Firms See Myanmar as Next Frontier

November 30, 2011

Firms See Myanmar as Next Frontier

Foreign businesses are ramping up interest in the long-isolated but potentially lucrative market of Myanmar, as signs of a thaw between its government and Western leaders raise hopes of a possible end to Western sanctions.

For now, the push is confined mainly to Asian companies that aren't covered by tough sanctions imposed by the U.S. and Europe since the late 1990s to punish Myanmar for its poor human-rights record. Some investors held back because of concerns about risks to their reputations, while others doubted the opportunities were worth pursuing and now are changing their minds.

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Meanwhile, Western companies are looking for ways to get back in, though few are willing to discuss plans in public or in depth because of a possible backlash from customers who remain skeptical about recent reforms in the country. U.S. officials say they don't intend to lift sanctions until they see more changes in Myanmar, including more transparency in the country's dealings with North Korea.

A visit by U.S. Secretary of State Hillary Clinton this week, the first by a U.S. secretary of state in more than 50 years, has buoyed hopes a rapprochement is in store, and some European diplomats are pressing for looser sanctions at an annual review of their laws in April 2012.

The generals in the Hermit Kingdom of Myanmar need growth, while the U.S. wants an end to the repressive regime. U.S. business -- eager to get into Myanmar -- may prove a means to both ends. John Bussey has details on The News Hub.
.Mrs. Clinton plans to arrive in the capital Naypyitaw on Wednesday and meet former military commander and President Thein Sein on Thursday. She travels to the commercial capital Yangon, formerly known as Rangoon, on Friday, where she will visit dissident Aung San Suu Kyi and leaders of ethnic minorities.

Myanmar's potential is too great for some investors to ignore. One of the last, large frontier markets in Asia, it is rich in oil, gas, timber and gems and has the potential to be a major rice and seafood exporter. Its tourism industry can rely on 900-year old temple complexes and beaches to rival nearby Thailand, which attracts 15 million or more visitors a year. Myanmar also has low manufacturing wages, and Myanmar's intellectual class speaks English, with a legal system rooted in British common law.

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