Chinese investment enquires in Myanmar affected by COVID-19

Enquiries on Myanmar by Chinese investors have fallen in the wake of the COVID-19 outbreak which has infected 78,064 in China and caused the death of 2,715, mostly in the central province of Hubei.

“Chinese investors making investment enquires to Myanmar have fallen since the virus broke out in December last year.

The virus has disrupted operations in China and are likely to impact Myanmar,” said U Thant Sin Lwin, Secretary of Myanmar Investment Commission.

While enquiries and activity by existing Chinese investors in Myanmar are still ongoing, some industries have already taken a hit and many are bracing for further disruptions.

The Myanmar Garment Manufacturers Association has said it fears that half the garment factories in the country may have to shut down temporarily as soon as March, due to a shortage of raw materials from China as a result of the virus.

Fitch Solutions Macro Research this month lowered its forecast for Myanmar’s real GDP growth for the financial year 2019-20 to 6.3pc from 6.5pc, down from an actual 6.8pc in 2018-19.

It expects the slowdown in tourism activity to account for most of the impact as Chinese nationals accounted for nearly a third of over two million foreign tourists last year.

This year’s Yangon Investment Forum has also been postponed from the end of this month. No date has been set.

Myanmar has received about US$ 2.8 billion worth of foreign direct investments this fiscal year, mainly by a Hong Kong power production firm.

Source: Myanmar Times

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