Brief overview of the Myanmar economy and growth outlook. Pointers to areas with the greatest business opportunities.

1. Myanmar
Highlights of the Economy
and
Business Outlook
1
BY JOHN PELLEGRINI

2. Myanmar restarting growth
2
Myanmar GDP is starting to grow as reforms to the economy take hold. GDP
growth, however, remains well below benchmark countries within Asia. Based
on the benchmark countries, there’s opportunity for large growth in GDP.
2.7%
0.1%
4.2% Asia Average
1.9% World Average
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
PercapitaGDP
compoundannualgrowthrate

3. Expected growth of $170B by 2025
3
0 20 40 60 80
Manufacturing
Agriculture
Infrastructure
Energy
Tourism
Financial Services
Telecom
Real US$2010 Billion
Sector GDP Outlook
2025 2010
10%
4%
8%
5%
17%
23%
23%
0% 5% 10% 15% 20% 25%
Manufacturing
Agriculture
Infrastructure
Energy
Tourism
Financial Services
Telecom
Compound Growth Rate
Myanmar GDP in 2010 was $50B and by 2025 is expected to grow 300% to
$220B. This growth requires significant development in infrastructure,
financial services and energy.

4. Increase number of large cities
4
Myanmar’s population living in large cities with 200,000 plus inhabitants is
forecast to reach 26% from current 13% by 2025. The development of cities
creates demand for infrastructure and fuel distribution systems.
85
77
48
43
35 33
26
18 16
11 13
25
Average 39%
0
10
20
30
40
50
60
70
80
90%ofPopulationLivinginCitiesofmore
than200,000people
Myanmar
Source: Department of Human Settlement and Housing Development and Ministry of Construction
Increase leads to
10 million more
people living in
Myanmar’s large
cities by 2025

5. Labor productivity must grow to
achieve GDP growth
5
Source: IMF, Central Statistical Organization, Economist Intelligence Unit
Increase in labor productivity through education, training and automation is
required to achieve government GDP growth target
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
GDP Growth Target
2025
Expected growth
from increase
population
Required growth
from labor
productivity
Historic labor
productivity growth
2005-2010
~2x required
productivity growth
Myanmar’s
challenge:
Companies need to
spend on education,
training and
automation

6. CSR – Training of Workforce
6
Labor productivity is low due to the lack of education and training
provided to the workforce. Implementing a program of training and
education will create productive and stable workforce and in long term lower
costs for companies.
Education is valued within society however education beyond
primary falls as not funded by the Government
Economic growth will lead to a skill shortage, requiring on
job training programs
Selection of workers requires additional screening to confirm
skills
Retaining skilled workers requires progression of job titles
and pay increases to reflect merit and encourage learning
Net enrolment rate FY2010
Primary 84.6%
Lower secondary 47.2%
Upper secondary 30.0%
Completion Rate FY2009
Primary 81.2%
Lower secondary 71.7%
Upper secondary 30.8%
Transition Rate FY 2009
Primary to lower secondary 80.8%
Lower secondary to upper secondary 90.6%
Enrolment rates fall off after the Primary Level
Source: OCED 2014

7. Government Developed Special Zones
7
The government has developed regional industrial zones and special economic zones to
encourage industrial development. The coastal areas are ideal locations as offer port access
and high population centers.
Source: OECD 2014