Myanmar finalises new investment law Myanmar has finalised a new foreign investment law as it seeks to exploit what the International Monetary Fund has described as an "historic opportunity" for it to become the next Asian boom economy. Recent democratic reforms have led the international community to ease sanctions on Myanmar, long dominated by a military dictatorship, and given rise to hopes that it could follow its neighbours in an economic boom. The IMF issued a report, based on the fund's annual consultations with Myanmar, on Tuesday after the government gave permission for publication for the first time. Meral Karasulu, IMF mission chief for Myanmar, said the approval pointed to the government's "willingness to re-engage with the international community." The report comes ahead of a mid-May gathering in Myanmar of international financial institutions and donor countries to discuss co-ordinating aid flows to the country. The effort by donors to avoid an overlap in aid funding points to a new style of co-operation between the big multilateral agencies and bilateral donors. The push comes partly at the government's request as it accelerates economic reforms. Following months of delay, Myanmar's new foreign investment law has been finalised and includes a straight five-year tax exemption, with an extension of three years if certain criteria are met. The law, which also sets out land-use terms, legal structures and incentives for foreign companies, has been eagerly awaited by western investors since the US, the EU and others, eased sanctions amid international praise for the conduct of April 1 by-elections. Although the president has now signed the code, it is unlikely to be published in full for some weeks, government officials told the Financial Times. Among vital data and policy recommendations in the IMF's report are warnings about the country's overvalued exchange rate and its continuing reliance on non-renewable revenue sources. With the help of the IMF, Myanmar launched a managed float of its currency, the kyat, on April 1 to help normalise and unify its multiple exchange rates. In step with the float, the central bank is overseeing an informal daily currency auction, involving up to 17 dealer banks, intended as a precursor to establishing the country's first formal interbank market. While the IMF welcomed the currency reforms, its report cautioned that the market rate - which hovers about Kt815-Kt825 to the dollar - has been about 40 per cent overvalued so far this year. Any further appreciation of the currency, possibly because of inflows of foreign capital for natural resources projects and aid programmes "could further erode external competitiveness," it warned. The IMF report highlights the growing openness of the government and availability of official data, after decades of scant information under repressive, secretive regimes. It follows a number of reports by private sector groups, non-government organisations and academic institutions, including in recent weeks, Moody's, the rating agency, and investment banks such as UBS, CLSA and Nomura.