European companies are losing confidence in the Myanmar government’s management of the economy, The Myanmar Times reported on December 12.
The daily quoted the latest survey from the European Chamber of Commerce in Myanmar, which stated that 81% of the firms were not satisfied with the country’s business environment, compared with 76% in 2017 and 67% in 2016.
The present government, which is led by the National League for Democracy (NLD), took office in March 2016. This year, only 37% of European companies were able to report profits and, according to the survey and The Myanmar Times, the main obstacles appear to protectionism and economic nationalism.
“The government, for example, has not delivered to its promise made last year to open up the insurance market,” the daily reported.
Economic nationalism, or unfair protection of domestic producers, can be seen in sectors such as pharmaceuticals and liquor. Although Myanmar has implemented a new companies act and liberalization of the banking sector, a severe depreciation of the Myanmar currency, the kyat, regulatory issues, lack of qualified labor and legal uncertainty remain major concerns among foreign investors.
The human rights crisis in Rakhine State and the flight of hundreds of thousands of Muslim Rohingyas to Bangladesh have also diminished investor interest.
The European Union is now considering revoking Myanmar’s tariff-free access to the bloc. Should the EU go ahead with the revocation, Myanmar’s garment sector would be severely hit, causing even more problems for the country’s already troubled economy.
"The garment manufacturing sector is included in the National Export Strategy as a promising export sector and earnings from garment export are increasing at a rate of 35pc on a yearly basis. And that’s before gaining access to the European Union market, according to U Myint Soe." Myanmar Times
"The garment manufacturing sector is included in the National Export Strategy as a promising export sector and earnings from garment export are increasing at a rate of 35pc on a yearly basis. And that’s before gaining access to the European Union market, according to U Myint Soe." Myanmar Times
I’m not an economist, but one should not and cannot ignore two crucial factors in looking at Burma’s economy: Burma’s stand on the International Corruption Index for 2017 was 130! out of 175 countries. And if I understand it correctly, its GDP growth of 5,9% was in a large part based on the revenues that it gained from the sales of its natural resources on the international commodity markets. As everybody in this world knows that commodity prices are subject to fluctuations and there will come a tiime when natural resources alone cannot be relied forever upon by a country for its long-term survival.
I’m not an economist, but one should not and cannot ignore two crucial factors in looking at Burma’s economy: Burma’s stand on the International Corruption Index for 2017 was 130! out of 175 countries. And if I understand it correctly, its GDP growth of 5,9% was in a large part based on the revenues that it gained from the sales of its natural resources on the international commodity markets. As everybody in this world knows that commodity prices are subject to fluctuations and there will come a tiime when natural resources alone cannot be relied forever upon by a country for its long-term survival.
You are right that natural resources cannot be relied on indefinitely. That is why the BRI infrastructure projects are good for Myanmar. Stable. cheap hydroelectric power, light industry, food processing, etc will increase industrial and commercial activities and prosperity for Myanmar.
Corruption should be tackled and need a stable government to do so. Current destabilisation activities by US and its vassals defiitely do not help Myanmar.
You are right that natural resources cannot be relied on indefinitely. That is why the BRI infrastructure projects are good for Myanmar. Stable. cheap hydroelectric power, light industry, food processing, etc will increase industrial and commercial activities and prosperity for Myanmar.
Corruption should be tackled and need a stable government to do so. Current destabilisation activities by US and its vassals defiitely do not help Myanmar.
It’s not a secret that the main culprits of corruption in the country are high-ranking military personnel. But U Aung Kyi, director of the newly formed Anti-Corruption Commission, himself had admitted in a Radio Free Asia admitted on September 30, 2018, that his commission doesn’t have jurisdiction over corruption cases committed by the military personnel. The followiing two links are wriiten and visual reports on his interview. Unfortunately, they are in Burmese.
https://www.rfa.org/burmese/news/aungkyi-accm-09302018075307.html
It’s not a secret that the main culprits of corruption in the country are high-ranking military personnel. But U Aung Kyi, director of the newly formed Anti-Corruption Commission, himself had admitted in a Radio Free Asia admitted on September 30, 2018, that his commission doesn’t have jurisdiction over corruption cases committed by the military personnel. The followiing two links are wriiten and visual reports on his interview. Unfortunately, they are in Burmese.
https://www.rfa.org/burmese/news/aungkyi-accm-09302018075307.html