It is envisaged that Bangladesh can reap economic benefits in the long run of the very recent military coup in Myanmar. Because of the junta government, the United States and the European Union are likely to impose restrictions on Myanmar. Besides, global entrepreneurs may look for alternative destinations for investment and import of goods.
Businesses and analysts predict that the coup in Myanmar is likely to damage the country's economy. Reportedly, The US has already said it is considering imposing additional sanctions on Myanmar,
Myanmar is known worldwide for exporting clothes at a cheap rate. Reportedly, the country has been getting a duty- free market facility or GSP in the European Union since 2013. Last year Myanmar received four times more foreign investment than that of Bangladesh. The pace of exports was also upward. While the GSP revision is being discussed following Rakhine genocide and the recent military coup, fear of cancellation of export orders is mounting. Experts are of the opinion that the coup has already put billions worth of foreign investment at risk.
Necessary measures should be taken to
convince the companies, which are
thinking of relocating
business from Myanmar to Bangladesh
Considering the situation, the government needs to gear up its efforts to devise necessary initiatives to seize this opportunity.
In this regard, the government should immediately start G2G (government-to-government) discussions with different countries to woo investment in Bangladesh. Also necessary measures should be taken to convince the companies, which are thinking of relocating business from Myanmar to Bangladesh. Special attention should be given to ensure better business facilities to attract more foreign investors. Also a business-friendly
environment and taxation reform are needed to attract them.
Bangladesh pursues the most liberal investment policy in South Asia which incorporates protection of FDI by law and duty-free import of raw materials. Following the other Asian countries which have been able to attract massive FDI, Bangladesh should take immediate steps to develop more infrastructures, build more skilled labourers, improve connectivity and encourage high-tech for a sustainable economic growth.
