Foreign investment in Myanmar dominated by oil and gas, power sectors
AP / November 26, 2007

Foreign investment in Myanmar's oil and gas sector reached a record high of more than US$470 million (almost $320 million) in fiscal year 2006-07, accounting for more than 60 percent of the total, according to newly-released government statistics.

Oil and gas, together with the power sector, accounted for more than 98 percent of all foreign investment, said the Ministry of National Planning and Development in its latest statistical survey report, seen Monday. The remainder was in the fisheries sector.

The report said there was no new investment in mining, real estate, hotels, transport or manufacturing, which have attracted foreign investors in the past. Myanmar's financial year begins on April 1, and ends March 31.

Since Myanmar liberalized its investment code in late 1988, it has attracted its largest investments in the oil and gas and electric power sectors.

Many Western countries either ban or discourage investment in Myanmar as a way of pressuring its ruling junta, which is shunned for its poor human rights record and failure to hand over power to a democratically elected government.

Of the total US$471.48 million (¤318.47 million) investment in the oil and gas sector, the largest share _ US$240.68 million ($162.2 million) _ came from the United Kingdom, followed by Singapore with more than US$160 million ($107.8 million), according to the report.

Russia and South Korea also had large investments in the sector, it said. Though the report did not give details of the investments, companies registered in the listed countries signed production sharing contracts with the Myanmar government during the period covered.

The 36.8 percent share of foreign investment represented by the power sector was all accounted for by US$281.220 million ($190 million) from China, the report said.

Fisheries accounted for US$12 million ($8.1 million), or just under 1.6 percent, of the foreign investment total, it said.