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Born Maung Shwe in a village called Hsaisu near Thonze in Tharrawaddy District, British Burma, Kyaw Zaw was educated in the traditional manner, mainly in monastic schools often becoming a novice monk during the Buddhist lent, until the final year when he went to the Pazundaung Municipal High School in Rangoon.
As in British Burma and British Malaya, foreigners dominated the developed sectors of the economy.