Myanmar - Burma in need of a blueprint

Aung San Suu Kyi, Burma's icon of democracy, has what she calls a "simple ambition" for her country: to see it surpass its Asean neighbours in the next 10 years.

To do this, she said political reforms are as important as economic reforms that are slowly taking place. At the same time, she advised foreign businessmen to adapt a "wait and see" attitude "for their own good as well as that of the country" before investing.

Suu Kyi met with a 12-member delegation of the Asean Business Council (ABC) that visited Rangoon and Nay Pwi Taw on an exploratory business trip from February 6-7. The delegation met with representatives from the local chamber of commerce as well as government officials to discuss the country's business climate.

"I won't say 'satisfied' is the word. We're pleased with the reforms so far, but I think they need to be strengthened and they need to be put on the right path," Suu Kyi told a group of journalists who travelled from Kuala Lumpur to Rangoon and Nay Pyi Taw with the ABC delegation at a briefing held on the steps of her house in Rangoon.

While she welcomed the keen interest of foreign businesses on Burma that is slowly opening up its economy to the outside world, Suu Kyi is worried that the country may not have the capacity to cope with the changes and cautioned against rushing in.

"We (she and ABC delegation) have been talking about the importance of sound investment laws and the importance of rule of law," she noted. "I think (businessmen) should wait and see a little, for their own good as well as that of the country."

She noted that she discussed these concerns with the ABC delegation in a closed-door meeting inside her house that lasted for an hour. She expressed keenness on agriculture-related businesses among the many investment areas.

"I think it's not just a matter of potential investments, but also a matter of the potential of the country to cope with the investments," she said. "This is an area of worry. We wonder how much potential there is to cope with the reforms that we want.

"Of course, we can cope with them in the long run. But in the short run, how do we sequence these reforms so that they can develop the right way as quickly as possible?

"We do need to think about speed because we're behind the others. There is a need to catch up. We can't say we will take our own sweet time. It doesn't work that way," she said.

She emphasised that economic and political reforms have to happen at the same time, and that a rule of law should help address the country's ills such as corruption.

"There is the view that political reforms are not happening as fast as economic reforms. These have to go in tandem. I don't think you can have genuine economic reforms without judicial reforms. It's no use having good investment laws if you don't have a good judicial system to make sure the laws are applied," Suu Kyi said.

In a separate meeting with the ABC delegation, U Thaung Lwin, deputy minister of rail, assured that for one, central bank functions will soon be separated from the finance ministry within the next six months.

He also said the government is prioritising employment creation by opening up to large industries specifically those from the high-tech sector.

"We are now revising the investment law," U Tang Lwin said.

On the other hand, Nazir Razak, CEO of the CIMB Group and head of the ABC delegation, noted that Burma needs sufficient laws that are clear in order to provide a conducive business environment.

"I was a little bit concerned because I didn't get a sense that there is a holistic, comprehensive plan at this point of time," Nazir said.

"Aung San Suu Kyi did mention that what she thought was important was to start with the proper diagnostic of this situation and then put together the holistic plan. If one is not careful with these things, you can put the cart before the horse and you can have a lot of mix-ups, disappointments and therefore setbacks."

He acknowledged that the changes won't be easy and may take time. "You're talking about undoing culture and practices that have been there for many, many years. (Burma's) eagerness (to reform) must be applauded but somewhat tempered for reality."

John Pang, executive director of the CIMB Asean Research Centre, said Burma offers a huge business potential for the rest of the region, not just Southeast Asia.

"It links the rest of Southeast Asia to the Indian Ocean and the Middle East. It opens up the land side of logistics like railways and road networks to the Middle East, to India," Pang said, adding that this will shift the centre of gravity in Southeast Asia's geopolitics.

"Asean is very maritime. Burma is literally the link between the landlocked countries and its opening up will also help develop not just Burma but the entire region like India's northeast provinces."

"Everyone has worries whether the reforms can be carried out. It is not a question of whether Burma is open for business. It is open for business but it's how we go from here, taking the next step. Burma is coming on stream at a fascinating time in world economic history, it is full of potential."

Based on the ABC delegation's meetings with local businesses and government officials, Pang said there is a strong desire to move forward. "That's the sense we all got, people want to catch up. But they need not just piece-meal liberalization but a plan. Is there a blueprint? How do you plan for your economy to be ready?"

Despite these concerns, AirAsia founder Tony Fernandes-who provided the charter plane to fly the delegation to Burma-noted that "business should drive change".

Fernandes said he has already received two proposals during the trip for a joint venture with Burmese firms and is keen to take the talks further. AirAsia has two flights daily to Rangoon from Bangkok, and one from Kuala Lumpur.

"Obviously, the Chinese, Japanese and Koreans have been slightly ahead in Burma but I got the feeling that the country welcomes any form of help to get things moving," he said.

Suu Kyi, meanwhile, said she believes in the future of Burma. She candidly added that being behind its Asean neighbours gives Burma the chance to learn from the mistakes of others.

"I would like to see Burma ahead of all the Asean countries (in the next 10 years). A very simple ambition."

Yasmin Lee Arpon

Asia News Network

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