Investors expect business to return to normal in Myanmar by the third quarter of this year. Many also reckon that the technology, media and telecoms (TMT) sector would see the most investments or merger and acquisition activity in the next two years, according to polls taken at a conference held online by Ascent Capital Partners recently. Indeed, the Myanmar economy is expected to recover and reach growth levels of as much as 7 percent this year mentioned by the Union Minister for Investment and Foreign Economic Relations during the conference.
The Union Minister said that recovery will be backed by the government’s Myanmar Economic Recovery and Reform Plan (MERRP), which will prioritise sectors like manufacturing and services in the year ahead. Measures such as civil service reforms and digital transformation will also be implemented by the government. The Managing partner of Ascent Capital said that the firm’s three-year outlook for Myanmar is one of cautious optimism. Myanmar’s economy and business environment are still severely impacted by the COVID-19 pandemic, and it is unclear at this moment when full recovery will take place.
It is also mentioned that Ascent Capital focuses on longer timeframes and that government initiatives like the MERRP are important catalysts to drive growth in the economy over the next three years and beyond. As a Myanmar-focused investor with long-term plans in the country, they certainly intend to raise future funds but do not have the immediate need to do so. In terms of existing investments, this would depend on the opportunities that present themselves at the right time. But the general outlook is for the long term, in the next seven to ten years.
Ascent Capital is a private equity firm registered with the Monetary Authority of Singapore. The firm manages a Myanmar-focused investment fund which it says is the largest Myanmar-focused investment fund globally. The fund, which prioritises the consumer, education, healthcare, financial services, logistics and TMT sectors, closed in October last year with US$88 million in capital commitments. It is backed by the likes of Singapores’s Temasek Holdings, the Asian Development Bank and local drinks tycoon U Aung Moe Kyaw.
Source: Myanmar Times