Interview: Peter Crowhurst
How would you characterise Myanmar’s overall business and investment environment?
PETER CROWHURST: There is a strong community of people bringing new business opportunities to Myanmar. Local firms are looking to find good investments and gain the confidence of financial institutions. The banks, meanwhile, are working to clean up the sector and come closer in line with international compliance frameworks. While the cost of finance remains a barrier, the general trend is one of increasingly responsible practices that is fast shaping a frontier economy – although the operating environment can be hard to navigate. There are plenty of opportunities, but they do require work.
Which examples of Myanmar business etiquette are important for newcomers to embrace?
CROWHURST: For the international businessperson, the cities of Bangkok or Singapore bring with them a distinct mental image, whereas Yangon might not. Myanmar has its own way of living, and business is conducted in a way that is influenced by a deep and individual history. From presenting one’s business card to bringing the right people to a meeting and being on time, there is a strong business etiquette in Myanmar that people new to the market would benefit from being aware of. Terms of address are also important: “U” and “Daw” are the honorifics for men and women, respectively, while “Ko” and “Ma” serve the same purpose with younger counterparts. Those interested in entering Myanmar must have a clear business plan and work to comprehend the country. Understanding colonisation, the subsequent military regime and the loss of the education system will go a long way in explaining certain peculiarities of professional life. Additionally, knowing how a country that was sanctioned for the majority of the past 50 years survived will explain some less obvious reasons behind Myanmar norms. What seems a natural way of doing things may not be the case here. Presentations in English must be clear and concise, and without colloquialisms or idioms. Value must also be well defined – is it sector expertise, finance or both?
What do local firms look for when partnering with international companies?
CROWHURST: When seeking global partners, Myanmar companies look for honesty and trust, but also engagement. They will ask how long a firm has been in the country and what experience they have. A longterm vision takes precedent over a quarter-on-quarter focus. It also means a great deal to meet one-on-one. Firms looking to enter Myanmar should certainly set aside a budget allowance to spend time in Myanmar and build personal relationships. At its core, the Myanmar market is not too difficult to navigate. When making agreements, keep the size of the contract manageable. A large, complicated document may help compliance officers, but local firms will not be able to process it.
In what ways could interactions with the government be better facilitated or expedited?
CROWHURST: It is relatively easy to set up a company.
The Myanmar Investment Commission (MIC) is great to interact with and well digitalised. If you run your project by a local official outside of Yangon without the MIC, it can take a bit more time and effort to explain what is happening. Approval at the top is only one part, you have to go along the full length of the chain. There is no fool-proof technique for this; however, there is great value in having strong Myanmar staff to help push the project down the pipeline. Channels of communication are becoming quite varied, but it remains the case that if you want correspondence with the government, official letters are the way forward. They must target the correct individual and be endorsed by the right people. It is important to remember that in Myanmar you are dealing with a government that is geographically remote – being located in Naypyidaw rather than Yangon – and processes can take longer than expected.
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