FDI Dropped 74% Since the Coup

Photo – AFP

This Political & Conflict Economy Tracker No. 1 (2026 Series) was published on January 22, 2026, as an English translation of the original Burmese version released on January 21, 2026.

▪️Period

January 2016 to December 2025.

▪️Regions

The whole of Myanmar.

▪️Issues

Over the past decade, Myanmar has received more than USD 36 billion in foreign direct investment (FDI)¹. Of this, over USD 28.7 billion entered during the first five years (2016-2020), while only over USD 7.4 billion entered during the five years after the coup (2021-2025). In other words, foreign investment collapsed by nearly three-quarters.

▪️Groups Involved

The SSPC’s Directorate of Investment and Company Administration (DICA) and foreign investment companies.

▪️Status/Development

With foreign investment drying up after the coup, the SSPC has sought new inflows, especially from China. Between 2021 and 2025, Chinese investors accounted for 47 percent of total foreign investment inflows. While Singapore led foreign investment in the five years prior to the coup, China has since taken the lead in the post-coup period. On the other hand, although the regime facilitated investments from Russia, actual inflows have fallen short of expectations.

▪️Implications

Post-coup sanctions, the regime’s heavy-handed policies, unfavorable business conditions, the exit of major firms, and the widespread armed conflict have all weighed heavily on foreign investment. They have also complicated the rollout of China’s flagship strategic projects in Myanmar. In the post-election period, some investment from regional economies—Thailand, Singapore, South Korea, and Japan—may return at the margins, though constraints are likely to persist. By contrast, Chinese investment may continue to grow. In particular, efforts to push ahead with China-backed projects in areas where conflict intensity has eased may become more frequent.

Reference

1. Data is based on data released by the SSPC’s Directorate of Investment and Company Administration (DICA) and calculated on a calendar-year basis rather than a fiscal-year basis. ↩︎