Amid increased interest in frontier markets, once-isolated and still impoverished Myanmar is drawing interest as it pushes through reforms and its companies tap fresh opportunities, but the path may not be entirely smooth.
"The New Kid on the block has the right stuff to shine," ANZ said in a note, but it added, "It remains to be seen whether structural reforms will be persistently pursued or the lack of strong legal and economic institutions will put a dampener on its growth potential."
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While some needed structural reforms have proceeded rapidly over the past few years as the economy opened up and international sanctions against the country's previous harsh military regime were gradually loosened, more needs to be done, ANZ said as it initiated coverage of the economy.
"The challenge for policymakers is to diversify the revenue base away from its over-dependence on gas and natural resources," ANZ said.