Prof.Dr.Aung Tun Thet
Building a Better Future:Secrets of Successful Investment in
Myanmar13:35-14:20
Three Secrets1. Understanding the Context
2. Seizing the Opportunities
3. Addressing the Risks and Challenges
Myanmar• Pivotal moment in economic, social, and political
transition• Prioritization and sequencing of policy actions and
investments critical to success of reform agenda and long-term development
Projections• Annual average gross domestic product (GDP)
growth as high as 9.5% by 2030• From pre-reform baseline of 4.8%• GDP per capita to nearly $5,000 by 2030, up from
about $900 today
Myanmar • Ripe with possibilities for foreign investors• Emerging market in every sense of the word• Isolated from international community for
many decades • Bypassed globalisation
Myanmar • Fresh opportunities• Attracting foreign corporations and agencies
eager to invest in energy and resources, telecommunications, financial services, manufacturing and infrastructure sectors
• Enormous labour force and consumer market
Myanmar• Asia’s Last Frontier• Last untapped sizeable economy and
market in Asia • Easing of international sanctions
Strategic Location• Combined market of close to three billion
people• Conduit to Indian Ocean and beyond
Little Done, More To Do• Focus on developing economy and
rebuilding financial, legal and physical infrastructure
• Promote inclusive growth • Developing skilled workforce
Eight Strategic Areas
1. Accelerating governance and public sector reform
2. Ensuring macroeconomic and financial stability
3. Creating business-enabling environment
4. Leveraging rich natural endowments
5. Fostering internationally competitive sectors -manufacturing and services
6. Enhancing regional connectivity and integration
7. Promoting human development and poverty reduction
8. Pursuing environmentally sustainable growth
Strategic Opportunities1. Digital Leapfrogging
2. Urbanization
3. Shift in economic structure
4. Reconnecting with global• “Latecomer Advantage”
FDI 2014-15
2014-15 2013-140
1
2
3
4
5
6
5
3.33.3
4.1
Projection Actual
Over 100 Foreign CompaniesOver 50 Local Companies
Goals• Job creation• Sustainable and inclusive growth• Re-engagement with international economic
community
Investment Opportunities• Extractive Resource Sector - Natural gas,
Timber, mining• Power generation• Agriculture and Fisheries• Labour-intensive manufacturing sector
Foreign Investors• Bridge gaps in Myanmar’s economy• Meeting Myanmar’s immediate needs
provide opportunities in longer term for sustainable economic growth
Foreign Investors• Add value in many sectors• Financial Services• Infrastructure• Urban Development• Power, Electricity, Telecommunications• Hospitality• Manufacturing• Agriculture• SEZs
Investment Strategies for Foreign Companies
• Scope of opportunities immense - size, population, resources, market and relatively undeveloped economy
• Immediate demand for products or services across wide spectrum of industries
Seizing Short-term Opportunities• Identify areas where immediate solutions
can be provided• Keep ‘bigger’ picture in mind• Adopt entrepreneurial approach• Creating ‘niches’
Past• Centralised command economy• Self-sufficiency• Sanctions• Institutions and enterprises isolated from
international market• Information gaps, infrastructural challenges
and policy risks
Lack of Infrastructure• Insufficient telecommunication infrastructure
and coverage• Transport and logistical links
underdeveloped• Lack of power
Tackling the Challenges• Serious commitment of time and financial
resources• Realities on the ground - legislative and
regulatory restrictions• Assess probability of success
Niche Opportunities• Myriad opportunities• Identify and provide selected services or
products within key sectors• Deliver solutions that meet specific needs,
Opportunities for Early ‘Adopters’
• Work with local public and private partners • Long-term sustainability and mutual success
Risk Mitigation• Essential in frontier market • Contingency plans in place• Due diligence • Stay abreast of both prevailing market forces
and government policies• Political risk insurance for large investments• Prudence