Foreign investment into Myanmar drops to eight-year low
Foreign investment into Myanmar has fallen dramatically in the months since the February 1 coup, having reached an eight-year low, the country’s Directorate of Investment and Company Administration recently reported.
The total amount of foreign investment approved by the directorate in the country’s past fiscal year through September 2021 dropped by 22 per cent to $3.8 billion, excluding investments in special economic zone projects.
During the 12 months, the number of newly approved investment projects fell sharply to 48, one-fifth of the total number in the previous year. Of the total projects, 38 were approved before the military takeover.
Most investments in energy projects
Of the approved investments, the amount for power-related projects tripled from the previous year to $3.12 billion. This was driven by a $2.5 billion investment approved in May for a joint liquefied natural gas thermal power plant.
Approved investments in the manufacturing industry, which significantly impact job creation, decreased by 75 per cent from a year earlier to $286 million.
The third largest approved investment amount, $133 million, went into transportation and communication. This was followed by $81 million for hotels and tourism and $28 million for industrial-use real estate.
Foreign companies have no planning security
In the current situation, many of the foreign companies operating in Myanmar are refraining from making additional investments.
Given the circumstances, companies are unable to ascertain whether the country’s political and public safety affairs will return to normal or whether the business environment might be made even worse by tighter sanctions and other factors.
Myanmar’s economy in the fiscal year through September shrunk 18 per cent, according to an estimate by the World Bank. The Asian Development Bank puts the contraction at 18.4 per cent.
[caption id="attachment_37717" align="alignleft" width="300"] Foreign direct investment into Myanmar drops 22 per cent thanks to a pointless military coup[/caption] Foreign investment into Myanmar has fallen dramatically in the months since the February 1 coup, having reached an eight-year low, the country's Directorate of Investment and Company Administration recently reported. The total amount of foreign investment approved by the directorate in the country's past fiscal year through September 2021 dropped by 22 per cent to $3.8 billion, excluding investments in special economic zone projects. During the 12 months, the number of newly approved investment projects fell sharply to 48, one-fifth of...
Foreign investment into Myanmar has fallen dramatically in the months since the February 1 coup, having reached an eight-year low, the country’s Directorate of Investment and Company Administration recently reported.
The total amount of foreign investment approved by the directorate in the country’s past fiscal year through September 2021 dropped by 22 per cent to $3.8 billion, excluding investments in special economic zone projects.
During the 12 months, the number of newly approved investment projects fell sharply to 48, one-fifth of the total number in the previous year. Of the total projects, 38 were approved before the military takeover.
Most investments in energy projects
Of the approved investments, the amount for power-related projects tripled from the previous year to $3.12 billion. This was driven by a $2.5 billion investment approved in May for a joint liquefied natural gas thermal power plant.
Approved investments in the manufacturing industry, which significantly impact job creation, decreased by 75 per cent from a year earlier to $286 million.
The third largest approved investment amount, $133 million, went into transportation and communication. This was followed by $81 million for hotels and tourism and $28 million for industrial-use real estate.
Foreign companies have no planning security
In the current situation, many of the foreign companies operating in Myanmar are refraining from making additional investments.
Given the circumstances, companies are unable to ascertain whether the country’s political and public safety affairs will return to normal or whether the business environment might be made even worse by tighter sanctions and other factors.
Myanmar’s economy in the fiscal year through September shrunk 18 per cent, according to an estimate by the World Bank. The Asian Development Bank puts the contraction at 18.4 per cent.
