HONG KONG FIRMS EYE INVESTMENTS IN COUNTRY’S INFRASTRUCTURE, LOGISTICS
Hong Kong companies are looking for investment opportunities in Myanmar, especially in infrastructure and logistics support, according to Stephen Liang, assistant executive director of the Hong Kong Trade Development Council. “We are very much looking forward to more incentives for Hong Kong companies and are keen to look for investment opportunities, particularly to strengthen factory capability and support,” Liang said in Hong Kong on November 22. The official led a trade mission of 37 executives from 27 companies to visit Yangon from November 25 to 28. The mission, which included many Hong Kong companies engaged in manufacturing garments and footwear, was particularly attracted by Myanmar’s good supply of low-cost workers, and improving business conditions, industrial infrastructure and logistics support, he said.
(Source: The Myanmar Times, December 4, 2018)
The lack of basic hard and soft infrastructure remains the key bottleneck to mid- to long-term economic growth. Sustained economic growth requires the development of a private-sector-based economy with enhanced industrial development and export competitiveness. According to World Bank, although it is one of the priority sectors for exports, productivity in the agriculture sector in Myanmar remains among the lowest in the region due to weak infrastructure and horticultural practices. The infrastructure and logistics gap also constrain export competitiveness in the manufacturing sector. On these issues, upgrading the infrastructure for electricity, transportation and telecommunication is critical to boosting output. In particular, insufficient and unreliable electricity supply has hindered the development of industries across sectors in the economy. In terms of human capital, while Myanmar enjoys the advantage of young demographics, most of the labor force is unskilled. The rule of law and the legal framework could be further strengthened in order to foster confidence and support the development of the private sector in Myanmar.