Economy
From The Report: Myanmar 2015
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A series of political and economic reforms have led to the lifting of most international sanctions since 2012. While it may take many years of intensive foreign investment and rapid growth to catch up to other south-east Asian countries, Myanmar has exceptional potential for a country in its income range. Agriculture, fishing and forestry is the country’s largest sector, contributing 30.5% to Myanmar’s GDP in FY2012/13. Manufacturing is the second-largest sector, accounting for 19.9% of GDP in FY2012/12, followed by retail and wholesale trade with 19%, transport and communication with 13.3%, and mining with 6.1%. Since a historic reform process began in 2010, foreign investment has been pouring in, driving annual growth to more than 8%, according to IMF estimates. There are good reasons to believe the economy will continue to enjoy exceptionally strong growth in the years ahead. In the short term, much will depend on the outcome of the national elections, which are due in autumn 2015. This chapter contains interviews with U Soe Thane, Minister of the President’s Office; Hidetoshi Nishimura, Executive Director, Economic Research Institute for ASEAN and East Asia (ERIA); and U Set Aung, Chairman, Thilawa Special Economic Zone (SEZ). It also includes a viewpoint from John Kerry, US Secretary of State.

Articles from this Chapter

Overview

Reforms continue to open the economy as GDP grows
OBG
plus

After spending decades as one of the most isolated and least-developed countries in Asia, Myanmar is emerging as one of the world’s fastest-growing economies. Since a historic reform process began in 2010, foreign investment has been pouring in, driving annual growth to more than 8%, according to IMF estimates. Investment inflows and growing exports have also helped stabilise the currency and end a long period of high inflation. Deposits are flowing into traditionally under-utilised banks,…

Overview

Reforms continue to open the economy as GDP grows
OBG
plus

After spending decades as one of the most isolated and least-developed countries in Asia, Myanmar is emerging as one of the world’s fastest-growing economies. Since a historic reform process began in 2010, foreign investment has been pouring in, driving annual growth to more than 8%, according to IMF estimates. Investment inflows and growing exports have also helped stabilise the currency and end a long period of high inflation. Deposits are flowing into traditionally under-utilised banks,…

Analysis

Balancing the books: Fiscal policy changes include increasing public spending and boosting tax collection
OBG
plus

Myanmar is in the midst of a historic transformation of both its public sector and fiscal policy towards international norms. The country traditionally had a very small civilian government and many large state enterprises, all overseen by a politically and commercially powerful military. State enterprises have traditionally accounted for most public revenues, while central bank printing of kyat banknotes provided much of the financing for the government as tax collection remained very light. That…

Analysis

Balancing the books: Fiscal policy changes include increasing public spending and boosting tax collection
OBG
plus

Myanmar is in the midst of a historic transformation of both its public sector and fiscal policy towards international norms. The country traditionally had a very small civilian government and many large state enterprises, all overseen by a politically and commercially powerful military. State enterprises have traditionally accounted for most public revenues, while central bank printing of kyat banknotes provided much of the financing for the government as tax collection remained very light. That…

Viewpoint

John Kerry, US Secretary of State, on diplomatic solutions and a successful relationship
OBG
plus

Myanmar has made a significant amount of progress over the course of the past few years, and when I was last here in 1999, I visited with Daw Aung San Suu Kyi, who was then under house arrest. Today, she sits in parliament and the people are openly debating the future direction of this country. The Myanmar people have made a very clear statement about their desire to build a democratic, peaceful and economically vibrant country, and many have struggled and sacrificed in order to reach this…

Viewpoint

John Kerry, US Secretary of State, on diplomatic solutions and a successful relationship
OBG
plus

Myanmar has made a significant amount of progress over the course of the past few years, and when I was last here in 1999, I visited with Daw Aung San Suu Kyi, who was then under house arrest. Today, she sits in parliament and the people are openly debating the future direction of this country. The Myanmar people have made a very clear statement about their desire to build a democratic, peaceful and economically vibrant country, and many have struggled and sacrificed in order to reach this…

Interview

Hidetoshi Nishimura, Executive Director, Economic Research Institute for ASEAN and East Asia (ERIA): Interview
OBG
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Interview:Hidetoshi Nishimura What priorities have been identified by the Myanmar Comprehensive Development Vision (MCDV)? HIDETOSHI NISHIMURA: The MCDV was formulated by ERIA under the guidance of the Ministry of National Planning and Economic Development (NPED), in close cooperation with other ministries. It provided a set of growth strategies for Myanmar’s National Comprehensive Development Plan for the 2011-30 period, which is currently being drafted by the NPED. The MCDV envisages…

Interview

Hidetoshi Nishimura, Executive Director, Economic Research Institute for ASEAN and East Asia (ERIA): Interview
OBG
plus

Interview:Hidetoshi Nishimura What priorities have been identified by the Myanmar Comprehensive Development Vision (MCDV)? HIDETOSHI NISHIMURA: The MCDV was formulated by ERIA under the guidance of the Ministry of National Planning and Economic Development (NPED), in close cooperation with other ministries. It provided a set of growth strategies for Myanmar’s National Comprehensive Development Plan for the 2011-30 period, which is currently being drafted by the NPED. The MCDV envisages…

Analysis

Bringing down barriers: Taking steps towards greater regional integration and trade
OBG
plus

Myanmar and nine other South-east Asian countries are preparing to ring in the formal birth of the ASEAN Economic Community (AEC) on December 31, 2015, but they are not preparing to celebrate. Instead, they are engaging in a collective soul-searching exercise. At the November 2014 ASEAN summit in Naypyidaw, the crowning event of Myanmar’s chairmanship of the bloc in 2014, ASEAN leaders admitted their uncertainty about what comes next by signing an agreement to develop a post-2015 vision…

Analysis

Bringing down barriers: Taking steps towards greater regional integration and trade
OBG
plus

Myanmar and nine other South-east Asian countries are preparing to ring in the formal birth of the ASEAN Economic Community (AEC) on December 31, 2015, but they are not preparing to celebrate. Instead, they are engaging in a collective soul-searching exercise. At the November 2014 ASEAN summit in Naypyidaw, the crowning event of Myanmar’s chairmanship of the bloc in 2014, ASEAN leaders admitted their uncertainty about what comes next by signing an agreement to develop a post-2015 vision…

Interview

Making an impact: OBG talks to U Set Aung, Chairman, Thilawa Special Economic Zone (SEZ)
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Interview: U Set Aung Which industries do you think show the most potential growth, as far as Thilawa is concerned? U SET AUNG: So far we have received letters of intent for 45 factories from 11 countries across the globe, with interest being expressed for many different types of manufacturing. Out of these 11 countries, the majority of companies are from Japan and from Hong Kong, in addition to some from Europe, Thailand and Singapore, as well as one company from the US. As it stands, the majority…

Interview

Making an impact: OBG talks to U Set Aung, Chairman, Thilawa Special Economic Zone (SEZ)
OBG
plus

Interview: U Set Aung Which industries do you think show the most potential growth, as far as Thilawa is concerned? U SET AUNG: So far we have received letters of intent for 45 factories from 11 countries across the globe, with interest being expressed for many different types of manufacturing. Out of these 11 countries, the majority of companies are from Japan and from Hong Kong, in addition to some from Europe, Thailand and Singapore, as well as one company from the US. As it stands, the majority…

Analysis

Japanese investment is flowing into a range of sectors
OBG
plus

As Myanmar has changed course since 2010 and pursued political and economic reforms, Japan is the country that has responded most enthusiastically, both to offer assistance and to take advantage of emerging investment opportunities. Although Japan is not seeking to be the monolithic major partner that China was to Myanmar while it was under international sanctions, the level of Japanese involvement has grown quickly. The Japanese government has been strongly pushing Japanese companies to…

Analysis

Japanese investment is flowing into a range of sectors
OBG
plus

As Myanmar has changed course since 2010 and pursued political and economic reforms, Japan is the country that has responded most enthusiastically, both to offer assistance and to take advantage of emerging investment opportunities. Although Japan is not seeking to be the monolithic major partner that China was to Myanmar while it was under international sanctions, the level of Japanese involvement has grown quickly. The Japanese government has been strongly pushing Japanese companies to…