Singapore and Myanmar Investment Treaty to Handle Investment Disputes
A Major Economic Milestone Marks the Start of Greater Investment Opportunities
New beginnings are on the horizon with the signing of a new Singapore and Myanmar investment treaty to handle investment disputes.
With the signing of the new treaty, Singapore companies based in Myanmar can now turn towards international arbitration to help resolve these disputes. The treaty is legally binding and lays down the ground rules for how both countries should handle investments and investors.
Additionally, the treaty allows capital and returns to be transferred freely. Other benefits include compensation rights and non-discriminatory treatment. These advantages will cover most sectors so investors can have peace of mind. It is a Bilateral Investment Treaty on the Promotion and Protection of Investments between both countries.
Why the Signing of the Treaty is Necessary?
The signing marks yet another milestone for both countries in terms of economic ties. The purpose of the treaty is to promote a greater flow of investment between Singapore and Myanmar. Hence the signing of the treaty to better assure investors and instil confidence.
Hopefully, more Singapore companies will feel encouraged by the treaty to consider investing in Myanmar. Especially given the significant protection given to Singapore, since it is Myanmar’s biggest foreign investor. In August alone Singapore’s cumulative investment amounted to US$22.1 billion.
Moreover, Myanmar expressed the need for both countries to work even closer together to promote investment and trade. This was after a review of the growing economic cooperation in several areas by the Ministry of Trade and Industry.