"70% of Japan firms keep, expand business in Myanmar even after coup" 10 January 2022

About 70 % of Japanese companies investing in Myanmar will either maintain or expand their operations in the Southeast Asian country in a year or two despite the severe hit to its economy from last year's military coup and the coronavirus pandemic, according to a Japan External Trade Organization report.

The report quoted a JETRO survey as saying 52.3 % will maintain current levels of operations in Myanmar and 13.5 % will expand them, while 27.5 % will scale back their business in the country and 6.7 % will withdraw from the country or move their operations to a third country.

The 9 December report said if the business environment continues to deteriorate in Myanmar, more Japanese investors may have no choice but to reduce their operations or withdraw.

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About 180 companies responded to the survey conducted by the Japanese government-backed organization in August and September. [...]

Asked why they would reduce, relocate or withdraw operations from Myanmar, 68.4 % of the respondents cited declining sales and 50.9 % referred to the country's low growth and potential.

Some pointed to the deteriorating business environment propelled by the unstable political situation and uncertainty about the future of the country.

Several construction companies touched on Japan's suspension of new official development assistance in response to the Myanmar military's overthrow of the democratic government led by civilian leader Aung San Suu Kyi.

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