The Myanmar Investment Commission (MIC) has green lit their second ever foreign investment in the forestry sector, according to a Directorate of Investment and Company Administration (DICA) on August 30.
The Investment was awarded to Global Agriculture Joint Venture Co., Ltd, a joint venture between UK company Kruilight Co., Ltm. and the Department of Forestry.
Global Agriculture plans to invest $115 million in teak plantations and production in the Oakan Forest in Yangon Region and the Thonesay Forest in Bago Region.
“Kruilight has been researching this venture and studying Myanmar teak plantations for nearly 10 years. They are an ethical and trustworthy company that are suitable to develop this business and unearth the great potential in this latent industry,” U Than Aung Kyaw, Director General of DICA, said.
“As the region is one of the nation’s leading producers of teak, DICA is confident that this will be a profitable and long-lasting enterprise,” U Than Aung Kyaw added.
The first permitted foreign investment in forestry was granted to Singapore-based Timber Plantation Investment Co., Ltd, who received permission to invest $4 million in the forestry sector in Ayarwaddy Region.
During the current fiscal year, the MIC has approved 120 investment proposals worth over $3 billion, according to statistics of DICA.
Since the 1988-1989 fiscal year, Myanmar’s permitted foreign investment in agriculture sector amounted to only 0.05 percent of total investment.
Source : Myanmar Business Today