Foreign investment creates 150,000 jobs in Myanmar
Foreign investment in Myanmar has created more than 150,000 job opportunities for citizens, according to the Myanmar Investment Commission (MIC).
The MIC grants permissions for the rental of government-owned land but also facilitates private ownership. They have also been helping lift economic restrictions like the transferring of foreign currency.
According to records from the Ministry of National Planning and Economic Development, the amount of foreign investment entering Myanmar is more than $45 billion by end of January this year.
MIC has allowed local and international investments in accordance with Foreign Investment Laws and Myanmar Citizen Investment Laws and it is now giving first priority to creating more job opportunities.
Surging credit growth in the banking sector, rising investments and continued economic reform last year resulted in economic growth to the tune of 7.5 per cent for the 2013 fiscal year, according to the Asian Development Bank (ADB).
In its annual “Asian Development Outlook” report, the ADB highlighted a 59.5 per cent increase in capital goods imports to $5.8 billion last year, as well as resurgence for the agriculture sector, after being hit by flooding the year before.
“Business confidence has markedly improved in recent years, as reflected in a rapid increase in new business registrations, which exceeded 5,000 in the 10 months to January 2013, more than in the whole of the previous fiscal year,” the report states, adding that private sector credit maintained a rapid growth at 46 per cent for the last fiscal year.
In the oil and gas sectors, the ADB also pointed to a 68.8 per cent increase in natural gas exports to 7.7 trillion cubic feet in the 12 months to September 2013, with the Shwe and Zawtika gas fields starting production.
Last year’s economic growth exceeds prior outlooks by the World Bank and ADB, both of whom revised growth up to 6.8 per cent in October.
As a result of high GDP growth last year and the prospect of continued reforms and investment from abroad, growth is expected to increase a further 7.8 per cent for the 2014 fiscal year, the ADB stated.
“A number of developments last year contributed to raising Myanmar’s international profile as an investment destination, including the award of telecommunications licenses to Norway’s Telenor and Qatar’s Ooredoo, [and a] selection of investors…as preferred bidders for developing airports,” the report states. It added that Myanmar will also benefit from relaxing import restrictions and foreign exchange controls.
With economic growth however comes risk, as inflation is expected to continue climbing from an average of 5.8 per cent last year to 6.6 per cent in 2014 and 6.9 per cent in 2015.
“Factors contributing to inflation include a boost to public sector wages, higher electricity tariffs, and rising property prices in cities,” the report said.
With only 28 per cent of the population currently with access to electricity, the ADB suggests that the electrification of the country could pose a serious threat to growth if it is not addressed.
“Meeting the energy challenge will play a major role in poverty reduction and stimulating regional development. In addition, improved power supply to all ethnic groups will contribute to the peace dividend,” the report states.
Foreign investment in Myanmar has created more than 150,000 job opportunities for citizens, according to the Myanmar Investment Commission (MIC). The MIC grants permissions for the rental of government-owned land but also facilitates private ownership. They have also been helping lift economic restrictions like the transferring of foreign currency. According to records from the Ministry of National Planning and Economic Development, the amount of foreign investment entering Myanmar is more than $45 billion by end of January this year. MIC has allowed local and international investments in accordance with Foreign Investment Laws and Myanmar Citizen Investment Laws and it is...
Foreign investment in Myanmar has created more than 150,000 job opportunities for citizens, according to the Myanmar Investment Commission (MIC).
The MIC grants permissions for the rental of government-owned land but also facilitates private ownership. They have also been helping lift economic restrictions like the transferring of foreign currency.
According to records from the Ministry of National Planning and Economic Development, the amount of foreign investment entering Myanmar is more than $45 billion by end of January this year.
MIC has allowed local and international investments in accordance with Foreign Investment Laws and Myanmar Citizen Investment Laws and it is now giving first priority to creating more job opportunities.
Surging credit growth in the banking sector, rising investments and continued economic reform last year resulted in economic growth to the tune of 7.5 per cent for the 2013 fiscal year, according to the Asian Development Bank (ADB).
In its annual “Asian Development Outlook” report, the ADB highlighted a 59.5 per cent increase in capital goods imports to $5.8 billion last year, as well as resurgence for the agriculture sector, after being hit by flooding the year before.
“Business confidence has markedly improved in recent years, as reflected in a rapid increase in new business registrations, which exceeded 5,000 in the 10 months to January 2013, more than in the whole of the previous fiscal year,” the report states, adding that private sector credit maintained a rapid growth at 46 per cent for the last fiscal year.
In the oil and gas sectors, the ADB also pointed to a 68.8 per cent increase in natural gas exports to 7.7 trillion cubic feet in the 12 months to September 2013, with the Shwe and Zawtika gas fields starting production.
Last year’s economic growth exceeds prior outlooks by the World Bank and ADB, both of whom revised growth up to 6.8 per cent in October.
As a result of high GDP growth last year and the prospect of continued reforms and investment from abroad, growth is expected to increase a further 7.8 per cent for the 2014 fiscal year, the ADB stated.
“A number of developments last year contributed to raising Myanmar’s international profile as an investment destination, including the award of telecommunications licenses to Norway’s Telenor and Qatar’s Ooredoo, [and a] selection of investors…as preferred bidders for developing airports,” the report states. It added that Myanmar will also benefit from relaxing import restrictions and foreign exchange controls.
With economic growth however comes risk, as inflation is expected to continue climbing from an average of 5.8 per cent last year to 6.6 per cent in 2014 and 6.9 per cent in 2015.
“Factors contributing to inflation include a boost to public sector wages, higher electricity tariffs, and rising property prices in cities,” the report said.
With only 28 per cent of the population currently with access to electricity, the ADB suggests that the electrification of the country could pose a serious threat to growth if it is not addressed.
“Meeting the energy challenge will play a major role in poverty reduction and stimulating regional development. In addition, improved power supply to all ethnic groups will contribute to the peace dividend,” the report states.
