National Planning Ministry drawing up competition law
August 30 - September 5, 2010
Minister for National Planning, U Soe Tha (left), and U Khin Maung Soe, ambassador to Vietnam at the ASEAN Economic Ministers Meeting last week in Danang, Vietnam. Pic: Kyaw Hsu Mon
MYANMAR has taken another step towards becoming a competitive regional economy with the decision to adopt laws and policies on business competition in preparation for entry into the ASEAN single market in 2015.
Speaking to The Myanmar Times in Danang, Vietnam, on the sidelines of the 42nd ASEAN Economic Ministers Meeting last week, U Soe Tha, Minister for National Planning and Economic Development said: “We can get many benefits from passing this law, which we will now draw up following our national procedure.”
The objective of the law, which would resemble laws already introduced or being drafted in the other nine ASEAN member states, would be to ensure a fair and transparent competitive market in the region. It would be based on guidelines launched by the regional trade group on August 24 in Danang.
“ASEAN total trade in goods now stands at US$1.536 billion. Throughout the global economic downturn, ASEAN has proven itself to be a competitive region – ASEAN’s share of total global FDI inflows increased from 2.8 percent in 2008 to 3.6pc in 2009,” said ASEAN secretary general Dr Surin Pitsuwan.
The regional guidelines are based on country experiences and international best practices. Singapore, Thailand, Indonesia and Vietnam have already enacted competition law and policy, and Malaysia is now drafting its version. Other members, including Myanmar, should enact a law by 2015.
“It will not be a uniform policy for all member states. Different countries may follow different policies based on the policy handbook,” said Mr Teo Eng Cheong, chief executive of Competition Commission, based in Singapore.
Myanmar will also have to pass a consumer protection law as part of the process, said U Tin Ko Win, director of investment and company administration in the Ministry of National Planning and Economic Development and a member of Myanmar’s delegation in Danang.
“We’ve got five years to prepare the competition law and policy, which I think is enough. Our constitution requires fair play, but we also need a consumer protection law,” he said.
The new law would not only benefit domestic consumers but would also encourage foreign direct investment by banning monopolies, U Tin Ko Win said.
“As foreign investors tend to avoid monopolised markets, and domestic companies would produce good-quality products for a reasonable price, consumers would benefit.”
