Myanmar’s digital economy is facing growing pressure due to deteriorating internet infrastructure, regulatory uncertainty, and rising cybercrime, according to a March white paper released by the European Chamber of Commerce in Myanmar (EuroCham).
The report warns that while Myanmar has seen rapid adoption of digital tools in recent years, the conditions needed to sustain digital trade and investment are increasingly fragile.
“Severe infrastructure degradation, regulatory uncertainty, escalating cyber-fraud and a critical skills shortage are collectively threatening the viability of digital trade and investment,” the report said.
Myanmar businesses have embraced digital platforms at a pace above regional averages. Mobile payment adoption among businesses stands at 99 percent, compared with an ASEAN average of 86 percent, while more than half of the surveyed companies rely on digital tools or e-commerce for the majority of their operations.
However, the white paper highlights a sharp decline in internet performance. Median mobile internet download speeds fell by 78 percent between January 2024 and January 2025, dropping from 18.22 Mbps to 5.09 Mbps, according to the report’s findings.
EuroCham said the slowdown has had a significant financial impact. A January 2026 survey of European businesses operating in Myanmar showed 43 percent reported average monthly revenue losses of up to 40 percent due to slow internet connectivity.
Operating costs have grown due to regulatory barriers. Businesses reported uncertainty around VPN restrictions and website “whitelisting” processes. Fifty-nine percent of businesses say they have experienced operational cost increases of up to 40 percent as companies deploy redundant systems and cybersecurity measures to maintain connectivity.
The report also warned of growing digital security risks, including a rise in fraudulent social media accounts impersonating established brands and broader reputational risks linked to transnational scam operations in the region.
A shortage of digital skills further compounds the problem. Survey findings show that 94 percent of businesses lack sufficient understanding of digital authentication systems and 90 percent lack familiarity with digital signatures — key components of secure digital commerce.
EuroCham called for urgent policy action in four areas – restoring stable internet connectivity, creating transparent digital regulations, strengthening cybersecurity coordination, and investing in digital talent development.
The report concluded that meeting these recommendations is essential for Myanmar to maintain a functioning digital economy.
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