Despite decades of keeping a firm grip on the country’s international relationships, and by extension, foreign investment, Myanmar’s governance is staging an about-face which will lead the country out of the dark.
After decades of fiercely guarding their borders by restricting tourism and diplomacy, in 2012 Myanmar slowly opened her gates. Promises of democracy to follow a long run of military rule were issued. U.S. President Barack Obama even visited, cheerfully posing for photographs alongside Thein Sein, an array of gleaming temples towering just behind. Soon after the governmental song and dance however, came long awaited rushes of foreign capital.
At a time that Southeast Asia (strengthened by ASEAN’s collaborative surge) has grown in potential, many wonder how Myanmar could stand to sit on the sidelines. By doing so, the country was turning down billions in international capital, yet now the country’s leadership has officially broken the stalemate. During April and May, the first two months of the 2015-2016 fiscal year, foreign investment amounted to a reported $2.3 billion. Deriving from 11 different countries during the period, ASEAN partner Singapore led the way with the lion’s share of $1.42 billion. Investing in a country ripe for growth is a no-brainer for major players like China, and such capital infusions created a mad dash of opportunity.
China is no stranger to foreign investment, with projects in virtually every corner of the world, and in Myanmar’s case, has shown no signs of pulling back on its growing doses of influence. Despite Singapore’s major level of investment, the communist giant leads all other countries, by far, with dozens of projects in Myanmar dating back to the 1980s. A vast amount of untapped natural resources exist in the country, and hang low for easy picking. A more pressing, and far more enthralling question asks who will take advantage of the economic lanes of the Burmese GDP which have yet to be carved out.
The oil & gas, power and manufacturing industries are at present Myanmar’s leading money makers. An area of importance relevant to modernizing the country and encouraging connectivity is telecommunications and is rife with competition.
While so many new investment allies appear on the Burmese landscape, eager to take part in the nation’s growth, it is Myanmar’s leadership which should be credited with taking charge. By recognising the abundant levels of growth potential and acting on this recognition, Myanmar is quickly charging ahead due to the efforts of its leadership.
The oil & gas, power and manufacturing industries are at present Myanmar’s leading money makers. An area of importance relevant to modernizing the country and encouraging connectivity is telecommunications and is rife with competition. In 2012 there were only one million SIM cards in circulation, today the figure stands at more than 18 million. Telecom players from Norway, Qatar and the local Burmese contingent (partnered with a Japanese provider) are all vying for a market share, which grows with each passing year. As expected, this level of activity has benefited Myanmar’s people by drastically lowering the cost of a SIM Card from $200 in 2013 to roughly $2 today.
Another obvious economic sphere ripe for enterprise is tourism. After years of receiving only the most daring travellers, Myanmar is now one of the fastest growing holiday destinations in the world. Five million visitors are expected this year, up from three million in the year previous. Major hotel chains are all competing for the influx with the likes of Accor Group, Hilton, Kempinski, Dusit, Best Western and Royal Park all recent additions. Alongside hotels, the food industry is also gradually offering its wares by planting flags with regional tastes from South Korea and Japan in addition to the fast food giants of the West.
The growth has led to an increased sense of financial and diplomatic legitimacy for the Sein administration. Myanmar’s parliament recently agreed to invest state funds in the newly formed Asia Infrastructure Investment Bank (AIIB) and China curiously invited long-time Burmese human rights advocate Aung San Suu Kyi to meet with Xi Jinping in Beijing. Many suspect that despite the close investment ties of the two countries, Myanmar is beginning to turn away from China as it builds financial accords with other nations and bolsters claims of democracy. In the three years since Myanmar made its global reintroduction Thein Sein’s leadership has amassed a powerful audience of followers. And each new friend has come to visit with lots of welcome currency in tow. The country’s progress will remain a hot topic to keep an eye on in the boom times almost certainly ahead.