Htin Kyaw, a close confidante of Aung San Suu Kyi who will rule as her proxy, indicated that tackling the legacy of half a century of civil wars in ethnic minority borderlands will be a major priority for his government, which officially takes power next week.
"A ministry of ethnic affairs is of vital importance for the future of the union (Myanmar), which needs peace, development and sustainability," he told lawmakers in his first address since being elected the first civilian leader in decades.
Htin Kyaw takes the mantle of leadership as Myanmar is in the midst of a dramatic transformation after years shackled by military rule.
Greater openness, a surging economy and the landslide victory in November's historic elections for Suu Kyi and her party have all buoyed optimism in the future.
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But conflicts continue to rage in several areas between ethnic minority armed groups and the still-powerful national army, which operates beyond the reaches of civilian government, after a ceasefire pact signed last year failed to include all of the country's fighters.
The situation in Rakhine state is a key concern of the international community, which has urged the new government to prioritise the plight of the Rohingya, who flee the country in their thousands every year on rickety boats.
A web of citizenship rules have left many effectively stateless, while they also claim to endure worsening persecution by Rakhine's Buddhist community who largely sees them as illegal immigrants from neighbouring Bangladesh.