Over the last few years, Southeast Asia has emerged as a frontier for digital transformation, with countries like Indonesia, Vietnam and the Philippines gaining international attention for their tech innovation and startup ecosystems. Yet just beyond the spotlight lies a country with untapped potential and a complex economic narrative, which is Myanmar. Despite facing significant political, infrastructural and socio-economic challenges, Myanmar remains one of the last large, underdeveloped digital markets in the region. Its demographic profile, resource base and mobile-first consumer behaviour position it as a potentially significant market, particularly if conditions allow for sustained reform and investment.
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Despite the ongoing political and economic issues, we take a look at the emerging market to better understand its position in the region and the rest of the world.
A demographic advantage with digital potential
With a population exceeding 55 million and a median age of around 29, Myanmar has the foundations for a strong consumer market. In many respects, it mirrors the early-stage tech trajectories seen in markets like Cambodia or Laos, but with a larger population and a more urbanised consumer base. According to DataReportal, as of early 2024, Myanmar had around 26.6 million internet users and over 67 million mobile connections, an astonishing figure in a country where smartphone usage leapfrogged traditional desktop access.
This mobile-first ecosystem has enabled the rapid adoption of services such as mobile payments, digital entertainment and ride-hailing, despite broader systemic issues. The popularity of Facebook, which effectively functions as the internet for many in Myanmar, and the rise of digital wallets like Wave Money and KBZPay demonstrate a willingness among consumers to embrace digital services when accessible and relevant.
Policy, politics and instability: the market risks
Yet Myanmar’s path to becoming a viable tech and business hub is far from assured. The military coup in February 2021 derailed years of gradual liberalisation and significantly damaged investor confidence. The re-imposition of sanctions by Western countries, frequent internet shutdowns and a broader erosion of the rule of law have stalled or reversed many of the gains achieved during the previous decade of partial democracy.
Multinational firms and regional investors alike have pulled back or taken a wait-and-see approach. According to UNCTAD, foreign direct investment into Myanmar dropped by more than 50% between 2020 and 2022, a trend that continued into 2023 due to ongoing uncertainty.
However, China and other regional powers continue to maintain commercial links with Myanmar, particularly in infrastructure, telecom and energy. This bifurcation of engagement, with Western disengagement and Asian capital flows continuing, suggests that Myanmar remains economically relevant, but primarily through a different set of partnerships.
Infrastructure gaps and digital barriers
Even before the political crisis, Myanmar faced significant infrastructure challenges. The country’s logistics, power grid and broadband infrastructure are inconsistent, especially outside urban areas. The World Bank’s Logistics Performance Index consistently ranks Myanmar among the lowest in the region, hindering the growth of e-commerce and manufacturing.
Telecommunications remains a bright spot but is not without setbacks. Following market liberalisation in the mid-2010s, telecom penetration soared thanks to players like Telenor, Ooredoo and Mytel. However, Telenor’s exit from Myanmar in 2022 due to political pressure raised concerns over data privacy and corporate governance in the country. Localised content restrictions and state surveillance have further complicated the digital landscape, making it difficult for companies to operate independently or guarantee data security.
Despite this, local entrepreneurs have pressed ahead. Platforms such as Shop.com.mm (backed by Rocket Internet before its exit) and food delivery startups like YangonDoor2Door illustrate the demand for consumer tech, albeit at a limited scale and with fluctuating accessibility.
Startup activity in a fragmented ecosystem
Myanmar’s startup ecosystem is nascent but not nonexistent. Before 2021, there was a burgeoning community of tech entrepreneurs supported by regional accelerators and donor-backed programs. Initiatives like Phandeeyar played a central role in nurturing local startups and building digital literacy, particularly among youth.
While many of these efforts have been disrupted or scaled down, a core group of founders continues to build solutions tailored to local needs. Fintech, agritech and logistics remain key verticals of interest, due to Myanmar’s heavy reliance on agriculture and its growing but underbanked population.
Notably, Myanmar’s Wave Money, a joint venture involving Yoma Group and Ant Financial, processed over USD 8.7 billion in remittances and payments in 2020, representing a significant share of domestic transactions. Although activity slowed after the coup, Wave Money continues to operate and expand digital financial inclusion across rural areas.
Regional context: Where Myanmar fits into Southeast Asia’s digital map
Myanmar’s position within Southeast Asia offers both opportunity and tension. It borders China, India, and Thailand, placing it at the intersection of three major economies and several regional infrastructure projects, including the China-Myanmar Economic Corridor and cross-border trade initiatives. This geography could enable Myanmar to serve as a strategic logistics or manufacturing hub, but only if political and infrastructural stability improve.
Compared to its neighbours, Myanmar lags significantly in startup funding, ecosystem maturity and digital inclusion. While countries like Vietnam attracted over USD 2 billion in startup funding in 2023 alone, Myanmar’s figures remain in the low double-digit millions, primarily from domestic or regional backers.
Nonetheless, the long-term thesis remains: a young population, high mobile penetration, and increasing familiarity with digital tools offer foundational elements for growth. If macro conditions allow for it, Myanmar could potentially experience a digital acceleration similar to that seen in markets like Indonesia post-2010.
What needs to happen next?
To realise its tech potential, several core issues must be addressed:
- Stabilisation of political and economic conditions
Without governance stability and basic legal protections, both domestic and foreign capital will remain limited. Re-establishing the rule of law and enabling secure internet access are baseline requirements. - Infrastructure and connectivity investment
Power reliability, broadband access and logistics must improve for any tech-driven industry—especially in rural or peri-urban areas—to function at scale. - Regulatory clarity and investor protection
Transparent, consistent and enforceable regulations are essential for attracting international partnerships and fostering domestic innovation. - Support for entrepreneurship and digital education
Reviving innovation hubs, coding bootcamps and digital literacy campaigns will help rebuild human capital in the tech sector. Targeted support for female entrepreneurs and rural innovators could also unlock untapped potential.
Conclusion: Myanmar’s uncertain but undeniable potential
Myanmar sits at a precarious but potentially pivotal juncture. On one hand, its current political trajectory and infrastructural gaps present serious obstacles to becoming a regional tech contender. On the other hand, the combination of a young, digitally inclined population and a mobile-centric digital economy signals latent demand for innovation and entrepreneurship.
The path forward will likely be incremental, shaped as much by internal reform as by external investment and regional integration. Myanmar may not yet rival its neighbours in digital dynamism, but for businesses willing to navigate complexity and invest in long-term capacity-building, the potential remains real—if uncertain.
For now, Myanmar is a market to watch—less for its current performance than for what it might become when the conditions are right.