Economy
From The Report: Myanmar 2017
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After its historic transition to civilian rule following years of incremental reforms, Myanmar is enjoying a period of exceptional growth. Once an outlier in the region, Myanmar now has the fastest-growing economy in ASEAN, and is seen as a source of regional strength and a destination of opportunity. Further liberalisation is planned, international investment is expected to remain strong and the domestic economy is becoming increasingly efficient. Optimism reigns as the experiment in reform has proven durable. While many emerging economies struggle to maintain a high rate of expansion in the face of global uncertainty, Myanmar is set to remain on course.

This chapter contains interviews with U Kyaw Win, Minister of Planning and Finance; Sean Turnell, Economic Advisor, National League for Democracy and Associate Professor, Department of Economics, Macquarie University; U Thurance Aung, Vice-President, Myanmar Japan Thilwa Development; and Keiichiro Nakazawa, Chief Representative, Japan International Cooperation Agency, Myanmar Office.

Articles from this Chapter

Overview

Setting the pace: The country is leading the regional pack in growth rates
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After its historic transition to civilian rule following years of incremental reforms, Myanmar is enjoying a period of exceptional growth. The country’s potential is being unlocked. Once an outlier in the region, Myanmar now has the fastest-growing economy in ASEAN, and is seen as a source of regional strength and a destination of opportunity. Further liberalisation is planned, international investment is expected to remain strong and the domestic economy is becoming increasingly efficient. Optimism…

Interview

Building capacity: U Kyaw Win, Minister of Planning and Finance, on improving and developing Myanmar’s banking sector
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Interview:U Kyaw Win What advances are still needed in the financial sector to promote economic growth? U KYAW WIN: Myanmar faces a series of challenges, which include creating social welfare, assuring economic stability, increasing integration with global markets and improving human capacity. On top of these things, developing the financial sector is critical to promoting economic growth. Fortunately, the government has managed to attract foreign investment into agriculture, manufacturing,…

Interview

Pathway to growth: Sean Turnell, Economic Advisor, National League for Democracy (NLD); and Associate Professor, Department of Economics, Macquarie University, on promoting growth
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Interview:Sean Turnell How would you assess the economic liberalisation that has taken place in Myanmar so far? SEAN TURNELL: In recent years some important foundations have been laid for the structural transformation of Myanmar’s economy. The floating of the exchange rate back in 2012 was a crucial technical reform, but it was an even more important symbolic gesture in signalling the return of the “market” as a central coordinating mechanism for the economy. Likewise, the new investment…

Analysis

New opportunities: A host of new laws will help facilitate ongoing growth
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The government of Myanmar has passed a wide range of legislation aimed at economic reform since 2010. While much remains to be done, the body of new law on the books is substantial, covering areas from lighthouses to central banking. The new government under the National League for Democracy has been careful in introducing its own legislation, but it has been implementing much of what was passed before it took over. Incremental Advances Some of the new laws are incremental in nature, dealing…

Interview

In the zone: U Thurane Aung, Vice-President, Myanmar Japan Thilawa Development, on the benefits of the Thilawa Special Economic Zone (SEZ) to investors and the industrial base
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Interview:U Thurane Aung To what extent is the Thilawa SEZ helping to advance the industrial base? THURANE AUNG: Thilawa SEZ is like a fast-track gateway for foreign direct investment (FDI). Within the Thilawa SEZ, there is a framework set up through a real one-stop service centre, which cuts all the red tape in order to fast-track each and every approval and formality needed, from investment approvals, tax exemption, construction permits and utilities connections to import and export procedures,…

Analysis

Growth drivers: The country is pushing ahead with several new economic zones
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Special economic zones (SEZs) are essential to Myanmar’s development. While the country is liberalising rapidly, the process will take some time. Regulations have to be written, and infrastructure needs to be upgraded in areas with legacy issues. Thilawa The development of Thilawa SEZ, which lies 25 km from Yangon, has been smooth. The first phase, the 400-ha zone A, was opened in 2015, with more than 40 companies committed to operate at the site. The first phase of zone B has also been…

Interview

Taking advantage: Keiichiro Nakazawa, Chief Representative, Japan International Cooperation Agency (JICA), Myanmar Office, on developing manufacturing and infrastructure
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Interview: Keiichiro Nakazawa What are the comparative advantages Myanmar possesses in the manufacturing industry? How do you see them developing over time? KEIICHIRO NAKAZAWA: Politically, when the government of U Thein Sein, former president of Myanmar, worked to make the economy more market-oriented, it opened up opportunities and the new government has been working to expand these. There was a survey conducted by the Japan Bank for International Cooperation with Japanese manufacturing companies…