Myanmar regulation reform will spur investment

Subject

Myanmar's business environment.

Significance

The government is instituting measures to improve the business climate and attract foreign direct investment (FDI) into the economy. As part of this effort, on February 24, it instituted the Competition Act. However, while there has been an influx of new FDI, foreign investors remain wary -- largely because of the challenges of navigating Myanmar's old and complex regulatory environment.

Impacts

• Economic reforms could slow in the event of an opposition electoral victory, as the new government gains experience.
• Improvements to the business environment could be constrained by a faltering or failed ethnic peace process.
• Regulatory reforms backed up by effective administration could contribute to equitable economic growth.