6 November
MYANMAR has been one of the fastest-growing Southeast Asian economies for more than 25 years, with around 5.5 % annual GDP growth since 1992. Economic liberalization and accelerated democratization be-ginning in 2011 have seen most international sanctions lifted, prompting a wave of foreign investors to enter the country. Myanmar is now on the right track for economic growth and a lot of foreign investors flock to the Asia’s last frontier market.
Myanmar is expected to draw a record foreign direct in-vestment volume this fiscal year because the Southeast Asian country received only US$ 4.4 billion of FDI due to inadequate infrastructure, unstable economic rules and regulations, and political instability although the country set a target to at-tract US$ 5.8 billion of FDI in the financial year 2018-2019. The foreign investors are expected to pour their money into Myanmar’s offshore drilling projects and mining industries in the next couple of years, said U Thaung Tun, Union Minister for Investment and Foreign Economic Relations and Chair-man of Myanmar Investment Commission (MIC). “Prospects for Myanmar’s economy are looking promising,” he added. The Union Minister made the remarks during a regular meeting between Vice-President U Myint Swe and entrepreneurs in Yangon on 19 October.
The Union Minister told businessmen that economic outlooks for Myanmar forecast by the World Bank (WB) and Asian Development Bank (ADB) contribute to facilitate the FDI inflow into the country. According to an economic out-look for Myanmar by the ADB, the country’s GDP is forecast to grow by 6.6 per cent whereas the WB estimates that Myanmar’s economy growth is projected to rise to 6.8 per cent.
In addition Myanmar moved up six places to the 165th on the World Bank’s latest report on ease of doing business ranking 2020. “Foreign investors are now very keen to invest in Myanmar thanks to advancing in the ease of doing business ranking 2020 as well as a rapid opening up to foreign investment, technology and tourists. The government has changed its policies, rules and regulations,” said U Zaw Min Win, President of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
The investment projects worth US$ 304 million have been greenlighted by the MIC at the beginning of the current fiscal year. “It is a good start for foreign investment sector,” said U Thant Zin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA) under the ministry of Commerce. He made the comments at a press conference held at the DICA office in Yangon on 23 October. “The MIC gave the green light to foreign investment projects valued at US$ 304.342 million in the hotel, tourism, real estate and industrial sectors during the period from 1 to 21 October. I think this is a very good start,” he said. Among the MIC-permit-ted investment projects, Hong Kong-based Amata Corporation’s subsidiary Yangon Amata Smart and Eco City Limited poured US$ 274 million into a smart city project in Myanmar.
The Yangon Region Investment Committee also approved 11 foreigner-invested projects from China, Hong Kong, Taiwan, British Virgin Island and United Kingdom and one Myanmar citizen-invested project, according to Daw Naw Pan Thinzar Myo, Yangon Region Minister for Kayin Ethnic Affairs. The decision was made during the regional investment committee’s monthly meeting held on 30 October. The FDI to be channeled into Yangon Region is worth US$ 22.352 million while the capital of Myanmar citizen-invested venture is valued at Ks. 880 million.
The approved projects are expected to create up to over 6,200 job opportunities for Myanmar people.
The DICA has been cooperating with NGOs and INGOs so as to woo foreign direct investments to the country by organizing seminars, investment and business forums under the Myanmar Investment Promotion Plan (MIPP) which aims to attract FDI worth US$ 200 billion over the next 20 years.
Arrangements are being made to lure more foreign direct investments in the industrial sector that can create more job opportunities for Myanmar citizens under the MIPP.
The MIC expects that the country will receive more foreign direct investment in the years to come. FDI inflows to the country contribute to the creation of job opportunities for local people, help their income increase and promote their socioeconomic status.
By Kyaw Htike Soe
