Myanmar

Telecoms set the business tone in Myanmar

9 Mar 2021

Buyout group CVC may ditch a $700 mln deal for tower assets after a military coup, but Norway’s Telenor, a big taxpayer, and TPG are heavily invested. How the industry deals with the junta offers a proxy measure of how patient foreign investors will be with any new regime.

Myanmar coup does China more harm than good

2 Feb 2021

Beijing has refrained from condemning the army’s ousting of Aung San Suu Kyi’s party. China may gain influence as Myanmar’s largest trading and FDI partner. But the junta is unfriendly, and instability will dampen demand for Chinese exports and undermine investment.

Myanmar all but fades from investment frontier

1 Feb 2021

Military detentions of Aung San Suu Kyi and other ruling party figures represent a dark turn for a once-bright opportunity. An economy that lured tourists and foreign companies such as Kirin may be headed back to isolation. Recovering again will be a painstaking process.

Subpar Asian trade deal shines in splintered world

16 Nov 2020

Fifteen nations accounting for 30% of global GDP will slash tariffs and ease the movement of goods in the region. India’s absence is among the disappointments of the long-awaited pact. Even modest progress counts for a lot considering the sad state of U.S. and UK trade affairs.

The Exchange: The Asianisation of the world

17 Sep 2019

A splintering West and increasingly interconnected East is creating a newly powerful mega-region, according to Parag Khanna, author of “The Future is Asian.” He swung by the Breakingviews office in Hong Kong to break down the economic and geopolitical rationales behind his idea.

Myanmar tourism stock soars away from crisis

8 Jan 2018

Hot-air balloon operator Memories Group had a strong debut after reversing onto the Singapore exchange. The shares jumped 60 pct amid an ongoing Myanmar military campaign condemned by the UN as ethnic cleansing. Investor optimism is hard to square with the political realities.

TPG follows Turkish raki feat with Myanmar whisky

13 Oct 2017

The buyout firm has sold out of Myanmar’s largest spirits company in a $1 bln deal. As it did in Turkey, TPG again bought small, scaled up and sold to a big corporate buyer. Making deals in places like Yangon is an acquired taste – but can yield potent returns.

Myanmar is no longer too hot to handle

15 Sep 2016

The U.S. will end sanctions and accept duty-free imports from the Asian nation. It is a milestone. A blacklist of companies and individuals had made it difficult and costly to deal with the country. Scrapping that makes Myanmar a lot less scary for foreign banks and other firms.

Myanmar’s "lady" faces challenge of a lifetime

24 Feb 2016

Aung San Suu Kyi will realise a long-held dream when she takes effective charge of the Asian country on April 1. The democracy champion’s first test will be to build on rapid reforms undertaken by her predecessor. Suu Kyi also needs to act to fill a leadership vacuum around her.

Kirin pins M&A comeback hopes on risky Myanmar

20 Aug 2015

The Japanese drinks-to-pharma group is buying 55 pct of the country’s top brewer for $560 mln. It’s a welcome change from a sluggish home market. But beer’s last frontier comes with risks. Kirin is teaming up with a military-linked partner at a time of political uncertainty.

Myanmar ruling dents Thai tycoon’s beer ambitions

3 Nov 2014

A Singapore arbitrator has ruled Charoen Sirivadhanabhakdi must sell his fast-growing business in the country to a minority partner linked to the military. A cash payout, even at a higher valuation, would be poor compensation for losing an attractive growth asset.

Myanmar needs private growth more than public debt

30 Jan 2013

Now it has a Paris Club debt relief agreement, aid agencies will flock to lend to Myanmar’s government, as will global banks. Myanmar should avoid taking too much easy money; private sector growth through domestic savings and property rights matters more than infrastructure.

O-Burma trip rewards reformists for job half done

9 Nov 2012

Including Myanmar in the president’s first post-re-election trip abroad is reward for dramatic reforms and cultivates a key ally in the U.S. pivot to Asia. But it’s sure to antagonize China’s new leaders - and could reduce pressure on Myanmar to make to make even tougher changes.

Tourism, tax crucial to Myanmar’s future

29 Aug 2012

An influx of visitors, if reasonably well managed, can bring dollars and the right kind of attention to the Southeast Asian country’s long-suffering people. Longer-term investment and far better government are also needed. The glaring need to lift tax revenue could affect both.

Asia offers Myanmar development do’s and don’ts

4 Jun 2012

One advantage of 50 years of isolation is being able to learn from neighbours’ mistakes. Myanmar isn’t a blank slate, but has a rare chance to get right on corruption, property, infrastructure, education, foreign investment, trade, markets, and currency what others got so wrong.

Myanmar must brace for post-sanctions cash deluge

18 May 2012

With U.S. sanctions suspended, it is open season for investment. Myanmar is already teeming with potential investors eyeing its resources and consumers. Undeterred by weak legal and financial infrastructure, their cash could fuel inflation, corruption and inequality.

Stock markets no must-have for frontier economies

18 Apr 2012

Impoverished Myanmar wants an exchange, while Cambodia’s first stock just started trading. But miniscule markets only hinder development in a world of borderless investing. Poor emerging economies are better tapping big bourses nearby to raise capital and invest their savings.

Myanmar vote doesn’t give clear win to investors

2 Apr 2012

Aung San Suu Kyi’s by-election win is a big step to democracy, which may bring the end of sanctions. The simultaneous freeing up of the exchange rate is a step to a market economy. But the path to democracy is still uncertain and Suu Kyi’s views on foreign investment are unknown.

Myanmar still far from ready for investment rush

22 Mar 2012

New draft laws to let in foreign capitalists suggest it could follow Vietnam and Cambodia. But with the official exchange rate over 120 times the market rate, the economy is distorted and official data hard to take seriously. Ironing out the creases could take years.

Myanmar forms centre of economic love triangle

30 Nov 2011

A visit from Hillary Clinton marks the end of Myanmar’s pariah status, but there is much work to be done before the country can offer investors sustainable returns. With the United States, China and India all jockeying for position, capital flows may come too quickly.