The Myanmar regime is seeking a record military budget of 10.53 trillion kyats for fiscal year 2026-27, representing more than three times the pre-coup level as nearly 18 million people live in poverty. According to reports from Al Jazeera, the proposed budget combines the initial estimate of 7.95 trillion kyats with a supplementary grant of 2.58 trillion kyats. The military-backed Union Solidarity and Development Party (USDP) and its allies control the rubber-stamp Union Parliament, where the budget was debated last Thursday. If approved, the budget deficit is projected to surge from 8.98 trillion kyats to 11.41 trillion kyats. Since 2021, the regime has been waging war against ethnic armed organizations and newly emerged resistance forces, including the People's Defense Force, spending a large portion of its budget on military expenses.
A Myanmar company is proceeding with an initial public offering despite operating in the midst of civil war and economic downturn. According to reports from Bloomberg, Concordia Pcl expects to raise approximately $200,000 in its IPO, marking Myanmar's first main-board stock listing in more than three years. This compares significantly with the bourse's first IPO in 2018, which raised about $1.2 million. The medical and engineering equipment distributor's chairman, Than Win, emphasized the listing is intended to prepare the family-owned business for long-term growth rather than fund immediate expansion.
As reported by Bloomberg, Concordia aims to transform itself into a professionally run company, positioning it to attract foreign investment and expand when Myanmar's political and economic conditions stabilize. The company has largely funded operations through its own cash flow with minimal debt, and sees local manufacturing as a solution to import restrictions. Import restrictions have become so cumbersome that some machinery has taken more than a year to arrive, forcing the company to plan equipment purchases at least a year in advance. The company plans to use foreign capital and technology to locally manufacture products it currently imports, with dialysis consumables identified as a key opportunity.
Myanmar's oil sector is experiencing unprecedented disruption as the nation's small-scale oil prospectors face escalating violence amid the civil war. The country imports 90% of its fuel oil, making it particularly vulnerable to supply disruptions caused by the US-Israeli war on Iran. As reported by Al Jazeera, artisanal oil fields in Magway's Myaing township are now contested battlegrounds, with allied pro-democracy rebels claiming control since 2023. Workers like Htun Aung, a 52-year-old oil prospector, earn just $50 per week while facing repeated displacement as military and rebel forces battle for control of these modest oil operations.
According to Bloomberg, Concordia is expected to begin trading in late December or early January on the Yangon Stock Exchange, becoming the ninth company on the decade-old bourse. The exchange began allowing foreigners to trade shares in 2020, but the market remains overwhelmingly domestic with local retail investors accounting for 99.86% of investors as of March, compared with just 0.14% for foreign retail investors. The benchmark Myanpix index has averaged in the 800-point range this year, compared with a 400-point range over the previous three years.
As reported by Bloomberg, YSX Chief Operating Officer Min Thu indicated that Concordia represents "just the beginning of a pipeline," with the exchange expecting another company to join its pre-listing board by March and hoping for at least one more main-board listing by the end of 2027. Three to four state-owned enterprises have also expressed serious interest in listing. However, no foreign-owned company or foreign joint venture is currently in the pipeline to list. The company is already preparing for the eventual return of foreign investment, with Than Win stating they are positioning themselves "in advance for when conditions stabilize both economically and politically."
