CNI News
27 June 2025
Amid the ongoing political crisis in Myanmar, policy is more important than money in driving economic development, economic analyst U Htay Aung Kyi told CNI News.
Businessmen and market analysts point out that Myanmar is currently facing an international economic embargo and very weak investment, which is causing the economy to decline, the cost of living is high, inflation is rising, and illegal trade is increasing.
Therefore, it is important for those managing the country to carefully handle and set policies.
Economic analyst U Htay Aung Kyi said that Myanmar's system is so weak that it prioritizes business operations over profits, and that policy is more important than money for the country's development.
While illustrating the market economy
“The main thing is to properly reform the basic economic system. To reform the basic economic system, a good political system is also needed. Even though there is no political efficacy, we need to think about everything else correctly. We can't think about it with economics alone. When the system is very weak, government intervention is needed. At a time like this, even if you don't make much profit, you have to prioritize the operation of the business. This is a matter of policy. To build a country and develop it, policy is more important than money. So a kind of intelligence that can think and reason is needed to set a policy," he said.
Economic analyst U Htay Aung Kyi said it is important for economic regulations to be appropriate and to lay down policies that implement the market economy system.
While seing a grocery market row
"The main thing is that economic policy should be based on a market economy. For example, China uses a one-party system, Vietnam also uses a one-party system. Their market economy is clearly implemented because there are the most fundamental reasons for it in their countries. Laws, regulations, and procedures related to the economy should not be completed on paper. Because we must first create the fundamental factors that define a market economy. But the way the policy is implemented is more important. The four economic objectives. These objectives must be in harmony with time and place. Because prices must be right. Without right prices, there cannot be a market economy. The next most important point is that the incentive management system needs to be right. For the incentive system to be right, there must be guarantees. The economic system must have guarantees. When we talk about the economic system, it has 14 sectors. When it comes to economic policy, there are three things that need to be done first. The poolicy that can implement the market economy well is important," he said.
Businessmen say that the red-tapism is strong in Myanmar now and all policies are handled by one person.
If the person handling the policy does not approve it, it is difficult for the relevant ministries to approve domestic or foreign investments.
Similarly, entrepreneurs point out that relevant officials should scrutinize Myanmar's economic investments and business permits which are kind of implementing a policy of favoring families and relatives, and that efforts should be made to lift international sanctions.
