Better Laws and Transparency ‘Needed to Boost Investment’
A lack of transparency in
political affairs and a muddy regulatory framework are hindering investment in
Burma, an international business commentator says.
The much-delayed new foreign
investment law is “one of several crucial pieces of legislation that must be
rolled out in coming months if the country is to meet foreign firms’ wants and
needs,” said Nicholas Fang, a director at the Singapore Institute of
International Affairs who has just published a lengthy study of Burma.
Uncertainty about land and
property rights and titles are hindering the construction industry, Fang said,
quoting property developer Keppel Land of Singapore, which operates hotels in
Rangoon and Mandalay.
“There is a need for the
government to consider reviewing policies and laws that will create a more
conducive investment environment for foreign property developers,” Keppel
Land’s head of regional investments Tan Swee Yiow told Fang for his report.
“For instance, there is currently no strata title law to regulate homebuyers of
condominium units,” he said.
And although tourism and
corporate hospitality have been identified as growth sectors, said Fang, “there
is concern among hoteliers themselves that the local industry is not ready to
cope with the high demands of anticipated mass tourism.”
Another major challenge to growth
is the lack of talented individuals to take up the burgeoning number of jobs
already being created in the domestic economy, Fang said.
“Indeed, the institutions
necessary for developing human capital internally—such as the university
system—are still reeling from decades of neglect under the former military
regime, and therefore lack the capacity to field a well-trained workforce.”
Fang said the best short-term
solution would be for large numbers of the tens of thousands of Burmese living,
studying and working abroad in the United States, Singapore, Australia, India
and Europe to return home to fill skilled job slots.
Shipping Line to Link Rangoon, Malaysia, Singapore
One of the world’s biggest
shipping companies is to begin a freight service between Rangoon and Singapore
“in response to increasing market demand.”
Evergreen Marine Corporation of
Taiwan said it will start the regular container shipping service from Singapore
on Aug. 21.
Evergreen is one of the biggest
container ship operators in the world with a fleet of 160 large vessels.
The Singapore-Rangoon service
will also call at Port Klang, Malaysia’s biggest port and close to the Kuala
Lumpur market, on its 10 to 12-day round trips.
“Recent political and economic
reforms have attracted significant amounts of foreign investment to the
country, enhancing its potential for long-term economic growth. Evergreen will
continue to monitor market development trends and remains committed to meet
customer demand with quality service,” the Taipei-based firm said in a
statement on Aug. 15.
US Business Group in Naypyidaw to Look at Investment
Two US ambassadors accompanied an
American business group to Naypyidaw this week to discuss investment
opportunities.
The Singapore-based delegation
met Vice-President Sai Mauk Kham and government officials to discuss a range of
business possibilities, notably in transport, power infrastructure, communications
technology, a government statement said.
The business group, linked to the
American Chamber of Commerce, was accompanied by the US Ambassador to Singapore
David Adelman and new US Ambassador to Burma Derek Mitchell.
No other details of the brief
visit have been disclosed, but it coincided with further debate in the
Naypyidaw Parliament of new foreign investment legislation.
London Holds Burma Business Advice Conference
A special conference on investing
in Burma is to be held in London in September, endorsed by the British
government’s UK Trade and Investment Office.
To make the most of new business
opportunities opening up in Burma, “British companies need to have a good
understanding of the business, economic and political situation,” say
organizers City & Financial, a British business research and conference
company.
The one-day conference, on Sept.
27, will also be supported by the UK-Asean Business Council and the Myanmar-Britain
Business Association.
The conference will provide
advice and information on finding partners, markets, legal issues, and the
terms of the new investment rules expected to be passed into law by then, said
City & Financial.
In particular, the gathering will
focus on the oil and gas, power infrastructure, tourism and mining industries.
“[The conference] has been
tailored to provide delegates with practical information about doing business
in Burma/Myanmar. It will also offer a platform for networking with other UK
companies that are likely to be at the forefront in tendering for major
contracts,” said City & Financial.
Direct Flights from Mandalay to Bangkok
Burma’s second-largest city of
Mandalay will have greater connectivity with the outside world from October
when low-cost airline Thai Air Asia begins direct flights to and from Bangkok.
At present there are no direct
flights between the two cities and travelers must fly via China or Rangoon.
Thai Air Asia said the
four-times-a-week service will begin on Oct. 4 using 189-seater A320 planes.
The airline will also start flying to Naypyidaw and increase its
Bangkok-Rangoon service to three times daily.
China East Airlines currently
offers flights between Mandalay and Bangkok but via Kunming and other Chinese
cities. China East also operates between Singapore and Mandalay.
Myanmar Airways International
will also commence Mandalay-Bangkok flight in October, but via Rangoon.
Hollywood Arrives in Burma Seeking New Market
The first major Hollywood movie
in decades is to be shown in cinemas in Burma after 20th Century Fox signed a
distribution agreement with local operator Mingalar Company.
Mingalar will distribute the 3D
version of the blockbuster movie Titanic in Burma, Fox told the Chicago Tribune
on Aug. 14.
“Twentieth Century Fox
International is proud to be a pioneer in entering emerging markets and working
with local businesses,” studio president Tomas Jegeus said in a statement.
Business & Investment Opportunities
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