Local businesses urged to look outward

 

At a forum on Monday designed to prepare local businesses with the integration into AEC, Simon Tay, chairman of the Singapore Institute of International Affairs (SIIA) and an associate professor of law at the National University of Singapore, said that local businesses should take advantage of Myanmar’s re-engagement with the world and see what the entire region has to offer.

"I would say that as the country reopens, not everything will remain the same. But it does not mean that all local companies and SMEs (small and medium enterprises) cannot compete (with Asean rivals). Myanmar should have some confidence. Just like Vietnam and Malaysia face challenges, every country will face some challenges. But we can adjust over time,” he said.

More than 200 business and corporate leaders were present at the Asean-Myanmar Forum organised by SIIA and its supporting partners - The Union of Myanmar Federation of Chambers of Commerce and Industry and International Enterprise Singapore. It served as a stage to discuss how businesses can support integration in an effort to strengthen its cooperation with business people across the region.

Among the participants, 43 per cent were local businesses keen to learn more about Asia’s geopolitical and economic trends and how they might affect their business plans. They showed their willingness to find partnerships that would open up doors to greater investment opportunities in Asean. 

The rest of the participants were foreign businesses from Asia, including Singapore, Hong Kong and Japan, who were interested in finding out more about the direction of Myanmar’s next phase of growth and the development plans of its financial sector. Firms from Europe and the United States were also present at the event.

Tay noted that the forum was intended for both local and foreign businesses with the aim to provide a platform to better understand the business opportunities and challenges across the region. The forum is also part of the SIIA’s second phase of research on Myanmar’s political and economic opening, specifically its financial sector.

"We created this forum like a two-way street. Foreign companies are looking to invest more in Myanmar. Also, we hope to help Myanmar companies understand the global and regional trends of AEC, so that they do not feel so nervous. We always fear what we do not know. So hopefully they will know more and then be more able to partner with foreign companies or strengthen their own business," he said.

In suggesting that local businesses explore business opportunities overseas, Tay said: "The rules of the Asean community are not so difficult, not like the EU. It is to bring the tariffs down and look for some harmonisation standards. It will be progressive, but step by step, not a big jump. I am optimistic that the Myanmar government can do its part as part of the AEC."

According to the professor, there will be more chances for local firms to partner with foreign companies. Partnerships will mainly be in the form of capital, technology, branding, and access to bigger market. 

"Investment is gathering pace in Myanmar with new foreign investors from as far away as Europe making their moves into the country. Long-time investors who have stayed rooted in the country, such as businesses from Singapore and Japan, are also moving ahead with big development projects that will shape Yangon’s city skyline,” he said.