"Myanmar’s economy could grow by more than 7 per cent over the medium term, provided that it retains its current momentum."
A series of political reforms initiated in 2011 aimed to establish a modern market economy in Myanmar and open the country up to foreign trade. The removal of sanctions, imposed by the West for many years, saw an unprecedented increase in direct foreign investment into Myanmar. The result: a great upswing in Myanmar’s economy.
This upswing is expected to continue, with sectors such as energy, construction and transportation all likely to benefit. Myanmar’s economy could grow by more than 7 per cent over the medium term, provided that it retains its current momentum; a factor that is very much dependent on policy consistency and implementation.
The construction equipment sector is poised to see great opportunities, as the government in Myanmar implements ambitious plans for a much-needed upgrade and extension of the country’s infrastructure. Currently only a quarter of the population is serviced by the power grid and energy production must increase as the country develops. Increasing urbanization is already evident in rising house prices as the demand for urban housing outstrips current supply. With the expansion of commercial activities in the country and the current reform agenda, even more pressure on the construction sector is likely.
As a result of the economic growth, Myanmar is also seeing strong growth in auto sales, something that has led many automakers to establish a presence in the country. Growth in the number of registered passenger vehicles in the fiscal year ending March 2014 was 31 per cent according to Myanmar’s Department of Road Transport Administration. This strong growth is further fueled by relaxed import regulations. With Myanmar’s large and young population seeing improving economic conditions and benefitting from economic reforms, the future auto market in Myanmar could well turn into a strong growth story.
Myanmar is moving in the right direction and significant opportunities are being created in the process.