Wednesday, December 5, 2012
Myanmar
Myanmar: Frost & Sullivan is optimistic on the future growth for Myanmar as the country is an untapped new frontier at the crossroads of India, China and South East Asia offering abundant opportunities. Believes Myanmar, the only neighbor for both China and India is likely to assume great geo-political-business importance in years to come.
Says, that Myanmar was among first few countries US President Barack Obama chose to visit in his second term indicates Myanmar's improving status and image among the global community.
Myanmar's GDP at purchasing power parity (PPP) has been growing at a very solid rate and is expected to continue to do so over the next few years in the range of 5-6%. In particular, Myanmar's GDP (PPP) has increased by 20% since 2007.
Myanmar’s very young population spread will further help to drive it economically.
The low unemployment rate of ~ 5% was due to the growth of the agriculture sector, which r remains the key driving force of the Myanmar's economy both in terms of GDP and employment.
Most imports into Myanmar are basic commodities not yet manufactured in wide scale in the country and thus show growth potential. The top 10 import industries/items for Myanmar in 2011 are petroleum and related products, machinery/spares, steel construction materials, plastic raw materials, palm oil, vehicles and spare parts, pharmaceutical products, ships & boats, cement and fertilizers.
For the economy to take off and to benefit from Myanmar's location, large infrastructure project covering power, water, ports and roads are needed.
"Oil, gas, power, infrastructure, telecommunications and consumer businesses could top the list in terms of being the most attractive and easier to do investments in the country. Property prices are already very high."
News further reinforces the momentum play amongst Singapore stocks with Myanmar exposure.
In particular,
Yoma provides a play on Myanmar real estate,
Ntegrator and mDR offer exposure to Myanmar telco,
Sin Heng, UPP , Tee Int’l are establishing footholds in providing infrastructure support,
Interra Resources is an oil and gas play,
Super Group and Viz Branz have existing F&B consumer business in Myanmar.
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