Soe Win, the coup’s deputy leader, said the state needed to attract fresh investment in order to avoid losing tax revenue.
In a recent meeting with officials from the Thilawa SEZ Management Committee, he stated that the two countries should work together to establish the country’s first and most successful model SEZ.
However, economists warn that the current political and economic environment in Burma makes it difficult for investment to pour in.
“Foreign investment is difficult to arrive because of the terrible political scenario,” one economist stated. Political stability is non-existent.
Because there is no rule of law, it is tough to come. However, you are not an idiot if you are a complete moron. Companies that are currently in operation; countries that want to participate in this circumstance. Take, for example, China. They’ll probably come in. When these businesses arrive, they bring with them job opportunities.
But, on the other hand, can they do it openly? Burma’s political problems are not limited to this. There is also a financial issue. The electricity is not working properly. There is no internet. There is no protection. Will they be able to maintain a stable and well-functioning economy in these circumstances? Can there, on the other hand, be no threat from the opposition? There’s a lot to consider here.
We now have to work locally due to the awful scenario. Working in another country is currently not possible. They are in business to make money. However, doing business in Burma has political and economic dangers. “So they’ll do it after a lot of thought,” he told DVB.
“After the military takeover, some significant human rights companies departed the country,” a foreign businessman noted. The first is the loss of job opportunities. Another consideration is the country’s revenue. You must pay taxes as a major corporation because you must pay taxes. Worse, the impact of significant corporations leaving is harming the country’s reputation.
What made you decide to leave this country? Did you leave because the balance was off? There has to be a reason for you to leave. Big firms are responsible enterprises. Democracies are particularly susceptible to this. As a result, major, responsible enterprises have a hard time getting in,” he told DVB.
According to the International Labor Organization (ILO), the labor market in Burma has collapsed a year after the military coup due to a shortage of good jobs.
According to the International Labor Organization, the military coup has caused political upheaval in the country, as well as the Kovis-19 pandemic, which poses numerous public health and socioeconomic issues.
As a result, the International Labour Organization anticipates that working hours in 2021 will be 18% less than in 2021 before the military coup.
This translates to 3.1 million full-time workers. According to the ILO, lost working hours occur in low-skilled workplaces in addition to job losses.
According to data supplied by the military council’s Directorate of Investment and Company Administration, 12 investment sectors were invested between February 1, 2021 and January 31, 2022 following the military coup. There were 44 projects totaling $3,823 million, including $3,062 million spent in the power sector, $237 million in the service sector, and $ 199 million in the industrial sector.