Myanmar 'still attractive' to investors despite conflict: Western diplomat

“Will this derail the reform process? I would say it won’t, but certainly it’s very unhelpful. The government needs to do more,” the diplomat said on condition of anonymity.
He said the foreign community was pleased with Myanmar President Thein Sein’s pledge to strike a ceasefire with ethnic groups. Underscoring the work that still needs to be done, however, government and Kachin troops clashed on Tuesday, while the army was launching a regional security operation near Narti-Mankan village, where Kachin Independence Army Brigade 4 troops were stationed.
Foreign investors are particularly concerned with ongoing religious violence in Rakhine, as the clashes are now approaching Yangon.
“Religious violence is far more serious,” the diplomat said, referring to recent strife between Buddhists and Muslims.
On Tuesday, a mosque near Yangon, the biggest city and commercial capital of Myanmar, caught fire, killing 13 children. The British government has joined the United States in warning its citizens to avoid certain areas of Myanmar after last week’s deadly religious violence in Meiktila, a city in Mandalay Region, which spread to nearby towns and fuelled concern of violence erupting in Yangon.
The violence, however, has not slowed the pace of economic reforms. Maung Maung Thein, deputy minister for finance and revenue, said this week that Myanmar was planning to form its first credit-guarantee corporation to help small and medium-sized enterprises obtain loans, drawing on the expertise of foreign professionals.
The Japanese government is also planning to provide technical and cash assistance to support exports of Myanmar’s raw materials for rubber production to the Japanese market, said Khaing Myint, secretary of the Myanmar Rubber Agriculture and Producers Association.
Along the Thai border, two more checkpoints – Mawtaung checkpoint in Tanintharyi Region and Mese checkpoint in Kayah state – will be opened once demarcation is complete, according to Myanmar’s Border Trade Department. Bank of Tokyo Mitsubishi UFJ recently signed a deal with Myanmar’s Co-operative Bank to provide technical assistance.
Myanmar is now considered one of the world’s last economic frontiers. After it was isolated for more than five decades, foreign investors are looking to tap the market and get their hands on the country’s abundant natural resources.
The diplomat noted that amid the ongoing violence, Myanmar has something that countries in the Middle East do not: committed leaders like Thein Sein and Aung San Suu Kyi.
“The violence will not scare off investors,” the diplomat insisted. “Rakhine in particular is rich with oil and gas. Chinese investors are still laying pipeline. Clearly, this [violence] won’t derail the momentum for change. Foreign investors still view Myanmar as interesting.”