East Timor’s parliament has approved a new law designed to increase private investment, both local and from overseas, the government in Dili has announced.

The legislation seeks to “promote investment through general guarantees to all investors and special benefits” to those who meet additional criteria, a government statement said.

The statement said the rules were “attractive” and may facilitate local private investment, as well as foreign investment, to “promote the development of East Timor’s private sector”.

Last week’s changes ensure East Timor’s investment framework meets the Association of Southeast Asian Nations Comprehensive Investment Agreement. Dili says the changes to investment law may help East Timor join the organisation.