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January 13, 2022

Foreign Investment decreased by US$1.2 billion

  • By ISP Admin
  • What Matters

What Matters No. 72

(This article is a translation of the original Burmese language version that ISP-Myanmar posted on its Facebook page on December 27, 2021.) 

Foreign investment in Myanmar fell by US$1.2 billion from the end of FY 2019-2020 (through August) to FY 2020-2021 (through August).  In August 2021, the only foreign investment came from China, which spent more than US$400,000 in the livestock and aggregation sectors. No other countries made any investments during this period. August 2021 had the lowest level of foreign investment since the military coup, according to an official statement by the State Administration Council (SAC).

∎ Why does it matter?

Foreign investment is an important economic pillar for developing countries, but not all kinds of foreign investment guarantee economic growth. If the investments are resource-exploitative, inconsiderate of the environment, inconsiderate of human rights, and do not improve the livelihoods of the local people, they could further deteriorate the development of the country and cause further impoverishment and vulnerability among Myanmar people. This has been the case throughout successive military regimes in Myanmar. The information concerning which countries are currently investing in Myanmar and what kind of investments are entering the market is key to understanding the involvement of other countries in the current political crisis. Moreover, foreign investments have a direct impact on the long-term sustainable development of the country and the livelihoods of Myanmar people, so it is crucial to monitor any foreign investment developments. Particularly in the current situation in which information ecosystems are being corrupted and destroyed, it is important to keep track of the figures on foreign investment to check whether the military regime is being transparent in their reporting of investments they have approved.

∎ Other relevant readings

Information and statistics concerning the status of foreign investment can be studied using the official website of the Directorate of Foreign Investment and Company Administration, in which investment information is compiled on a monthly and yearly basis. In addition, reports and statistics released by the World Bank, annual reports of the Asian Development Bank, and papers published by Oxford Economics and the Economist Intelligence Unit can also be consulted.

About ISP-Myanmar

The Institute for Strategy and Policy – Myanmar (ISP – Myanmar) is an independent, non-partisan and non-governmental think tank. Established in 2016, ISP-Myanmar aims to promote democratic leadership and strengthening civic participation in Myanmar through its key strategic programs and initiatives. The institute primarily focuses on research, capacity building, leadership engagement, communication and outreach programs, and desk initiatives on Peace and China issues.
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