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As recently as 2011, before economic liberalisation began to gain speed, Myanmar had no access to international brands. In strong contrast, in 2019 Yangon’s Junction City Mall had a 100% occupancy rate, hosting a number of popular restaurants, shopping and entertainment venues. The growth of such complexes is striking. Considering the government’s current reform-minded trajectory and the lack of tough international sanctions, Myanmar’s retail industry is unlikely to be diverted from its current path of strong and steady growth. More foreign companies are expected to enter the market as infrastructure continues to improve, with e-commerce exhibiting breakout growth if the government can strike the right legislative balance. This chapter contains interviews with Jens Michel, CEO, METRO Wholesale Myanmar; and U Zaw Win Swe, Chairman, Victory Myanmar Group.

Industry in Myanmar has benefitted from a period of strong economic growth, an increasingly welcoming environment for foreign investment and more open regulatory reforms. The outlook for Myanmar’s industrial sector is bullish in light of ongoing reform, the successful blueprint provided by the Thilawa Special Economic Zone, infrastructure development and the growing consumption power of a nascent middle class. However, as Myanmar heads into an election year, it is hoped that the reform agenda does not stall as politics ramps up. Looking ahead, there is significant potential for further growth as efforts to source materials locally pick up and infrastructure improves, particularly transport routes that will reduce logistics costs and open up less developed parts of the country to further investment. This chapter contains an interview with U Zaw Min Win, President, Union of Myanmar Federation of Chambers of Commerce and Industry.

Myanmar’s success in improving its transport infrastructure is clearly illustrated by developments in Yangon, the country’s commercial capital. Yangon International Airport, for instance, has undergone significant upgrades and now has an annual capacity of 20m passengers. Upgrades are also being made to the Yangon Circular Railway. Older buses that once contributed heavily to air pollution have mostly been replaced, and a modern bus service is in operation. The city is also served by 50,000 taxis and a catamaran water bus service. Ports are being modernised as well, with work on a 400-metre wharf near the Thilawa Special Economic Zone completed in December 2018. A new $290m container terminal on the Yangon River has received in-principle approval, and a deepwater port at Kyaukphyu in Rakhine State is in the pipeline as part of China’s Belt and Road Initiative. Nevertheless, transport infrastructure in the countryside remains below standard. This chapter contains an interview with Shinichi Kitaoka, President, Japan International Cooperation Agency.

Construction activity has increased significantly in Myanmar as the country works to address gaps in transport and power infrastructure, as well as an affordable housing shortage. The creation of several economic zones aimed at attracting investment over the coming years is expected to further the expansion. Cooperation with international organisations and partners such as China, Thailand and Japan will help the country acquire the knowledge and technology necessary to move forward. In recent years Myanmar’s real estate market has been hampered by oversupply, regulatory uncertainty, and an absence of consumer financing or avenues for international investment. However, as market conditions improve, new laws and regulations governing the development and sale of condominiums to foreigners, along with greater flexibility in mortgage financing, have set the stage for sector recovery. This chapter contains an interview with Stephen Suen, Chairman, Marga Group.

In addition to being crucial to economic activity, Myanmar’s energy and power sector continues to be one of the main drivers of foreign investment as the country looks to develop its national electricity grid. As of October 2019 the value of foreign direct investment approved by the government in the energy sector for that year stood at $43.6bn, representing just over half of total FDI. As demand for electricity continues to rise, the authorities are pursuing new avenues to boost supply. Average household energy consumption is around 435 KWh per month in urban areas, compared to roughly 300 KWh per month in rural areas. Yangon alone accounted for some 42% of electricity consumed in Myanmar in October 2018, down from 50% in 2013. The Ministry of Electricity and Energy announced that 50% of the population was covered by the electricity network in December 2019, up from 43% in 2018. This chapter contains interviews with Ken Tun, CEO, Parami Energy Group of Companies; and Rorce Au-Yeung, Co-CEO, VPower Group.

The ICT sector is perhaps Myanmar’s most advanced area of the steadily growing economy. Nevertheless, the era of easy growth and customer acquisition for telecommunications players has come to an end, and a new phase of intense competition has ensued. Myanmar has wide-ranging plans to grow its digital economy and is actively engaging in efforts to improve the foundations of its digital ecosystem and convert its smartphone-wielding population into online consumers. However, it will require significant development of a policy framework, as well as investment in digital literacy and ICT skills, to realise the country’s potential. As the ICT sector matures, there is room for companies to grab market share in the country’s nascent but fast-growing digital economy. This chapter contains interviews with U Thant Sin Maung, Minister of Transport and Communications; and Alok Kumar, Group CEO, Oway.