Myanmar’s policies need to be clear to improve business confidence: survey
DESPITE EXPECTATIONS for the business landscape to improve, Myanmar still lacks transparent economic policies that urgently need to be set in every sector, according to a recent business-confidence survey conducted by Roland Berger, an international consultancy firm that has been working in the country since 2013.
Thomas Klotz, the German-based firm’s managing partner for Southeast Asia, said an unpredictable legislative environment, selective enforcement of regulations and lack of protection for intellectual-property rights could deter Myanmar from further growth.
The firm surveyed nearly 200 senior executives from companies of all sizes in August and September about opportunities and challenges ahead. Ninety per cent of the respondents were owners, directors, executive officers or managers in a wide range of areas – telecommunications, media, technology, construction, real estate, utilities, chemicals, retail, banking and tourism.
Nearly two-third of the firms were multinational companies investing in Myanmar – 29 per cent from Europe, 19 per cent from Southeast Asia, 11 per cent from the rest of Asia and the Middle East, and 3 per cent from the United States.
Some 38 per cent of the firms surveyed are owned by Myanmar nationals.
Klotz said most of the respondents were optimistic about the nation’s business landscape, as 92 per cent of them expected to expand their operations in a year’s time.
However, he highlighted that 97 per cent of the firms wanted clearer economic policies rather than the very generalised 12-point economic policy issued this year.
“It is time to make a decision on what the policies should be,” Klotz said.
He said the government could boost the economy through a transparent policy, stable and sufficient electricity supply, broadband development, transport infrastructure, and financial-sector reforms.
He also recommended promoting fair competition, investing more in education and training, reforms and liberalisation of state-owned enterprises, land reforms, strengthening environmental policies and enforcement, healthcare reforms and peace building.
“Our conversations with government officials indicate that there is awareness of the need and urgency to clarify and detail economic policies, and determination to move from planning and deliberation to action and quick wins.
“If this indeed happens, we will continue to see one of the fastest and most impactful transformations of a nation ever,” he said.
