The previous administration, led by U Thein Sein, awarded oil and gas blocks that offered companies the chance to earn handsome margins. However, since the fall of oil prices in 2014, production-sharing contracts (PSCs) have become less attractive. As such, private investors have called for fiscal reform to spur exploration activity. According to the state-owned Myanma Oil and Gas Enterprise…
In an effort to alleviate problems associated with rapid urban growth, the Yangon regional government announced the formation of the New Yangon Development Company (NYDC) in March 2018. The NYDC is tasked with overseeing the development of a new city on the western outskirts of the commercial capital. The development of New Yangon City is planned in two stages. Phase one will be carried out…
A major factor constraining the development of the real estate sector is the lack of a mature mortgage market. Ambiguities on regulations related to immovable property rights, and incomplete or incorrect ownership records, are two of the main reasons why a mortgage culture has not yet developed in Myanmar. After promising growth in the first few years after political and economic reforms began…
With more than 6100 km of railway lines nationwide, Myanmar has the largest rail network in South-east Asia. While much of the infrastructure was built during British colonial rule – including major routes between Yangon and Mandalay and onwards to Myitkyina, Kachin State – more than half of the network was built under the State Law and Order Restoration Council after the military junta…
Myanmar instituted sweeping increases to the national minimum wage in 2018, boosting the rate to MMK4800 ($3.40) per eight-hour day, up from the MMK3600 ($2.55) rate set in September 2015. The changes come as Myanmar’s fast-paced growth draws an increasing number of rural workers into the larger cities for employment in the surging garment and light manufacturing sectors. Faced with high…
Myanmar’s growing retail sector received a boost in 2018 with regulations aimed at encouraging foreign investment in the sector and the economy as a whole, with more foreign brands now entering the market. Foreign investment laws and regulations governing the retail sector were reformed in recent years, paving the way for more foreign players in the local market. In August 2018 the Myanmar…
As part of the government’s broader approach to risk management, the Ministry of Planning and Finance approved the country’s first-ever crop insurance programme for local farmers in early 2018. While crop insurance is available in neighbouring Thailand, India and China, it was a luxury Myanmar farmers had not previously been widely exposed to. Myanmar’s agricultural output has suffered…
With the adoption of well-structured and pertinent legislation, Myanmar’s mining sector is taking the necessary steps to encourage much-needed foreign investment. Following the passing of amended mining legislation in 2015 and the publication of new Mining Rules in February 2018, policymakers have strengthened the sector’s legal structure, addressed investor concerns and eliminated inconsistencies…
After years of delay, the Myanmar Tourism Law was enacted by the Parliament in September 2018. By-laws were being drafted late in the year and are expected to take effect 90 days after enactment. The law replaces the 1993 Myanmar Hotel and Tourism Law, which has been the main legal and regulatory document guiding tourism over the past 25 years. The new law was initially drafted in 2015 but…
Over the course of less than two decades, China has gone from being a minor player to being the world’s largest and most lucrative source of outbound tourists. In 2017 alone Chinese nationals made more than 131m trips outside of their national borders, spending approximately $300bn in the process. The growing volume and financial clout of Chinese tourists presents considerable opportunities…
