"The place has a breathtaking natural beauty. We don't want to destroy it." This was the simple answer I got when I asked an ordinary local Myanmese about the suspension of the Myitsone hydropower project, which has seen heavy involvement from China Power Investment.

The project, located in the upper reaches of the Irrawaddy River, was suspended in September 2011 under strong public pressure resulting from environmental concerns.

It seems the Myitsone dam's suspension has opened the floodgates to local protests against foreign investment. Construction on the Chinese-invested Latbadaung Mountain copper mine project in Monywa in northern Sagaing division has also been called off by months of local protests.

Dissatisfied with the compensation for relocation and worried about the environmental risks brought by the project, local villagers have staged rounds of protests with the help of NGOs, opposition groups and activists. This led to suspension of construction work and forced the government to organize an investigation team to reassess the social and environmental impact of the project, whose fate remains unknown.

Myanmese protests are not only targeting Chinese investment. According to an AFP report on December 17, although Myanmar President Thein Sein sincerely called for more foreign investment in the development of the Dawei Special Economic Zone, frequent protests by villagers within the zone's construction area have kept many investors away.

The Dawei development on Myanmar's southern Andaman coast is part of an ambitious plan by the reformist government to transform its economy.  However, its prospects seem to be clouded by uncertainties due to local protests over environmental concerns and compensation packages.

As it strives to open up, Myanmar is viewed as an investment destination with huge potential. The reformist Myanmar government is ambitious in its bid to attract a flurry of new investment. However, such high aspirations have not been met with an active response from the public. 

In fact, in the process of its democratic transition, Myanmar is seeing increasing conflict between economic development and political reform. Opposition critics are unsatisfied with what they see as the government's excessive attention to the former.

They have used environmental issues in their campaign to attack the government, since nature and the environment are of vital importance to Myanmese and have a profound influence on Myanmese thinking and beliefs.

A local environmentalist once told me that Myanmese have traditionally viewed the Irrawaddy River as a symbol of the country's identity, and public opposition to development of the river, which could cause pollution, is particularly strong.

Britain's rule in Myanmar developed at the cost of its environment, but one of its precious colonial legacies to Myanmar is high awareness of environmental protection.

Environmental groups can easily mobilize the public in resisting resource development projects in Myanmar. On the one hand, this demands that investors strictly restrain themselves in terms of environmental protection when engaging in business activities in Myanmar, but on the other, it could easily make investors flinch at the uncertain public reactions.

This puts Myanmar in a dilemma. The impoverished country is rich in resources, but foreign engagement in developing these resources is often met with public resistance.

It seems that the days when the Myanmar authorities could easily silence dissenting voices have gone. The public is enjoying increasing freedom to express its views. Foreign investors who fail to convince locals with thorough environmental studies that their projects have no serious environmental impact or negative influence on natural wildlife habitats will find it very likely that the public will resist them.

This sensitivity has been fully demonstrated in previous and ongoing protests in Myanmar between Myanmese and foreign investors, and potential investors would do well to pay heed.    

Having lived under military rule for decades, the Myanmar public's confidence in the current government's ability to promote reform is limited. Opposition parties are pressing the government to give priority to political reform, social activists are calling for more attention on cultivating a civil society, while environmentalists are actively engaging in promoting a draft of an environmental protection law.

It's unlikely that Myanmese society will reach a consensus on reform soon.

Myanmar surprised the world with its drastic changes over the past one and a half years. Will these new investors continue their determination to enter the country despite the high environmental, social and political risks? Myanmar is apparently facing many difficulties in boosting investors' confidence.

The author is a reporter with the Global Times. yujincui@globaltimes.com.cn