Myanmar

Access to financing in Myanmar has been traditionally limited to an elite stratum of companies closely linked to the government, with smaller businesses turning to family and friends for raising funds. However, this is set to change, with a new bourse, to be known as the Yangon Stock Exchange (YSE), under development.

The government of Myanmar has taken steps to encourage the development of a manufacturing base, including the establishment of industrial zones (IZs) and, more recently, special economic zones (SEZs). Advantages such as an inexpensive labour force and proximity to major markets like India and China have international firms jostling for more information about the implementation of the zones.

Meeting energy demand and expanding electricity distribution networks will be among the greatest challenges for the Myanmar government over the coming years, as the country strives to keep the promises it made to citizens and the international community. With rich sources of hydroelectric power and new gas and oil blocks being tendered in 2013, there is indeed potential for growth.

Having kept a tight lid on access to information for many years, Myanmar is now opening its doors to new technologies, bringing a tidal wave of social empowerment. However, quality control both in terms of technology and content is likely to be the main challenge going forward.

International arrivals in Myanmar topped 1m in 2012, up an impressive 30% from the year before. The country, which was recently voted the “top travel destination” by readers of the British magazine Wanderlust, is also attracting the attention of international hotel chains.

Rice is mounting a steady comeback in Myanmar. Exports in the 2012/13 fiscal year have already reached 1.2m tonnes thus far, surpassing its peak export period in 1956, and the Myanmar Rice Industry Association (MRIA) projects exports to reach 1.5m tonnes by the end of the fiscal year, double the 778,000 tonnes exported in 2012. This performance could be maintained – if not boosted further – in the coming years by increased foreign investment.