YANGON -- Foreign investment in Myanmar appears poised to plunge roughly 30% for the year ending March 31 amid the absence of new oil and gas projects, highlighting the need for the government to lure other industries with deregulation and firm economic policy plans.
Myanmar received about $6 billion in foreign direct investment during the 11 months through February, an official at the Directorate of Investment and Company Administration told The Nikkei. An additional $1 billion or so is expected for March, the official said, bringing the annual total to around $7 billion for the first year-on-year drop since fiscal 2012.
Foreign investment had typically increased since Myanmar's democratization in 2011, stoked by efforts to improve ties with the international community and throw open the economy under the government headed by retired Gen. Thein Sein. But much of that money was concentrated in the energy sector, as 40-50% of investment in fiscal 2014 and fiscal 2015 flowed into oil and gas development.