Myanmar: A Nation at the Crossroads of Tradition and Transformation
Myanmar is one country that is attracting much attention from investors. The Myanmar government is credited with supporting an investment climate that will drive economic growth and help the country respond to diverse challenges as it transforms from a military country to a democracy. The projections regarding economic trends average at approximately 6% GDP growth and lower inflation rates compared to previous years.
According to The Directorate of Investment and Company Administration (DICA), “Myanmar, the largest country on the Southeast Asian mainland, is strategically placed as a trade hub between two of the most dynamic Asian economies, China and India. There are numerous opportunities to invest and develop businesses by tapping Myanmar’s abundant natural resources and competitive advantage in manufacturing, growing the service sector in areas like education and health, and meeting the country’s need for much improved infrastructure.” One such opportunity which translated into an inter–regional connectivity project is the ambitious India-Myanmar-Thailand (IMT) international highway which will support the construction of the highway that will connect India, Myanmar and Thailand. When completed, this will change the economic landscape of the entire region and add billions to the incomes of the three countries and potentially adding upwards of 10% GDP growth rate for Myanmar.
For the upcoming 2018–19 fiscal year, foreign direct investments (FDI) are expected to total US$5.8 billion, and Mr. Joseph Win Hlaing Oo (Founding Director, Community Agency for Rural Development, Myanmar) confirms, “We need new investment. New minds.”
In addition, the demographics are favourable to a growing economy. The population of approximately 52 million people include more than 17% in the 15–24 age group and more than 40% in the 25–54 age group. Nearly a third of the population lives in urban areas. With the majority living in rural areas, a great deal of development is required in many sectors. However, with a growing economy, the country has seen a reduction in the percentage of public debt to GDP and a rise in minimum wage.
Recent legislation announcements such as Myanmar Companies Law, the opening up of the financial services sector to allow foreign lenders to provide not only trade financing but also import financing services (that was not allowed previously) and foreign ownership of real estate for the first time (in Vietnam this sparked a 4 year investment bull run), are all strong signals to the business community that investments and partnerships are being welcomed by the government and other key players in Myanmar.
Based on early experiences of companies like Relex and projections by international financial institutions, the economic climate is ideal for a wide range of investments and partnerships in Myanmar. Relex was recently represented at the United Nation’s Internet Governance Forum where Blockchain for Social and Humanitarian Application was discussed. When speaking and educating representatives and patrons of this event about Relex Developments platform and projects, what we as a team found was Myanmar sparked the most significant interest when compared to other offerings. The takeaway from this is, the distinguished guests at this event seemed to be in agreement that Myanmar is one of the world’s hottest future spots for development.
To help promote and stimulate discussions and potential collaborations, the Myanmar government and NGOs are engaging diverse groups. In February 2019, Relex is sponsoring a seminar in Yangon, Myanmar–Digital Economic Transformations in South Asia and Southeast Asia. The Community Agency for Rural Development (CAD) is organizing this seminar which will bring together academics, members of the business community and community organizations to discuss five key themes:
- Geo-economics or geopolitcs: A catalyst for integrating South Asia and Southeast Asia?
- Role of Blockchain and/or new technologies in galvanizing inter-regional integration and Digital Transformation.
- Future challenges and opportunities for collaboration in a modern hyperconnected environment.
- Exploring prospects for creating a rural-urban mixed economy across territories.
- Defining the optimal trajectory and factors for the best case integration scenario.
This event will host speakers from Moscow State Institute of International Relations (MGIMO), RMIT University Vietnam, SKOLKOVO Institute for Emerging Market Studies (IEMS), and the South East Democratic Forum.
Relex is one of the early movers in this country committed to working with government, NGOs and other businesses to address a range of socio-economic challenges. Myanmar not only embraces change and new ways of doing business but also is serious about partnerships that can support the country’s vision for a robust and healthy economy. If the projects and investments to date are any indication of the tremendous potential Myanmar holds, our estimates show this country will be a magnet for global investment in 2019/2020.
References:
https://www.dica.gov.mm/en/invest-myanmar
https://www.gfmag.com/global-data/economic-data/public-debt-percentage-gdp
https://www.mmtimes.com/news/fdi-forecast-hitus-5-8b-2018-19.html
https://www.sadf.eu/wp-content/uploads/2016/07/FOCUS.N.18.Hriday.pdf
https://thediplomat.com/2017/09/a-promising-trilateral-india-myanmar-thailand/
To join the conversation, visit the Relex community:
Relex Real Estate Development Telegram: https://t.me/relex_core
Relex Real Estate Development website: relex.io
Relex Real Estate Development Twitter: https://twitter.com/relextalk
Relex Real Estate Development Facebook Page: https://www.facebook.com/relextalk
Relex Real Estate Development SubReddit: https://www.reddit.com/r/RelexRLX/
