Investors eye off Burma as sanctions lift PM

By South-East Asia correspondent Zoe Daniel  Updated May 10, 2012 07:14:18 ...

There are predictions that resource-rich Burma could become a new Asian tiger, if reforms continue and sanctions ease on the previously shuttered economy.

Already economic development agencies such as the World Bank and the Asian Development Bank are resuming operations in Burma and the government is expecting a surge in foreign investment.
Australia and the United States have already eased sanctions and the EU has suspended all but its arms embargo for a year.

It will take time for Burma's 60-million-strong population to see the economic benefits of the new interest, but already there is an emphasis on corporate social responsibility, amid concern that people will be forgotten by international investors who are only looking to extract profits.

"This is a labour-intensive country - there's lots of labour available. People need jobs, people are unemployed, people are impoverished, people are underemployed," says development consultant Daniel Gelfer.

"There's a need for massive employment both in skilled and unskilled labour, and I hope that investment would help fill some of those gaps."

Industries previously flattened by trade restrictions are preparing for an economic revival.
Among them is the garment sector, which before sanctions employed more than 300,000 people. For the moment, exports to the US are still not allowed.

"We have about 150 factories running at the moment with 100,000 workers - at one time down to 60,000 thousand workers from 350,000 workers - and we are trying to create a job opportunity for them," said Khine Khine Nwe from Burma's Garment Manufacturer's Association.

There are visible changes on the streets of Rangoon - new cars on the road, new goods in the shops and a sense of surprise among the Burmese people, rich and poor.

Moe Myint, whose oil and gas exploration company operates one of the most productive oil fields in a country, perfectly positioned to provide energy to both China and India, says he never expected to see these changes in his country.

He says Burma can learn a lot from Australia's model of outside investment.

"What has happened over the year has been a surprise. I never expected that something like this would have happened in my lifetime - I'm 60 years old now," he said.

"I would like to see more investment, more big qualified companies, like for instance from Australia, you have Woodside Petroleum, you have BHP, I would very much like to see companies like that come in.

"When these companies come in, it will have a very positive effect or impact on the environmental, educational, health standards of the country and that will help grow a middle class."

http://www.abc.net.au/news/2012-05-09/investors-eye-off-burma-as-sanctions-lift/4001728