This article is the second in a 3-part series called 'Myanmar: Time to Invest or Investigate'
Click here to read Part I - Time to Invest
Click here to read Part II - Time to Investigate I
OUR VIEWPOINT ON CLIENTS’ DRAWBACKS HINDERING THEM FROM STEPPING FOOT IN MYANMAR
3. Lack of training and experience leading to poor execution of Myanmar’s business regulations.
Our view: Many of our clients indeed find dealing with different public servants an arduous task. Most of the civil servants are still uncertain of the legislative rules and framework. Hence Many a times, different officers might be providing conflicting information on the same case and cause much confusion. Moreover, it is highly unlikely that you can refer back to the same officer to follow through the entire case application for you.
Click here to read Part I - Time to Invest
Click here to read Part II - Time to Investigate I
OUR VIEWPOINT ON CLIENTS’ DRAWBACKS HINDERING THEM FROM STEPPING FOOT IN MYANMAR
3. Lack of training and experience leading to poor execution of Myanmar’s business regulations.
Our view: Many of our clients indeed find dealing with different public servants an arduous task. Most of the civil servants are still uncertain of the legislative rules and framework. Hence Many a times, different officers might be providing conflicting information on the same case and cause much confusion. Moreover, it is highly unlikely that you can refer back to the same officer to follow through the entire case application for you.
The lack of legal experience and expertise by the civil servants is a big challenge facing investors. The government officers in the Myanmar institution lack understanding and legal experience in the actual implementation of Myanmar’s business regulations.
Though there are significant improvements made in this area in the recent past year with the provision of the guides on DICA’s website, this will be frustrating to investors who might not have straightforward cases and who cannot afford the time to navigate their way through possible language barrier to gain clarity.
Hence, getting external help from professional corporate service providers to follow through your business compliance requirements is advisable.
4. Skills shortages, a key concern.
Our view: No doubt, this bodes well for companies dealing with the education and vocational training sector. However, this is more of a bane to most companies as training and staff development is both time consuming and costly.
Every sector in Myanmar currently lacks the human resources and know-how to support rapid growth. As the country has to shut its doors to the world for almost half a century, serious lack of exposure to the international arena is within expectations.
The local work force is progressing but it will take time. Companies has to be prepared to provide the intangibles beyond just the capital injection – time and readiness to share your technical expertise.
For foreign companies who are looking at fast profit growth to breakeven but still requires local expertise to hold the fort, perhaps recruitment of Myanmar nationals with overseas exposure will be the next best option if cost is not an issue.
SETTING THE STAGE FOR SUCCESSFUL ONBOARDING
Now the anticipation is such that the base for future opportunities will be set up somewhere between the 2016 and 2017, companies should start planning for it. Market entry costs may not be low, however, what you are trading for is a golden opportunity to gain an early mover advantage into inadequacies turned opportunities.
Though there are significant improvements made in this area in the recent past year with the provision of the guides on DICA’s website, this will be frustrating to investors who might not have straightforward cases and who cannot afford the time to navigate their way through possible language barrier to gain clarity.
Hence, getting external help from professional corporate service providers to follow through your business compliance requirements is advisable.
4. Skills shortages, a key concern.
Our view: No doubt, this bodes well for companies dealing with the education and vocational training sector. However, this is more of a bane to most companies as training and staff development is both time consuming and costly.
Every sector in Myanmar currently lacks the human resources and know-how to support rapid growth. As the country has to shut its doors to the world for almost half a century, serious lack of exposure to the international arena is within expectations.
The local work force is progressing but it will take time. Companies has to be prepared to provide the intangibles beyond just the capital injection – time and readiness to share your technical expertise.
For foreign companies who are looking at fast profit growth to breakeven but still requires local expertise to hold the fort, perhaps recruitment of Myanmar nationals with overseas exposure will be the next best option if cost is not an issue.
SETTING THE STAGE FOR SUCCESSFUL ONBOARDING
Now the anticipation is such that the base for future opportunities will be set up somewhere between the 2016 and 2017, companies should start planning for it. Market entry costs may not be low, however, what you are trading for is a golden opportunity to gain an early mover advantage into inadequacies turned opportunities.
All in all, we are still seeing many foreign investors holding their horses and hesitating about investing in Myanmar. Main reason being the unfamiliarity with the regulations, business practices and policies (which seems to be ever-changing). Nobody likes the unfamiliar stimuli. However, expose yourself to the change and find out more about Myanmar. Highly likely you will find yourself enjoying the unfamiliarity this new venture brings you. New opportunities await.
We hope that this 3-part series serves to provide you with greater insights on establishing your business presence in Myanmar. Moreover with the vision of AEC for a more resilient, inclusive, and people-oriented, people-centred community; integrated with the global economy, the regional outlook remains positive, especially for those considering long-term opportunities in countries in Myanmar.
For those who have missed out on the first 2 part of this series, click on the links below:
Click here to read Part I – Time to Invest
Click here to read Part II – Time to Investigate I
For those who have missed out on the first 2 part of this series, click on the links below:
Click here to read Part I – Time to Invest
Click here to read Part II – Time to Investigate I
