Myanmar planning economic upheaval, local media say

The secretive Myanmar state may be planning a major economic upheaval as it prepares to usher in a partially-civilian government. Local media report that the ruling junta wants to privatise 90 per cent of the country’s state-owned industries.

Reuters

Deputy minister of industry Khin Maung Kyaw was quoted in Biweekly Eleven journal as saying the reform in Myanmar was in line with "other democratic countries".

"While we transform as a democratic nation, we will privatise 90 per cent of state-owned industrial businesses," Khin Maung Kyaw said.

The interview follows a flurry of privatisations in Myanmar last year, and the article says the junta will only retain 10 per cent of the state-owned industries.

About 250 state-owned petrol stations, ports along the Yangon river and buildings, including cinemas and warehouses, were sold off to local tycoons.

Analysts suggest the junta may be seeking to hand over the key industries to party cronies before allowing a partially civilian government to form.

Last year, Myanmar held controversial elections that handed the main junta-linked party almost 80 per cent of available seats. A quarter of seats were reserved for the military.

Candidates elected to the country's new national parliament, which will convene on 31 January, have promised to discuss economic problems as a priority.

Sean Turnell, a specialist on Myanmar's economy at Macquarie University in Sydney, told AFP wire service the desire to privatise on a large scale was "plausible" but the logistics of the project would be a challenge to even a developed economy.

"But if it's just a carve-up and handing assets to regime cronies and oligarchs, I guess you could do it remarkably quickly," he said, adding that the recipients were likely to be "connected people".

Myanmar is one of the poorest countries in the world and has been ruled by a military regime since 1962.