Manufacturing sector attracts $286 mln last FY

Majority of foreign enterprises eye the manufacturing sector for investments in the last financial year 2020-2021, pumping the estimated capital of US$286 million into 27 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need large labour force are prioritized, the Myanmar Investment Commission stated.
At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 negative impacts and the political changes. Myanmar’s garment export drastically dropped on the back of slump in demand by European Union market in the previous months. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report. Myanmar’s manufacturing sector is largely concentrated on garment and textiles produced on a Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. Myanmar drew foreign direct investment of more than $ 3.79 billion in the last FY, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated.
Of 48 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 September of the FY 2020-2021, 27 enterprises pumped FDI into the manufacturing sector. Power sector received six large project and livestock and fisheries sector attracted six projects. Other service sector drew five projects while agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors.—KK/GNLM