Myanmar has ambitious growth plans [12]. Officials in Naypyidaw have forecast a national growth rate of 9.3 percent for the 2015–16 fiscal year through a combination of job creation and activity in tourism, telecommunications, agriculture, and other sectors. Inadequate power proves particularly troublesome for the manufacturing sector. In Mandalay, one foundry prices its production of pumps differently depending on whether they are produced during rainy season, when hydroelectric and grid power is available at lower prices, or during the dry season, when the company must supplement supply through diesel-powered backup generators. Making matters worse, the nation’s use of subsidized tariffs means that the government provides power to citizens at a loss. Several years ago, it was estimated these subsidies created an annual deficit of over $275 million. Under past regimes [13], when economic development and domestic energy use were less of a priority, revenue gained from oil, gas, and other resource exports was used to finance the country’s survival in the face of a harsh sanctions regime. These programs largely benefited a small group of elites and select institutions and are now unpopular, even though the capital and expertise that is derived could potentially fund power sector development.

According to the World Bank, universal electrification should be both “achievable and affordable” in Myanmar by the year 2030 [14]. To this end, the organization has committed $1 billion in financial support [15] to expand electricity generation, transmission, and distribution for the national grid as well as off-grid development. The funds will be utilized to support a National Electrification Plan [16], which the government has developed in cooperation with the World Bank over the past few years. An initial $400 million loan was recently approved by Myanmar’s National Assembly as well as by the World Bank Board of Directors. Coordination meetings between donors, interested private firms, and other parties are now under way, with an anticipated program launch for the first phase before the end of the year.

Eoin Treacy's view

South East Asia has a wonderful record of previously underdeveloped countries emerging as vibrant manufacturing and consumer economies. With that kind of record there was considerable enthusiasm expressed at the potential for Myanmar to following in the footsteps of many of its neighbours as the political climate evolves. Despite the fact this frontier market has vast upside potential it still suffers from the issue that the number of investment vehicles one might choose from is very limited. 

Singapore listed Yoma Strategic is one of the only companies offering close to direct exposure to the Myanmar real estate market. The share hit a medium-term peak in 2013 and over the last two years have given up much of the previous advance. It found at least near-term support in the region of SGD30¢ from August and has now returned to test the region of the 200-day MA. It will need to sustain a move above the MA to question to suggest a return to demand dominance beyond the short term.