By Joshua Gill
Jun. 25 – Following U.S. President Barack Obama’s May 17 announcement that the United States would ease its sanctions against Myanmar, some American firms have begun to make efforts to expand into this newly available market. In his speech, President Obama declared that the suspension of the bans on the exportation of financial services and new investment in Myanmar would “facilitate broad-based economic development” and bring Myanmar “out of isolation and into the international community.”
On June 14, Coca-Cola announced that it planned to end its more than 60 year suspension of business with Myanmar and re-enter the market. The resumption of business includes a US$3 million grant to a women’s empowerment group as well as plans to begin importing Coca-Cola products from neighboring countries. Its long-term plans include partnering with local businesses to establish itself as a market leader in Myanmar.
Infrastructure includes road linking India to Thailand
Indian Prime Minister Manmohan Singh with Myanmar President Thein Sein
May 29 – Indian Prime Minister Manmohan Singh, in Myanmar meeting with President Thein Sein this week, has agreed on a number of key investment and development projects with the country. It has been the first visit to Myanmar by an Indian PM in 25 years.
Among the various agreements signed has been an air services project, which will provide 18 Indian cities with flights to Myanmar and also allow them to combine these with onward flights to other Asian destinations. Indian companies will also explore oil in some of Myanmar’s blocs, while border trade zones will be set up at Arunachal Pradesh at the Pangsau Pass.
Mar. 28 – The Myanmar government is introducing a new set of regulations expected to promote foreign direct investment into the country. Coupled with the lifting of U.S. sanctions on the existing regime, this move may well spell the beginning of a new chapter in the nation’s development. Long a pariah state and run until recently as an oppressive military dictatorship, a shift in domestic policy appears to be opening up the country to reform.
New regulations are set to be introduced as early as next month, taking the shape of tax holidays, simplifying foreign exchange, liberalizing the banking sector and reforming the areas of investment available for foreign participation.