MIC forecasts foreign investments worth $3 billion in next six months

The Myanmar Investment Commission (MIC) is expecting $3 billion in foreign direct investments (FDI) for the six-month interim period between April 1 and September 30, said MIC secretary U Aung Naing Oo last week.

During the period bridging the current the 2017-18 fiscal year and the new 2018-19 fiscal year, FDI will continue to flow into the manufacturing, real estate and services sectors, U Aung Naing Oo said.

In comparison, the MIC approved over 200 FDI totalling $6 billion in value between April 1, 2017 and March 20 in the 2017-18 fiscal year, which is twice the amount forecast for the interim period. The sums approved were within expectations.

A total of $1.7 billion, or a third of approved FDI in 2017-18 was channeled into the manufacturing sector, according to the Directorate of Investment and Company Administration (DICA). This was followed by approved FDI of $1.2 billion into the real estate and around $1 billion during the period.

As spending on new infrastructure projects has been put on hold for the interim period, MIC expects FDI flows into infrastructure to taper down until the new fiscal year commences on October 1.

Singapore and China were the two largest investors in Myanmar, with both countries channeling $2.1 billion and $1.3 billion, respectively, into projects in the country. That represented more than 60 percent of total approved FDI into Myanmar in 2017-18.

Notably, the Netherlands emerged as one of the bigger investors in the country in the current fiscal year, investing over $500 million, or 9pc of total FDI, into the country.

In FY2017-18, around 40 pc, or $2.4 billion in FDI was channeled to Yangon Region. This was followed by $1 billion into Mandalay and $400 million into Mon State.

According to EuroCham Myanmar, some businesses have considered reducing reinvestments in Yangon in the next fiscal year.

During the period, Chin, Rakhine and Kayah states did not receive any FDI.

Source : Myanmar Times

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