New investment commission begins wo

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Subject: New investment commission begins work in Myanmar

New investment commission begins work in Myanmar 


AFP, Yangon, 9 December 1999. A new Myanmar Investment Commisssion, 
the body tasked with luring much-needed foreign funds into the military-run 
state, began work Thursday under fresh leadership, officials said. 

The commission was overhauled following the surprise resignation earlier this 
month of its influencial secretary Brigadier General Maung Maung, who held 
ministerial rank. 

Official sources told AFP Maung Maung had been replaced as the commission's 
secretary by the deputy minister of electric power, another brigadier
general of 
the same name. 

Minister of Technology and Science U Thaung took over as chairman from 
Deputy Prime Minister Rear Admiral Maung Maung Khin. Major General 
Tin Tut, who is minister of electric power, was given the vice-chairmanship 
of the commission. 

No reason has been given for the changes, which have fuelled speculation 
a gradual government reshuffle is under way. 

In recent months, several ministers have announced their retirements. 
Trade and Commerce Minister Major General Kyaw Than and Sports 
Minister General Sein Win retired in October. 

News of Maung Maung's retirement on December 1 came as Japan's 
former prime minister Ryutaro Hashimoto held talks with senior members 
of the junta, during a semi-official mission to assess the needs of the 
struggling economy. 

The new commission will face a stiff task securing investment for 
Myanmar which faces a range of US and European restrictions imposed 
to punish perceived human rights violations and suppression of the
political opposition. 

Foreign Direct Investment (FDI) projects approved by the Myanmar 
government reached 11 million dollars during the first six month of 1999, 
according to official statistics. 

Official figures show foreign investment fell more than 90 percent last year. 

However, totals of investment approved by the government often vary sharply 
with the amount of money that arrives. Only around two billion dollars in
foreign 
investment was realized in Myanmar between 1989 and 1998, according to a US 
embassy survey. 

Signs of Myanmar's economic morass are obvious in Yangon where inflation 
runs at around 30 percent and the beleagured kyat currency trades on the 
streets at 350 to the dollar, compared to the official rate of around five. 

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