Myanmar: New $2.5b LNG power plant is biggest FDI
NAY PYI TAW, MM, Jan 27, 2022 – Foreign investments approved in the past year include a USD 2.5 billion project for the construction of a liquefied natural gas (LNG) power plant in Myanmar.
Other than that, the military junta has approved USD 3.82 billion equivalent in foreign investments and USD 651 million equivalent in domestic investments last year. The services and manufacturing sectors top local investment with mining, power and construction sectors attracting sizeable citizens’ investments.
This is since the State Administration Council (SAC) took office. The SAC was formed on February 2, 2021, a day after the Proclamation was issued after the failure to settle the issue of voter list fraud and malpractices in the 8 November 2020 elections, and to postpone parliament sessions.
A state of emergency was declared in accordance with Article 417 of the 2008 Constitution of Myanmar.
While the Myanmar government is hailing this investment figure as a victory, it is a sign things are moving very slowly for the shunned administration.
The ASEAN has practically barred Myanmar from official events since last year.
“Despite the destruction of public property, attacks on Government personnel and attempts to sabotage the domestic economy by the so-called People’s Defense Force – with clear support from foreign elements – the SAC had largely restored national stability by the second half of 2021,” says a Ministry of Information release.
Myanmar faced a second crisis, a health pandemic that arose from the outbreak that was first detected in the country in March 2020. However, due to intense efforts to contain COVID-19, schools, universities have reopened, and most commercial activities have resumed in recent months with the vaccination of at least 60% the country’s population (above 18 years) to date.
CHINA
The People’s Republic of China, apart from being the largest trading partner of Myanmar, is the largest foreign investor in the country. Among the non-PRC foreign investments approved in the past year were one from Japan (USD 516.43 million), four from Singapore (totaling USD 442.20 million), two from Thailand (totaling USD 75.50 million) five from South Korea (totaling USD 66.17 million) and seven from Hong Kong (totaling USD 60.09 million).
The Government estimates that the foreign investments over the past year led to the creation of 25,383 new jobs while domestic investments added a further 11,879 new jobs, or a total of 37,262 jobs.
Myanmar Government is accelerating efforts to improve trade flows with and investments from countries such as Russia that, until recently, have not been among its leading economic partners. Prior to the pandemic, which curtailed business travel and activities, Myanmar-Russia bilateral trade had increased 30% in FY2019-2020 (November to October) compared to the year earlier.
Despite the challenges of the pandemic Myanmar and Russia are actively formulating a Bilateral Strategy for Development of Economic Cooperation. The latter has already led to a first virtual business matching session attended by dozens of business leaders from both countries last September. A second such virtual session will be held on 31 January 2022.
The two countries, which signed an Inter-Governmental Joint Commission for Trade and Economic Cooperation in August 2014, plan to hold its third Joint Commission meeting, physically, in Nay Pyi Taw in the near future.
Russian corporations have invested USD 94 million in Myanmar, mostly in the oil and gas sector, and the country currently ranks 22nd out of 52 foreign investors. Myanmar Government will support the extension of Russian investment interest to sectors such as mineral processing, solar energy, railway and ICT, aviation, automobiles and tourism.
Photos: Myanmar Now