally permitted as well as human dwellings; and exactly mention the address he will stay at. Make a promise to strictly abide by the existing laws, rules, procedures, orders and directives issued by Myanmar Government. Have under-seven-year-old children accompanying parents in the passport granted visa free of charge; be able to produce the evidence of parent-children relationship if the children are holding separate passport. Not be allowed to travel to the restricted areas without seeking prior permission. Report to the office of the township Immigration and National Registration Department concerned at which he stays within Myanmar mentioning the address of hotels, motels, guest houses, factories and workshops legally permitted as well as human dwellings. Depart to the country which he has traveled from by the arrangement of the airline he is using if he is denied entry. Abide by the decision of the On Arrival Visa Scrutiny and Issuing Team. Apply for Visa On Arrival at Airport Immigration Section obtaining the application form either from the airlines in Myanmar or the following website www.mip.gov.mm of the Ministry of Labour, Immigration and Population.
eVisa
Sr
Single or multiple
eVisa will be allowed at Yangon, Mandalay and Nay Pyi Taw International Airports and Myanmar-Thai border gates—Tachilek, Myawaddy and Kawthoung.
Kind of visa
1 Tourist Visa 2 Business Visa
— S
Visa fee (USD) 50 70
Period of stay
28 days 70 days
Visit http://www.mip.gov.mm for details.
Permission of entry into and departure from Myanmar-Thai border gates Under the agreement between the Union of Myanmar Government and the Government of the Kingdom of Thailand, the following border entrances / exits have been designated as international entrances / exits with effect from 0800 hours on the 28th August 2013 (Wednesday), and those Myanmar and Thai citizens as well as Third country citizens holding valid passport with visa will be permitted to enter and depart from Myanmar: (a) (b)
Tachilek – Maisai Myawaddy – Mesok
166
(c) (d)
Htee Kee – Phunaron Kawthoung – Ranong
Those who enter/ depart from the aforesaid International entrance/ exits will be permitted to enter/depart from any International entrance / exits of Myanmar; Nay Pyi Taw International Airport, Yangon International Airport, Mandalay International Airport, Tachilek, Myawaddy, Htee Kee and Kawthoung. Regarding the permit of stay, extension of stay and the visa fees, the rules and regulation are the same as before depending on the type of visa for which application has been made to be able to enter Myanmar. Under the current circumstances, Visa On Arrival is not issued yet at the international entrances/ exits as mentioned in the paragraph (1). The Visitors are permitted to travel everywhere except the restricted areas designated by the Ministry of Home Affair in its Notification 77/2013 issued on 15-1-2013 ( The list of restricted areas is available at border entrances / exits )
6.5 EXPATRIATE’S LIVING COSTS The following estimation of the cost of living for expatriate families in Yangon has been calculated, based on the commodity prices prevailing at the time of compiling the Salary Survey Report 2016 (MSR).
Cost of living for an expatriate family in Yangon — as of 2016107 Sample calculation: 3 household members (husband, wife and one child)
The husband works for an INGO as a director. The wife works part-time as a teacher at an international school. The child is a 10-year-old schoolboy. The family lives in a rented house in Golden Valley (Shwetaunggyar Ward in Bahan Township), Yangon. The monthly cost of living for this expat family is estimated as follows: Sr 1 2 3 4
Particulars Foods Accommodation Child’s education General costs Total monthly cost
Monthly cost (USD) 2015
2016
700 4,500 1,200 1,100
850 4,900 1,300 1,350
7,500
8,400
Cost of living for an individual expatriate in Yangon—as of 2016108 Sample calculation: 3 household members (husband, wife and one child)
The expatriate works for an INGO as a Programme Manager. He lives in a rented apartment in Yangon. The monthly cost of living for this individual expat is estimated as follows:
107 108
Salary Survey Report 2016, Myanmar Survey Research Ibid
167
Sr 1 2 3
Particulars Foods Accommodations General costs Total monthly cost
Monthly cost (USD) 2015 2016 300 1,500 1,500
420 1,650 1,600
3,300
3,670
Other costs for expatriates Healthcare in Yangon Victoria Hospital General packages Name of package Daisy package Iris package Lily package Jasmine package Tulip package Systemic packages Diabetes screening Orthopedic screening Heart screening (silver) Heart screening (gold) Liver screening Cancer screening Normal labour packages 2 nights 3 days 3 nights 4 days LSCS labour packages 4 nights 5 days 5 nights 6 days Vertigo packages Screening (during: 2 hours) Follow-up (follow-up: 6 hours) Complete (complete: 8 hours) Total knee/hip replacement package Unilateral Unilateral Bilateral Unilateral Bilateral ENT surgery package Standard package (ear/nose/throat) Complicated package (ear/nose/throat) Implant packages
Price in MMK Any ages Male & female 40 years old Female >40 years old premarital couples
77,000 170,000 220,000 280,000 105,000
-
28,000 48,000 112,000 395,000 53,000 134,000
-
400,000 485,000
-
580,000 660,000
-
32,000 100,000 132,000
Knee package Hip package Knee package Bipolar package Bipolar package -
Pun Hlaing Siloam Hospital General packages
168
NA NA NA NA NA NA NA NA
Name of package Basic standard package Exclusive package Deluxe package (male) Deluxe package Deluxe package Healthy man Well woman Pre employment package Deluxe employment package Pre marital package Woman cancer screening package
Age
Price in MMK
Female under 40 Female over 40 -
89,000 140,000 210,000 220,000 330,000 190,000 330,000 NA NA 75,000 125,000
Maternity packages Room type Grand suite Executive suite Suite Standard Double Hall type
Normal 2 nights – 3 days 820,000 550,000 400,000 310,000 290,000 230,000
LSCS 4 nights – 5days 1,420,000 970,000 770,000 620,000 570,000 360,000
Asia Royal Hospital General packages Name of package
Price in MMK
Premium package Premium package Deluxe package Deluxe package Male executive Male executive Ladies executive Ladies executive Pre-wedding package Pre-wedding package Platinum heart screening package Diamond heart screening package Male cancer screening Female cancer screening Extended male cancer screening package (without contract) Extended female cancer screening package (without contract) Arthritis screening Renal care package Liver screening package Liver screening package Extended liver screening (without contract) Extended liver screening (without contract)
HBs Ag HBs Ab HBs Ag HBs Ab HBs Ag HBs Ab HBs Ag HBs Ab HBs Ag HBs Ab -
44,900 50,400 61,900 67,400 103,000 108,500 101,000 106,500 50,400 55,900 99,000 135,500 111,200 148,200
-
311,200
-
348,200
-
33,200 64,500 80,200 93,200 215,700 228,700
HBs Ag
HBs Ab HBs Ag HBs Ab
169
Health care program card Type of cards Asia Royal Hospital Jasmine Orchid Royal Orchid Royal Rose Royal Rose Special
Price MMK 10,000 20,000 30,000 50,000 100,000
These cards can be used for any services and Jasmine, Orchid and Royal Orchid can be used during 3 months after buying the cards. And Royal Rose and Royal Rose Special can be used during 6 months after buying the cards. Member of hospital Type of member Asia Royal Hospital Jade member Sapphire member Ruby member
Price MMK 50,000 100,000 200,000
Member card is valid for 3 years and can be extended by giving annual fee. Being a member following discounts can be enjoyed. For corporate medical checkup, about 70 private companies engage with them.
Parami General Hospital Labour package Package Package A (suites) Package B (executive room) Package C (superior room) Package D (deluxe room) Package E (elegant room)
Normal delivery
Caesarean section
410,000 380,000 350,000 320,000 290,000
Fees in MMK 550,000 500,000 470,000 440,000 410,000
Painless labour 460,000 430,000 400,000 370,000 340,000
Note: 4 nights and 5 days for caesarean section deliver and 3 nights and 4 days for normal painless delivery
Sakura Hospital General packages Name of package Basic Sliver Gold Gold Diamond Diamond Luxury Luxury Pre-employment Pre-marital Cancer
Price in MMK > 45 Males Females >45 males >45 females Males Females Standard, males
170
497,000 75,400 94,400 99,400 126,400 134,400 159,400 197,400 39,600 43,600 82,000
Cancer Cancer Cancer Cardiac Cardiac Liver Liver
Standard, females Advance, males Advance, females Standard Advance Standard Advance
105,000 282,000 335,000 825,000 102,500 67,900 154,900
Room charges Victoria Hospital Charge per day (MMK) 35,000 200,000 60,000
Room type 4-bed room 1-bed room (special) 1-bed room (ordinary)
Facility NA NA NA
Pun Hlaing Siloam Hospital Room type
Charge per day (MMK)
Facility Living room, bathroom, dining table, TV, DVD, fridge, mini
Grand suite
150,000 bar, extra bed, kitchenware, internet, free wifi, 3 meals and
Executive suite
90,000
Suite
70,000
Standard
40,000
Double
30,000
Hall type Add extra bed cost
10,000
snack per day for a patient and a family member Bathroom, TV, DVD, fridge, electric cattle, internet, free wifi, 3 meals and snack per day for a patient Bathroom, TV, fridge, internet, free wifi, 3 meals and snack per day for a patient TV, fridge, internet, free wifi and 3 meals per day for a patient Sharing bathroom for 2 patients, TV, fridge, internet, free wifi, 3 meals per day for a patient Common bathroom and 3 meals per day for a patient
8,000 –8,500 -
Asia Royal Hospital Room type Hall 1 Hall 2 Silver/double Silver/single – no WC Pearl Gold Platinum Diamond Coronary care unit (CCU) Intensive care unit (ICU)
Charge per day (MMK) 12,000 15,000 30,000 30,000 40,000 52,000 65,000 90,000 99,000 120,000
171
Facility 2 beds 23 beds 30 beds 2 beds 40 beds 89 beds 13 beds 12 beds 11 beds 9 beds
Parami Hospital Room type 1 room
Charge per day (MMK)
Facility
About 35,000 – 50,000
-
SSC Hospital Room type 1 room
Charge per day (MMK)
Facility
About 35,000
-
Sakura Hospital Room type 1 room
Charge per day (MMK)
Facility
About 55,000
-
Parami Hospital Room type Single-bed room type 1 Single-bed room type 2 Single-bed room type 3 Single-bed room type 4 Single-bed room type 5 Hall 1 and 2
Charge per day (MMK) 83,500 76,900 69,000 56,500 52,000 41,500
Facility Including room charge, doctor round charge (MMK 25,000) and service charge (MMK 5,000) According to room’s facility, room charges are different -
Consultancy fees Pun Hlaing Siloam Hospital Hospital service charge General practitioner OG Orthopedic Paediatrician Paediatric surgeon Specialist surgeon Urologist Cardiologist Gastroentrologists and Hepatologists Ear, Nose and Throat Surgeons Diabetes specialist
For foreigners in MMK
For nationals in MMK
6,000 30,000 – 50,000 15,000/30,000 – 50,000 30,000 – 50,000 15,000 – 50,000 30,000 – 50,000 30,000 30,000 – 50,000 30,000 – 50,000
4,000 8,000 – 15,000 6,000 – 10,000 15,000 7,000/8,000/10,000 – 15,000 10,000 10,000 – 15,000 5,000/7,000/15,000 – 20,000 15,000
30,000 – 50,000
10,000/15,000
30,000 – 50,000 30,000–50,000
12,000/15,000 – 20,000 15,000
Victoria Hospital For nationals in MMK Hospital service charge OG consultancy
2,500 5,000
172
Parami Hospital For nationals in MMK Registration fee Paediatrician consultancy
5,000 8,000
Sakura Hospital For nationals in MMK Round fee Service charge
25,000 5,000
Asia Royal Hospital For foreigners in USD Consultant fees On-call fees Round fees
For nationals in MMK
30 – 70 50 – 100 30 – 50
6,000 – 10,000 10,000 – 30,000 6,000 – 10,000
Healthcare: City Hospital (Mandalay) Out patients (Expatriates)
MMK
Consultation fee Hospital services Consultation fee Hospital services Consultation fee Hospital services
General Practitioner
10,000 5,000 35,000 5,000 15,000 5,000
Hospital ambulance Hospital ambulance
Per mile Accompanied by doctor
Specialist surgeon Senior surgeon
2,500 3,000
Commodity prices109 Product Rice (special) Rice Rice Peanut oil Palm oil Iodine salt Onion Garlic Sugar Tamarind (seed removed) Potato Condensed milk Fresh milk 109
Unit Pyi Pyi Pyi Viss Viss Packet Viss Viss Viss Viss Viss Tin Tin
7Day Daily, November 27, 2016
173
MMK (As of November 25) 1,500-2,500 1,300-2,000 1,000-1,200 5,000 1,800 200 1,400-1,800 4,000-4,500 1,500-1,600 3,000-3,500 1,000-1,200 700-850 600-700
Egg Gram Chicken (Commercial breed) Chicken (local breed) Pork Beef Tomato Cabbage Chilli Fish (Ngamyitchin) Fish (Carp) Fish (Ngamyin) Bread (Golden Luck) Margarine (Mother Choice) Butter (Golden Churn) Mayonnaise (Heinz) CP pork sausage Red Wine (Cheato) Orange Juice (UFC) Hazelnut (Nutella) Hazelnut (Nutella)
Nos Viss Viss Viss Viss Viss Viss Nos Viss Viss Viss Viss Loaf 250g 454g 460g 250g 1 Bottle 1 Liter 350g 680g
100-150 2,800 6,000-8,000 9,000-10,000 10,000 10,000 3,000 500 5,000 4,000-4,500 5,000-7,000 4,500-5,000 1,000 2,000 6,000 2,850 2,000 38,800 2,600 3,950 6,350
Viss is a traditional weight measuring unit. One viss is equal to 3.6 lb or 1.65 kg. There are 100 ticals in a viss.
174
7 |THILawaSPECIaLECONOMIC ZONE
18
16
17
19
20
Overall procedures for commencement of commercial operation of the business by the Investor in Thilawa SEZ
21
22 23
175
7.1 OVERALL PROCEDURES FOR COMMENCEMENT OF COMMERCIAL OPERATION OF THE BUSINESS BY THE INVESTOR IN THILAWA 1
Reservation Agreement Investor shall be required to conclude reservation agreement with Myanmar Japan Thilawa Development Co Ltd (MJTD) before submitting an investment application (Form 1) to the Thilawa SEZ Management Committee (TSMC). The authority in charge for this reservation agreement is MJTD.
2
Investment Approval Investor is recommended to consult with TSMC (Represented by DICA Section of One Stop Service Center of Thilawa SEZ – OSSC) on the proposed business plan prior to the submission of FORM-1. Investor can submit Form 1 to TSMC for pre-consultation by online as well. TSMC shall receive Form 1 officially with the application fee of MMK 1.5 million (plus commercial tax of MMK 75 thousand) when DICA Section of OSSC finds the descriptions of Form 1 are proper and complete. TSMC shall issue investment approval FORM-2 or notify rejection to investor within 30 working days. The authority in charge for investment approval is DICA Section of OSSC.
3
Company Registration Investor planning to locate in the Thilawa SEZ needs to incorporate to a new company at DICA Section of OSSC. Even though such Investor has an existing company incorporated at DICA Head office, incorporation of the new company at Thilawa SEZ is necessary because tax exemption, relief, other incentives and privileges of the company located in the Thilawa SEZ are differed. The application for the new company incorporation can be submitted online or delivered to OSSC upon with the application for investment approval. The registration can be done in 1 day after obtaining investment approval. Businesses planning to locate in Thilawa SEZ such as a branch or an office of a bank, insurance company or any type of company, a shop, a restaurant, etc, which is not under Myanmar Special Economic Zone Law, is not necessary to incorporate a new company. a. Brief information for company registration
Necessary Documents submitted by Applicant
1. Application Form for Company Registration (FORM-CR2) 2. Application Form for Permit to Trade (FORMCR3): Two copies 3. Passport copy (i.e. a copy of the page in which applicant’s picture and signature are printed.) or NRC copy of each shareholders and directors 4. Memorandum of Association (MOA) and Articles of Association (AOA) (Unstamped) with Certificate of Translation (by lawyer or notary public) either in Myanmar or English version is acceptable (FORMCR8, FORM-CR9). 5. BOD members list, if shareholder is a company 6. Declaration of Registration, Registered Office and Legal Version (Affidavits) (FORM-CR4) 7. List of proposed Directors (FORM-CR6)
176
Actual Procedures
Application Fee Time Frame Authorities in charge Remarks
1. An applicant is to submit the application with the required documents to set up a company either in person or online to the Front Office of the One Stop Service Center when the investment application (FORM-1) is submitted. 2. If the submitted documents are completed and accepted, the applicant shall pay MMK 500,000. 3. The DICA Section of OSSC issues the Company Registration to the applicant on the same day or the next working day when the Investment Approval is issued in FORM-2. 4. The applicant shall bring each one copy of the Memorandum of Association (MOA) and Articles of Association (AOA) to the Internal Revenue Section of OSSC for getting stamped. The stamp price varies according to the type of Business and capital amount. 5. The applicant shall submit the stamped AOA and MOA to the DICA Section of OSSC within five (5) working days. 6. The applicant shall submit the List of Appointed Directors with appointed date (FORM-CR6) and the Return of Allotment (FORM-CR7). MMK 500,000 Maximum two or one working days after the receipt of complete and correct application OSSC (DICA Section of Thilawa SEZ) Any changes of directors, shares and shareholders have to be reported to Thilawa Special Economic Zone Management Committee.
b. Brief information for the change of shareholders Necessary Documents submitted by Applicant Actual Procedures Application Fee Time Frame
Remarks
1. Cover Letter 2. Return of Allotment (FORM-CR7) 3. Board of Director (BOD) Resolution 4. Transfer of Shares (FORM-CR10) An applicant submits Return of Allotment to the Front Office of OSSC when there are changes in shareholders. MMK 25,000 1 day An applicant shall submit FORM-MC1 (Application for Approval of Change of Shareholder/Increase of Paidup Capital) to the TSMC. After obtaining the approval of the TSMC, the applicant submits Return of Allotment to the Front Office of OSSC
c. Brief information for the selling of company’s shares Necessary Documents submitted by Applicant Actual Procedures Application Fee
1. Cover Letter 2. Return of Allotment (FORM-CR7) 3. Board of Director (BOD) Resolution 4. Transfer of Shares (FORM-CR10) An applicant submits Return of Allotment to the Front Office of OSSC after selling of the company’s shares. MMK 25,000
177
Time Frame
1 day
Remarks
An applicant shall submit the Application for Selling of the Company’s Share to the TSMC. After obtaining the approval of the TSMC, the applicant submits Return of Allotment to the Front Office of OSSC.
d. Brief information for the change of Directors/Managers and Company Director’s Address
Application Fee Time Frame
1. Cover Letter 2. Board of Director (BOD) Resolution 3. List of Directors (FORM-CR6) An applicant submits List of Directors to the Front Office of OSSC when there are changes of Directors (recruitment of new directors/ managers, resignation of directors/managers and changes in Company Director’s address). MMK 25,000 1 day
Remarks
None
Necessary Documents submitted by Applicant
Actual Procedures
e. Brief information for the transfer of shares Necessary Documents submitted by Applicant Actual Procedures Application Fee Time Frame Remarks
1. Cover Letter 2. Board of Director (BOD) Resolution 3. Return of Allotment (FORM-CR7) 4. Transfer of Shares (FORM-CR10) An applicant submits necessary documents for Transfer of Shares to the Front Office of OSSC when there are changes in Shares. MMK 25,000 1 day None
f. Brief information for addition of Business Objectives
Application Fee
1. Cover Letter 2. Extraordinary or Special Resolution 3. New pages of MOA & AOA 4. Form of Permit (Original) An applicant submits necessary documents for Addition of Business Objectives to the Front Office of OSSC when there are changes in business objectives. MMK 75,000
Time Frame Remarks
1 day No need to submit (FORM 1) for Myanmar Company.
Necessary Documents submitted by Applicant Actual Procedures
g. Brief information for increasing authorized capital Necessary Documents submitted by Applicant Actual Procedures Application Fee
1. Cover Letter 2. Extraordinary or Special Resolution 3. New pages of MOA & AOA 4. Form of Permit (Original) An applicant submits Increase Authorized Capital to the Front Office of OSSC when there are changes of authorized capital. MMK 75,000
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Time Frame Remarks
1 day No need to submit (FORM 1) for Myanmar Company.
h. Brief information for the resolution of the General Meeting of shareholders Necessary Documents submitted by Applicant
1. 2. 3. 4.
Cover Letter Resolution of AGM (Annual General Meeting) List of Shareholders (FORM-CR5) Annual Audit Report
Actual Procedures
1. An applicant submits General Meeting Report on to the Front Office of OSSC
Application Fee Time Frame
MMK 25,000 1 day
Remarks
Resolution of Annual General Meeting (AGM) shall be signed by all members of Board of Director (BOD).
4 Sub-lease Agreement Investor is required to obtain an investment approval from TSMC to conclude Land Sublease Agreement. The authority in charge for this agreement is MJTD. The rental amount for land sub-leasing in Thilawa SEZ per square meter for the entire lease period (50 years) is subject to change from time to time. For a Business in Promotion Zone or Other Business, commercial tax of 5% of land sub-leasing fee is applicable.
5 Payment of Paid-up Capital After opening the bank account, Investor shall remit the minimum paid-up capital stipulated in Section 10 of Notification 81/2014 dated on 1st October, 2014 within 30days from the date of Investment Approval. The remaining amount of total paid-up capital declared in FORM-1 shall be remitted by Investor within six (6) months from the date of Investment Approval. Investor shall submit the bank certificate of receipt of each remittance to TSMC through Front Office of OSSC within one (1) week from the date of receipt of such remittance by bank. The authority in charge for this section is TSMC (Investment Approval Section).
6 Environmental Conservation and Preservation Plan (ECPP) Investor shall submit Environmental Conservation and Prevention Plan (ECPP) to TSMC through Front Office of OSSC after obtaining Investment Approval. TSMC shall provide ECPP Approval within approximately 30days. Depending on the type and scale of Business, Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA) may be additionally required after ECPP. The authority in charge for this section is TSMC (Environmental Section of OSSC). There is no cost for this section.
7 Design Approval of Building Construction Investor shall submit documents and drawings to MJTD for obtaining Design Approval from MJTD after obtaining Investment Approval. MJTD will provide Design Approval of Building Construction within 20days if no discrepancy to its Internal Regulations is found. The authority in charge for this section is MJTD. There is no cost for this section.
8 Building Permit and Fire Safety Certificate Application for Building Permit and Fire Safety Certificate shall be submitted to the Construction Section of OSSC through Front Office of OSSC after obtaining Design Approval from MJTD.Construction Section of OSSC shall provide Building Permit and Fire Safety Certificate within 30days. ECPP Approval is also required to obtain the Building Permit.
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The authority in charge for this section is OSSC (Construction Section). To get the building permit and fire safety certificate, the investor needs to pay the following fees: Area (in square meter) < 1,000 1,000 – 5,000 5,000 – 10,000 10,000 – 50,000 > 50,000
Fees (In MMK) 350,000 500,000 1,500,000 2,500,000 5,000,000
9 Business Tax Payer Identification Number Investor shall apply for the Business Taxpayer Identification Number (TIN) for Corporation to Internal Revenue Department Section of OSSC through Front Office of OSSC as soon after obtaining Company Registration Certificate and opening the bank account. Internal Revenue Department Section of OSSC shall provide TIN to Investor in cooperation with Large Taxpayer Office (LTO) within one (1) day without fee. The authority in charge for this section is OSSC (Internal Revenue Department Section).
10 VISA/ Stay Permit Investor shall apply for i) Stay Permit, ii) Foreign Registration Certificate, and iii) Multiple Journey Special Re-entry VISA (MJSRV) or Single Re-entry VISA (SRV)through Front Office of OSSC after completion of company registration. If application is done before noon time, each procedure will be completed in the same day, while if application is done after noon time, procedure will be completed next day. Investor shall only need to wait at Thilawa SEZ, OSSC (Immigration Section). The fees are as of in the section 6.4.3, Visa. Entry VISA related to foreign business persons is summarized as follows. Foreign employees for short stay (less than 90 days)
Business VISA:
VISA on Arrival
This visa is given to applicants from business organizations which have business establishments in Myanmar or an applicant who intends to establish business in Myanmar. The visa is valid for three months from the date of issue with 70 days stay. The Business Visa is also issued to the foreign employees and their family members. VISA on Arrival is issued at the Myanmar International Airport, to those residing abroad where there are no Myanmar embassies, or to those who have had no time to obtain an Entry Visa at the Myanmar embassies.
Foreign employees for long stay (more than 90 days) Stay Permit:
Re-Entry VISA
Stay Permit is given to a foreigner who is planning to stay in Myanmar more than 90 days. The applicant shall apply stay permit after entering to Myanmar by Business VISA allowed to stay 70 days. Stay Permit can be extended. If a foreigner is obliged to leave for foreign countries on official or personal business during the period of permitted stay, the foreigner shall apply Re-Entry VISA. There are two types of Re-Entry VISA, i.e., Multiple Journey Special Re-Entry VISA (MJSRV) which allows multi entries and Single Re-Entry VISA (SRV) which allows only single entry.
11 Foreign Worker/ Local Worker Registration Labor Section of OSSC shall provide Foreign Worker/ Local Worker Employment Registration Card in either same day (if application is completed before noon time) or next day (if application is completed after noon time). The authority in charge for this registration is OSSC (Labour Section). There is no related cost for this registration.
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12 Registration of Contractor Investor shall register its Contractor by submitting Contractor Registration Forms prior to commence the construction work to the Construction Section of OSSC through Front Office of OSSC. Construction Section of OSSC stamps “RECEIVED” on the Registration Form and returns the Form to Investor through Front Office of OSSC. The authority in charge for this registration is OSSC (Construction Section). There is no related cost for this registration. 13 Registration of Construction Materials to be imported Investor shall submit Master List to TSMC through Front Office of OSSC. TSMC shall provide the approval letter of duty free importation of the construction materials mentioned in the Master List. TSMC will send a copy of approved Master List to the Customs Section of OSSC. Investor does not need to apply import license. The authority in charge for this registration is TSMC. There is no related cost for this registration.
14 Approval of Starting Construction Investor shall submit Application Form with required documents such as the copies of Building Permit, Fire Safety Certificate and ECPP to MJTD for starting construction works. MJTD shall provide Approval Letter to Investor within five days after confirming the consistency of the Application Form to its internal rules and regulations. The authority in charge for this approval is MJTD. There is no related cost for this approval.
15 Project Information Sheet Investor shall submit Project Information Sheet with other required documents including the Approval Letter for Start of Construction by MJTD to Construction Section of OSSC through Front Office of OSSC within seven (7) days after commencement of construction. The authority in charge for this section is OSSC (Construction Section). There is no related cost in this section.
16 Inspection related to Building Work and Fire Protection System After the commencement of construction of building (factory), Investor shall undertake Intermediate Inspection at the stages of i) Foundation Work, ii) Structure Framing Work, and iii) Roofing Work, respectively, in accordance with the proposed timing mentioned in Project Information Sheet. Investor shall submit the application form to the Construction Section of OSSC through Front Office of OSSC at least seven days prior to the scheduled inspection date.Investor shall also undertake Final Inspection at the timing of completion of construction.Application form shall be submitted to the Construction Section of OSSC through Front Office of OSSC at least seven (7) days prior to the scheduled inspection date. The authority in charge for this inspection is OSSC (Construction Section). There is no related cost for this inspection.
17 Environmental Inspection Environmental Inspection shall be done principally 4months after the commencement of construction. The second inspection shall be done before the commencement of commercial operation. In parallel with the inspection, Investor shall prepare and submit the Monitoring Report to the TSMC. The authority in charge for this inspection is TSMC (Environmental section of OSSC). There is no related for this inspection.
18 Inspection related to Factory Equipment and Facilities Investor shall undertake Electricity Inspection and Boiler Inspection, respectively, prior to connection of Infrastructure Utility by MJTD.For Electricity Inspection, Investor shall firstly submit Application Form to MJTD for obtaining design approval of power system.MJTD shall provide an Approval Letter for Electrical Design to Investor within 10 days.Subsequently, Investor shall submit Electricity Installation Plan with the Approval Letter by MJTD to Industry Section of OSSC through Front Office of OSSC.Investor shall undertake an Electricity Inspection by Industry Section of OSSC and MJTD.When the
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Electricity Inspection is completed and no defect is found, Industry Section of OSSC shall provide Electricity Certificate to Investor and its copy to MJTD.Investor shall obtain Boiler Certificate from Industry Section of OSSC in the same procedure of the above mentioned Electricity Certificate without involvement of MJTD. The authority in charge for this section is OSSC (Industry Section) and MJTD. The related costs for this inspection are as of the section 6.3.4, 6.3.5, 6.3.6, 6.3.7 in the report. In addition, the investor needs to pay MMK 220,000 per one time inspection for transportation and administration.
19 Connection of Infrastructure After the completion of Electricity Installation Work, Investor shall submit an Application Letter to MJTD for power energization.Same procedure shall be taken for Telecommunication, Water, and Sewage system installation works and connection to MJTD common system. The authority for this section is MJTD and the followings are the related costs for installing these utilities: 1) Water Supply a. Water Connection Charge Peak Water Demand (cu.m/ha/24 hours) 0-60 Over 60 to 120 Over 120 to 180 Over 180
Note: ■ ■ ■
Charge (net of any tax) (In USD) 10,000 50,000 100,000 To be discussed
Cost for installation of new pipelines and/or connection is exclusive. for first year, the locator shall notify water usage forecast of the first five years after start of operations. For each year, the locator shall notify water usage forecast for next two fiscal years before end of September of each year.
Current water supply capacity Additional water supply capacity
20 cu-m/day per 10,000 square meter (6,000 cu-m/day for entire Thilawa SEZ-A After completion of water pipeline (42,000 cu-m/day for entire Thilawa SEZ-A (In 2019)
b. Water Usage Charge Actual water consumption (cu-m/ha/24 hours) 0-60 Over 60 to 120 Over 120 to 180 Over 180
Charge (net of any tax) (In USD) 0.60 per cu.m 0.70 per cu.m 0.80 per cu.m To be discussed later
2) Sewage Treatment Sewage Treatment Charge shall be based on 85% of monthly water consumption volume. The rate shall be USD 0.60 per cubic meter (net of any tax). 3) Electric Power Supply a. Power Connection The lessee shall apply for connection to the common power supply system to the lessor. On or before connection of the common power supply system, the lessee shall pay to the lessor the Power Connection Charge and also pay to the related authority/ entity such as but not limited to Yangon Electricity Supply Corporation (YESC) for all the fees and charges imposed by such authority/entity. Only after completion of such payment, the
182
lessee shall be allowed to commence its connection work to the common power supply system. b. Power Connection Charge The amounts of Power Connection Charge shall be based on the Power Demand of the lessee’s transformer. Power Demand (kVA/ha)
Charge (net of any tax) (In USD)
0 to 200 Over 200 to 400 Over 400 to 800 Over 800 to 1,200 Over 1,200 to 1,600 Over 1,600
10,000 50,000 100,000 160,000 220,000 To be discussed later
If the power demand of the lessee’s transformer will increase in the future, the lessee shall pay additional connection charge according to the tariff prevailing upon such increase. Note: ■ ■
For first year, lessee shall notify peak power demand forecast of the first five years after start of operations. Before end of September for each year, the lessee shall notify peak power demand forecast for the next two fiscal years starting in April every year.
c. Electricity usage Charge The lessee shall pay the lessor Electricity Unit Charge and Horse Power Charge (Capacity Charge) and any other charges (collectively, Electricity Charge) based on its actual electricity consumption volume of each month according to the tariff of Yangon Electricity Supply Corporation (YESC). Current Electricity Unit Charge of YESC is described as below subject to change. Actual Electricity Consumption (kWh/month) 0 to 500 Over 500 to 10,000 Over 10,000 to 50,000 Over 50,000 to 200,000 Over 200,000 to 300,000 Over 300,000
Electricity Unit Charge (In MMK/kWh) 75 100 125 150 125 100
d. Administration Fee for Power Supply Equivalent to 3.5% of the monthly Electricity Charge shall be paid as Administration Fee for Power Supply (net of any tax) by the lessee to the lessor.
4. Telecommunication Telecommunication Connection Charge
USD 8,000 / core (net of any tax)
Telecommunication Administration and Maintenance Charge
USD 800/ core / month (net of any tax)
20 Building Completion Certificate If an Inspector judges no more instruction is needed at Final Inspection, Construction Section of OSSC shall immediately provide Building Completion Certificate to Inves-
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tor.The authority in charge for this section is OSSC (Construction Section). There is no related cost.
21 General Completion Certificate Investor shall submit Application Form with required documents to MJTD.MJTD shall issue and provide General Completion Certificate to Investor within 20 days. Investor shall submit the General Completion Certificate to Construction Section of OSSC through Front Office of OSSC. The authority in charge for this section is MJTD and there is no related cost.
22 Letter of approval of factory operation Investor shall submit Application Form with required documents to Industry Section of OSSC through Front Office of OSSC. When all documents submitted are accepted, Industry Section of OSSC shall issue a Letter of Approval of Factory Operation to Investor through Front Office of OSSC. The authority in charge for this approval is OSSC (Industry Section) and there is no related cost.
23 Commencement of Commercial Operation Report Investor shall submit a report of Commencement Date of Commercial Operation in a letter with company letter-head to TSMC through Front Office of OSSC when it decides the date. TSMC shall issue “Certificate of Commencement Date of Commercial Operations (FORM-MC4)” and provide it to Investor. The authority in charge for this section is TSMC (Operations Section) and there is no related cost.
7.2 One Stop Service Center (OSSC)
Administration fees To cover the operation costs of OSSC at the Thilawa SEZ, the Thilawa SEZ Management Committee has decided to charge the following Administration Fees to the Investors and Businesses as of May 2016.
Developer (MJTD) Sub-Developer (TPD) Investors (Land lease) Investors (Rental Factory) Businesses (At office or land of more than 50 square meter)
Fees (Per month per company) (In MMK) 4,000,000 1,500,000 250,000 150,000 50,000
Remark: As in the Instruction No.01/2016, the above-mentioned fees are exclusiveof 5% commercial tax except for Free Zone Industries, meaning that additional 5% ofabovementioned fees shall be payable as a commercial tax except for investorswhose status is “A Business in Free Zone” or “ Free Zone Business”. Investment Permit or Businesses approvals obtained after 15th day of a month are not required to pay for Administration Fees of that month.
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7.3 Myanmar Japan Thilawa Development Ltd Maintenance and Administration Charge and Other Charges for MJTD Maintenance and Administration Charge (net of USD 0.10 / square meter per month any tax) Community Relations charges (net of any tax) Up to 3 hectares USD 200/ month Beyond 3 up to 6 hectares USD 300/ month Beyond 6 up to 12 hectares USD 400/ month Beyond 12 up to 20 hectares USD 500/ month Beyond 20 hectares USD 600/ month
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8 | aPPENDICES 8.1 Head Office and regional offices of DICA 1
Yangon (Head Office)
7
COMPANY REGISTRATION SECTION No 1 Thitsar Road, Yankin Township, Yangon Tel: 01 657891 Fax: 01 658135 Email:
[email protected]
2
Nay Pyi Taw Office
8
067 406124, 067 406166 —
[email protected]
3 Mandalay Region Office th
th
Tanintharyi Region Office
542 Hospital Road, Myoutywa Yat, Dawei Township, Tanintharyi Region Tel: 09 43198975 Fax: — Email:
[email protected]
Office Building No 32, Nay Pyi Taw Tel: Fax: Email:
Ayeyarwaddy Region Office
No 38 Aoo Bo Tan Street, Quarter 3, Pathein Township, Ayeyarwaddy Region Tel: 042 24662 Fax: — Email: —
DICA OFFICES IN MYANMAR
th
84 Street (between 26 and 27 Streets), rd 3 Flr, Zay Cho East Wing, Chan Aye Thar Zan Township, Mandalay Region Tel: 02 86661, 02 86662 Fax: 02 86660 Email:
[email protected]
4 Shan State Office Compound of the Directorate of Trade Promotion and Consumer Affair East Circular Road, Yay Aye Kwin Quarter Taunggyi Township, Shan State Tel: 081 2124293 Fax: 081 2124974 Email:
[email protected]
5
6 3 2
Mon State Office
401 Strand Road (Extension), Mayangon Quarter, Mawlamyaing Township, Mon State Tel: 057 23395 Fax: 057 23385 Email:
[email protected]
6
4
7 1
5
8
Sagaing Region Office
Compound Office of District Administration Committee, Yone Gyee Road, Yone Gyee Quarter, Monywa Township, Sagaing Region Tel: 071 26274 Fax: 071 26275 Email: —
186
8.2Business associations in Myanmar
UMFCCI
110
Union of Myanmar Federation of Chambers of Commerce and Industries International Relations Department 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 110
OFFICE: TEL: EMAILS:
29 Min Ye Kyaw Swa Street, Lanmadaw Township, Yangon. 95-1-2314344~49 (Ext : 122), 09-450200310
[email protected],
[email protected]
Chinese Chamber of Commerce (Myanmar) Myanmar Agro-based Food Processors and Exporters Association Myanmar Automobile Manufacturers and Distributors Association Myanmar Computer Industry Association Myanmar Construction Entrepreneurs Association Myanmar Container Truck Association Myanmar Customs Brokers Association Myanmar Edible Oil Dealers Association Myanmar Farm Crop Producers Association Myanmar Fertilizer Seed and Pesticides Entrepreneurs Association Myanmar Fisheries Federation Myanmar Forest Products and Timber Merchants Association Myanmar Fruit, Flower and Vegetable Producers and Exporters Association Myanmar Garment Manufacturers Association Myanmar Gems & Jewellery Entrepreneurs Association Myanmar Gold Entrepreneurs Association Myanmar Hoteliers Association Myanmar Industries Association Myanmar International Freight Forwarders Association Myanmar Livestock Federation Myanmar Marine Engineers Association Myanmar Mercantile Marine Development Association Myanmar Mining Association Myanmar Oil Palm Producers Association Myanmar Onion, Garlic and Culinary Crops Production and Exporting Association Myanmar Paddy Producers Association Myanmar Perennial Crop Producers Association Myanmar Petroleum Trade Association Myanmar Pharmaceuticals and Medical Equipment Entrepreneurs Association Myanmar Plastic Industries Association Myanmar Printers and Publishers Association Myanmar Publishers and Book-sellers Association Myanmar Pulses, Beans and Sesame Seeds Merchants Association Myanmar Real Estate Services Association Myanmar Retailers Association Myanmar Rice and Paddy Merchants Association
www .umfcci.com.mm
187
37 38 39 40 41 42 43 44 45
Myanmar Rice Federation Myanmar Rice Millers Association Myanmar Rubber Planters and Producers Association Myanmar Seafarer Employment Services Federation Myanmar Sugarcane and Sugar-Related Products Merchants and Manufacturers Association Myanmar Travel Association Myanmar Women Entrepreneurs Association Myanmar Young Entrepreneurs Association The Highway Freight Transportation Services Association
8.3 MARKET RESEARCH COMPANIES The following are some available marketing research companies in Myanmar: MMRD
MSR
Myanmar Marketing Research & Development Ltd.
Myanmar Survey Research Co Ltd.
Tel: 95 1 202 126, 95 1 201 350 Email:
[email protected]
Tel: 95 1 370464 Email:
[email protected]
Xavey Research Solutions
Market Research Myanmar
Tel: 95 9 250 106 950 Email: ------------------------------
Tel: 95 9 79 700 6465 Email: ------------------------------
Thura Swiss
Market Green Resource Indicator
Tel: 95 1 654 730, 95 1 654 733 Email:
[email protected]
Tel: 95 1 531281 Email:
[email protected]
8.4EIA/SIA COMPANIES IN MYANMAR Local companies doing IEE (Initial Environmental Examination), EIA (Environmental Impact Assessment) and EMP (Environmental Management Plan)111 The following are local organizations that have submitted environmental survey reports to the Environment Conservation Department of the Ministry of Environmental Conservation and Forestry of Myanmar as of July 25, 2016: Sr 1
Organization
Contact person
Resource and Environment Myanmar Ltd (REM)
U Thura Aung (GM) HP: 09 5192143
B-702, Delta Plaza, Shwegondaing Road, BahanTownship, Yangon. Tel: 09 73013448; Fax: 01 552901 URL: www.environmyanmar.net 2
Myanmar Sustainable Development Engineering Services Co Ltd. (MSDES)
U Aung Nanda (Chairman) HP: 09 5160905
21 (I), U Kyaw Hla Street, 7 Miles, Mayangon Township, Yangon. Tel: 0973175448, 01 655849 Email:
[email protected] 3
Royal Tree Services Co Ltd
U Aye Thiha (MD) HP: 09 2042233
Building 7+1 D, Room 308, Parami Condo, Hlaing Township, Yangon, 11051, Myanmar Tel: 09 421108946, 09421070714, 09448013159, 01 654857 E-mail:
[email protected] URL: www.royaltreeservices.biz
111
Environmental Conservation Department, Ministry of Environmental Conservation and Forestry (www.ecd.gov.mm/?q=third-party)
188
4
E Guard Services Co Ltd
U Aye Thiha (MD) HP: 092042233, 098613789
Building 7+1 D, Room 308, Parami Condo, Hlaing Township, Yangon, 11051, Myanmar Tel: 09 421108946, 09421070714, 09448013159, 01 654857 E-mail:
[email protected] URL: www.royaltreeservices.biz 5
Environment and Nature Conservation Association (EANCA) th
th
Dr Thiri Htin Hla (MD) HP: 095046322
th
No 3, 4 Floor, Malar Myaing 5 Street, 16 Ward, Hlaing Township, Yangon. Tel: 09 73044903 Email:
[email protected] 6
Green Myanmar Environmental Services Co Ltd
U Kyaw Soe Win (MD) HP: 095081451
115 Kanaung Min Thar Gyi Road, Hlaingtharyar Industrial Zone 1, Hlaingtharyar City, Yangon. Tel: 01 685572, Fax: 01 685571E-mail:
[email protected];
[email protected];
[email protected] 7
Geo-Technical Committee (U Aung Myat Kyaw – Consultant)/ U Aung Myat Kyaw and EIA Consulting Group
U Aung Myat Kyaw (Chairman) HP: 095162169
17 Bandarbin Street, Hteedan, Myimyindaing Township, Yangon. Email:
[email protected] 8
Total Business Solution Co Ltd
Mr Praneet Prasongnitjakit(MD)
54 (Room 704) Waizayantar Tower, Waizayantar Street, Thingangyun Township, Yangon. Email:
[email protected] HP: 09253556719 ၊ 09 401604493 Email: praneet.tbs@
[email protected] 9
National Engineering and Planning Services Co Ltd (NEPS)
U Cho Cho (Executive Director) HP: 098635150
880 Yadanar Street, Thingangyun Township, Yangon. Tel: 01-562407, Fax:01-562407 E-mail:
[email protected] 10
LIVE Environmental Assessment Group
Dr Than Htut HP: 095014535 Dr Nay Win Oo
72 Baho Street, Sanchaung Township, Yangon. Tel: 09-5014535, Fax: 01-511650 E-mail:
[email protected] 11
Green Environ Services Ltd
Dr Wah Wah Han (MD) HP: 095053348
th
No 1 Thitsar Yeik Thar Street, 12 Ward, Yankin Township, Yangon 12
Earth Study and Nature Conservation nd
U Myo Tun HP: 096537464, 0947104878 th
No 723 (Corner of Bo Sein Hman Street and Nawarat 2 Lane, 44 Ward, Dagon Myothit (North) Township, Yangon. HP: 096573454 Email:
[email protected] 13
Consultancy Services for Mineral Exploration and Development
U Zaw Win (Chairman) HP: 095036447
No12A, (201) Dagon Lwin Street Myitta Nyunt Quarter, Tamwe, Yangon. Tel: 01-545363Email:
[email protected] 14
Yangon Technical Trading Co Ltd
U Ar Yu (MD) HP: 095119331
No 531, Ye Tagun Tower Room No 1104 Lower Kyimyindaing Road, Kyimyindaing Township, Yangon. Tel: 01-508232, 508233, 508234, 09- 2228885 Fax: 01-508071 Email:
[email protected]:
[email protected] 15
Kaung Kyaw Say Engineering Services Co Ltd
U Tun Naing Aung (Chairman)
th
31 Pinlon Yeikmon 5 Street, Pinlon Yeikmon, Thingangyun Township, Yangon. Tel: 01 571284 Fax: 01 571284 Email:
[email protected],
[email protected] 16
Asia Guiding Star Services
U Lin Myint (Chairman) HP: 0973080745
83/5A Dhamma Zedi Road, Sanchaung Township, Yangon. Tel: 01 2304237 Email:
[email protected] 17
Myanmar Engineering Society (MES)
U Win Khaing (Chairman) HP: 095002596
MES Building, Hlaing Universities Campus Road, Hlaing Township, Yangon. Tel: 01-519673 Fax: 01-519681
189
Email:
[email protected] 18
Myanmar Environment Institute (MEI)
Dr Win Maung HP: 0973128412
Delta Plaza, C/ 7005, Shwegondaing Road, Bahan Township, Yangon. Tel: 09-5003162 Email:
[email protected] 19
Environment (Wunkyin) Myanmar Cooperative
Dr Win Maung HP: 0973128412
Aungchanthar Estate Building 2-005, Shwegondaing Road, Bahan Township, Yangon. Tel: 09 5003162, Fax: 01 527532 Email
[email protected] 20
Neo Tech Myanmar Company Limited
Dr Zin Min HP: 095026223
218 Tabin Shwehti Street, Dagon Myothit (North) Township, Yangon. Tel: 01 584126 HP: 095026223 21
My Asia Consulting Co. Ltd
Daw Su Wai Lwin (Director)
41 Nawaday Street, Yawmingyi Ward, Dagon Township, Yangon. Tel: 0930399970, 0936224903 Email:
[email protected] URL: www.myasiaconsulting.com 22
Green Environmental, Health, Safety & Social Consultancy Co Ltd
U Aung Ze Ya (Director) Green Canada Aisa Consultancy Services Environmental, Health, Safety And Social Solutions
102 (B) Bandoola Tower, Pazundaung Township, Yangon. Tel: 01 203344, HP: 09425353553 23
Mast Myanmar Technology
U Myo Myint (Managing Director)
R4-B, Pan Kaye St, Kaye Pin Yeik Mon (2), Kaye Pin Road, Mingaladon Township 11021, Yangon. HP: 09 450047847, 09 4500 47848, 09 73902006 Email:
[email protected] 24
Environmental Quality Management
Dr Ohnmar May Tin Hlaing (Managing Director and Environmental Consultant)
No 233Block 23, Sayee Pin Lane, Thuwunna, Thingangyun Township, Yangon. Tel: 01 560219, 01 562182, 095016606 Email:
[email protected],
[email protected]: eqmmyanmar.com 25
Green-Tech Environmental Impact Assessment Group
Dr Kyaw Swar Tint
192 (A), Corner of Dhamma Thuka School Road and Yangon-Insein Road, Yangon. HP: 0943106929 Email:
[email protected] URL: www.myanmartechinstitude.com 26
Lucky Bird Environmental Studies & Geoinformatic Solutions
Daw May Phyu Thwe (Director)
355 Thein Phyu Road, Mingala Taung Nyunt Township, Yangon. Tel: 01-379875, 380130, 399011 Fax: 01248167 Email:
[email protected] 27
Professional Research & Consultancy
U Khin Maung Tun (Managing Director)
th
Room 503, 4 Floor, 14/149, Bargayar Road, Bargayar Condo, Sanchaung Township, Yangon. HP: 09 420222187, 0973078451, 09 796887599Email:
[email protected]@gmail.com URL: www.prc-myanmar.net 28
Myanmar Environment Sustainable Conservation (MESC) nd
U Myint Kyaw Thura (Managing Director)
th
No 54, (A-4), Marlar-Myaing 2 St, 16 Ward, Hlaing Township, Yangon. Tel: 09 420105071, 09 73044903 Email:
[email protected] 29
Myanmar Survey Research (MSR)
U Kyaw Hlaing (President & Research Director)
Yangon Railway Station Compound, Kunchan Street, Mingala Taung Nyunt Township, Yangon Tel: 01-370464 Fax: 95-1-254263 Email:
[email protected] 30
Myanma Business and Social Development Co Ltd th
U Moe Aung
th
No 100-102, Room 6-A1, 5 Floor, 27 Street, Pabedan Township, Yangon. Tel: 01 377213 Email:
[email protected] URL: http://www.busodev.com 31
Development Management and Technology Co Ltd
190
(1) Dr Lay Kyi (Chairman) (2) U Tun Tun Oo (MD)
No 101 Bayintnaung Tower 2-A, corner of Hledan Street and Bayintnaung Street, Kamayut Township, Yangon. Mobile: 09 550 6919; 09 863 3708 Email:
[email protected] URL: www.myanmarstat.org 32
Myanmar Koei International Ltd
Mr Shunsuke Hieda Ms Wah Wah Han Su Yin
No 1A/28, Mya Thidar Housing, Ward 11, South Okkalapa Township, Yangon. Tel: 01 563281 Fax: 01 8500107 Email:
[email protected]@
[email protected]@myanmar-koei.com
8.5 Sample calculations of income tax
Sample tax calculation SAMPLE 1: If a person with an income from the salary of MMK 500,000 per month lives together with two parents, spouse and two children: Total income from the salary MMK 500,000 per month x 12 (Deductibles) Reliefs from taxes Basic relief (20% of the total income) = 1,200,000 Relief for two parents living together = 2,000,000 Relief for spouse = 1,000,000 Relief for two children = 1,000,000 Total amount of reliefs: 5,200,000 Income on which tax is to be imposed
=
6,000,000
(–) =
5,200,000 800,000
As MMK 800,000 falls within the range from MMK 1 to MMK 2,000,000 (see the table above), the tax amount to be imposed is MMK 2,000,000 on which 0% is to be taxed. Total tax due for one year for this family: ---------------------------------------------- Not due
SAMPLE 2: If a person with an income from the salary of MMK 500,000 per month is a bachelor who does not live with parents: Total income from the salary MMK 500,000 per month x 12 (Deductibles) Reliefs from taxes Basic relief (20% of the total income) = 1,200,000 Relief for two parents living together = – Relief for spouse = – Relief for two children = – Total amount of reliefs: 1,200,000 Income on which tax is to be imposed
=
6,000,000
(–) =
1,200,000 4,800,000
The first MMK 2,000,000 falls within the range from 1 to 2,000,000 at 0% The remaining MMK 2,800,000 falls within the range from 2,000,001 to 5,000,000 at 5% = MMK 140,000 Total tax due for one year for this single-person family: --------------------------- MMK Tax due to be deducted from salary per month (average) -------------------------- MMK
140,000 11,667
The annual salary report of the company is to be sent to the Head of Township Internal Revenue Department through the head of the company concerned within three months after completion of the incomes. The foreign employees also have to follow suit in paying income tax in accordance with the above-mentioned rates.
191
8.6 REFERENCES 8.6.1 Interviews Government departments/enterprises and authorities Aung Min, U, Chief Engineer of Pipeline Department, Myanma Oil and Gas Enterprise Aye Min Thein, U, Managing Director, Myanma Insurance, Ministry of Planning and Finance Cho Zar Win, Daw, Sales Manager, MMM Real Estate Agency Htay Shwe, U, Assistant General Manager, Myanmar Inspection and Testing Services Ltd (MITS), Ministry of Commerce Khin Maw Lwin, Daw, Assistant General Manager, Finance Department, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Khin Shwe, U, Director, Electrical Inspection Department, Directorate of Industrial Supervision and Inspection, Ministry of Industry Kyaw Myint, U, Deputy Director, Department of Immigration, Ministry of Labour, Immigration and Population Kyaw Soe Win, U, Director (Planning), Myanma Petrochemicals Enterprise (MPE), Ministry of Electricity and Energy Kyaw Tha Sein, U, Deputy Chief Engineer, Engineering Department (Building), Yangon City Development Committee Lin Htut, Dr, Director, Investment Division 4, Directorate of Investment and Company Administration Lwin Oo, U, Deputy General Manager, Myanma Insurance, Ministry of Planning and Finance Maung Khant, U, Director of Finance Department, Myanma Oil and Gas Enterprise Maung Thaw, U, Deputy Director, Myanma Petrochemicals Enterprise, Ministry of Electricity and Energy Min Zaw Oo, Dr, Deputy Director, Investment Division 3, Directorate of Investment and Company Administration Min Zaw Oo, U, Director, Investment Division 1, Directorate of Investment and Company Administration Moe Thida, Daw, Deputy Director, Department of Urban and Housing Development, Ministry Construction Myint Htay, Daw, Assistant General Manager, Finance Department, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Myint Maw,Daw, Assistant General Manager, Myanma Foreign Trade Bank, Ministry of Planning and Finance Myint Than Hlaing, Daw, Assistant Director,Department of Immigration, Ministry of Labour, Immigration and Population Myo Aung, U, Permanent Secretary, Ministry of Labour, Immigration and Population Myo Myint Htoo, U, Assistant Director, Customs Department, Ministry of Planning and Finance Myo Than, U, Assistant General Manager, Myanma Posts and Telecommunications, Ministry of Transport and Communication Nay Lin Aung, Owner, Shwe Mandalay Real Estate Agency
192
Nilar Mu, Daw, Director, Company Division, Directorate of Investment and Company Administration Nu Nu Aye, Daw, Assistant General Manager, Finance Department, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Nyi Nyi Maung, Dr, Deputy Director, Investment Division 2, Directorate of Investment and Company Administration San Oo, Dr, Director, Environmental Conservation Department, Ministry of Natural Resources and Environmental Conservation San San Win, Daw, Deputy General Manager, Planning Department, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Sanda, Daw, Head of Investment Section of OSSC, DICA, Thilawa SEZ Sandar Win, Daw, Director, Economic Planning Division, Department of Electric Power, Ministry of Electricity and Energy Shwe Hein, U, Secretary of Thilawa SEZ Management Committee Shwe Kyone, Daw, Assistant General Manager, Finance Department, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Soe Moe Kyaw, U, Deputy Director-General, Directorate of Industrial Supervision and Inspection (DISI), Ministry of Industry Than Sein, U, Director of Production Department, Myanma Oil and Gas Enterprise Thant Zin Tun, U, Assistant Director, Boiler Inspection Department, Directorate of Industrial Supervision and Inspection (DISI), Ministry of Industry Thein Kyi, Daw, Assistant Director, Fire Services Department, Head Office, Ministry of Home Affairs Thein Min, U, Deputy Chief Engineer, Water and Sanitation Department, Yangon City Development Committee Thet Naing Oo, U, Director, Customs Department, Ministry of Planning and Finance Thuza Paing, Daw, Deputy General Manager, Finance Department, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Tun Than, U, Director, Internal Revenue Department, Ministry of Planning and Finance Tun Than, U, Director-General, Social Security Board, Ministry of Labour, Immigration and Population Tun Thwe, U, Director of Engineering Department, Myanma Oil and Gas Enterprise Wai Than, U, Deputy Director, Financial Regulation Department, Ministry of Planning and Finance Win Swe, Colonel (Retd), Managing Director, Myanmar Inspection and Testing Services Ltd (MITS), Ministry of Commerce Win Thein, U, Chief Minister, Bago Region Government Win Tin, U, Director, Monitoring Section, Directorate of Investment and Company Administration Yan Lin, U, Chairman of Board of Directors, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Ye Min Htet, U, District Electrical Engineer, District Electric Engineer Department, Dawei Yee Mon Mon, Daw, Assistant General Manager, Planning Department, Yangon Electricity Supply Corporation, Ministry of Electricity and Energy Zaw Min, U, Director, Department of Trade, Ministry of Commerce
193
Private sector Khaing Zar, Daw, Translation Section, Ma Kyaw Ohnmar, Interpretation Section, Myanmar Translation Co Ltd Khin Maung Hla, U, President, Industry Zone Supervisory Committee Khin Maung Than, U, Advocate, High Court Myint Lwin, U, Advocate and Trademarks Agent, U Myint Lwin Law Office Myo Myint Oo, Manager, EPG-Retail and Rental, Energy and Transportation Division, Myan Shwe Pyi Tractors Ltd Set Paing, U, Founder of Myanmar Erin Group Soe Thein, Secretary, Industrial Supervisory Committee, Dawei Than Win, U, President, Man Myanmar Plaza Thein Zaw, U, Real Estate agent, Bago Thet Lwin, U, Director, Dawei Development Public Company Ltd Tin Than, U, Head of EIA/SIA Department, Myanmar Survey Research Tin Tin Khaing, Daw, General Manager, Kyu Kyu Win and Associates Services Co Ltd (Accounting, Auditing, Financial and Legal Consultancy Services)
Associations Kyi Lwin, U, CEC member, Myanmar Engineering Society
8.6.2Printed materials (published and unpublished) 7Day Daily, November 27, 2016 Ahkyosaung Journal, No 905, Dec 1, 2016 Condo Prices Scrutiny and Setting Committee documents (obtained from Department of City Planning and Land Administration, Yangon City Development Committee) How to Register Your Company in Myanmar, DICA, updated in June 2016 Doing Business 2017 – Myanmar, World Bank Group, 2016 Kyemon Daily (Myanmar language), December 2-3, 2016 Labour Law 2016 Paper (draft) by Institute for Global Environmental Strategies (IGES), Japan, with support from Environmental Quality Management Co Ltd, Myanmar, submitted to First National/City Workshops for Developing the National/City Waste Management Strategies, 13 – 17 June 2026 Prospectus 2015 for students who would be joining various institutions of higher learning, published by the Ministry of Education Salary Survey Report, Myanmar Survey Research (MSR), 2016 The 2014 Myanmar Population and Housing Census, the Union Report, Ministry of Labour, Immigration and Population Yangon Hotel Directory, 2015, Ministry of Hotels and Tourism Zaygwet Journal, No 988, Nov 17, 2016
8.6.3Websites (URLs) www.dica.gov.mm/ — Directorate of Investment and Company Administration (DICA), Ministry of Planning
194
and Finance www.irdmyanmar.gov.mm/ — Internal Revenue Department (IRD), Ministry of Planning and Finance www.ecd.gov.mm/ — Environmental Conservation Department (ECD), Ministry of Natural Resources and Environmental Conservation www.mip.gov.mm/ — Department of Immigration, Ministry of Labour, Immigration and Population www .umfcci.com.mm/ — Union of Myanmar Federation of Chambers of Commerce and Industry www.mmftb.com/english/websiteknowledge.php — Myanma Foreign Trade Bank, Ministry of Planning and Finance 80-86 Maha Bandoola Garden Street, Kyauktada Township, Yangon www.president-office.gov.mm — President Office, Union of Myanmar www.mpt.com.mm — Myanma Posts and Telecommunications, Ministry of Transport and Communication http://i-kbz.com/insurance/60 IKBZ Insurance Co Ltd www.mof.gov.mm/en/content/myanma-insurance — Myanma Insurance, Ministry of Planning and Finance www.mmtimes.com/index.php/business/21454-myanma-insurance-raises-rates-for-thirdparty-vehicle-cover.html — The Myanmar Times (Weekly Newspaper) https://www.expedia.com/ — Expedia, Singapore www.wageindicators.org › Minimum Wages › 28 January 2016 — — www.myanmar-education.edu.mm/dhel/education-system-in-myanmar/education-structure/ — — http://forex.cbm.gov.mm/index.php/fxrate (Reference exchange rate - Central Bank of Myanmar) — Central Bank of Myanmar http://dct.dhl.com — DHL Express
8.6.4 Survey Team This Survey Report has been prepared under the leadership of U Aung Naing Oo, Director General of DICA, by a team comprising DICA (U Kyaw Win Tun, Dr Lwin Thuzar Shwe, U Khin Maung Phyu, Daw Yin Min Hla and Daw Saw Yu Mon), JICA (Mr. Toru Homma) and MSR (U Kyaw Hlaing, U Ye Nyunt, U Nyana Soe, Daw Nyein Nyein Myo, U Aung Lin, and U Aye Min Tun).
195
196
197
The spine of the publication
198
Unofficial Translation (1-3-2017)
1
The Republic of the Union of Myanmar Myanmar Investment Commission Notification No. 10 / 2017 The 11th of Waning of Dapotwe, 1378 ME (22nd February 2017) Designation of Development Zone 1. The Republic of the Union of Myanmar, Myanmar Investment Commission in exercise of the powers conferred under Section 100 (b) of Myanmar Investment Law, with the approval of Union Government, issued this notification to specify Less Developed Regions as Zone 1, Moderate Developed Regions as Zone 2 and Developed Regions as Zone 3 as follows for the purpose of income tax exemption and relief as described in Section 75 (a) of the said Law: (A) Sr. No. 1
Zone 1: Less Developed Regions Region/ State Kachin State
District Myitkyina District
Township 1
Chibwe Township
2
Tsawlaw Township
3
In-Jangyang Township
4
Tanai Township
Moenyin District
5
Mogaung Township
Bahmo District
6
Shwegu Township
7
Momauk Township
8
Mansi Township
9
Bahmo Township
Putao District
10 Putao Township 11 Naungmung Township 12 Machanbaw Township
2
13 Sumprabum Township 14 Kaunglanhpu Township 2
Kayah State
Bawlakhe District
1
BawlakheTownship
2
Hpasaung Township
3
Mese Township
4
Loikaw Township
5
Demawso Township
6
Hpruso Township
7
Shataw Township
1
Hpa-an Township
2
Hlaignbwe Township
3
Papun Township
4
Thandaunggyi Township
5
Kawkareik Township
6
Kyain Seikkyi Township
Myawady District
7
Myawady Township
Falam District
1
Falam Township
2
Tiddim Township
3
Hton Zan Township
4
Haka Township
5
Htan Ta Lang Township
6
Mindat Township
7
Matupi Township
Loikaw District
3
Kayin State
Hpa-an District
Kawkareik District
4
Chin State
Haka District
Mindat District
3
5
Sagaing Region
Sagaing District
Shwebo District
Monywa District
8
Kanpetlet Township
9
Paletwa Township
1
Myinmu Township
2
Myaung Township
3
Khin-U Township
4
Wetlet Township
5
Kanbalu Township
6
Taze Township
7
Ye-U Township
8
Kyunhla Township
9
Tabayin Township
10 Budalin Township 11 Ayadaw Township 12 Salingyi Township 13 Pale Township 14 Yinmabin Township 15 Kani Township 16 Chaung-U Township
Hkamti District
17 Hkamti Township 18 Homalin Township 19 Leshi Township 20 Lahe Township 21 Namyung Township
4
Katha District
22 Katha Township 23 Kawlin Township 24 Indaw Township 25 Wuntho Township 26 Pinlebu Township 27 Banmouk Township 28 Tigyain Township
Mawlaik District
29 Mawlaik Township 30 Phaungbyin Township
Kale District
31 Kale Township 32 Mingin Township 33 Kalewa Township
6
7
8
Tanintharyi Region
Bago Region
Magwe Region
Tamu District
34 Tamu Township
Dawei District
1
Thayetchaung Township
Myeik District
2
Palaw Township
3
Tanintharyi Township
4
Khamaukgyi Township
Bago District
1
Shwegyin Township
Thayarwady District
2
Monyo Township
Taungoo District
3
Htantabin Township
4
Kyaukgyi Township
Pyay District
5
Paukkaung Township
Magwe District
1
Chauk Township
5
2
Myothit Township
3
Natmauk Township
Minbu District
4
Sidoktaya Township
Thayet District
5
Kanma Township
6
Mindon Township
7
Sinbaungwe Township
8
Myaing Township
9
Pauk Township
Pakokku District
10 Seikphyu Township Gangaw District
11 Gangaw Township 12 Htilin Township 13 Saw Township
9
10
11
Mandalay Region
Mon State
Rakhine State
Myingyan District
1
Myingyan(Myotha)Township
2
Ngazun Township
1
Chaungzon Township
2
Kyaikmayaw Township
1
Kyaukphyu Township
2
Manaung Township
3
Rambree Township
4
Ann Township
Maungdaw District
5
Maungdaw Township
Buthidaung District
6
Buthidaung Township
Sittwe District
7
Sittwe Township
Mawlamyine District
Kyaukphyu District
6
8
Ponnagyun Township
9
Mrauk-U Township
10 Kyauktaw Township 11 Minbya Township 12 Myebon Township 13 Pauktaw Township 14 Rathedaung Township Thandwe District
15 Thandwe Township 16 Taunggup Township 17 Gwa Township
12
Shan State
Taunggyi District
Loilem District
1
Hopong Township
2
Hsi Hseng Township
3
Pingdaya Township
4
Ywangan Township
5
Yatsauk Township
6
Pinlaung Township
7
Pekon Township
8
Kunhein Township
9
Kyethi Township
10 Mong Kung Township 11 Mong Hsu Township Lengkhe District
12 Lengkhe Township 13 Moh Nai Township
7
14 Mawkmai Township 15 Mong Pan Township Kengtong District
16 Mong Hkat Township 17 Mong Yang Township 18 Mong La Township
Mong Sat District
19 Mong Sat Township 20 Mong Ton Township 21 Mong Pying Township
Tachileik District
22 Tachileik Township
Mong Hpyak District
23 Mong Hpyak Township 24 Mong Yaung Township
Lashio District
26 Theinni Township 27 Mongyai Township
Muse District
28 Namkam Township 29 Kutkai Township
Kyaukme District
30 Namtu Township 31 Namhsan Township 32 Mantone Township 33 Moemaik Township 34 Mabein Township
Laukkai District
35 Laukkai Township 36 Konggyan Township
Hopang District
37 Hopang Township
8
38 Mongmao Township 39 Pangwaing Township Metman District
40 Metman Township 41 Nahpan Township 42 Pangsang Township
13
Ayeyarwady Region
Pathein District
Hinthada District
Labutta District
Pyapon District
1
Thabaung Township
2
Ngapudaw Township
3
Pathein Township (Only Shwetaungyan Town, ChaungThar Town, Ngwesaung Town in Pathein Township)
4
Myanaung Township
5
Kyangin Township
6
Ingabu Township
7
Lemyethna Township
8
Labutta Township
9
Mawlamyinekyun Township
10 Bogale Township
9
(B) Sr. No. 1
Zone 2: Moderate Developed Regions Region/ State Kachin State
District Myitkyina District
1
Myitkyina Township
2
Waingmaw Township
3
Mohnyin Township
4
Hpakant Township
Sagaing District
1
Sagaing Township
Shwebo District
2
Shwebo Township
Monywa District
3
Monywa Township
Dawei District
1
Dawei Township
2
Yebyu Township
3
Launglon Township
4
Kyunsu Township
5
Myeik Township
6
Kawthoung Township
7
Bokpyin Township
1
Thayawady Township
2
Minhla Township
3
Letpadan Township
4
Okpo Township
5
Gyobingauk Township
6
Zigon Township
7
Nattalin Township
Mohnyin District
2
3
Sagaing Region
Tanintharyi Region
Myeik District
Kawthoung District
4
Bago Region
Township
Thayawady District
10
Pyay District
8
Pyay Township
9
Padaung Township
10 Paungde Township 11 Shwedaung Township 12 Thegon Township Taungoo District
13 Taungoo Township 14 Yedashe Township 15 Oktwin Township 16 Phyu Township
Bago District
17 Kyaukdaga Township 18 Daik-U Township 19 Nyaunglaybin Township 20 Bago Township 21 Kawa Township 22 Thanatpin Township 23 Waw Township
5
Magwe Region
Magwe District
Minbu District
1
Magwe Township
2
Yenangyaung Township
3
Taungdwingyi Township
4
Minbu Township
5
Pwintbyu Township
6
Salin Township
7
Ngape Township
11
Thayet District
8
Thayet Township
9
Minhla Township
10 Aunglan Township Pakokku District
11 Pakokku Township 12 Yesagyo Township
6
Mandalay Region
Myingyan District
Meiktila District
Kyaukse District
Pyinoolwin District
1
Myingyan Township
2
Nahtogyi Township
3
Kyaukpadaung Township
4
Taungtha Township
5
Mahlaing Township
6
Thazi Township
7
Kyaukse Township
8
Tada-U Township
9
Pyinoolwin Township
10 Thabeikkyin Township 11 Singu Township 12 Madaya Township 13 Mogok Township 7
Mon State
Thaton District
Mawlamyine District
1
Thaton Township
2
Kyaikhto Township
3
Paung Township
4
Bilin Township
5
Mawlamyine Township
12
8
Yangon Region
Yangon(South) District
Yangon(North) District
6
Thanbyuzayat Township
7
Mudon Township
8
Ye Township
1
Kyauktan Township
2
Dala Township
3
Seikgyi Kanaungto Township
4
Kawmu Township
5
Kayan Township
6
Kungyangon Township
7
Thongwa Township
8
Twante Township
9
Cocokyun Township
10 Hlegu Township
11 Taikgyi Township 12 Hmawbi Township Yangon (East) District 13 Thanlyin Township 9
Shan State
Taunggyi District
Loilen District
1
Taunggyi Township
2
Kalaw Township
3
Nyaungshwe Township
4
Loilen Township
5
Lai-Hka Township
6
Nansan Township
13
Kengtong District
7
Kengtong Township
Lashio District
8
Lashio Township
9
Tangyan Township
Kunlong District
10 Kunlong Township
Muse District
11 Muse Township
Kyaukme District
12 Kyaukme Township 13 Hsipaw Township 14 Naungcho Township
10
Ayeyarwady Region
Pathein District
Hinthada District
Ma-ubin District
1
Pathein Township (except Shwetaungyan Town, ChaungThar Town, Ngwesaung Town in Pathein Township)
2
Kangyidaung Township
3
Yegyi Township
4
Kyaunggone Township
5
Kyonpyaw Township
6
Hinthada Township
7
Zalun Township
8
Ma-ubin Township
9
Pantanaw Township
10 Nyaungdon Township 11 Danubyu Township Myaungmya District
12 Myaungmya Township 13 Einme Township
14
14 Wakema Township Pyapon District
15 Pyapon Township 16 Kyaiklat Township 17 Dedaye Township
11
Nay Pyi Taw Union Territory
Dekkhina District
Oktara District
1
Zabuthiri Township
2
Dekkhinathiri Township
3
Lewe Township
4
Pyinmana Township
5
Oktarathiri Township
6
Zeyathiri Township
7
Pobbathiri Township
8
Tatkon Township
15
(C) Sr. No. 1
Zone 3: Developed Regions Region/ State Mandalay Region
District Mandalay District
Kyaukse District
Meikhtila District
Township 1
Aungmyaythazan Township
2
Chanayetharzan Township
3
Mahaaungmye Township
4
Chanmyatharzi Township
5
Pyigyidagon Township
6
Amarapura Township
7
Patheingyi Township
8
Myittha Township
9
Singaing Township
10 Meikhtila Township 11 Wundwin Township
Nyaung-U District
12 Nyaung-U Township
Yamethin District
13 Yamethin Township 14 Pyawbwe Township
2
Yangon Region
Yangon (East) District 1
Botataung Township
2
North Okkalapa Township
3
Pazundaung Township
4
South Okkalapa Township
5
Thingangyun Township
6
Yankin Township
7
Dawbon Township
16
8
Mingalar Taungnyunt Township
9
Tamwe Township
10 Thaketa Township 11 East Dagon Township 12 North Dagon Township 13 Dagon Seikkan Township 14 Mingaladon Township 15 Shwepyitha Township 16 Hlaingthaya Township 17 South Dagon Township Yangon(North) District
18 Insein Township
19 Htantabin Township Yangon(West) District
20 Hlaing Township
21 Kamayut Township 22 Mayangon Township 23 Ahlon Township 24 Bahan Township 25 Dagon Township 26 Kyauktada Township 27 Kyimyindaing Township 28 Lanmadaw Township 29 Latha Township
17
30 Pabedan Township 31 Sanchaung Township 32 Seikkan Township
2. Myanmar Investment Commission may amend, with the approval of the Union Government, if necessary, the designation of the types of zones as described in para 1 on the basis of the development of Regions and States and the necessity.
By Kyaw Win Chairman
Investment Policy The investment policy is sure to support the implementation of 12 Points Economic Policy of the Government of the Republic of the Union of Myanmar. 1.
Responsible and mutually beneficial foreign investments are welcomed.
2.
The
Myanmar
Investment
Commission
and
the
relevant
government organizations are sure to facilitate foreign investments through transparent, clear and expeditious procedures. 3.
The supportive environment with macroeconomic stability, rule of law, credible dispute settlement procedures, and reliable financial system for well-functioning economic infrastructure for all investors are to be carried out.
4.
As foreign investment is very crucial for national development, the Union Government will : (a) establish
a
predictable
regulatory
environment
with
non-
discriminatory treatment between foreign and local businesses; (b) protect businesses from seizures that is likely to be in dispute; (c) protect the right to transfer profits and other repatriation in accordance with the law after payment of taxes and duties and other payment obligations; (d) provide right to long-term land lease in accordance with the law for the approved investments.
2 5.
Local and foreign investors shall comply with the principles for responsible
investment
and
business
conduct,
including
environmental and natural resources matters on an equal basis and in a non-discriminatory manner at all times. 6.
No foreigners are permitted to conduct certain businesses relating to national security, and culture and social affairs. These restricted businesses will be made publicly available.
7.
The
following
investment
businesses
are
welcomed
and
encouraged: (a) Investment businesses that support productivity-enhancing and value-added agro-based industries with linkages to regional and global supply chains; (b) Investment businesses that enable technology transfer and domestic production to be beneficial; (c) Investment businesses that enable to support the development of small and medium enterprises; (d) Investment businesses for rapid development of infrastructure; (e) Investment businesses that enable to create job opportunities and provide vocational education and training for skill enhancement and development of human capacity; (f) Investment businesses to be made in economically less developed regions; (g) Investment businesses that enable to develop industrial cities and the special economic industrial clusters; (h) Investment businesses related to tourism.
1 ြပည်ေထာင်စုသမတမ ြ န်မာ ိုင်ငံေတာ် ြမန်မာ ိုင်ငံရင်း ှီးြမ ပ် ှံမေကာ်မရှင် အမိန် ေကာ်ြငာစာအမှတ် ၁၀ /၂၀၁၇ /၂၀၁၇ ၁၃၇၈ ခု ှစ်၊ တပို တွဲလ ြပည့်ေကျာ် ၁၁ ရက် (၂၀၁၇ ခု ှစ်၊ ေဖေဖာ်ဝါရီလ ၂၂ ရက်) ဖွံ2 3ဖိ းတိုးတက်မ ဇုန်အမျိ းအစားသတ်မှတ်ြခင်း ၁။ ြပည်ေထာင်စုသမတမ ြ န်မာ ိုင်ငံေတာ် ြမန်မာ ိုင်ငံရင်း ှီး ြမ ပ် ှံမေကာ်မရှင်သည် ြမန်မာ ိုင်ငံရင်း ှီး ြမ ပ် ှံမဥပေဒ ပုဒ်မ ၁၀၀ (ခ) အရ အပ် ှင်းထားေသာ လုပ်ပိုင်ခွင့်ကို ကျင့်သုံး၍ ယင်းဥပေဒ ပုဒ်မ ၇၅ (က) ပါ ဝင်ေငွခွန်ကင်းလွတ်ခွင့်၊ သက်သာခွင့်တို ခွင့် ြပ ရန်အလို ငှာ ဖွံ2 3ဖိ းမ နည်းပါးေသာေဒသများကို ဇုန် (၁)အဖ ြ စ်လည်းေကာင်း၊ ဖွံ2 3ဖိ းမအသင့်အတင့်ရှိေသာ ေဒသများကို ဇုန် (၂)အဖ ြ စ်လည်းေကာင်း၊ ဖွံ2 3ဖိ းမရှိေသာေဒသများကို ဇုန်(၃)အဖ ြ စ်လည်းေကာင်း ြပည်ေထာင်စု အစိုးရအဖွဲ2၏ အတည် ြပ ချက်ြဖင့် ေအာက်ပါအတိုင်း ထုတ်ြပန်လိုက်သည် (က) ဇုန် (၁): ဖွံ2 3ဖိ းမ နည်းပါးေသာေဒသများ စ>်
တိုင်းေဒသက ? ီး/ ြပည်နယ်
ခ@ိုင်အမည်
၁။
ကချင်ြပည်နယ်
ြမစ် ?ကီးနားခ@ိုင်
3မိ နယ် (၁)
ချီေဖွ 3မိ နယ်
(၂)
ေဆာ့ေလာ် 3မိ နယ်
(၃)
အင်ဂျန်းယန်3မိ နယ်
(၄)
တ ိုင်း 3မိ နယ်
မိုးညင်းခ@ိုင်
(၅)
မိုးေကာင်း 3မိ နယ်
ဗန်းေမာ်ခ@ိုင်
(၆)
ေရFကူ 3မိ နယ်
(၇)
မိုးေမာက် 3မိ နယ်
(၈)
မန်စီ 3မိ နယ်
(၉)
ဗန်းေမာ် 3မိ နယ်
(၁၀)
ပူတာအို 3မိ နယ်
(၁၁)
ေနာင်မွန် 3မိ နယ်
(၁၂)
မချမ်းေဘာမ 3 ိ နယ်
ပူတာအိုခ@ိုင်
2 စဉ်
၂။
တိုင်းေဒသကီး/ ြပည်နယ်
ကယားပ ြ ည်နယ်
ခရိုင်အမည် (၁၃)
ဆွမ်ပရာဘွမ်ြမို့နယ်
(၁၄)
ေခါင်လန်ဖူးြမို့နယ်
(၁)
ေဘာ်လခဲြမို့နယ်
(၂)
ဖားေဆာင်းြမို့နယ်
(၃)
မဲ့ဆဲ့ ြမို့နယ်
(၄)
လွိုင်ေကာ် ြမို့နယ်
(၅)
ဒီေမာဆို ြမို့နယ်
(၆)
ဖရူးဆိုးြမို့နယ်
(၇)
ရှားေတာမ ြ ို့နယ်
(၁)
ဘားအံြမို့နယ်
(၂)
လိှုင်းဘွဲ့ ြမို့နယ်
(၃)
ဖာပွန် ြမို့နယ်
(၄)
သံေတာင် ကီးြမို့နယ်
(၅)
ေကာ့ကရိတ်ြမို့နယ်
(၆)
ြကာအင်းဆိပ် ကီး ြမို့နယ်
ြမဝတီခရိုင်
(၇)
ြမဝတီြမို့နယ်
ဖလမ်းခရိုင်
(၁)
ဖလမ်းြမို့နယ်
(၂)
တီးတိန်ြမို့နယ်
(၃)
တွန်းဇံြမို့နယ်
(၄)
ဟားခါးမ ြ ို့နယ်
(၅)
ထန်တလန်ြမို့နယ်
(၆)
မင်းတပ်ြမို့နယ်
(၇)
မတူပီ ြမို့နယ်
(၈)
ကန်ပက်လက်ြမို့နယ်
ေဘာ်လခဲခရိုင်
လွိုင်ေကာ်ခရိုင်
၃။
ကရင်ြပည်နယ်
ဘားအံခရိုင်
ေကာ့ကရိတ် ခရိုင်
၄။
ချင်းြပည်နယ်
ြမို့နယ်
ဟားခါးခရိုင်
မင်းတပ်ခရိငု ်
3 စဉ်
၅။
တိုင်းေဒသကီး/ ြပည်နယ်
စစ်ကိုင်းတိုင်းေဒသကီး
ခရိုင်အမည်
စစ်ကိုင်းခရိုင်
ေရွှဘိုခရိုင်
မုံရွာခရိုင်
ခန္တီးခရိုင်
ကသာခရိုင်
ြမို့နယ် (၉)
ပလက်ဝြမို့နယ်
(၁)
ြမင်းမူြမို့နယ်
(၂)
ေမ ြ ာင်ြမို့နယ်
(၃)
ခင်ဦးမ ြ ို့နယ်
(၄)
ဝက်လက် ြမို့နယ်
(၅)
ကန့်ဘလူြမို့နယ်
(၆)
တန့်ဆည် ြမို့နယ်
(၇)
ေရဦးမ ြ ို့နယ်
(၈)
ကျွန်းလှြမို့နယ်
(၉)
ဒီပဲယင်း ြမို့နယ်
(၁၀)
ဘုတလင် ြမို့နယ်
(၁၁)
အရာေတာ် ြမို့နယ်
(၁၂)
ဆားလင်း ကီးြမို့နယ်
(၁၃)
ပုလဲ ြမို့နယ်
(၁၄)
ယင်းမာပင်ြမို့နယ်
(၁၅)
ကနီ ြမို့နယ်
(၁၆)
ေချာင်းဦးမ ြ ို့နယ်
(၁၇)
ခန္တီး ြမို့နယ်
(၁၈)
ဟုမ္မလင်း ြမို့နယ်
(၁၉)
ေလရှးီ ြမို့နယ်
(၂၀)
လဟယ်ြမို့နယ်
(၂၁)
နန်းယွန်းြမို့နယ်
(၂၂)
ကသာမ ြ ို့နယ်
(၂၃)
ေကာလင်း ြမို့နယ်
4 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည် (၂၄)
အင်းေတာ် ြမို့နယ်
(၂၅)
ဝန်းသိုြမို့နယ်
(၂၆)
ပင်လယ်ဘူး ြမို့နယ်
(၂၇)
ဗန်းေမာက် ြမို့နယ်
(၂၈)
ထီးချိုင့် ြမို့နယ်
(၂၉)
ေမာ်လိုက် ြမို့နယ်
(၃၀)
ေဖာင်း ြပင်ြမို့နယ်
(၃၁)
ကေလးမ ြ ို့နယ်
(၃၂)
မင်းကင်း ြမို့နယ်
(၃၃)
ကေလးဝမ ြ ို့နယ်
တမူးခရိုင်
(၃၄)
တမူး ြမို့နယ်
ထားဝယ်ခရိငု ်
(၁)
သရက်ေချာင်းြမို့နယ်
ြမိတ်ခရိုင်
(၂)
ပုေလာမ ြ ို့နယ်
(၃)
တနသာရီ င်္ ြမို့နယ်
(၄)
ခေမာက် ကီးြမို့နယ်
ပဲခူးခရိုင်
(၁)
ေရွှကျင်ြမို့နယ်
သာယာဝတီ ခရိုင်
(၂)
မိုးညိုြမို့နယ်
ေတာင်ငူခရိုင်
(၃)
ထန်းတပင် ြမို့နယ်
(၄)
ေကျာက် ကီးြမို့နယ်
ြပည်ခရိုင်
(၅)
ေပါက်ေခါင်း ြမို့နယ်
မေကွးခရိုင်
(၁)
ေချာက်ြမို့နယ်
(၂)
ြမို့သစ်ြမို့နယ်
(၃)
နတ်ေမာက် ြမို့နယ််
(၄)
ေစတုတ္တရာမ ြ ို့နယ်
ေမာ်လိုက်ခရိုင်
ကေလးခရိုင်
၆။
၇။
၈။
တနသာရီ င်္ တိုင်းေဒသကီး
ပဲခူးတိုင်းေဒသကီး
မေကွးတိုင်းေဒသကီး
ြမို့နယ်
မင်းဘူးခရိငု ်
5 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည် သရက်ခရိုင်
(၅)
ကံမြမို့နယ်
(၆)
မင်းတုန်းြမို့နယ်
(၇)
ဆင်ေပါင်ဝဲြမို့နယ်
(၈)
ြမိုင် ြမို့နယ်
(၉)
ေပါက် ြမို့နယ်
(၁၀)
ဆိပ် ြဖူမ ြ ို့နယ်
(၁၁)
ဂန့်ေဂါမ ြ ို့နယ်
(၁၂)
ထီးလင်းြမို့နယ်
(၁၃)
ေဆာမ ြ ို့နယ်
(၁)
ြမင်း ြခံ(ြမို့သာ)ြမို့နယ်
(၂)
ငါန်းဇွန်ြမို့နယ်
(၁)
ေချာင်းဆုံ ြမို့နယ်
(၂)
ကျိုက်မေရာမ ြ ို့နယ်
(၁)
ေကျာက်ြဖူမ ြ ို့နယ်
(၂)
မာန်ေအာင် ြမို့နယ်
(၃)
ရမ်း ြဗဲ ြမို့နယ်
(၄)
အမ်းြမို့နယ်
ေမာင်ေတာခရိုင်
(၅)
ေမာင်ေတာမ ြ ို့နယ်
ဘူးသီးေတာင် ခရိုင်
(၆)
ဘူးသီးေတာင်ြမို့နယ်
စစ်ေတွခရိုင်
(၇)
စစ်ေတွြမို့နယ်
(၈)
ပုဏ္ဏားကျွနး် ြမို့နယ်
(၉)
ေမ ြ ာက်ဦးမ ြ ို့နယ်
(၁၀)
ေကျာက်ေတာ် ြမို့နယ်
(၁၁)
မင်းြပားမ ြ ို့နယ်
ပခုက္ကူခရိုင်
ဂန့်ေဂါခရိုင်
၉။
၁၀။
၁၁။
မန္တေလးတိငု း် ေဒသကီး
မွန်ြပည်နယ်
ရခိုင်ြပည်နယ်
ြမို့နယ်
ြမင်းြခံခရိုင်
ေမာ်လြမိုင်ခရိုင်
ေကျာက်ြဖူ ခရိုင်
6 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
သံတွဲခရိုင်
၁၂။
ရှမ်းြပည်နယ်
ေတာင် ကီးခရိုင်
လွိုင်လင်ခရိုင်
လင်းေခးခရိုင်
ကျိုင်းတုံခရိုင်
ြမို့နယ် (၁၂)
ေမ ြ ပုံ ြမို့နယ်
(၁၃)
ေပါက်ေတာမ ြ ို့နယ်
(၁၄)
ရေသ့ေတာင် ြမို့နယ်
(၁၅)
သံတွဲြမို့နယ်
(၁၆)
ေတာင်ကုတ်ြမို့နယ်
(၁၇)
ဂွြမို့နယ်
(၁)
ဟိုပုန်းြမို့နယ်
(၂)
ဆီဆိုင်ြမို့နယ်
(၃)
ပင်းတယမ ြ ို့နယ်
(၄)
ရွာငံြမို့နယ်
(၅)
ရပ်ေစာက် ြမို့နယ်
(၆)
ပင်ေလာင်းြမို့နယ်
(၇)
ဖယ်ခုံြမို့နယ်
(၈)
ကွန်ဟိနး် ြမို့နယ်
(၉)
ေကျးသီးြမို့နယ်
(၁၀)
မိုင်းကိုင် ြမို့နယ်
(၁၁)
မိုင်းရှူးြမို့နယ်
(၁၂)
လင်းေခးမ ြ ို့နယ်
(၁၃)
မိုးနဲ ြမို့နယ်
(၁၄)
ေမာက်မယ် ြမို့နယ်
(၁၅)
မိုင်းပန် ြမို့နယ်
(၁၆)
မိုင်းခတ်ြမို့နယ်
(၁၇)
မိုင်းယန်း ြမို့နယ်
(၁၈)
မိုင်းလားမ ြ ို့နယ်
7 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည် မိုင်းဆတ်ခရိုင်
(၁၉)
မိုင်းဆတ်ြမို့နယ်
(၂၀)
မိုင်းတုံ ြမို့နယ်
(၂၁)
မိုင်းပျဉ်းြမို့နယ်
တာချီလိတ်ခရိုင်
(၂၂)
တာချီလိတ်ြမို့နယ်
မိငု ်းြဖတ်ခရိုင်
(၂၃)
မိုင်းြဖတ်ြမို့နယ်
(၂၄)
မိုင်းေယာင်း ြမို့နယ်
(၂၆)
သိန္နီြမို့နယ်
(၂၇)
မိုင်းရယ် ြမို့နယ်
(၂၈)
နမ့်ခမ်း ြမို့နယ်
(၂၉)
ကွတ်ခိုင်ြမို့နယ်
(၃၀)
နမ္မတူြမို့နယ်
(၃၁)
နမ့်ဆန် ြမို့နယ်
(၃၂)
မန်တုံ ြမို့နယ်
(၃၃)
မိုးမိတ်ြမို့နယ်
(၃၄)
မဘိမ်း ြမို့နယ်
(၃၅)
ေလာက်ကိုင်ြမို့နယ်
(၃၆)
ကုန်း ြကမ်း ြမို့နယ်
(၃၇)
ဟိုပန် ြမို့နယ်
(၃၈)
မိုင်းေမာမ ြ ို့နယ်
(၃၉)
ပန်ဝိုင် ြမို့နယ်
(၄၀)
မက်မန်းြမို့နယ်
(၄၁)
နားဖန်ြမို့နယ်
(၄၂)
ပန်ဆန်းြမို့နယ်
(၁)
သာေပါင်း ြမို့နယ်
လားရိှုးခရိုင်
မူဆယ်ခရိုင်
ေကျာက်မဲခရိုင်
ေလာက်ကိုင် ခရိုင်
ဟိုပန်ခရိုင်
မက်မန်းခရိုင်
၁၃။
ဧရာဝတီတိုင်းေဒသကီး
ြမို့နယ်
ပုသိမ်ခရိုင်
8 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
ဟသာတခရိ င်္ ငု ်
လပွတ္တာခရိုင်
ဖျာပုခံ ရိငု ်
ြမို့နယ် (၂)
ငပုေတာမ ြ ို့နယ်
(၃)
ပုသိမ် ြမို့နယ် (ပုသိမ် ြမို့ နယ်အတွင်းရှိ ေရွှေသာင် ယံြမို့၊ ေချာင်းသာမ ြ ို့၊ ေငွေဆာင် ြမို့များသာ)
(၄)
ြမန်ေအာင် ြမို့နယ်
(၅)
ကံခင်းြမို့နယ်
(၆)
အဂပူ င်္ ြမို့နယ်
(၇)
ေလးမျက်နှာြမို့နယ်
(၈)
လပွတ္တာမ ြ ို့နယ်
(၉)
ေမာ်လြမိုင်ကျွန်းြမို့နယ်
(၁၀)
ဘိုကေလးမ ြ ို့နယ်
9 (ခ)
ဇုန် (၂): ဖွံ့ြဖိုးမှု အသင့်အတင့်ရှိေသာေဒသများ
စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
၁။
ကချင်ြပည်နယ်
ြမစ် ကီးနားခရိုင်
(၁)
ြမစ် ကီးနားမ ြ ို့နယ်
(၂)
ဝိုင်းေမာ် ြမို့နယ်
(၃)
မိုးညှင်း ြမို့နယ်
(၄)
ဖားကန့် ြမို့နယ်
စစ်ကိုင်းခရိုင်
(၁)
စစ်ကိုင်း ြမို့နယ်
ေရွှဘခုိ ရိုင်
(၂)
ေရွှဘို ြမို့နယ်
မုံရွာခရိုင်
(၃)
မုံရွာြမို့နယ်
ထားဝယ်ခရိငု ်
(၁)
ထားဝယ် ြမို့နယ်
(၂)
ေရဖ ြ ူမ ြ ို့နယ်
(၃)
ေလာင်းလုံ ြမို့နယ်
(၄)
ကျွန်းစုြမို့နယ်
(၅)
ြမိတ်ြမို့နယ်
မိုးညှင်းခရိုင်
၂။
စစ်ကိုင်းတိုင်းေဒသကီး
၃။ တနသာရီ င်္ တိုင်းေဒသကီး
ြမို့နယ်
ြမိတ်ခရိုင်
ေကာ့ေသာင်း ခရိုင် (၆)
၄။
ပဲခူးတိုင်းေဒသကီး
သာယာဝတီ ခရိုင်
ြပည်ခရိုင်
ေကာ့ေသာင်း ြမို့နယ်
(၇)
ဘုတ် ြပင်းြမို့နယ်
(၁)
သာယာဝတီြမို့နယ်
(၂)
မင်းလှ ြမို့နယ်
(၃)
လက်ပံတန်းြမို့နယ်
(၄)
အုတ်ဖို ြမို့နယ်
(၅)
ကို့ပင်ေကာက် ြမို့နယ်
(၆)
ဇီးကုန်း ြမို့နယ်
(၇)
နတ်တလင်း ြမို့နယ်
(၈)
ြပည်ြမို့နယ်
10 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
ေတာင်ငူခရိငု ်
ပဲခူးခရိုင်
၅။
မေကွးတိုင်းေဒသကီး
မေကွးခရိငု ်
မင်းဘူးခရိုင်
သရက်ခရိုင်
ြမို့နယ် (၉)
ပန်းေတာင်း ြမို့နယ်
(၁၀)
ေပါင်းတည်ြမို့နယ်
(၁၁)
ေရွှေတာင် ြမို့နယ်
(၁၂)
သဲကုန်း ြမို့နယ်
(၁၃)
ေတာင်ငူြမို့နယ်
(၁၄)
ေရတာရှည် ြမို့နယ်
(၁၅)
အုတ်တွင်းြမို့နယ်
(၁၆)
ြဖူးမ ြ ို့နယ်
(၁၇)
ေကျာက်တံခါးမ ြ ို့နယ်
(၁၈)
ဒိုက်ဦးမ ြ ို့နယ်
(၁၉)
ေညာင်ေလးပင် ြမို့နယ်
(၂၀)
ပဲခူးြမို့နယ်
(၂၁)
ကဝမ ြ ို့နယ်
(၂၂)
သနပ်ပင်ြမို့နယ်
(၂၃)
ေဝါမ ြ ို့နယ်
(၁)
မေကွး ြမို့နယ်
(၂)
ေရနံေချာင်း ြမို့နယ်
(၃)
ေတာင်တငွ း် ကီးြမို့နယ်
(၄)
မင်းဘူးြမို့နယ်
(၅)
ပွင့် ြဖူမ ြ ို့နယ်
(၆)
စလင်းြမို့နယ်
(၇)
ငဖဲြမို့နယ်
(၈)
သရက်ြမို့နယ်
(၉)
မင်းလှ ြမို့နယ်
11 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
ပခုက္ကူခရိုင်
၆။
မန္တေလးတိငု း် ေဒသကီး
ြမင်းြခံခရိုင်
မိတ္ထီလာခရိုင်
ြမို့နယ် (၁၀)
ေအာင်လံ ြမို့နယ်
(၁၁)
ပခုက္ကူ ြမို့နယ်
(၁၂)
ေရစကို ြမို့နယ်
(၁)
ြမင်းြခံြမို့နယ်
(၂)
နွားထိုး ကီးြမို့နယ်
(၃)
ေကျာက်ပန်းေတာင်း ြမို့နယ်
(၄)
ေတာင်သာမ ြ ို့နယ်
(၅)
မလိှုင် ြမို့နယ်
(၆)
သာစည်ြမို့နယ်
ေကျာက်ဆည် ခရိုင် (၇)
ြပင်ဦးလွင်ခရိုင်
၇။
မွန်ြပည်နယ်
သထုံခရိုင်
ေမာ်လြမိုင်ခရိုင်
ေကျာက်ဆည်ြမို့နယ်
(၈)
တံတားဦးမ ြ ို့နယ်
(၉)
ြပင်ဦးလွင်ြမို့နယ်
(၁၀)
သပိတ်ကျင်းြမို့နယ်
(၁၁)
စဉ့်ကူးြမို့နယ်
(၁၂)
မတ္တ ရာမ ြ ို့နယ်
(၁၃)
မိုးကုတ် ြမို့နယ်
(၁)
သထုံြမို့နယ်
(၂)
ကျိုက်ထိုြမို့နယ်
(၃)
ေပါင်ြမို့နယ်
(၄)
ဘီးလင်း ြမို့နယ်
(၅)
ေမာ်လြမိုင်ြမို့နယ်
(၆)
သံြဖူဇရပ် ြမို့နယ်
(၇)
မုဒုံြမို့နယ်
(၈)
ေရးမ ြ ို့နယ်
12 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
၈။
ရန်ကုန်တိုင်းေဒသကီး
ေတာင်ပိုင်းခရိုင်
(၁)
ေကျာက်တန်း ြမို့နယ်
(၂)
ဒလမ ြ ို့နယ်
(၃)
ဆိပ် ကီးခေနာင်တို ြမို့နယ်
(၄)
ေကာ့မှူးမ ြ ို့နယ်
(၅)
ခရမ်းြမို့နယ်
(၆)
ကွမ်း ြခံကုန်းြမို့နယ်
(၇)
သုံးခွ ြမို့နယ်
(၈)
တွံေတးမ ြ ို့နယ်
(၉)
ကိုကိုးကျွန်းြမို့နယ်
(၁၀)
လှည်းကူး ြမို့နယ်
(၁၁)
တိုက် ကီး ြမို့နယ်
(၁၂)
ေမှာ်ဘီြမို့နယ်
အေရှ့ပိုင်းခရိုင်
(၁၃)
သန်လျင် ြမို့နယ်
ေတာင် ကီးခရိုင်
(၁)
ေတာင် ကီးြမို့နယ်
(၂)
ကေလာမ ြ ို့နယ်
(၃)
ေညာင်ေရွှ ြမို့နယ်
(၄)
လွိုင်လင် ြမို့နယ်
(၅)
လဲချားမ ြ ို့နယ်
(၆)
နမ့်စန်ြမို့နယ်
ကျိုင်းတုံခရိုင်
(၇)
ကျိုင်းတုံ ြမို့နယ်
လားရိှုးခရိုင်
(၈)
လားရိှုး ြမို့နယ်
(၉)
တန့်ယန်းြမို့နယ်
ကွမ်လုံခရိုင်
(၁၀)
ကွမ်လုံြမို့နယ်
မူဆယ်ခရိုင်
(၁၁)
မူဆယ် ြမို့နယ်
ေမ ြ ာက်ပိုင်းခရိုင်
၉။
ရှမ်းြပည်နယ်
ြမို့နယ်
လွိုင်လင်ခရိုင်
13 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည် ေကျာက်မဲခရိုင်
၁၀။ ဧရာဝတီတိုင်းေဒသကီး
ပုသိမ်ခရိုင်
ဟသာတခရိ င်္ ုင်
မအူပင်ခရိုင်
ေမ ြ ာင်းြမခရိုင်
ဖျာပုံခရိုင်
၁၁။
ေနပ ြ ည်ေတာ် ြပည်ေထာင်စုနယ်ေြမ
ဒက္ခိဏခရိုင်
ြမို့နယ် (၁၂)
ေကျာက်မဲ ြမို့နယ်
(၁၃)
သီေပါမ ြ ို့နယ်
(၁၄)
ေနာင်ချို ြမို့နယ်
(၁)
ပုသိမ် ြမို့နယ်(ပုသိမ် ြမို့နယ် အတွင်းရှိ ေရွှေသာင်ယံ ြမို့၊ ေချာင်းသာမ ြ ို့၊ ေငွေဆာင် ြမို့ များမှအပ)
(၂)
ကန် ကီးေထာင့် ြမို့နယ်
(၃)
ေရက ြ ည် ြမို့နယ်
(၄)
ေကျာင်းကုန်းြမို့နယ်
(၅)
ကျုံေပျာ် ြမို့နယ်
(၆)
ဟသာတမ င်္ ြ ို့နယ်
(၇)
ဇလွန် ြမို့နယ်
(၈)
မအူပင်ြမို့နယ်
(၉)
ပန်းတေနာ်ြမို့နယ်
(၁၀)
ေညာင်တုန်းြမို့နယ်
(၁၁)
ဓနု ြဖူမ ြ ို့နယ်
(၁၂)
ေမ ြ ာင်း ြမ ြမို့နယ်
(၁၃)
အိမ်မဲ ြမို့နယ်
(၁၄)
ဝါးခယ်မြမို့နယ်
(၁၅)
ဖျာပုံြမို့နယ်
(၁၆)
ကျိုက်လတ်ြမို့နယ်
(၁၇)
ေဒးဒရဲ ြမို့နယ်
(၁)
ဇမ္ဗူသီရိ ြမို့နယ်
14 စဉ်
တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
ဥတ္တ ရခရိုင်
ြမို့နယ် (၂)
ဒက္ခိဏသီရိြမို့နယ်
(၃)
လယ်ေဝးမ ြ ို့နယ်
(၄)
ပျဉ်းမနားမ ြ ို့နယ်
(၅)
ဥတ္တ ရသီရိြမို့နယ်
(၆)
ေဇယျာသီရိ ြမို့နယ်
(၇)
ပုဗ္ဗသီရိ ြမို့နယ်
(၈)
တပ်ကုန်း ြမို့နယ်
15 (ဂ)
ဇုန် (၃): ဖွံ့ြဖိုးမှုရှိေသာေဒသများ
စဉ် တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
၁။
မန္တေလးခရိငု ်
မန္တေလးတိငု း် ေဒသကီး
(၁)
ေအာင်ေြမသာစံြမို့နယ်
(၂)
ချမ်းေအးသာစံ ြမို့နယ်
(၃)
မဟာေအာင်ေြမ ြမို့နယ်
(၄)
ချမ်းြမသာစည်ြမို့နယ်
(၅)
ြပည် ကီးတံခွန် ြမို့နယ်
(၆)
အမရပူရြမို့နယ်
(၇)
ပုသိမ် ကီးြမို့နယ်
(၈)
ြမစ်သားမ ြ ို့နယ်
(၉)
စဉ့်ကိုင်ြမို့နယ်
(၁၀)
မိတ္ထီလာမ ြ ို့နယ်
(၁၁)
ဝမ်းတွင်းြမို့နယ်
ေညာင်ဦးခရိုင် (၁၂)
ေညာင်ဦးမ ြ ို့နယ်
ရမည်းသင်းခရိုင် (၁၃)
ရမည်းသင်းြမို့နယ်
(၁၄)
ေပျာ်ဘွယ် ြမို့နယ်
ေကျာက်ဆည် ခရိုင် မိတ္ထီလာခရိုင်
၂။
ရန်ကုန်တိုင်းေဒသကီး
ြမို့နယ်
အေရှ့ပိုင်းခရိုင် (၁)
ဗိုလ်တေထာင် ြမို့နယ်
(၂)
ေမ ြ ာက်ဥက္က လာပ ြမို့နယ်
(၃)
ပုဇွန်ေတာင်ြမို့နယ်
(၄)
ေတာင်ဥက္က လာပမ ြ ို့နယ်
(၅)
သဃန်င်္ းကျွနး် ြမို့နယ်
(၆)
ရန်ကင်း ြမို့နယ်
(၇)
ေဒါပုံြမို့နယ်
(၈)
မဂလာေတာင် င်္ ညွန့်ြမို့နယ်
(၉)
တာေမွြမို့နယ်
16 စဉ် တိုင်းေဒသကီး/ ြပည်နယ်
ခရိုင်အမည်
ေမ ြ ာက်ပိုင်း ခရိုင်
အေနာက်ပိုင်း ခရိုင်
ြမို့နယ် (၁၀)
သာေကတမ ြ ို့နယ်
(၁၁)
ဒဂုံြမို့သစ်အေရှ့ပိုင်း ြမို့နယ်
(၁၂)
ဒဂုံ ြမို့သစ်ေြမာက်ပိုင်း ြမို့နယ်
(၁၃)
ဒဂုံ ြမို့သစ်ဆိပ်ကမ်းြမို့နယ်
(၁၄)
မဂလာဒု င်္ ံြမို့နယ်
(၁၅)
ေရွှြပည်သာမ ြ ို့နယ်
(၁၆)
လိှုင်သာယာမ ြ ို့နယ်
(၁၇)
ဒဂုံ ြမို့သစ်ေတာင်ပိုင်း ြမို့နယ်
(၁၈)
အင်းစိန်ြမို့နယ်
(၁၉)
ထန်းတပင်ြမို့နယ်
(၂၀)
လိှုင် ြမို့နယ်
(၂၁)
ကမာရွတ်ြမို့နယ်
(၂၂)
မရမ်းကုန်းြမို့နယ်
(၂၃)
အလုံြမို့နယ်
(၂၄)
ဗဟန်း ြမို့နယ်
(၂၅)
ဒဂုံ ြမို့နယ်
(၂၆)
ေကျာက်တံတား ြမို့နယ်
(၂၇)
ြကည့်ြမင်တိုင်ြမို့နယ်
(၂၈)
လမ်းမေတာ်ြမို့နယ်
(၂၉)
လသာမ ြ ို့နယ်
(၃၀)
ပန်းပဲတန်း ြမို့နယ်
(၃၁)
စမ်းေချာင်းြမို့နယ်
(၃၂)
ဆိပ်ကမ်း ြမို့နယ်
17 ၂။ ြမန်မာနိုင်ငံရင်းနှီး ြမှုပ်နှံမှုေကာ်မရှင်သည် အပိုဒ် (၁) ပါ ဇုန်အမျိုးအစားများအား တိုင်းေဒသကီးနှင့် ြပည်နယ်များ၏ဖွွံ့ြဖိုးတိုးတက်မှုနှင့် လိုအပ်ချက်အေပါ် မူတည်၍ ြပည်ေထာင်စု အစိုးရအဖွဲ့၏ အတည်ြပုချက်ြဖင့် လိုအပ်သလို ေပ ြ ာင်းလဲသတ်မှတ်မည် ြဖစ်ပါသည်။
(ေကျာ်ဝင်း) ဥက္က ဋ္ဌ စာအမှတ်၊ မရက-၆/၁ /၂၀၁၇ ( ၀၁၈၃ - က ) ရက်စွဲ၊ ၂၀၁၇ခုနှစ် ေဖေဖာ်ဝါရီလ ၂၂ ရက် ြဖန့်ေဝခ ြ င်း နိုင်ငံေတာ်သမ္မတရုံး ြပည်ေထာင်စုအစိုးရအဖွဲ့ရုံး ြပည်ေထာင်စုလွှတ်ေတာ်ရုံး ြပည်သူ့လွှတ်ေတာ်ရုံး အမျိုးသားလွှတ်ေတာ်ရုံး ြပည်ေထာင်စုတရားလွှတ်ေတာ်ချုပ် နိုင်ငံေတာ်ဖွဲ့စည်းပုံအေခ ြ ခံဥပေဒဆိုင်ရာခုံရုံး ြပည်ေထာင်စုေရွးေကာက်ပွဲေကာ်မရှင်ရုံး ြပည်ေထာင်စုဝန် ကီးဌာနအားလုံး ြမန်မာနိုင်ငံရင်းနှီး ြမှုပ်နှံမှုေကာ်မရှင်အဖွဲ့ဝင်များအားလုံး ြပည်ေထာင်စုေရှ့ေနချုပ်ရုံး ြပည်ေထာင်စုစာရင်းစစ်ချုပ်ရုံး ြပည်ေထာင်စုရာထူးဝန်အဖွဲ့ ေနပ ြ ည်ေတာ်ေကာင်စီ တိုင်းေဒသကီးသို့မဟုတ် ြပည်နယ်အစိုးရအဖွဲ့ရုံးအားလုံး ဦးေဆာင်ညွှန် ြကားေရးမှူး ြမန်မာနိုင်ငံြပန်တမ်းတွင် ထည့်သွင်း ပုံနှိပ်ေရးနှင့် စာအုပ်ထုတ်ေဝေရးလုပ်ငန်း ေက ြ ာ် ြငာေပးပါရန်
