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Article

11 Jun 2012

Author:
Gwen Robinson, Financial Times

Companies wary of investment in Myanmar

Western companies are holding back from investing in Myanmar, citing uncertainty over post-sanctions regulations in their home countries…Adding to confusion are contradictory signals from Myanmar itself, with the government appealing for foreign investment while opposition leader Aung San Suu Kyi last week warned...that even the “best foreign investment law” could be useless due to the lack of a functioning judicial system…US companies talk about vaguely framed warnings from Washington – particularly around business activity that could affect human rights or touch on conflicts in ethnic areas – that have left them unclear about what they can and cannot do. In a further indication of the fragility of the transition process, Thein Sein, Myanmar’s president, on Sunday announced a state of emergency after sectarian clashes in Rakhine, in the west of the country, and warned that ethnic and religious tensions could hamper democratic reforms. [refers to General Electric, Caterpillar, MasterCard, Visa]