There was a time when oil and gas attracted the most FDI in Myanmar. This is FDI that results in greater exports by enabling the unlocking of the resources under the ground and the waters of Myanmar. One can debate how much of the risk is borne by whom and whether the returns are proportional to risk. But generally, greater FDI in the energy sector is a good thing for a country like Myanmar, seeking to move out of least-developed-country status.
The fact that telecom is the biggest attractor of FDI in a country so rich in resources is not something to be celebrated. It is good that telecom is growing, because it helps the entire economy to become efficient. But telecom by itself cannot take Myanmar on a transformational trajectory of growth. The rest of the economy needs investment too.
Telecom sector topped the foreign investment line-up of Myanmar with 47.07 percent of the total investment flowing into the country in the fiscal year 2016-2017, according to the statistics of Myanmar Investment Commission (MIC) Tuesday.
The telecom sector was followed by industrial sector with 25.5 percent and the rest went to power, hotel and construction sectors.
The country received a total foreign investment of 3.46 billion U. S. dollars as of Dec. 17. Singapore stands as the largest foreign investor of Myanmar.
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