Myanmar opposition leader Aung San Suu Kyi said foreign investment in the newly democratizing
nation is being held up by inadequate infrastructure and
uncertainty over investment laws.
Speaking to students at the University of Tokyo today, Suu
Kyi also said establishing the rule of law was a prerequisite
for dialog to end the ethnic violence that has killed dozens of
people and displaced thousands in recent weeks.
“Foreign investment is increasing more in theory than in
actual fact, because many of the big businesses are waiting to
see what our foreign investment laws are going to be like and
studying the infrastructure in Burma, which is very poor,” Suu
Kyi said, referring to the country by its former name.
Myanmar’s shift to democracy after five decades of military
rule has attracted interest from companies including Google
Inc., while MasterCard Inc. (MA) last September became the first
payments network to issue a license to a Myanmar bank. Chinese
and Japanese companies are also investing in the country, which
borders India, China and Thailand.
While the lack of basic facilities such as roads,
electricity and water supply are causing some companies to delay
investments, large food producers may be interested in investing
in agriculture, Suu Kyi said.
The former political prisoner is on a week-long visit to
Japan, her first in 27 years, during which she has met Foreign
Minister Fumio Kishida and will visit Prime Minister Shinzo Abe.
Abe this week told a parliamentary committee attended by Suu Kyi
that he is encouraging businesses to invest in Myanmar.
Debt Forgiveness
Japan, Myanmar’s largest creditor, agreed last year to
settle $6.6 billion in arrears and provide loans to help it
repay debt to the Asian Development Bank and World Bank.
In response to a question from a student, Suu Kyi
emphasized the importance of the rule of law in enabling a
resolution to the deadly anti-Muslim violence that has split the
ethnically diverse country in recent weeks.
“We have had no rule of law in Burma for the last 50
years,” she said. “What we have had is the rule of an
authoritarian government. There can be no negotiation or
exchange of ideas if people do not feel secure.”
source: Bloomberg BusinessWeek
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