Despite many international companies are under consideration for investment in Myanmar, Myanmar has boosted its financial security to facilitate many financial revenues in the future. The Myanmar Investment Promotion Plan (MIPP), has been established in the workshop during May.
It has reached the half of the year, and Myanmar has planned to operate a revenue of approximate 6 billion dollars within this year of 2019. Currently, the investment being operated in Myanmar is near 2.5 billion dollars for the year 2019. The operation of this investment started in October 2018, and MIPP is projected to receive US $200 billion from FDI over the next two decades. Myanmar is currently targeting foreign investments to invest in labour intensive industries such as manufacturing and processing sectors.
Prospecting the Future of Myanmar’s Economy Through Yangon
Thaung Tun, chairman of the Myanmar Investment Commission, have ensured that Myanmar’s commercial city of Yangon will still be a major attraction in Southeast Asia, regarding Yangon as the logistics and shipping trading hub of the upcoming future for the nation. Yangon in Myanmar had played a major role in the development of Myanmar, accounting for a quarter of Myanmar’s average GDP and is on a current growing status at 9.2 percent annually. Yangon is also home to ASEAN’s special economic zones such as the Thilawa Special Economic Zone , with a total of 30 industrial zones in Myanmar alone, making Myanmar an attractive spot for manufacturing and industrial investments.
Myanmar have much more labour workers compared to ASEAN and Myanmar is also a preferable market when we come into consideration of the labor wages, on which Myanmar is the lowest. Myanmar already possess skilled laborers due to highly concentrated number of government industries and factories operating in Myanmar for decades.
State Counsellor, Aung San Suu Kyi , has also stated that working together with the private sector would definitely assure a growing sustainable business environment. She also urged foreign investment authorities to consider Yangon as the heart of Investment Enterprises in Myanmar, where she believe Yangon to open up doors to easily reach towards all the other countries of Southeast Asia. Trade and Investment are two major economic factors of Myanmar that drive the economy of Myanmar to the top, and if foreign investment can use this demand of Myanmar as an asset to their revenue operations, it will definitely spark up a mutual benefit between both the investors and Myanmar as a nation.
Liberalization Open Doors to a More Flexible Economy
“Upon this point, our main focus is on creating employment within the country, polishing the skills and updating the infrastructure of our country to its maximum potential”. According to Aung Naing Oo, who is the permanent secretary at the Ministry of Investment and Foreign Economic Relations, such major decisions to open the investment doors of Myanmar also rely heavily on the political stability and certainty. To him, the government is one of the major deciding factors when it comes to enabling an open door business environment , and more efforts are required to be put on liberalization and facilitation of the country, which are the important factors to promote foreign investment in Myanmar.
Recently, Myanmar has degenerated and eased many rules regarding banking, insurance, retail distribution and even on education sectors, which will attract many foreign businesses to invest in Myanmar.The trade war between China and the United States has also made Myanmar a new spot of favoritism regarding manufacturing industries. Myanmar is also currently focusing on the liberalization of more sectors this year.
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