Analysis

Myanmar insurance market open to foreign ownership and investment
OBG
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Officials have clarified the timeline for foreign insurers to enter the Myanmar market – a move that will boost competition and penetration. In August 2018 the Insurance Business Regulatory Board (IBRB) announced that overseas insurers would be allowed to formally enter the market at some point during FY 2018/19, which began October 1. “We are planning to allow foreigners to participate in the…

Analysis

Myanmar credit bureau to boost borrowing and access to financial services
OBG
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Bank lending in Myanmar has soared since 2011, as the country’s democratic transition and economic liberalisation kick-started business and investment activities across multiple sectors. However, low credit access remains one of the most serious challenges facing businesses in the country. Limited availability of critical business and consumer data, coupled with the country’s lack of a credit bureau,…

Analysis

Myanmar monetary policy must improve to prevent inflation
OBG
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Currency depreciation continues to challenge macroeconomic growth in Myanmar, with the kyat losing more than 65% of its value against the US dollar between 2014 and 2018, straining import-dependent manufacturers and causing inflation to spike. More recently, the kyat lost 18% of its value against the US dollar between April and August 2018. The Myanmar Sustainable Development Plan (MSDP), a detailed…

Analysis

Myanmar development roadmap addresses currency and deficit challenges
OBG
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Myanmar made significant strides in macroeconomic policy-making in 2018 with the release of the Myanmar Sustainable Development Plan (MSDP), a long-term strategy aimed at achieving peace, economic prosperity and sustainable growth. The MSDP is much more in-depth, detailed, and actionable than previous policies, with stakeholders praising government efforts to implement hundreds of reforms under five…

Analysis

Foreign ownership liberalisation should stimulate investment in Myanmar
OBG
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Although Myanmar’s economy has grown above the regional average in 2018, a fall in overseas investment, crop losses and a weakening of the kyat have combined to slow the pace of economic growth. However, moves to open up sectors of the economy to foreign ownership may boost inward investment in the coming year. According to estimates by the Asian Development Bank released in September 2018, Myanmar’s…

Analysis

Development continues on three special economic zones in Myanmar
OBG
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Offering a range of attractive investor incentives, Myanmar’s special economic zones (SEZs) hold significant potential to attract new foreign direct investment (FDI), support industrialisation and manufacturing activities, and boost employment and export receipts. The country’s sole operational facility, the Thilawa SEZ, has already become a magnet for FDI inflows, with its second phase of development…

Analysis

Myanmar Companies Law opens economy to foreign trade and investment
OBG
plus

One of the most significant legal reforms undertaken to improve the investment climate in Myanmar has been the promulgation of the 2017 Myanmar Companies Law (MCL), which sets new criteria for company classification and is expected to help boost foreign direct investment inflows, which have slumped in recent years. After a lengthy delay, the new law came into effect in August 2018, marking an important…