Myanmar is enjoying a far larger influx of foreign direct investments (FDI) during the current financial year as compared to the year before, according to the statistics released from Myanmar Investment Commission (MIC) and officials at the Ministry of Planning and Finance.
FDI into Myanmar have increased in the 2017-2018 financial year, although the inflow relatively slowed in the previous first year of the current administration as the potential investors were watchful of a power transition period, said Dr. Wah Wah Maung, Director General of the Central Statistical Organisation of Myanmar.
“International investors are keeping an eye on Myanmar’s economic policies. They are aware of multi challenges facing Myanmar while they also see many opportunities existing in the country. Thus, they are interested in Myanmar, ”said Dr. Wah Wah Maung at Myanmar Global Investment Forum 2017 held in Nay Pyi Taw from September 12 to 13. Myanmar has projected annual foreign investment value of more than $6 billion for the current 2017-2018 financial year, which started on April 1 and is ending on March 31, 2018. The entry of FDI into the country in the first five months of the ongoing budget year reached over $3.8 billion, according to the Press Release 10/2017 of MIC. It constitutes a much larger volume if compared to the same period of the previous year, which saw FDI inflow of a mere $400 million, according to Vice President Myint Swe who spoke to a regular meeting with the private sector.
The expected foreign direct investment volume for FY2017-2018 is nearly the same as that of the past FY2016- 2017, which fetched total FDI value of $6.6 billion, with transport and communications sector collecting the most investments of $3.08 billion. Dr. Wah Wah Muang linked the infrastructure deprivation of the country with the need to raise investment inflows.
There are so many necessities, especially in infrastructure such as electricity, roads and bridges. Therefore, we need to succeed in attracting quality investment which will bring both capital and technology. Quality investment goes for not only profit, it also pays particular attention to the host country’s sustainable development,” said the director general at the 6th Myanmar Global Investment Forum.
FY2016-2017 marked one year period the NLD-led government had come to office. The influx of FDI into Myanmar dropped in the 2016-2017 budget year when compared to FY2015-2016 under the previous administration led by President Thein Sein, which saw a record-high inflow of FDI for Myanmar, grossing total investment value of $9.48 billion. Prior to that, the 2014-2015 budget year also collected a record-high FDI value of $8 billion.
“Investments are essential to economic development of the country. It needs to achieve investments from both local and international investors. Myanmar is widely regarded as a promising destination for foreign investments. Continuous waves of potential investors are coming to the country to explore opportunities,” said Maung Maung Win, Deputy Minister for Planning and Finance at Myanmar Global Investment Forum 2017.
According to the National Development Project, Myanmar plans to boost FDI influx through a set of measures that include revising the legal requirements that restrict the inflow of foreign investments, reduction of land prices that causes a cost burden to establishment of businesses, making industrial development policies to improve the manufacturing of value-added products, increasing the fundamental need of power access and strengthening the transport infrastructure.
