A new treaty was signed in Yangon on Tuesday (Sept 24) allowing Singapore companies in Myanmar to turn to international arbitration for disputes over investment.
Minister for Trade and Industry Chan Chun Sing and Union Minister for Investment and Foreign Economic Relations U Thaung Tun signed it on the sidelines of the 7th Singapore-Myanmar Joint Ministerial Working Committee Meeting.
The legally-binding treaty sets rules on how Myanmar and Singapore should treat investments and investors of the two countries, said the Ministry of Trade and Industry (MTI) of Singapore.
It also ensures the freedom to transfer capital and returns, compensation rights and non-discriminatory treatment for investors in most sectors, among other things.
The Bilateral Investment Treaty on the Promotion and Protection of Investments between Singapore and Myanmar aims to promote greater investment flows between the two countries by giving investors greater certainty and confidence.
Mr Chan, in a Facebook post, said its signing marked another milestone in economic ties between the two countries and he expressed hopes it would encourage more Singapore companies to invest in Myanmar.
According to Directorate of Investment and Company Administration of Myanmar, Singapore is a leading investor in Myanmar, providing over one quarter of all Foreign Direct Investment into the country. The bilateral trade volume approached approximately USD 3.9 billion in Fiscal Year 2017-2018, with Singapore having been one of the key trading partners of Myanmar for the past several years.
