Building a Better Future: Secrets of Successful Investment in Myanmar 13:35-14:20

1. Building a Better Future:Secrets of Successful Investment in Myanmar13:35-14:20 Prof.Dr.AungTunThet

3. Think • Ahead • Again • Across

4. Three Secrets • Understanding the Context • Seizing the Opportunities • Addressing the Risks and Challenges

5. 1. Understanding the Context

6. Myanmar • Pivotal moment in economic, social, and political transition • Prioritization and sequencing of policy actions and investments critical to success of reform agenda and long-term development

7. Projections • Annual average gross domestic product (GDP) growth as high as 9.5% by 2030 • From pre-reform baseline of 4.8% • GDP per capita to nearly $5,000 by 2030, up from about $900 today

8. Myanmar • Ripe with possibilities for foreign investors • Emerging market in every sense of the word • Isolated from international community for many decades • Bypassed globalisation

9. Myanmar • Fresh opportunities • Attracting foreign corporations and agencies eager to invest in energy and resources, telecommunications, financial services, manufacturing and infrastructure sectors • Enormous labour force and consumer market

10. Myanmar • Asia’s Last Frontier • Last untapped sizeable economy and market in Asia • Easing of international sanctions

11. Strategic Location • Combined market of close to three billion people • Conduit to Indian Ocean and beyond

13. Reforms • Political • Economic and Social • Administrative • Private Sector Development • ‘

14. Little Done, More To Do • Focus on developing economy and rebuilding financial, legal and physical infrastructure • Promote inclusive growth • Developing skilled workforce

15. Little Done, More To Do • Foreign investment • Sharing of technology and skills

16. Eight Strategic Areas • Accelerating governance and public sector reform • Ensuring macroeconomic and financial stability • Creating business-enabling environment • Leveraging rich natural endowments • Fostering internationally competitive sectors -manufacturing and services • Enhancing regional connectivity and integration • Promoting human development and poverty reduction • Pursuing environmentally sustainable growth

17. 2. Seizing the Opportunities

18. Strategic Opportunities • Digital Leapfrogging • Urbanization • Shift in economic structure • Reconnecting with global • “Latecomer Advantage”

19. New Opportunities • FDI • SEZs

20. FDI 2014-15 Over 100 Foreign Companies Over 50 Local Companies

22. Goals • Job creation • Sustainable and inclusive growth • Re-engagement with international economic community

23. Investment Opportunities • Extractive Resource Sector - Natural gas, Timber, mining • Power generation • Agriculture and Fisheries • Labour-intensive manufacturing sector

24. Foreign Investors • Bridge gaps in Myanmar’s economy • Meeting Myanmar’s immediate needs provide opportunities in longer term for sustainable economic growth

25. Foreign Investors • Add value in many sectors • Financial Services • Infrastructure • Urban Development • Power, Electricity, Telecommunications • Hospitality • Manufacturing • Agriculture • SEZs

26. Investment Strategies for Foreign Companies • Scope of opportunities immense - size, population, resources, market and relatively undeveloped economy • Immediate demand for products or services across wide spectrum of industries

27. Seizing Short-term Opportunities • Identify areas where immediate solutions can be provided • Keep ‘bigger’ picture in mind • Adopt entrepreneurial approach • Creating ‘niches’

28. 3. Addressing the Risks and Challenges

29. Past • Centralisedcommand economy • Self-sufficiency • Sanctions • Institutions and enterprises isolated from international market • Information gaps, infrastructural challenges and policy risks

30. ‘Frontier’ Economy • Attendant risks and challenges

31. Challenges • Financial, legal and regulatory systems • Unforeseen contingencies

32. Lack of Infrastructure • Insufficient telecommunication infrastructure and coverage • Transport and logistical links underdeveloped • Lack of power

33. Tackling the Challenges • Serious commitment of time and financial resources • Realities on the ground - legislative and regulatory restrictions • Assess probability of success

34. Niche Opportunities • Myriad opportunities • Identify and provide selected services or products within key sectors • Deliver solutions that meet specific needs,

35. Niche Opportunities • Establish meaningful foothold • Careful feasibility studies • Ancillary support

36. Opportunities for Early ‘Adopters’ • Work with local public and private partners • Long-term sustainability and mutual success

37. Quick Wins • Immediate results wins trust • Combine short-term objectives with long-term strategies

38. Risk Mitigation • Essential in frontier market • Contingency plans in place • Due diligence • Stay abreast of both prevailing market forces and government policies • Political risk insurance for large investments • Prudence

40. ThankYou!