Myanmar passes new law to attract foreign investors

YANGON (AFP) - Myanmar's parliament on Friday passed an eagerly awaited new law aimed at boosting foreign investment in the former pariah state, which is emerging from decades of military rule, a lawmaker said.

The legislation allows foreign companies to own a 50 per cent stake in joint ventures with local partners.

"The foreign investment law was approved by the union parliament," said ruling-party lawmaker Soe Yin, adding that a controversial minimum investment of US$5 million (S$6.2 million) proposed in an earlier draft had been dropped.

Business leaders had warned that the earlier draft, which would have allowed foreign firms to hold only up to 49 per cent of a joint venture, risked undermining smaller companies' chances of attracting investment.