Yangon Region records budget surplus of over K30B in FY 2024-25

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• Is Myanmar Ready for FDI?

  Foreign direct investment (FDI) can play an impor- tant role in Myanmar’s eco- nomic development. It can bring capital, technology, new skills, employment opportunities, and access to international markets. It can also help local businesses improve their productivity and become more competitive. How- ever, attracting foreign investment requires more than having natural resources, a strategic location, or a large number of potential business opportunities. Investors also need confidence that they can estab- lish and operate businesses un- der clear, reliable, and predictable conditions. This raises an important question for Myanmar: Is the country ready to attract and retain sustainable foreign investment? Myanmar has several advan- tages. Its location between China, India, and Southeast Asia creates opportunities for trade, manu- facturing, logistics, and regional business cooperation. The country also has agricultural resources, a domestic market, and potential to develop food processing, energy, manufacturing, and service indus- tries. These strengths provide a foundation for future investment. However, having investment potential does not automatically mean that a country is ready to re- ceive investment on a large scale. Investors must consider whether they can operate efficiently, obtain necessary inputs, access finan- cial services, transport goods, and plan their businesses over the long term. Myanmar’s readiness for FDI must therefore be assessed by looking at both its opportuni- ties and the practical challenges investors face. Myanmar’s current economic conditions make this assessment particularly important. The World Bank’s June 2026 economic re- port estimated that the economy contracted by 2.0 per cent in the 2025/26 financial year and pro- jected growth of 2.0 per cent in 2026/27. The Asian Development Bank’s September 2026 outlook projected growth of 2.2 per cent and inflation of 24.0 per cent for 2026. Although the forecasts differ, both point to an economy facing significant pressures. For businesses, economic un- certainty affects costs, demand, financing, and future planning. High inflation makes it more dif- ficult to estimate project expenses, while weak demand can reduce expected sales. Foreign investors must consider these factors before committing capital, particularly when a project requires substan- tial initial investment and several years to generate returns. Nevertheless, these challeng- es should not lead to the conclu- sion that Myanmar has no invest- ment opportunities. Rather, they show why investment promotion must go hand in hand with efforts to improve the conditions under which businesses operate. One important factor is polit- ical and security stability. Foreign investors usually make decisions based on long-term business plans. They need to assess wheth- er employees can work safely, goods can move reliably, supply chains can function, and projects can be completed on schedule. Uncertainty in these areas can increase costs and delay investment decisions. Improving the availability of reliable information, maintaining clear administrative procedures, and providing con- sistent communication can help reduce avoidable uncertainty. However, administrative improve- ments alone cannot remove wider political and security risks. Another important factor is the regulatory environment. In- vestors need to understand the rules governing company registra- tion, investment approval, licens- ing, taxation, employment, land use, and financial transactions. Clear laws and regulations are important, but their consistent im- plementation is equally important. When procedures are unclear, re- quirements are difficult to under- stand, or administrative decisions take longer than expected, busi- nesses may face additional costs. Myanmar can strengthen its investment environment by improving access to official infor- mation, making administrative procedures more transparent, and encouraging better coordination among the relevant government agencies. These improvements do not mean removing necessary regulations. Instead, they mean ensuring that rules are clear, procedures are efficient, and de- cisions are made consistently. A predictable regulatory environ- ment would benefit both foreign in- vestors and domestic businesses. Infrastructure and financial services are equally important. Electricity is essential for man- ufacturing, food processing, cold storage, commercial services, and many other business activities. Unreliable electricity can inter- rupt production, increase operat- ing costs, and make it difficult for companies to meet delivery sched- ules. Improving electricity relia- bility and exploring commercially viable renewable-energy solutions would therefore support both ex- isting businesses and potential new investors. Foreign exchange and bank- ing arrangements also influence investment decisions. Businesses need to make payments, finance imports, receive export earnings, and meet their financial obliga- tions through lawful and reliable channels. Uncertainty in these ar- eas can make it difficult to prepare budgets and manage projects. Im- proving the clarity and predict- ability of financial procedures, within the applicable regulatory framework, would help investors make better-informed decisions. Transport and logistics also affect Myanmar’s competitive- ness. The country’s geographical location offers potential advantag- es, but those advantages can be reduced by high transport costs, delays, and disruptions to trade routes. Efficient transport links, reliable delivery schedules, and effective customs procedures are important for businesses that depend on imported materials or export markets. Improvements in logistics would support invest- ment while also helping domestic producers reach customers more efficiently. Myanmar must also consid- er the changing international in- vestment environment. Countries compete to attract foreign capital, and investors compare potential destinations according to market opportunities, operating costs, infrastructure, regulations, and risks. According to UN Trade and Development’s World Investment Report 2026, global FDI increased by 6 per cent to approximately US$1.6 trillion in 2025. However, investment recovery was uneven, and many developing economies continued to face difficulties at- tracting capital. This international environ- ment means Myanmar cannot de- pend on its geographical position and natur

• Serving national interest through energy prosperity

  Increasing domestic fuel production is not intended solely to replace imports. It is also aimed at reducing foreign exchange expenditure, meeting the energy needs of domestic manufacturing sectors, and generating sustain

• Promoting national economy through agriculture, livestock and industries

  E very country in the world is striving to achieve national development through various means, and Myanmar is also giving priority to its own development. The key to national economic development lies in the balanced int

• Myanmar's Central Bank Denies Rumors of New Banknote, Threatens Legal Action

  Myanmar’s junta-controlled central bank issued a stern warning on October 18, threatening legal action against individuals circulating reports of a new 50,000-kyat banknote, shortly after requesting parliamentary approva