Good corporate governance and infrastructure development are key to Myanmar’s continued economic development, said KPMG Global Chairman Michael Andrew.
KPMG discussed the future of this next economic frontier with delegates attending the World Economic Forum on East Asia.
Attending the gathering of global business, political and third sector leaders, Andrew said: “Myanmar is poised for rapid economic growth. It is also making excellent progress towards creating the right environment for the investments required to achieve its economic potential.
“Many of the CEOs that I talk to in Asia and beyond are considering investing in Myanmar," adds Andrew. "Before they commit they want some basics; namely a good and clear corporate governance structure and to know that the rule of law and contracts will be respected.”
The rise of Myanmar and increase in foreign investment
Myanmar will likely go through the many phases of growth, initially of low cost manufacturing, then consumer industries, banking, energy and technology at a faster pace than previously industrializing economies. Each phase of this growth will require policy setting and infrastructure which is adaptable.
While in the recent past China has been the largest investor in Myanmar, KPMG is seeing increasing interest from a diverse range of sources, particularly Japanese and ASEAN countries.
Andrew adds: “Potential investors are also telling us that they see continued infrastructure development as being key to the successful and continued growth of Myanmar. Without transport connectivity, power and water supply business simply can't operate.”