Thai banker buoyed by Myanmar potential
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THE NATIONAL League for Democracy's ability to make a smooth transition to power is the key not only to Myanmar's political situation, but also its economic development, the executive vice president of Bangkok Bank said.
Kobsak Pootrakool urged Thai companies to react now as Myanmar’s market will continue to bloom in the next four or five years and a smooth transition to democracy will attract more competition from abroad.
“If the transition is calm and peaceful and there is no violence, then it will be an important turning point because many people have been waiting for this clarity for a long time,” he told The Nation at an economic seminar arranged by the Thammasat Economics Association last week.
“How will the power be distributed after the election? And who will be the one to manage and take care of the country’s government?” he asked.
In 2014, Bangkok Bank was the only Thai bank to receive preliminary approval for a license to commence banking operations in Myanmar and the bank opened |its first branch in Yangon in June this year after officially receiving |a final license from the government.
The bank has had a representative office in Yangon for 20 years before receiving the license.
“After the transition has passed, then we have to look at the continuity of market policies and the market system. Personally, I believe Myanmar has already passed that point a long time ago because the private sector woke up three years ago and companies have been gathering strength and knowledge and they have moved forward too far to turn back now,” he added.
Kobsak explained that Myanmar’s operators and citizens are already addicted to the results of development in the private sector, which has improved their living conditions. He expects the market system to continue to be based on capitalist ideology that private businesses, which have grown immensely in the past three years, will use as their main economic engine.
“Myanmar’s economy is stable and it continues to be based on the same framework that was set up along with the same driver, which means that business opportunities in the country will continue,” he said.
The opportunities in Myanmar are available for Thai operators as this neighbouring market has a population of 50 million with rapid economic expansion and growing purchasing power, he said. The NLD’s Aung San Suu Kyi promised to pursue reconciliation and outgoing president Thein Sein promised to accept the will of the people and allow a smooth transition of power.
“If the transition is smooth, foreign companies will be more interested in Myanmar so Thai companies should not throw away this opportunity since we are close to them and we understand them. Why are we still reluctant to capture this opportunity for our country?” he asked.
Kobsak revealed that construction, roads, power plants, water supply, food, tourism, furniture making and media, especially variety shows and events, are all interesting businesses and industries that are expected to continue to expand in Myanmar for the next four or five years.
