Govt Hurries to Fix Regulatory Issues Which Are the Main Concern for European Firms
Govt Hurries to Fix Regulatory Issues Which Are the Main Concern for European Firms
Myanmar Times, 13 Dec 2018
URL: https://www.mmtimes.com/news/govt-hurries-fix-regulatory-issues-which-are-main-concern-european-firms.html
The majority of European companies in Myanmar say the business environment has weakened over the past year.
The results of a business confidence survey conducted by the European Chamber of Commerce in Myanmar which involved 150 European companies with investments in the manufacturing, power generation, transport, storage and construction sectors in Myanmar, were announced yesterday. Currently, the UK, Netherlands and France are the biggest European investors in Myanmar.
According to the survey, 81 percent of European companies said the Myanmar business environment is poor or needs improvement compared to 76 pc in 2017 and 67 pc in 2016.
Regulatory concerns
Regulatory issues remain the biggest challenge for European companies in Myanmar, said Filip Lauwerysen, executive director of Euro Cham Myanmar.
The good news is that efforts are being taken to solve those issues, said U Maung Maung Lay, vice chair of the Union of Myanmar Federation of Chamber of Commerce and Industry.
The relevant ministries are drafting procedures for investing to solve the existing regulatory issues and uncertainty in investment procedures, said U Aung Naing Oo, director general of the Directorate of Investment and Company Administration.
In addition, the newly established Ministry of Investment and Foreign Economic Relations will take responsibility for introducing easier methods to invest in the various sectors of Myanmar, U Aung Naing Oo said
“The new ministry is working on solving the issues. Once the procedures for investing are complete in the coming year, it will be much easier to expand in the country,” he said.
The new Ministry of Investment and Foreign Economic Relations will also establish a single-window system, or a one-stop service centre, to cater to the needs and requirements of new investors, U Thaung Htun, its new minister, said last month.
Staying invested
Despite falling business confidence, most of the companies also remained interested in expanding within Myanmar.
In fact, some 79 pc of the respondents based in Yangon and Mandalay said they are planning to reinvest in the next three years.
Some 64pc of the survey’s respondents expect their market share to increase and 67pc expect an increase in revenue over the next three years.
The survey also showed heightened interest in doing business in Shan State and Ayeyarwady Region. However, all other states and regions saw a drop in reinvestment interest.
The main reasons for the firms’ continued interest are opportunities in Myanmar’s domestic market, expanding or establishing a regional base of operations and expectations of economic reform.
The results of a business confidence survey conducted by the European Chamber of Commerce in Myanmar which involved 150 European companies with investments in the manufacturing, power generation, transport, storage and construction sectors in Myanmar, were announced yesterday. Currently, the UK, Netherlands and France are the biggest European investors in Myanmar.
According to the survey, 81 percent of European companies said the Myanmar business environment is poor or needs improvement compared to 76 pc in 2017 and 67 pc in 2016.
Regulatory concerns
Regulatory issues remain the biggest challenge for European companies in Myanmar, said Filip Lauwerysen, executive director of Euro Cham Myanmar.
The good news is that efforts are being taken to solve those issues, said U Maung Maung Lay, vice chair of the Union of Myanmar Federation of Chamber of Commerce and Industry.
The relevant ministries are drafting procedures for investing to solve the existing regulatory issues and uncertainty in investment procedures, said U Aung Naing Oo, director general of the Directorate of Investment and Company Administration.
In addition, the newly established Ministry of Investment and Foreign Economic Relations will take responsibility for introducing easier methods to invest in the various sectors of Myanmar, U Aung Naing Oo said
“The new ministry is working on solving the issues. Once the procedures for investing are complete in the coming year, it will be much easier to expand in the country,” he said.
The new Ministry of Investment and Foreign Economic Relations will also establish a single-window system, or a one-stop service centre, to cater to the needs and requirements of new investors, U Thaung Htun, its new minister, said last month.
Staying invested
Despite falling business confidence, most of the companies also remained interested in expanding within Myanmar.
In fact, some 79 pc of the respondents based in Yangon and Mandalay said they are planning to reinvest in the next three years.
Some 64pc of the survey’s respondents expect their market share to increase and 67pc expect an increase in revenue over the next three years.
The survey also showed heightened interest in doing business in Shan State and Ayeyarwady Region. However, all other states and regions saw a drop in reinvestment interest.
The main reasons for the firms’ continued interest are opportunities in Myanmar’s domestic market, expanding or establishing a regional base of operations and expectations of economic reform.