Myanmar opposition leader Aung San Suu Kyi warned on Saturday communal violence and weak “rule of law” could scare off investors despite the rapid pace of political and economic reform.

The democracy icon told a business conference in Singapore that a stalemate in resolving protracted insurgencies, inter-ethnic conflicts and lack of robust laws posed the biggest challenges to development.

“Although we have achieved ceasefires, we have not really achieved a peace settlement... In addition to that, we have communal tensions and communal outbreaks of violence,” she said .

“Unless we get these sorted out, we are not going to get the kind of stable, peaceful society where people would be happy to invest in.”

Resource-rich Myanmar has been shaken by recent religious violence that has exposed deepening national faultlines despite the reforms launched by President Thein Sein in the formerly military-ruled nation.

About 250 people have been killed and more than 140,000 left homeless in several outbreaks of violence since June 2012, mainly minority Rohingya Muslims. — AFP