Yangon: Suu Kyi makes a public appearance – Myanmar eases lockdown; “Krich” points to positive signs, boosting land bridge project.
According to Thai News Agency, Krit Ungvituratsathit, Chairman of the Thai-Myanmar Business Council, discussed on the Good Morning ASEAN program on MCOT News FM 100.5 that recent developments in Myanmar signal a relaxation of the political atmosphere. The appearance of Aung San Suu Kyi, along with the reduction of sentences and the release of political prisoners during Songkran, are seen as positive steps following the new government’s assumption of power. While caution is still advised, there is optimism regarding Myanmar’s future.
Mr. Krit emphasized the significance of Thailand’s land bridge project to the Myanmar private sector, especially for shipping companies. The project, if realized, could greatly benefit southern Myanmar, which shares maritime areas with Thailand, such as the Andaman Sea and the Gulf of Yangon. He recalled the anticipation around the “Southern Seaboard” project during the Chatchai Choonhavan government, which was viewed as a potential economic boon for Tanintharyi State and Dawei.
The land bridge project, according to Mr. Krit, could enable Myanmar to expand its logistics and border checkpoints with minimal investment, transitioning from agricultural and fisheries products to industrial goods. This development would allow Myanmar to utilize Thailand as a marketing hub and a gateway to the Pacific Ocean. Myanmar has already prioritized enhancing its maritime logistics.
Mr. Krit cautioned that Thailand would face substantial investment costs and must undertake a thorough cost-benefit analysis, including the expenses related to transshipment between ships and trucks. It is essential to compare these costs with the route through the Strait of Malacca to assess the project’s viability. A clear evaluation of opportunity costs and economic multipliers is necessary before embarking on such a large-scale initiative.
He also suggested that Myanmar investors looking for stability should consider investing in Thailand, which is seen as a favorable environment for foreign direct investment (FDI) with streamlined access to investment promotion via the BOI. Mr. Krit noted that while the land bridge project is a priority for Mr. Anutin Charnvirakul, its realization hinges on the government’s decision.
The current developments in Myanmar highlight a surge in young entrepreneurs, in contrast to the older business leaders who are gradually moving into advisory roles. These young entrepreneurs are adaptable and poised to capitalize on economic opportunities presented by the new Myanmar government, which is increasingly involving the younger generation in its economic strategies.