01 Jul Special Report: Myanmar’s Financial Sector Supporting the Country’s Economic Growth
Myanmar’s remarkable and on-going political reform process has been followed by an economic opening to trade and investment. There has been great interest to enter what has been called “Asia’s last frontier market”, attracting considerable interest from many companies – not only from Asia but also further afield from Europe and the USA. Initial growth rates have been well above the global and regional average, albeit from a low base, and the potential for further growth is clear. But the opening has brought greater attention to a multitude of needs in the country, especially in basic infrastructure as well as rules and laws. The amount of foreign investment actually realised so far has been relatively modest. One critical factor weighing on corporate investment decisions – whether by those already in Myanmar or thinking to enter – is for the country’s financial sector to develop further.
This Special Report aims to provide an analysis on the value and impact of a more open financial sector on Myanmar’s economy. The three sections provide an overview of the country’s economy and financial sector, as well as analyses and observations made in the domestic and foreign banking sector. The fourth section discusses the value of Myanmar’s financial sector opening on its economy, and the final section provides recommendations on the short, medium and long-term goals of supervising the sector.