Frost & Sullivan: Future Is Bright For Myanmar
He also said that special economic zones will be required to continue to stimulate both imports and exports, along with ports and roads. He noted that around 300,000 TEUs and 16.7 million tonnes, accounting for close to 100 per cent of Myanmar's cargo, pass through the ports of Yangon and Thilawa. He added that Myanmar will act as a Southern Economic Corridor and Gateway to India, and the three special economic zones being developed are Kyaukphyu, Thilawa and Dawei.
Mr. Vaidya said that Myanmar needs to address its chronic shortage of electricity to ensure continued economic growth. He added that Myanmar's power generation is currently made up of 70 per cent hydro, 24 per cent gas, 4 per cent coal and 2 per cent diesel. He added that current production levels are at 1,350 MW which can drop in summer due to less hydro production against a demand of 1,850 MW. He forecasts demand of about 3,000 MW in 2016.
Mr. Vaidya said that the oil and gas sector offers major opportunities but most likely under Production Sharing Contracts (PSC). He added that state-run MOGE is active in the oil & gas sector, and Myanmar has large reserves of oil and gas both onshore and offshore.
"Other than companies coming into to work with current block licence holders, Myanmar is looking at offering up as many as 10 off-shore and 10 on-shore blocks," he said, adding that altogether 62 of the country's 101 exploration blocks remain open for bidding, including 34 onshore, eight in shallow water, and 20 in deep water.Mr. Vaidya said that Myanmar's telecommunications sector shows huge potential with only 3 million mobile subscribers out of 60 million people. He added that wireless penetration stands at 4 per cent and fixed at 3 percent, so massive upside for growth but hurdles exist. "50 per cent of wireless penetration is targeted by 2015 but handset prices are high and registering SIM cards is expensive at about US$150-200," he added. Mr. Vaidya said that there are abundant opportunities within a wide range of industries in Myanmar but one will need to be patient and get timing and model of entry right in order to be successful in the country. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
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