Thailand – biggest investor in Myanmar
The continuing violence in Myanmar caused by the military
government’s crackdown on street protests will have an impact on businesses
owned by many groups of Thai investors in the country, according to the
Kasikorn Research Centre.
The leading think tank reported that should the unrest drag on, and
escalate, it would affect Thai businesses investing in tourism in Myanmar
since foreign tourists would reduce their travel into the country.
At the same time, Thai businesses investing in production for export in
Myanmar might be affected by additional international sanctions.
At present, Thai businesses have invested in various areas including
production, hotels and tourism, fishery, mining, transportation, oil and
natural gas drilling, construction, property, and agriculture.
The KRC forecast indicated that should the violence persist, Myanmar would
face more economic sanctions from the international community, particularly
the United States, the European Union and Japan.
It said investment made by Thai investors in hotel and tourism businesses in
Myanmar totaled US$228.6 million. Investment projects by Thai businesses
made in the production industry in Myanmar are worth $614.6 million, the
fisheries industry $171 million and agriculture the smallest at $2.7
Power generating projects invested by Thailand in Myanmar worth $6.03
billion baht involve the construction of hydro-power dams along the Salween
River, which is expected to take six years to complete.
The project value, combined with that of other investment projects, brought
up the total investment value Thailand has in Myanmar to $7.38 billion baht.
Thailand is the biggest investor in Myanmar with Singapore, Malaysia, and
Indonesia coming second, third and fourth respectively.
Regarding the border trade with Myanmar, KRC believes trade activities along
the border of the two countries would be sluggish only in the short run
unless the violence escalated to such an extent that the border crossing
would be closed. TNA