Although to this point Myanmar’s foreign direct investment has enjoyed a strong fiscal year, the Ministry of Investment and Foreign Economic Relations (MIFER) predicts the COVID-19 pandemic will put a huge dent in short term FDI.

“My concern is that although more investment was approved, the actual inflow of FDI will be a challenge for us,” said MIFER permanent secretary U Aung Naing Oo during an online conference. USD 3.3 billion worth of FDI was approved between October, 2019, and March, 2020, however Aung Naing Oo said the amount of actual investment made in Myanmar stands to be much lower. Indeed, investment inflow is currently USD 500 million, a full USD 300 million lower than it was at the same time last year, he continued.

The COVID-19 outbreak began to damage Myanmar’s economy as early as January, when exporters found themselves unable to move merchandise into China. Although the pandemic continued to damage certain industries, it remained unclear the extent to which it would discourage foreign investors. Now, with global markets entering a historic recession, it appears FDI will drop considerably. Aung Naing Oo said that currently the garment and hotel and tourism industries have sustained the most damage, however other sectors will suffer in the coming weeks.