Thursday, January 9, 2014

Myanmar still a risky prospect for investors: report

Myanmar made the greatest improvements to its business environment across a global spectrum, UK-based global risk analytics firm Maplecroft found in a report released on January 8.

Myanmar has strengthened its legal and regulatory environment and the government’s reform agenda has made progress in tackling corruption, weak rule of law, respect for property rights and controls on corporate governance, Maplecroft said in its annual Legal and Regulatory Environment Risk Atlas for 2014.

Despite these improvements, Myanmar was still ranked fifth globally in terms of business risk and rated more “extreme” than civil-war ravaged Syria and the Central African Republic.

Myanmar was ranked the worst country in the world to do business in 2012, then moving up to third in 2013.

“While this appears a modest shift in ranking, it has already resulted in significant improvements for business, and Maplecroft forecasts that if Myanmar sustains its current trajectory it may move out of the ‘extreme risk’ category in the next 1-3 years,” Maplecroft wrote in a press release accompanying the report.

“Myanmar’s efforts to strengthen the legal and regulatory environment are laudable,” Maplecroft Senior Analyst, Chris Laws was quoted in the release.

“But, the country’s current lack of effective institutions of governance still raises serious concerns over regulatory enforcement, and it remains a challenging place to do business.”