Political risks may hamper the growth of port development in Myanmar, according to UK-based consulting firm Drewry Maritime Advisors, following the country’s recent change from military rule to a democratic government.
Aden Wong, senior consultant at UK-based Drewry Maritime Advisors, told IHS Fairplay that there is a lack of proper institutions to direct the country’s port development, and this may represent a steep learning curve for investors on the uncertainty in trade policy.
“The new-elected government has yet to come on board in March 2016, and after that they still need around six months to [a] year to [established their plans regarding] Myanmar’s port developments,” he explained.
Despite the risk, he highlighted that Myanmar has huge potential to grow with a young workforce and low industrial cost base. The drawback, however, is that the country’s economy is still in its infancy. For instance, the country started an international banking system only a year and a half ago. Communication and road networks remain a problem in cities, and in some parts of the country infrastructure development is primitive at best. (Courtesy of IHS Fairplay)
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