Sherpa Hossainy's Blog

Infrastructure and good governance to spur Myanmar’s economic development

Posted in Legal, Myanmar, Yangon by Sherpa Hossainy on July 10, 2013

Published in Myanmar Business Today (Vol 1, Issue 20) on June 20, 2013

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Good corporate governance and infrastructure development are key to Myanmar’s continued economic development, a senior KPMG official 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,” KPMG Global Chairman Michael Andrew said while discussing the future of the “next economic frontier” with delegates attending the World Economic Forum on East Asia.

KPMG is a global network of professional firms providing audit, tax and advisory services, and one of the “Big Four” professional service firms.

“Many of the CEOs that I talk to in Asia and beyond are considering investing in Myanmar.  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,” Andrew said.

The KPMG chief said 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 industrialising economies. Each phase of this growth will require policy setting and infrastructure which is adaptable, he added.

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 added: “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.”

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