Myanmar
1 Chapter Basic Knowledge
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1 Chapter Basic Knowledge
2 Chapter Incorporation
2.1 Characteristics of business base
2.3 Company liquidation and withdrawal
3 Chapter M&A
4 Chapter Accounting
4.2 Accounting standards [MAS]
5 Chapter Tax Laws
5.2 Tax related to personal income
6 Chapter Labor
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Basic Knowledge
■Official name of country•Official Name:jynfaxmifpkor®w jrefrmedkifiHawmf (In Myanmar)Republic of the Union of Myanmar (In English)•Short form:jrefrm (In Myanmar)Myanmar (In English)Myanmar is another name of the Burma,. At first, the capital city was called Naypyitaw, and Naypyitaw is generally translated as "royal capital",seat of the king" or "abode of kings". Traditionally, it was used as a suffix to the names of royal capitals, such as Mandalay, which was called &wemyHkaejynfawmf (Yadanabon Naypyidaw). The name literally means "abode of the king" in Burmese.■National FlagMyanmar's new flag was adopted on October 21, 2010. The flag is a horizontal tricolor with yellow, green and red stripe; a large, white, five-pointed star is in the middle of the flag. The proportions of the flag are 6:9 (height to width).In the flag, the color yellow symbolizes solidarity; the color green symbolizes peace, tranquility and vegetation; the color red symbolizes valor and decisiveness; and the white star represents the union of the country.■National Land /AreaThe country covers an area of 677,000 square kilometers (261,228 square miles) ranging 936 kilometers (581 miles) from east to west and 2,051 kilometers (1,275 miles) from north to south, It is a land of hills and valleys and is rime in the north, east and west by mountain ranges forming a giant horseshoe. Enclosed within the mountain barriers are the flat lands of Ayeyarwaddy, Chindwin and Sittaung River valleys where most of the country's agricultural land and population are concentrated.The length of contiguous frontier is 6,159 kilometers. The total length of Myanmar-Bangladesh boundary is 271 kilometers (168.7 miles). The total length of Myanmar-China boundary is 2,204 kilometers (1,370 miles); Myanmar-Thailand 2,107 kilometers (1,309.8 miles); Myanmar-India 1,338 kilometers (831.8 miles); and Myanmar-Laos 238 kilometers (147.9 miles).Administrative division has seven Provinces in national highway center, there are seven states so as to surround the periphery therefore. Seven of the province live Burma group, which accounts for about 70% of the population, ethnic minorities have been living in seven states.
■CapitalaeNynfawmf (In Myanmar)Nay Pyi Taw (In English)Nay Pyi Taw is the administrative capital of the Republic of the Union of Myanmar. Centrally located, it is 391 km from Yangon and 302 km from Mandalay, being easily accessible from all parts of the country. The environs of Nay Pyi Taw comprise (8) townships viz. Zeyar Thiri, Pohbba Thiri, Uttara Thiri, Zebu Thiri, Dekhina Thiri, Pyinmana, Lewe and Tatkone Townships. Nay Pyi Taw Airport is about 30 minutes from Nay Pyi Taw. All domestic carries operate daily flights from Nay Pyi Taw to the commercial capital, Yangon, and the cultural capital Mandalay. There are flights via Nay Pyi Taw to tourist destinations such as Bagan, Heho, Sittwe, Myitkyina, Kyaing Tong and others. The city is in the basin, surrounded by mountains. The height is Naypyidaw is located between the Bago Yoma and Shan Yoma mountain ranges. The city covers an area of 7,054.37 km2 (2,723.71 sq mi) and has a population of 924,608, according to official figures.
■WeatherMost of Myanmar has a tropical monsoon climate with three seasons:Cool – November to February is warm to hot during the day and the air is relatively dry.Hot – March to May is intensely hot in most of the country.In the cool and hot seasons, you are unlikely to experience any rain.Rainy – June to October is the monsoon season, with high rainfall. From June to August, rainfall can be constant for long periods of time, particularly on the Bay of Bengal coast and in Yangon and the Irrawaddy Delta. In September and October, the rain is less intense and you will experience more sunshine.
The most comfortable time to visit is during the cool season, which is also the least humid time of year and has the clearest air – however, this is also the peak tourist season. If you can put up with the heat and/or rain, then you will find it easier (and often cheaper) to book accommodation outside the cool season, and there will be less crowds at popular destinations. From February until the beginning of the rainy season, much of the country (particularly north of Yangon) can be dusty and hazy, sometimes hindering long-distance views. Myanmar is a large country and temperatures can vary significantly. As a general rule, temperatures and humidity become lower at higher altitudes; in Chin State in the west and parts of Shan State in the east, temperatures can get close to freezing, and in the Himalayan far north they may drop below zero. Monsoon rais are the most persistent in Yangon and the south and west; in the centre of the country, around Mandalay and Bagan, showers will generally be more sporadic in the rainy season (and you are likely to experience more sunshine).Below is a table showing average temperatures, humidity and sunlight hours for YangonMonthAverage min tempAverage max tempRelative HumiditySunlight hoursJanuary18(64)32(90)60%11.5February19(66)34(94)61%11.5March22(70)36(96)64%12April24(75)36(98)67%12May25(77)33(92)82%12.5June24(76)30(86)86%13July24(75)29(85)88%13August24(75)29(85)88%12.5September24(75)30(86)87%12October24(75)31(88)80%12November23(72)31(89)75%11.5December19(66)31(88)68%11■Time DifferenceTime difference between, Myanmar and Tokyo is 2:30 hours ahead of Myanmar. That means when it is 9:00 am in Myanmar it is 11:30 am.
■PopulationDuring 2016 Myanmar population is projected to increase by 597,545 people and reach 55,721,649 in the beginning of 2017. The natural increase is expected to be positive, as the number of births will exceed the number of deaths by 614,634. If external migration will remain on the previous year level, the population will be declined by 17,088 due to the migration reasons. It means that amount of people who leaves Myanmar to settle permanently in another country (emigrants) will prevail over the amount of people who moves into the country (to which they are not native) in order to settle there as permanent residents (immigrants). they are not native) in order to settle there as permanent residents (immigrants).As of the beginning of 2016 according to our estimations Myanmar had the following population age distribution:27.5
67.5
5
- percentage of population under 15
- percentage of population between 15 and 64 years old
- percentage of population 65+
In absolute figures (estimation):•15,148,655 young people under 15 years old ( 7,718,477 males / 7,430,178 females)•37,201,053 persons between 15 and 64 years old ( 18,476,497 males / 18,724,556 females)•2,774,396 persons above 64 years old ( 1,208,872 males / 1,565,525 females)We prepared a simplified model of the population distribution pyramid which is broken down into 3 main age groups. The groups are the same as we used above: population under 15, between 15 and 64 and population which is over 65 year old.65+
15-64
0-14
male
female
Note: The pyramid provided is not corresponding to data given above because the age groups have different number of years.As we can see the Myanmar population pyramid has an expanding type. This type of pyramid is common for developing countries with high birth and death rates. Relatively short life expectancy, as well as low level of education and poor health care are also describe such kind of population age distribution model.Source: The estimation data for section "Myanmar age structure" is based on the latest demographic and social statistics by United Nations Statistics Division.
■LanguageToday, Burmese is the primary language of instruction, and English is the secondary language.Myanmar is home to four major language families: Sino-Tibetan, Tai–Kadai, Austro-Asiatic, and Indo-European.[291] Sino-Tibetan languages are most widely spoken. They include Burmese, Karen, Kachin, Chin, and Chinese. The primary Tai–Kadai language is Shan. Mon, Palaung, and We are the major Austroasiatic languages spoken in Myanmar. The two major Indo-European languages are Pali, the liturgical language of Theravada Buddhism, and English.[292]Burmese, the mother tongue of the Burmar and official language of Myanmar, is related to Tibetan and Chinese language.[292] It is written in a script consisting of circular and semi-circular letters, which were adapted from the Mon script, which in turn was developed from a southern Indian script in the 5th century. The earliest known inscriptions in the Burmese script date from the 11th century. It is also used to write Pali, the sacred language of Theravada Buddhism, as well as several ethnic minority languages, including Shan, several Karen dialects, and Karen (Karenni), with the addition of specialized characters and diacritics for each language.[293]The Burmese language incorporates widespread usage of honorifics and is age-oriented.[294] Burmese society has traditionally stressed the importance of education. In villages, secular schooling often takes place in monasteries. Secondary and tertiary educations take place at government schools.
■CurrencyThe Burmese Kyat is the currency of Myanmar (Burma). Our currency rankings show that the most popular Myanmar (Burma) Kyat exchange rate is the MMK to USD rate. The currency code for Kyats is MMK, and the currency symbol is K.The exchange rate of January 29, 2016 with, it is ¥ 1 = 10.89 Kyat.and $ 1 = 1,294 Kyat.
■ReligionsThere are no totally reliable demographic statistics form Myanmar, but the following is one estimate of the religious composition of Myanmar country: About 87% percent of the people are Buddhists, and other Christian 4.5%, Muslim 4%, Hindus 1.5%. each.■Political SystemPresidential system,Republic of the Union of MyanmarU Thein Sein is President of Myanmar (March 2011 inauguration-term 5 years)
■The Myanmar’s main historyBurma was under military rule from 1962 to 2010. In 2008, the ruling Junta, State Peace and Development Council, announced the new constitution as a part of roadmap to democracy. The constitution, which reserves 25% of the Hluttaw legislature's seats for military, is seen by the opposition as a tool for continuing military control of the country. A constitution referendum was held in 2008 amid Cyclone Nargis. Observers criticized the referendum for voter intimidation, electoral fraud and advance voting. Nevertheless, on 15 May 2008, the junta announced that the constitution had been approved by 92.4% of voters, claiming a 99% turnout in the two-thirds of the region that had held the vote.An election was held in 2010. The military backed Union Solidarity and Development Party declared victory. The United Nations and Western countries have condemned the elections as fraudulent.The 2011–2015 Myanmar political reforms were a series of political, economic and administrative reforms in Myanmar undertaken by the military-backed government. These reforms include the release of pro-democracy leader Aung San Suu Kyi from house arrest and subsequent dialogues with her, establishment of the National Human Rights Commission, general amnesties of more than 200 political prisoners, institution of new labor laws that allow labour unions and strikes, relaxation of press censorship, and regulations of currency practices. As a consequence of the reforms, ASEAN has approved Myanmar's bid for the chairmanship in 2014. United States Secretary of State Hillary Clinton visited Myanmar on 1 December 2011, to encourage further progress; it was the first visit by a Secretary of State in more than fifty years.United States President Barack Obama visited one year later, becoming the first US president to visit the country.Aung San Suu Kyi's party, the National League for Democracy, participated in by-elections held on 1 April 2012 after the government abolished laws that led to the NLD's boycott of the 2010 general election. She led the NLD in winning the by-elections in a landslide, winning 41 out of 44 of the contested seats, with Aung San Suu Kyi herself winning a seat representing Kawhmu Constituency in the lower house of the Myanmar Parliament. However, uncertainties exist as some other political prisoners have not been released and clashes between Myanmar troops and local insurgent groups continue.General elections were held in Myanmar on 8 November 2015, with the National League for Democracy winning an absolute majority of seats in the combined national parliament. Voting occurred in all constituencies, excluding seats appointed by the military, to select Members of Assembly to seats in both the upper house (the House of Nationalities) and the lower house (the House of Representatives) of the Assembly of the Union, and State and Region Hluttaws. Ethnic Affairs Ministers were also elected by their designated electorates on the same day, although only select ethnic minorities in particular states and regions were entitled to vote for them.These polls are the first openly-contested election held in the country since 1990, which was annulled by the military government after the National League for Democracy's (NLD) victory. The poll was preceded by the 2010 General Election, which was marred by a widespread boycott and allegations of systematic fraud by the victorious USDP.The NLD won a sweeping victory, taking 86 percent of the seats in the Assembly of the Union (235 in the House of Representatives and 135 in the House of Nationalities)--well more than the 67 percent supermajority needed to ensure that its preferred candidates will be elected president and first vice president in the Presidential Electoral College. While the NLD only needed a simple majority to carry on the normal business of government, it needed at least 67 percent to outvote the combined bloc of the pro-military USDP and the appointed legislators representing the military. While NLD leader Aung San Suu Kyi is constitutionally barred from the presidency (as both her late husband and her children are foreign citizens), she declared that she will hold the real power in any NLD-led government.
■Education SystemPrimary EducationIn Myanmar once also known as Burma decades of political conflict have reduced a once-proud education system to one that is lagging sadly. The quality of school teachers may be excellent; however aging materials sadly let them down. Following an optional pre-school period, children enter primary school for 5 compulsory years. To proceed further they must successfully write a comprehensive examination in basic academic subjects. Many disadvantaged ones in poorer areas simply fail to succeed.Middle EducationThe first phase of secondary education takes place at middle schools. Where students pass through grades 6 to 8 before they write their standard eight examinations. The educational system is generally corrupt, with seats in better schools often reserved for children of those with government connections.
Secondary EducationHigh school students entering at grade 9 may choose either an arts or science stream. All study Myanmar, English and Mathematics. Arts students also study geography, history and economics, while science students concentrate on chemistry, physics and biology instead. At the end of this period students at government schools may sit for their university entrance examinations. However those at private English schools may not.Vocational EducationVocational training, which is largely in the hands of the private sector, has become popular among young people wanting to enter the hospitality, tourism, beauty, fashion, nursing or engineering sectors. It acts as a bridge to better jobs for those with little or no work experience.
Tertiary EducationMyanmar is well endowed with universities where the widest range of courses may be followed. However academic freedom remains constrained and students may not speak freely, or write and publish freely either.The oldest tertiary institution is Yangon (Rangoon) University founded in 1878. It has been at the center of civil discontent throughout its history. Notwithstanding this, women’s halls of residence are strictly limited which filters out many promising female students from the countryside.■Myanmar Economic SystemMyanmar adopted the market oriented economic system in the year 1988 after adopting the centralized planning economic system for more than two decades. Substantial stabilization and reform measures had been undertaken to be in line with the new economic system. The initial step taken towards a more liberalized economy is to allow foreign direct investment and to encourage the private sector development. In the area of legal framework one of the first laws on investment promulgated by the State Law and Order Restoration Council is the Union of Myanmar Foreign Investment Law (FIL), promulgated on 30th November 1988 to induce foreign investment and to boost investment particularly in the private sector.Industrial in Yangon region(A) East Yangon Industrial Zone(i) South Dagon Industrial Zone(1)(ii) South Dagon Industrial Zone(2)(iii) South Dagon Industrial Zone(3)(iv) Shwepoukan Industrial Zone(v) North Okkalapa Industrial Zone(vi) South Okkalapa Industrial Zone(vii) Tharkayta Industrial Zone(viii) Dagon Seikkan Industrial Zone(ix) East Dagon Industrial Zone(B) West Yangon Industrial Zone(C) South Yangon Industrial Zone(D) North Yangon Industrial Zone(i) Hlaing Tharyar Industrial Zone(ii) Shwe Pyi Thar Industrial Zone(iii) Mingalardon Industrial ZoneNew Industrial Zone under ProcessSr. Location No. of Zone1 Nay Pyi Taw (Nay Pyi Taw Region) 12 Ponnakyun (Rhakhine state) 13 Myawaddy (Tanintharyi) 14 Phayar Thone Zu (Mon State) 15 Phaan (Kayin State) 16 Yadanapon (Mandalay Region) 17 Nantoon (Shan State) 1Total 7SPECIAL ECONOMIC ZONES IN MYANMARMyanmar has seen rapid economic growth following its recent democratic and economic reforms, which included the repealing of Myanmar’s export taxes, decreasing import taxes and providing greater access for foreign direct investment. FDI into Myanmar.Following these reforms, Myanmar soon began to further facilitate the establishment of special economic zones (SEZ). In 2011, Myanmar established the Central Body for the Myanmar Special Economic Zone, a regulatory body responsible for overseeing foreign investment in the country. The Myanmar SEZ Law and the Dawei SEZ Law were also passed in 2011, which established several SEZ throughout Myanmar to encourage economic growth and foreign investment.There are currently three SEZ under development in Myanmar: Dawei SEZ, Thilawa SEZ and Kyuakpyu SEZ. Investment into Myanmar’s SEZs has been steady, with companies hoping to take advantage of the burgeoning economy and friendly investment incentives it offers. Despite some worries over existing infrastructure deficiencies in Myanmar, investors continue to see a positive outlook for the region. Most recently, India has offered US$150 million to begin establishing a fourth SEZ in the city of Sittwe.
Grand Opening Ceremony of Thilawa SEZThe Grand Opening Ceremony of Thilawa Special Economic Zone was held on 23 September, 2015. State Dignitaries from Myanmar and Japan, the Vice President and Chairman of Central Working Committee of Myanmar Special Economic Zone, U Nyan Tun, Japanese Deputy Prime Minister Mr. Taro Aso and State Minister of Ministry of Economy, Trade and Industry Mr. Yosuke Takagi attended the Ceremony. Union Ministers, Chief Minister of Yangon Region, Japanese Ambassador to Myanmar, Mr. Tateshi Higuchi and Senior Vice President of Japan International Cooperation Agency (JICA), Mr. Hideaki Domichi also attended. Vice President U Nyan Tun spoke on the occasion and conduced proclaiming addressed" the Special Economic Zone is the paradigm shift in the investment sector bringing Sustainable Development to the country’s industrial sector without damaging the Environment. With new visions, new policies and new rules, Thilawa SEZ has opened a new chapter in the investment sector, thus creating a good investment environment for local and foreign investors."
Dawei Special Economic ZoneA deep-sea port and industrial estate spanning 250 square kilometers are currently being built in the Dawei Special Economic Zone located in Southeast Myanmar along the Andaman coast. The area will be home to several industries, including steel, fertilizer, power and petrochemical plants. There will also be a shipyard for construction and repair of vessels using the port, which is expected to see 100 metric tons of freight each year upon completion.The project has received funding and support from several nations and international companies. Most recently, Thailand has joined Myanmar in contributing capital to the Dawei SEZ project, and it has taken part in an infrastructure development plan for the area.Thailand will contribute 35 percent of the costs for the construction of the deep-sea port. Also, the Italian-Thai Industrial Group will contribute US$300 million to develop the industrial estate project, and will be given a 25 percent share of the project’s management in return. Japan, China, and South Korea will also participate in the development of the SEZ. Tourist, recreational, and residential developments are also planned.Kyaukpyu Special Economic ZoneThe Kyaukpyu Special Economic Zone is located along the central western coast of Myanmar on Ramree Island. The area already serves as port for export and transportation of Myanmarian goods, such as rice.An oil and gas terminal financed by the China National Petroleum Corporation is in the final stages of construction, and a pipeline linking Myanmar and China is in the works in the area as well. Furthermore, a container port and gas-turbine power plant are also under development.Plans for the SEZ are being finalized this year, and completion of the first phase is expected in 2016. The area will be home to industrial, logistics, and service industries, and will focus on processing local resources, such as agricultural goods and minerals.The Kyaukpyu SEZ has been attractive to Chinese investors due to its strategic location as the quickest trade route by sea between India and China. Also, extensive rail and air infrastructure are currently being developed in the region to increase linkage between China and Kyaukpyu. The area is expected to rival Singapore as the regions petrochemical hub upon completion.Principle Industries in Myanmar•Agro-based industry•Wood-based industry•Textiles & garment industry•Food stuff industry•Pharmaceutical industry•Machine-tools & spare parts industry•Porcelain & chemical industry
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Websites
[1] http://www.myanmars.net/Myanmar/golden-land.htm.
[2] http://countrymeters.info/en/Myanmar
[3] https://en.wikipedia.org/wiki/Naypyida
[4] http://countrymeters.info/en/Myanmar
[5] https://en.wikipedia.org/wiki/Myanmar_general_election,_2015
[6] http://www.classbase.com/countries/Myanmar/Education-System
[7] http://www.dica.gov.mm/includes/Investment%20Guide%20Book/MIG%20chapter%203.pdf
[8] http://www.aseanbriefing.com/news/2013/06/28/special-economic-zones-in-myanmar.html
[9] http://www.mtshmyanmar.com/content/grand-opening-ceremony-thilawa-sez
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