Myanmar

The announcement of the winners of Myanmar’s recent telecoms auction marks a further milestone in the country’s modernisation and integration into the global economy. The licensing process had attracted significant attention from some of the industry’s biggest players, as the market is largely untapped.

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.