Restrictions on transfer of immoveable property in Myanmar and its loophole: comparative analysis with Thailand

Myanmar is among countries that restrict foreign ownership and any means of transfer of land under Myanmar Transfer of Immoveable Property Restriction Law, 1987. This limitation applies to both foreign individuals and foreign-owned companies. The law in earlier stage was provided in response to historical fear of foreign dominance in Myanmar who resided during the British Colonial Period. However, during these days, there are certain approaches that foreigner or foreign company used somehow to manage to bypass or indirectly hold the foreign land ownership restriction such as through holding companies, layers of shareholding, creating security interest. Besides, there is lack of coordination among government authorities to check and monitor on such kind of approaches which lead to inadequate oversight on such matter. This raise questions as to the sufficiency of current statutory provisions, its effectiveness and the monitoring and control mechanism in such kind of approaches. On the other hand, certain liberalizations are allowed for foreign investors or foreign-owned companies concerning immoveable property such as the right to use land on a long-term basis or the permission to create mortgage or charges to encourage foreign investment. However, some statutory inconsistencies happen between its restriction and liberalization which creates legal uncertainty and risks. Therefore, this study examines these loopholes by comparing Myanmar’s regulations with those of Thailand, a country with more extensive experience in foreign investment. It focuses on analyzing the current legal frameworks, identifying gaps and proposing solutions for legal reform under the Transfer of Immoveable Property Restriction Law (1987).