NAYPYIDAW: The economy in Myanmar in the fiscal year of 2019-2020 was given a positive outlook by the Asean+3 Macroeconomic Research Office.
It is expected to expand by 7.1 per cent, up from 6.8 per cent in the previous fiscal year, buoyed by reform momentum, improving business sentiments, growth in manufacturing, tourism related expansion and stronger fiscal spending.
Directorate of Investment and Company Administration director-general U Thant Sin Lwin said foreign direct investments was also expected to pick up and align with the government estimates for the fiscal year 2019-2020, according to the Myanmar Times.
Business and economists said the downside is the ongoing Rakhine crisis and lawsuit filed against Myanmar in the International Court of Justice by Gambia, which could tarnish the country’s image as an investment destination.
Myanmar is also expected to hold a general election in 2020, and many investors will wait and see how things unfold in the political economy before investing further in the country this year.
This year, five key sectors with growth potentials are the tourism industry, property, insurance, digital transactions and the stock exchange business.
The tourism industry should pick up this year with measures taken to attract tourists, such as the introduction of visa on arrival and new flight routes plan.
Myanmar Tourism Federation vice-chairman U Khin Aung Tun said he was expecting more visitors from eastern countries.
Asian tourists may spend less than their western counterparts, but their increased presence is expected to give the budget travel industry a boost and benefit smaller hotels, he said.
This year, property investors are expecting prospects to improve after measures were taken to modernise and regulate the sector in the past two years.
Insurance providers, too, are preparing to introduce more options to the market this year, following the liberalisation of the sector last year.
Only one per cent of Myanmar’s population had exposure to insurance and there was large potential for growth, said AIA Myanmar chief executive officer Nhon Ly.
The digital payments sector is forecast to develop rapidly with new payment technologies emerging and greater awareness from the public. Banks and tech start-ups are offering ticketing services, e-commerce systems and salary transfers online.
In the stock exchange front, Myanmar is set to allow direct foreign ownership of shares at the Yangon Stock Exchange this year.
The Securities and Exchange Commission of Myanmar, the regulator, announced last July that non-Myanmar individuals and locally-registered entities would be allowed to invest in listed shares up to 35 per cent.