FSM Foreign Investment Act Takes Effect January 01, 1997
hitoshioue
FSM Foreign Investment Act Takes Effect January 01, 1997
PALIKIR, Pohnpei (FSM Information Service): November 28,
1997 – President Jacob Nena, on November 12, 1997, informed all
FSM State Governors that he has signed into law a new Foreign
Investment Act of 1997 (FIA), designated it Public Law No. 10-49,
which will take effect on January 1, 1998.
The new law disallowed certain category of foreign investments
anywhere in the FSM, naming it Category A, or National Red List which
include: arms manufacture, minting of coins or printing of currency
notes, activities relating to nuclear power or radioactivity and
other economic sectors to be designated by the Secretary of Resources
and Development after consultation with the FSM states.
On Category C or National Green Lists are banking defined in title
29 of the FSM Code; telecommunications; fishing in FSM Exclusive
Economic Zone (EEZ); international and interstate air transport,
international shipping, and other economic sectors as the Secretary
of R&D may designate after consultation with the FSM states.
Categories of economic sectors not of special national
significance are delegated to the jurisdiction of the State
Government to be regulated by State laws and regulations.
The implementation of the Foreign Investment Act contemplates
cooperative and collaborative efforts by the National and State
Governments. President Nena urged States to enact necessary
legislation and regulations for implementation of foreign investment
in the FSM.
