Honesty, sincerity key to business success

Tell us about your childhood, your businesses and your experience.

I was born in Mawlamyine, in the southeast of Myanmar near Thailand’s Mae Sot. My father was a businessman doing business with traders in Penang and Thailand. 

I studied engineering and later took up construction projects with the Defence Ministry. Next, I worked for the Irrigation Department and after that I began my own construction projects. 

In the era of the Burma Socialist Programme Party (BSPP), under General Ne Win, I was entrusted with several construction projects.

In 1988, the military took over, but slowly the country opened up to the outside world. I got to visit the United States and Singapore, and observe their business practices. 

When I returned home, I founded the Zaykabar Co. 

I named my company Zaykabar as both my son and daughter hold the name “Zay”, so the name of my company literally means “the world of Zay”. 

I was a bit of a business pioneer and an entrepreneur. When others started entering the construction business, I switched to the oil and gas industry. I worked with Shell for a few years before returning to construction. 

In the construction industry, I took over the building of the Sedona Hotel, one of the YKK Twin Towers, the Marina Square near Inya Lake with OKI Co and the Garden City in Mingaladon Township.

I also established the Mya Yeik Nyo Hotel and a large restaurant called Karaweik. Perhaps, I was a pioneer in the hotel industry from 1991 to 1992.

I went into land development in a big way, and was also engaged in developing the industrial zone, which was undertaken by the previous government. I also took over the construction of the tallest building – Pyay Garden on Pyay Road. 

Now, I chair the [Myanmar] Hotelier Association. 

In the 2010 general election, I contested from Yangon’s Kungyangon Constituency, representing the ruling Union Solidarity and Development Party (USDP). There were four contestants and I won with the majority of votes. I have been working boosting the development of my constituency |and have devoted myself to work |on education, health, culture |and social welfare. I am the chairman of the parliamentary com-|mittee for these sectors and |attend parliamentary sessions as necessary.

One of the things I pushed in parliament was the standardisation of the foreign currency exchange rate. In the past, the official rate was 6 kyat to the dollar and 1,200 kyat to the dollar in the black market. Now, the rate has been stabilised at 850 kyat to the dollar. 

I have also pushed for the introduction of the stock exchange and it should emerge in Myanmar soon. I also worked hard for the enactment of the Foreign Investment Law, which is very important for the country. 

What is the secret to running a successful business in Myanmar?

The secret to success here is ensuring that investment is genuine and is spent on the most appropriate line. Myanmar has rich natural resources, while Thailand has the technology, equipment and market. Thailand has chosen what is most suitable for its own needs, like tourism. But Myanmar is lacking in hotels and there is almost no service departments or office areas. These need to be built first. Then investment is needed for building factors and mining. The time is coming for investment and there will be more competitors. 

What were some of the main problems you faced when running your business?

The previous military regime sometimes cancelled investments right after approving them. I personally had a bitter experience. I signed a business partnership with an Indonesian company to produce cigarettes under the brand names of Sampona and Vegas. We made a lot of money, winning up to 40 or 50 per cent of the market share but the government took it over. In our country, the banking system is not good, even though it is very important for the economy. We face a lot of problems trying to invest in businesses. 

What motto do you adhere to at work?

I have been successful because I am honest and sincere. We are gaining experience as more international investors come in. They cannot cheat us because we can look into their eyes. The only thing we can give them is honesty and take their knowledge and technology in exchange. So, I believe honesty, sincerity and truthfulness are key to success in business. 

 

In the second part to be published tomorrow, Khin Shwe talks about this transitional period in his country as foreign investors sweep in to look for opportunities.