Local and foreign investments over past five months of current mini-budget period (from April to September) show a sharp drop compared to similar period of last fiscal year 2017-2018, according to data released by the Directorate of Investment and Company Administration (DICA).
The sectors which attract domestic investments are hotel and tourism, manufacturing, transport and communications, real estate development, livestock and fisheries, construction, industrial estate, other services, mining, agriculture and power sectors. Between 1 April and 7 September of mini-budget period, 82 domestic enterprises were approved, with total investments, including expansion of investments, exceeding Ks968.86 billion. In the similar period of last FY, 51 domestic projects were approved by MIC, with a capital of Ks1,472 billion.
Meanwhile, 75 foreign enterprises brought in a capital of US$1.43 billion. Last FY, 132 enterprises with a capital of $4.1 billion received permits and endorsements.
Foreign investments flow into other services, real estate, manufacturing, transport and communications, agriculture, livestock and fisheries, mining, power, oil and gas, construction, hotels and tourism and industrial estate sectors.
Only $1.4 billion of foreign direct investments were brought into the country in the past five months, in spite of the fact that Myanmar Investment Commission (MIC) targetted $3 billion of FDI. MIC targets to attain $5.8 billion of FDI for next fiscal year 2018-2019, said U Than Aung Kyaw, Deputy Director General of the DICA.
The northern Rakhine State issue and instability of the dollar exchange rate, resulting from escalating trade war between the US and China, affected the foreign investment. However, if didn’t make any difference with investors from Asian countries, he added.
Of the 49 countries investing in Myanmar, China tops the list with the largest foreign investment, followed by Singapore and Thailand.
FDI registered at $5.7 billion in FY 2017-2018, $6.6 billion in FY 2016-2017 and $9.4 billion in FY 2015-2016 respectively.
By Nyein Nyein