3. Country Snapshot
Republic of the Union of Myanmar (also known as Burma)
• One of the least developed countries in the world
• Abundant natural resources and cheap pool of labor
• Undergoing political and economic transformation after the fall of the long
ruling military regime
Area Size Administrative Division
• 676,578 km2 – 40th in the world • 7 regions (divisions)
• Bordered with India, Bangladesh, • 7 states
China, Laos, and Thailand • Capital city: Nay Pyi Taw
• Commercial hub: Yangon
Natural Resource Key Industries
Petroleum, timber, tin, antimony, Agriculture processing, wood and
zinc, copper, tungsten lead, coal, wood products, copper, tin, tungsten,
marble, limestone, precious stones, iron, cement, construction materials,
natural gas, hydropower pharmaceuticals, fertilizers, oil and
natural gas, garments, jade, and
gems
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4. Key Macroeconomic Indicators
Key Macroeconomic Indicators, Myanmar, 2011
ECONOMIC POPULATION
GDP (US$ Billion) 83 Population Number 54,584,650
GDP per Capita (US$) 1,325 Population Annual Growth 1.23%
GDP Growth 5.5% Gender/Sex Ratio 99(M) : 100(F)
Inflation Rate 5.2% Number of Households 11,826,000
Export/Import (US$ Million) 45.2/42.9 Average Household Size 4.62
Benchmark Interest Rate 12%
SOCIAL - EDUCATION
Lending Interest Rate 15%
Working population 41.6%
Exchange Rate (= US$ 1) MMK825
Unemployment rate 5%
Consumer Confidence N.A.
Poverty rate 32.7 %
Consumer Price Index 163.32
Human Development Index 0.48 (rank 149/187)
FINANCIAL
Gender Inequality Index 0.492
Country Income Profile Low income
Poverty Line MMK754 per day MOTORIZATION
Income share of Highest/Lowest 10% 32.4%/2.8% No. of Vehicles/1000 persons 7
FUEL COST Drive LHD/RHD
Type Gasoline Diesel CNG Emission Requirement N.A.
Ratio 1 1.1 - Paved Road 21%
Price US$4.30/gallon US$4.73/gallon US$0.33/Kg Source: CSO, CIA World Factbook, UNDP, Frost & Sullivan.
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5. Political Risk
Among the top countries exposed to rapid and sudden changes of government policies
Political System, Myanmar, 2011 • The new government, which took power in
Myanmar Mar 2011, ended a 23-year military regime.
Government
2008 Constitution • Several efforts have been made towards
democracy, most notably the release of
opposition party leader, Aung San Suu Kyi,
and more recently, the reshuffle of the
Executive Legislative Judiciary
cabinet to include more reformists.
Union Assembly Main Issues to Address
President (Pyidaungsu Supreme Court
Hluttaw) • Deficient democracy
• Infrastructure development
House of Nationalities • Special economic zones
(Amyotha Hluttaw) • Education and health
• Human rights abuses
House of Representatives • Weak regulatory and legal system
(Pyithu Hluttaw) • Corruption
• Child labour and forced labour
• Environmental issues
Ranked 2 out of top 20 countries in the world with highest
political risks in 2012 according to Maplecroft’s Political Risk • Release of political prisoners
(Dynamic) Index. • Ethnic violence
Source: Frost & Sullivan analysis.
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6. Economic Analysis
Economy is gradually picking up and expected to attain 6% growth in 2012
GDP (PPP), Myanmar, 2007-2011
GDP by Sector, Myanmar, 2011
GDP GDP Growth
90 83 14
12.0 77
80 72 12
GDP (PPP) (USD bil)
68
70 64
GDP Growth (%)
Services
10
60 37% Agriculture
50 8 43%
40 5.1 5.3 5.5
6
30 3.6 Industry
4
20 20%
10 2
0 0
2007 2008 2009 2010 2011
Source: International Monetary Fund.
GDP per Capita, Myanmar, 2007-2011
1,400 1,325
GDP (PPP) per
• Myanmar’s GDP grew the highest in past 5 years,
Capita (USD)
1,300 1,255
crossing US$ 80 billion in 2011. 1,201
1,200 1,153
• Biggest contribution came from Agriculture and 1,111
Services sectors. 1,100
• GDP per capita in 2011 was US$ 1,325 (almost 20% 1,000
growth from 2007 figure). 2007 2008 2009 2010 2011
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7. Economic Analysis
Rapid developments to set banking sector ready for AEC in 2015
Banking Sector Structure, Myanmar, 2011 • Myanmar’s antiquated banking sector has gradually opened up
since the new civilian government took control in 2011, allowing
the establishment of more domestic private banks and
Central Bank of representative offices of international banks and financial
Myanmar institutions.
• However, foreign banks are still not allowed to offer banking
services. They will only be able to form joint ventures in 2014.
Government Overseas • Interest rates have been made in line with other ASEAN countries
Private Banks to raise national competitiveness.
Banks Banks
(19)
(4) (23) • FEC, which has been used as a substitute for US dollar in the
country, is expected to be terminated by end of 2012 when the
new Foreign Exchange Law is enforced.
Interest Rates, Myanmar, 2008-2011
Recent Developments in Banking Sector
18% Nov 2011 Introduction of ATM cards
16%
Lending Rates (%)
Jan 2012 Launch of international money transfer service
14%
Feb 2012 Increase limit of foreign exchange amount
12%
Introduction of cross-bank foreign currency transactions
10%
8% Apr 2012 Official float of the Kyat
6% Jul 2012 Opening of foreign currency account for local and foreign
4% individuals and companies
2% Aug 2012 Introduction of Letter of Credit
0% Launch of Giro Billing Payment System and debit cards
2008 2009 2010 2011 2012
Sep 2012 Launch of Myanmar Payment Union card
Fixed Deposit Lending Rate Savings Bond (3-year) Source: Frost & Sullivan.
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8. Social Analysis
Household Monthly Income Distribution,
Myanmar, 2011
Labor Force, Myanmar, 2011
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Number of Households (million)
8 7.69
7
Services 6
23%
5
4
Industry
3 2.37
7%
Agriculture 2
1.18
70% 1 0.35
0.24
-
• Active work force constitutes 42% of the population, mainly serving the agriculture sector.
• Majority of households (65%) earned between US$200-300.
• Around 70% of income was spent on food items, leaving small amounts for education and healthcare.
Source: Central Statistics Organization, Myanmar Survey Research.
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9. Legal Risk
Underdeveloped regulatory and legal system makes Myanmar the worst country for doing
business
Legal System Characteristics Legal System, Myanmar, 2011
• Combination of English common law and customary Judiciary
law.
• Lack of transparency – no advance or written notice
on changes of laws/regulations by the government
Supreme Constitutional
• No guarantee of a fair trial Courts Martial
Court Tribunal
Status of Business Laws
• Amended version to the 1988 Law under approval
High Courts
Foreign Direct
• Redrafting Special Economic Zone Law in
Investment process
• Banking Law – in drafting process
Finance/ Courts of Self-
• Foreign Exchange Management Law – in drafting
Banking District Courts
process Administered Areas
• Employment and Skills Development Law under
Employment/ discussion
Labor • Minimum Wage Law under approval
Township
Consumer • No existing law Courts
Protection • New law in drafting process
• No existing law Law enforcement bodies:
Intellectual
• New IPR to be submitted to Parliament for State Peace and Development Council
Property approval
Attorney General
• New Impact Assessment Law in drafting process Supreme Court
Environment • No pollution standards Police
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