Myanmar - သီလဝါ ဆိပ်
The port consists of Myanmar International Terminals Thilawa (MITT) operated by Hutchison Port Holdings and is a multi-purpose container port. Over time Thilawa is expected to be the main port area of Yangon with the downtown port area likely to be redeveloped as commercial real estate over the coming decades. Thilawa is also close to the Thilawa Special Economic Zone which is an ongoing Myanmar/Japanese industrial development.
Devastation to Thilawa Port by military coup
Myanmar, a Southeast Asian nation with a rich cultural heritage, has been marred by a military coup in February 2021. This event, led by Senior General Min Aung Hlaing, toppled the democratically elected government and plunged the country into turmoil. The coup not only sparked widespread protests and civil unrest, but also triggered a chain reaction of economic woes, sending the nation’s progress into a tailspin.
The military junta’s claim of electoral fraud lacked international credibility and was met with widespread condemnation. International sanctions were imposed, further isolating the regime and hindering foreign investment. This, coupled with the disruption caused by nationwide protests and ongoing clashes between the military and armed ethnic groups, severely impacted Myanmar’s economy.
One of the most immediate effects was a significant contraction of the economy. According to the World Bank, Myanmar’s GDP shrunk by 18% in 2021, wiping out a decade of steady growth. This decline was fueled by various factors, including:
Disruption of trade and investment: Following the coup, international businesses grew hesitant to operate in Myanmar due to the unstable political environment and the imposition of sanctions. This led to a decrease in foreign investment, a vital source of capital for the country’s development.
Deterioration of business environment: The junta’s haphazard economic policies and disregard for the rule of law created uncertainty and instability for businesses, further discouraging investment and growth.
Flight of capital: As the situation unfolded, many Myanmar citizens and businesses sought to move their assets outside the country, further depleting domestic resources and impacting the financial sector.
Suffering under Myanmar junta
The economic hardship has had a profound impact on the lives of ordinary citizens. Unemployment rates soared, with many businesses forced to close or operate at a reduced capacity. This led to a significant decline in household incomes, pushing millions into poverty and food insecurity.
The junta has attempted to address the economic crisis through measures like increasing money supply and tightening control over markets. However, these actions have largely been ineffective and have even exacerbated the situation, leading to inflation and a devaluation of the Myanmar kyat.
The international community has called for the restoration of democracy and the release of political prisoners, including the ousted leader Aung San Suu Kyi. However, the junta has shown no signs of yielding, further prolonging the crisis and jeopardizing any hopes of a swift economic recovery.
The military coup in Myanmar has had a devastating impact on the nation’s economy. The combination of international sanctions, political instability, and the junta’s mismanagement has created a perfect storm of economic hardship. Until a path towards political resolution and democratic reforms is found, Myanmar’s economic woes are likely to persist, inflicting further suffering on its people.
Additional Details for Thilawa Port
- Container Berths: 5
- Draft / maximum vessel size: 10 metres