Mizzima

Myanmar’s digital economy is faltering under the weight of collapsing internet infrastructure, regulatory hurdles and rising cybercrime, according to a new white paper from the European Chamber of Commerce in Myanmar (EuroCham).

The report, released in March, paints a stark picture of a sector once hailed as a regional success story. Businesses in Myanmar have embraced digital platforms at remarkable speed, with mobile payment adoption reaching 99 percent — well above the ASEAN average. Yet the foundations of this progress are eroding.

Internet performance has plummeted. Median mobile download speeds dropped by 78 percent in just a year, falling from 18.22 Mbps in January 2024 to barely 5.09 Mbps by January 2025. EuroCham says the slowdown is hitting companies hard: nearly half of European businesses surveyed reported monthly revenue losses of up to 40 percent due to poor connectivity.

Regulatory uncertainty is compounding the problem. Firms cite confusion over VPN restrictions and website “whitelisting” rules, with 59 percent reporting operational costs rising by as much as 40 percent as they scramble to maintain secure connections. Cybersecurity risks are also mounting, with fraudulent social media accounts and transnational scam networks damaging reputations and trust.

A shortage of skilled professionals adds another layer of vulnerability. The survey found 94 percent of businesses lack adequate knowledge of digital authentication systems, while 90 percent are unfamiliar with digital signatures — both essential for secure online trade.

EuroCham is urging urgent policy action. Its recommendations include restoring stable internet services, introducing transparent regulations, strengthening cybersecurity coordination, and investing in digital talent. Without such steps, the report warns, Myanmar risks losing the fragile gains it has made in digital commerce.

For investors and local businesses alike, the message is clear: unless the country stabilises its digital foundations, the promise of a thriving online economy could quickly unravel.

-2026-03-18