Myanmar expects foreign direct investment (FDI) to hit USD $ 5.8 million in 2018- 2019 fiscal year, which is the same as the previous 2017- 2018 fiscal year that ended on 31 March 2018

Myanmar is expected to draw foreign direct investments (FDI) totaling US$5.8 billion in the upcoming 2018-19 fiscal year beginning on October 1, said U Than Aung Kyaw, deputy director general of the Directorate of Investment and Company Administration (DICA).

That’s unchanged from the previous 2017-18 year ended March 31, during which Myanmar received $5.7 billion in FDI for 222 projects. In comparison, the country received $6.6 billion for 135 investments in 2016-17. 

DICA’s estimates also come amid a trend of falling capital flows into Myanmar. Between April and August this year, FDI totaled $1.4 billion versus the $3billion forecast by DICA for the April-September six-month interim period between 2017-18 and 2018-19.

But U Than Aung Kyaw said investments from Asian countries including Singapore, Japan, South Korea and Thailand have not faltered. “In addition, with the New Companies Law will enforced in the coming fiscal year, we expect to see increasing FDI in sectors that are opening up, such as education and retail,” he said.

The 2018-19 FDI forecasts were made after excluding investments from the West. U Aung Naing Oo, the secretary of Myanmar Investment Commission (MIC), said in January that Myanmar “is not expecting high volumes of FDI from the West over the next 2-3 years as a result of the humanitarian crisis in Rakhine.”

“Western investors are still withholding funds in view of the unfolding humanitarian crisis in northern Rakhine,” said U Maung Maung Lay, vice chair of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). “Up until now, it has been the Asian countries like Japan and China who have been interested in investing here.”

Nevertheless, the UMFCCI will continue raising efforts to draw more FDI into Myanmar. It will also aim to raise interest in the states and regions beyond Yangon, which has so far received the lion’s share of FDI channeled into the country.

These include Mandalay Region, Shan State, Ayeyarwardy Region, Kayin State, Mon State and Thanintharyi Region. 

UMFCCI will host an investment summit in Myanmar in January targeting investors from 9 countries including the US, UK, China, Hong Kong, India, Japan, Korea, Australia, Singapore and Thailand. 

The chamber will promote eight sectors including manufacturing, garment production, electricity and energy, foodstuffs, tourism, education, healthcare and land development. 

In 2017-18, investments from a total of 28 countries were approved compared to 25 in 2016-17, with China, the Netherlands, Japan, South Korea, the UK and the US among the top investors. 

Around a third of the investments were channeled into the industrial sector, while real estate and construction absorbed around 22pc of the funds each.

(The Myanmar Times: https://www.mmtimes.com/news/fdi-forecast-hitus-5-8b-2018-19.html )

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