Japan, Myanmar ink investment pact

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JAPAN and Myanmar yesterday signed an investment treaty to nurture closer business ties as the once secluded Southeast Asian country opens its fast-growing economy to more foreign commerce.

Prime Minister Shinzo Abe and Myanmar President Thein Sein signed the deal in summit talks following a gathering of leaders from Asean here.

Japanese businesses have been eager to invest in Myanmar and have stepped up their activities there after Thein Sein's reformist government came to power in 2011 after nearly 50 years of military rule. Japan's trade ministry said the agreement is intended to provide greater protections and a stable legal environment for investors.

Attracting foreign investment and lending is crucial for aiding the expansion of Myanmar's economy.

The treaty calls for Japanese investors to receive the same protections provided to other foreign investors under international rules and prohibits the imposition of export, technology transfer or other requirements in exchange for such investments. It is also intended to improve transparency, key for a country struggling with endemic corruption.

Japan is Myanmar's largest aid donor. To help clear the way for the investment treaty, Tokyo agreed to forgive about US$5.32 billion (RM17.2 billion) in debt owed by Myanmar and extended bridge loans to help clear the rest.

Abe has promised to help support Myanmar's economic and political reforms with both public and private help, including fresh loans for infrastructure building and major development assistance that will support Japanese business interests in the Southeast Asian nation.

Mitsubishi Corp, Marubeni Corp and Sumitomo Corp are leading a project to develop the Thilawa Special Economic Zone in Yangon, Japan's biggest investment in Myanmar so far. AP

http://www.information.myanmaronlinecentre.com/japan-myanmar-ink-investment-pact/