Politics and Public Policy
A reshuffle in the government’s investment bodies: A chance to continue the NLD’s newfound priority, or a potential misstep? The transfer of U Aung Naing Oo from the roles of Director General in DICA and Secretary of the Myanmar Investment Commission to his new place as Permanent Secretary of the Ministry of Investment and Foreign Economic Relations (MIFER) came as a shock to many. While he is likely to remain a figure of note within the ministry, focus now reorients to his successor, Acting-DG U Thant Sin Lwin. With his wide range of experience in the economic and investment sectors, and the recent proposed changes to the Myanmar Investment Law cementing MIFER’s role, there is certainly room for changes in the investment environment.
Business and Economy
After several years of anticipating, the government announced on April 8 that five foreign companies would be allowed to operate under 100% foreign-owned life insurance licenses. The new entrants included Chubb Tempest Reinsurance of the United States; Dai Ichi Life Insurance of Japan; AIA of Hong Kong; Prudential of England; and Manufacturers Life Insurance of Canada. For the next six months, each of the foreign entrants will meet a series of requirements, including setting up a country office, and selling insurance products.
The introduction of foreign insurance providers was long a promise by the Myanmar government, with the idea being introduced under the Thein Sein administration. However, the process had stalled until January of this year, when the government announced plans for tenders following news of the withdrawal of Samsung and its plans in the insurance market. This, and the liberalization of the financial ecosystem in Myanmar, show continued desire by the government to open up a sector key to further investment and business development.
This coverage of developments in Myanmar’s political and economic transition was prepared by Vriens & Partners, a corporate advisory firm focusing on government relations and political risk in Southeast Asia. If you are interested in learning more about our services, please visit our website or email [email protected]
