Myanmar’s population law raises investor concerns over stability

09 June 2015
Myanmar’s population law raises investor concerns over stability
Coca-Cola billboard in Myanmar Photo:Andreas Met/Flickr

A law enacted last month by the quasi-military government allows officials in the Buddhist-majority nation to order women to wait three years between births. Rights groups say the changes, which are backed by ultra-nationalist Buddhist groups, target Muslim women according to a report in the Singapore based Today on 9 June.
The law is the first in a series of so-called race and religion protection Bills that risks driving a bigger wedge between the faiths, threatening a repeat of sectarian attacks that have flared across Myanmar since the end of junta rule in 2011.
Coming ahead of November’s general election, the changes add to uncertainty for investors, from General Electric to Coca-Cola, who are expected to bring US$8 billion (S$10.9 billion) into the country this fiscal year, up from US$1.4 billion when sanctions were eased in 2012.
“The optimism otherwise apparent in the last few years risks being displaced by a feeling that, deep down, not that much has changed in Myanmar,” said Mr Sean Turnell, an associate professor of economics at Macquarie University in Sydney, who has advised the United States Congress on the country.
“These laws add to perceptions of political and social instability. Never good news for investors, of course,” said Mr Turnell.