Opportunities open for Thai business operators in Myanmar

BANGKOK, March 10 (TNA) - Sufficient opportunities remain for Thai business operators to invest in Myanmar, as the neighbouring country’s foreign investment promotional policy will remain intact after a newly-elected government is in office on April 1, 2016. The Kasikorn Research Centre (KRC) indicates the positive prospect for Thai business operators eyeing to invest in Myanmar in its report, published on March 10. The KRC report said that the Myanmar Parliament is scheduled to nominate three persons, selected by the Upper House, the Lower House and the military, on Thursday to contest the new presidency, as incumbent President Senior General Than Shwe will step down by the end of this month. According to the KRC report, the National League for Democracy (NLD), headed by Myanmar's democracy icon Aung San Suu Kyi, which won a landslide and captured the majority of seats in the Myanmar Parliament in the country's first general election in about half a century in November 2015, is expected to focus on solutions to obstacles of domestic investment in order to mainly attract more foreign direct investment (FDI) into the Myanmar economy, while also boosting the efficiency of Myanmar government agencies to facilitate transfer of technological know-how and increase access to capital for people, as well as improve national infrastructure. The KRC report noted that the outgoing Myanmar military government has already prepared the fiscal 2016/2017 state budget, which matches with the newly-elected government’s policy and creates a positive atmosphere for domestic investment, namely an increase in the allocated education budget for the development of the local labour system, as well as for the development of the national monetary system, while also strengthening the domestic energy sector. The leading Thai private think tank's report stated that Myanmar's fiscal 2016/2017 state budget totally amounts to 23.62 trillion kyat, a deficit of 3.9 trillion kyat, up about 8 per cent from its previous budget, as the Myanmar government has also planned to increase its spending on the transportation and the industial sectors and others. The KRC report pointed out that in 2012, Myanmar promulgated a new foreign investment law, focusing on investment in the local energy sector, and that business costs in Myanmar, namely office rental fees and human resources development, remain high although its labour costs is considered the lowest in the ASEAN Community (AC) now, suggesting Thai business operators who wish to invest in Myanmar to consider remaining business obstacles carefully while exploring plenty of business opportunities in the neighbouring country. (TNA)