Myanmar

As part of the rapid liberalisation of Myanmar’s economy, the banking sector is now opening up to foreign participation. The government is enacting reforms to promote foreign participation in the sector, while the US has recently lifted restrictions on four local banks. With the economy both fast-growing and underbanked, and with foreign investment on the rise, the opportunities for international institutions could be considerable.

More than 40 telecoms giants from around the globe are vying for the opportunity to access Myanmar’s untapped market following a government invitation in January to submit expressions of interest (EoIs). Myanmar’s low penetration rates and large population are already generating high interest among industry players, as is the recently-announced investigation into corruption at the Telecoms Ministry.

The mining sector is one of Myanmar’s biggest earners, and the government is keen to entice more foreign investors to support its development. Reforms to the 1994 mining law should help ease restrictions on ownership, which will benefit international and domestic firms alike. However, a number of proposed changes to the law, as well as highly publicised protests at local mines, may lessen the sector’s appeal to some investors.

Asian countries are spearheading a wave of mounting international investor interest in Myanmar’s long-underdeveloped manufacturing industry, as global players move to tap the potential of the region’s rising economic star.

The tourism industry in Myanmar stands to be one of the key winners from the country’s bid to open up economically and politically, following a remarkable two-year period in which international sanctions against the Southeast Asian state were eased.

A new foreign investment law that offers investors broader access to Myanmar’s economy, as well as useful tax breaks, is expected to add new impetus to the country’s development and is a landmark in its ongoing liberalisation. On November 2, President Thein Sein approved the much-anticipated law after several months in which the government and economic stakeholders debated and honed the legislation.