Junta gets 70% of foreign investment from energy sector since coup: think tank

By Admin 05 Jun 2023

DMG Newsroom
5 June 2023, Sittwe

The Institute for Strategy and Policy – Myanmar (ISP – Myanmar) says Myanmar has attracted more than US$5.4 billion in foreign investment in the two-plus years since the coup.

Of this, 70 percent (approximately US$4 billion) was directed toward the energy sector, ISP – Myanmar said in a statement on May 31.

The foreign investment in the energy sector includes US$2.5 billion that is part of China’s Mee Lin Gyaing LNG power project, which was approved in May 2021, the statement said.

“Additionally, over USD 700 million was invested in the energy sector in July 2022. The identity of the investors is currently unknown,” ISP – Myanmar’s statement adds.

Overall, foreign investments have declined since the coup. During the pre-coup fiscal year 2019-2020, foreign investment exceeded US$5.5 billion. The combined value of foreign investments in the two fiscal years following the coup remains lower than the total value of the investments made in the year prior to the coup, the statement notes.

Despite international economic sanctions against the junta after the coup, Chinese investment in Myanmar continues unabated.

“While the rest of the world is not investing in Myanmar, as long as China continues to invest in Myanmar, it can greatly contribute to the longevity of the junta,” said U Than Soe Naing, a political analyst.

ISP – Myanmar said that while foreign investment is an important economic pillar for developing countries, foreign investment does not always guarantee a country’s development.

ISP – Myanmar added that the exploitation of natural resources, lack of respect for the environment, lack of respect for human rights, and investments that do not support the improvement of the lives of local people are sinking the country deeper into poverty.

Arakanese veteran politician U Pe Than said the junta’s actions are not for the benefit of the people and are only for the perpetuation of the military dictatorship and the welfare of the military class.

“No matter who the military dictators are ruling the country, it will be the same. That’s why the investments made and the natural resources sold during the military dictatorships did not benefit the country,” he added.

ISP – Myanmar said foreign investment has a direct impact on the long-term sustainable development of Myanmar and the daily life of its people, so it is important to keep an eye on which investments are approved by the military regime.

ISP – Myanmar wrote of the Southeast Asia region: “Based on a comparison of ASEAN countries’ investments in Myanmar, it appears that Singapore has invested the most (even after the coup). In the past seven years consecutively, approximately 90% of the ASEAN’s investment in Myanmar has come from Singapore. With almost 8% of the total investment, Thailand ranks second.”