August 19, 2016

Myanmar invites FDI at Global Investment Forum

Myanmar Global Investment Forum in progress at Myanmar International Convention Centre-2 in Nay Pyi Taw.
Myanmar Global Investment Forum in progress at Myanmar International Convention Centre-2 in Nay Pyi Taw.

Renewed business engagement with Myanmar’s energy sector may mean an increase of foreign direct investment for the country in 2015 and 2016, said Myanmar Investment Commission chairman U Zeyar Aung. He spoke at the Myanmar Global Investment Forum in Nay Pyi Taw on Tuesday.
“FDI will almost certainly increase this year and next, particularly as major announcements related to oil and gas tenders, solar power projects and other energy sector investments signal a new influx of business engagement,” the chairman said.
In the 2014-2015 fiscal year, Myanmar received US$8 billion in FDI, surpassing the targeted amount of the government’s Long Term Foreign Direct Investment Plan, which was set at $4 billion.
The chairman called for more foreign direct investment into labour-intensive industries, infrastructural construction projects, factories, plantations and industrial zones in order to create more job opportunities in the country.
The government of Myanmar has also invited foreign direct investment into its power-generation sector in an effort to rebuild the sector, which aims to achieve 100-percent electrification nationwide by 2030.
Seventeen power plant projects that are currently being implemented are due for completion by 2016, and 10 others were completed between 2013 and 2014, according to the MIC.
There are also plans to construct another 87 power plants that will be able to supply 54,608 MW of installed capacity around the country, said U Zeyar Aung.
Meanwhile, multilateral financial institutions such as the World Bank, ADB and IFC have planned projects or loans for power generation in Myanmar to support the government’s efforts to attract FDI to the power sector.
Currently, foreign investors from Singapore, Thailand, China, the US, Japan, the UK, Norway and other European and Asian countries have investments in Myanmar’s energy sector, including the oil and gas, coal and hydropower industries.
On the first day of the forum, the panel discussion titled “Myanmar in Transition” focused on the upcoming general elections and the future political landscape. Panellists addressed the following questions: How might the business and investment environment evolve? Will economic reforms continue at the same pace? What needs to be done to accelerate Myanmar’s integration into the regional supply chain? What is Myanmar doing to reduce poverty,
(improve education and develop human capital? How is Myanmar affected by the increase in US interest rates?
On the first evening of the forum, the panel discussion titled “Developing Myanmar’s Financial Sector” focused on monetary policy and exchange rate volatility; banking sector modernisation and consolidation; the role of foreign banks; financing private sector growth and development; microfinance and financial inclusion;the potential of Myanmar’s insurance market; and developing a bond market.
On Wednesday, the panel discussion titled “The Outlook for Foreign Direct Investment” focused on the Foreign Investment Law. Panellists addressed the following questions: Has the pace of reform and policymaking met expectations? Are multinational companies still eager to enter Myanmar? What are the main concerns of potential investors with a wait-and see-approach? Which countries are Myanmar’s top foreign direct investors? In which sectors have they mainly invested?  Which sectors need more investment? Has FDI slowed in the run-up to the general election? How are foreign companies helping to create local prosperity?
The panel discussion titled “The Potential of Myanmar’s Tourism Sector” included aprimer on Myanmar’s fast-growing tourism sector. It also focused on Myanmar’s Tourism Master Plan; the role of the new Myanmar Tourism Development Bank; Myanmar’s hotel and resort market; investment and partnership opportunities in the underdeveloped hospitality sector; and human capital, infrastructure and legal considerations. Panellists addressed the following questions: How open is the sector to foreign investments? What are the up-and-coming destinations?
The panel discussion titled “Real Estate and Construction” focusedon the real estate outlookfor office, retail, residential and industrial properties; the effect of high land and construction costs on foreign investment; emerging business and commercial centres in Yangon, Nay Pyi Taw  and Mandalay; the ability of the construction industry to meet the demand for projects; the impact of new land laws; mechanism for zoning and rezoning; sustainable development and heritage protection; and urbanization, evolving demographics and low-cost housing.
The panel discussion titled “Trade, Infrastructure and Greater Mekong Subregion Connectivity” offered an overview of GMS cross-border trade and Myanmar’s role. Panellists also discussed developing the region’s trade and prioritising infrastructure projects; the effect of political uncertainty on regional infrastructure development; the progress of the Thilawa, Dawei and Kyaukpyu special economic zones; financing Myanmar’s vast infrastructure needs; the viability of public-private partnerships (PPPs); and the role of export credit agencies and development banks.
The panel discussion titled “Energy and Power Development” focused addressed Myanmar’s energy and power outlook and development plans; the implications of low oil prices;the prospect of more onshore/offshore oil and gas block licences being issued; foreign investment in energy and power development; the tension between energy exports and domestic usage; competitive, sustainable solutions to alleviating electricity shortages; and regulatory, tax and technical considerations.
Nikkei Asian Review gave a special briefing titled “Outlook for 2015 Elections and Beyond”, which discussed the outlook for election day; the role of ethnic parties and the significance of a ceasefire agreement; prospects and dynamics of post-election reform; potential changes in the role of investors and in the regulatory climate for investment; general reform priorities; and the role of parliament and relations between the executive and legislative branches.
Bangkok Bank also held a workshop called “Understanding Myanmar Consumers”, and Siam Commercial Bank held onecalled “Doing Successful Business in Myanmar”on the second day of the forum.


Related posts

Translate »