YANGON - Foreign business associations have warned that requirements and penalties in the newly proposed laws governing foreigners in Myanmar would discourage overseas companies from investing here.
In a joint statement, nine foreign business chambers expressed concern over some of the provisions in the draft Law Concerning Foreigners and the Foreign Worker Law, such as the requirement that a foreigner working in Myanmar has to obtain approval from the authorities for absence from a registered residence for more than 24 hours, a report in The Myanmar Times said.
While they welcomed the ongoing reform process and introduction of sound legislation, the chambers said some of the proposed stringent requirements were excessive, and would be an impediment for companies thinking of setting up businesses in Myanmar or posting foreign workers there.
“One issue is crucial from the point of view of international investors; the requirement for holders of a Foreigner Registration Certificate (FRC) to seek approval of the relevant authorities for any absence of more than 24 hours from the registered place of residence,” the statement said.
Both bills are priorities of the current Pyidaungsu Hluttaw session which opened on Jan 30. The legislation was proposed by the Ministry of Labour, Immigration and Population.
The bills require foreigners living and working in Myanmar to obtain a slew of documentation and undergo a medical examination within seven days of arriving in the country, and impose restrictions on travelling or relocating.
“EuroCham Myanmar is also concerned over the right to enter into residential premises of foreigners and arrest them without a warrant, including when a foreigner is suspected of violating regulations,” said an official from the organisation.
The official also said imprisonment of more than six months for failing to renew the FRC, notifying the loss of an FRC, not mentioning relocation addresses, or not carrying the FRC, is excessive.
AustCham Myanmar executive director Vicky Thant Thitsa Aung said there was a need to streamline the criteria and processes for visas and work permits.
“The draft definitely does not [improve the working condition of foreigners]. It could, with appropriate amendments, and if there was proper understanding of the needs of, and consultation with Chambers of Commerce, on the needs of foreign investors,” she said.
Last year, the World Bank ranked Myanmar 170 out of 190 economies on the ease of doing business. A long list of procedures, low-quality judiciary and slow bureaucratic processes were seen as major stumbling blocks.