YANGON, Aug. 1 (Xinhua) -- Myanmar finance authorities have granted three local insurance companies to form joint ventures with three foreign counterparts to operate life insurance business in the country, according to an announcement of the Ministry of Planning and Finance released on Thursday.
The announcement came after the ministry completed the evaluation process for submitted proposals for the establishment.
Three other domestic insurance companies were also permitted to form joint ventures with three other foreign companies to run non-life insurance business.
Myanmar authorities believed that allowing foreign companies to open up business in the insurance sector would increase insurance and protection to foreign investors coming into Myanmar.
So far, some 1,200 agencies have been granted licenses by the Insurance Business Regulatory Board with comprehensive motor insurance, fire insurance, life insurance, health insurance and traveling insurance topping the lists.
Myanmar earns only 0.07 percent income from insurance services at which only 86 in 1,000 people have insurance, officials said.
Foreign Direct Investment (FDI) mainly enters into the country's agricultural, livestock and fisheries, manufacturing, power, transport and communication, hotel and tourist, and real estate sectors.
In accordance with the figures from the Directorate of Investment and Company Administration (DICA), Myanmar attracted a total of 3.16 billion U.S. dollars of foreign investments in 197 projects in the first nine months of the current fiscal year 2018-19 (Oct.-Sept.) with transport and Communication topping the list with over 1.47 billion U.S. dollars, followed by manufacturing sector with 988.8 million U.S. dollars and other services with 311.9 million U.S. dollars.
Under the new Myanmar Investment Law, foreign investors are allowed to own up to 35 percent of shares in a domestic company and put in 100 percent of investment into a foreign-owned wholesale and retail company.
