Myanmar’s conflicts may deter investors

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Kachin armyContinued religious and ethnic violence in Myanmar could deter much-needed investment by fostering a ‘wait and see’ attitude among foreign companies and entrepreneurs, according to a study British business risk consultants Maplecroft.

“Failure to prevent the spread of sectarian violence could dampen the influx of critical foreign investment,” the study said.

The topic has also been int eh focus of an Inside Investor analysis.

The report identifies the booming tourism industry as the most vulnerable, with the negative impact quickly spreading to the retail and infrastructure sectors.

“[Myanmar] has attracted significant interest from investors since the US and EU pared back sanctions in 2012. However, stakeholders remain cautious about making significant investments in the country, preferring to wait and see how the reform process moves forward,” said Maplecroft’s principal Asia analyst Arvind Ramakrishnan.

“The important oil and gas industry is unlikely to be directly disrupted by the present level of sectarian trouble but it could cause problems for supporting logistical work, such as transport,” the Maplecroft study said. Further widespread violence “could create hazards to personnel operating in the vicinity of riots,” which would be an additional disincentive for commercial development.

The Ministry of Energy has signaled that it plans to hold an international auction this month for up to 20 offshore exploration licenses to hunt for oil and gas off Burma’s coast, where large volumes of natural gas are estimated to exist beneath the sea floor.

Peace and stability in Myanmar’s commercial capital, where most foreign investor activity is initially concentrated, is seen as key to uninterrupted economic development.

The US government has already issued a warning to US citizens working or holidaying in Myanmar to avoid some commercial parts of Yangoon where Muslims are concentrated and also to stay away from the Mandalay region.

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Reading Time: 2 minutes

Continued religious and ethnic violence in Myanmar could deter much-needed investment by fostering a ‘wait and see’ attitude among foreign companies and entrepreneurs, according to a study British business risk consultants Maplecroft.

Reading Time: 2 minutes

Kachin armyContinued religious and ethnic violence in Myanmar could deter much-needed investment by fostering a ‘wait and see’ attitude among foreign companies and entrepreneurs, according to a study British business risk consultants Maplecroft.

“Failure to prevent the spread of sectarian violence could dampen the influx of critical foreign investment,” the study said.

The topic has also been int eh focus of an Inside Investor analysis.

The report identifies the booming tourism industry as the most vulnerable, with the negative impact quickly spreading to the retail and infrastructure sectors.

“[Myanmar] has attracted significant interest from investors since the US and EU pared back sanctions in 2012. However, stakeholders remain cautious about making significant investments in the country, preferring to wait and see how the reform process moves forward,” said Maplecroft’s principal Asia analyst Arvind Ramakrishnan.

“The important oil and gas industry is unlikely to be directly disrupted by the present level of sectarian trouble but it could cause problems for supporting logistical work, such as transport,” the Maplecroft study said. Further widespread violence “could create hazards to personnel operating in the vicinity of riots,” which would be an additional disincentive for commercial development.

The Ministry of Energy has signaled that it plans to hold an international auction this month for up to 20 offshore exploration licenses to hunt for oil and gas off Burma’s coast, where large volumes of natural gas are estimated to exist beneath the sea floor.

Peace and stability in Myanmar’s commercial capital, where most foreign investor activity is initially concentrated, is seen as key to uninterrupted economic development.

The US government has already issued a warning to US citizens working or holidaying in Myanmar to avoid some commercial parts of Yangoon where Muslims are concentrated and also to stay away from the Mandalay region.

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