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   [45]Home » [46]opinion » Opportunities for growth as Myanmar opens
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Opportunities for growth as Myanmar opens

   Nophakhun Limsamarnphun
   nophakhun@nationgroup.com April 21, 2012 1:00 am
   [47]Arrow Prev [48]Arrow Next

Myanmar's April 1 parliamentary by-elections have proved to be fruitful as
far as the country's re-joining the rest of the world is concerned.

   The latest positive reaction came from European Union, which has
   indicated it will suspend all sanctions against Myanmar for one year.
   The EU measure is seen as a carrot for the regime in Myanmar, which for
   the first time in decades decided to by-elections and release a large
   number of political prisoners.
   The opposition National League for Democracy (NLD), led by Aung San Suu
   Kyi, won most of the constituencies in the by-elections, paving the way
   for her party to enter Parliament, which has over 600 seats, most of
   which are still controlled by the military under the leadership of
   pro-reform President Thein Sein.
   The EU's suspension of sanctions is conditional upon the sustainability
   of reforms promised by the regime, and there will be a review after six
   months. Yet, the move will allow all economic and related activities
   between the EU and Myanmar, except arms sales, to resume, meaning that
   around 800 European firms will be able to return to do business with
   Myanmar. This will be a potential bonanza for many European firms hit
   hard by the recent euro-zone debt crisis.
   Suu Kyi herself has endorsed the conditional suspension of sanctions.
   Besides the EU, the US also has removed some financial restrictions on
   Myanmar, and Americans are now free to make financial transactions in
   the country for projects that "meet basic human needs" or promote
   democracy.
   Last year's visit by US Secretary of State Hillary Clinton marked the
   start of Myanmar's reforms, with the April by-elections being the first
   major event. The next milestone will be Myanmar's hosting of the
   Southeast Asian Games in 2013. Afterwards, the country will chair the
   10-member Asean grouping in 2014.
   The following year, Myanmar will join the Asean Economic Community
   (AEC) as one of four new members, including Laos, Cambodia and Vietnam.
   In 2015, reforms will be in an advanced stage as Myanmar plans to hold
   its first-ever open general election in decades.
   For Thailand, the opening of Myanmar can be seen as a great opportunity
   to re-balance the Thai economy, as Myanmar can be a major source of
   cheaper labour, raw materials and natural resources as well as a major
   market with its population of over 60 million.
   Some of Thailand's labour-intensive manufacturing industries will be
   more competitive once they relocate to the neighbouring country, while
   Thai firms will have convenient access to a large market which is
   expected to grow rapidly in the coming years. In other words, Myanmar
   has the potential to be the next major Asian economy.
   As members of the AEC, both Thailand and Myanmar, along with Vietnam,
   Cambodia and Laos, can form a competitive mainland network of the AEC
   single market and production platform. This is evidenced by the
   emerging east-west and north-south economic corridors.
   From east to west, the Dawei deep-sea port and industrial development
   zone on the Thai-Burmese border serves as one of the key links that
   will allow businesses and industries to tap the economic potential of
   India, Burma, Thailand, Vietnam, Laos and Cambodia.
   From north to south, economic integration starts from southern China
   down to Singapore, encompassing Myanmar, Thailand, Vietnam, Laos,
   Cambodia and Malaysia. China's proposed high-speed railway project,
   criss-crossing most of the Indochinese countries, is among the major
   mega-infrastructure links.
   [49][double-click-dictionary.gif]

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