More than 2 years ago FocusCore Corporate Services opened in Myanmar. We were confident that a huge commercial opportunity was arriving for companies across all sectors in Myanmar. This blog provides a 2 year overview with details and concrete examples on how investment statistics and consensus have continued to grow.
We have worked closely with many companies, who have rapidly progressed. We helped them with their full setup in Myanmar. The Directorate of Investment and Company Administration (DICA), who authorise incorporation of companies, are now more strict on the types of activities that can be licensed. Of course, we continue to provide detailed advice to companies but we now also explain how the process is more compartmentalised. We outline the steps we take to be sure their application is sent to the correct Ministry, at the start of the application process. It is vital you receive good advice on the current procedures and you are well informed on potential future changes. FocusCore Myanmar have helped many industries from retail to construction to marketing & advertising to Human Resources.
We are confident the transition of the Government administration is going to be very positive for the country, as long as there is a fair balance between the previous and new administrations in April. Although a new President has not yet been appointed we still strongly recommend companies to prepare for their entry into Myanmar – be prepared for more positive change. We have seen many companies come into Myanmar and those waiting on the sidelines will surely regret their delay. FocusCore have covered all industries that are popular here and the signs are continually improving, the rate of change is still accelerating.
World leaders are supportive of this change, for example the “GL20” was issued by US Treasury Department in December last year which will facilitate greater trade flows between Myanmar and other countries. Read more here.
Investment from overseas has steadily increased. Example figures include, China $14.1 billion, U.K. $2.5 billion, France $470 million. Last Autumn The Lord Mayor of the City of London, The Right Honourable Roger Gifford, visited Myanmar. He said UK companies were “late into (the Myanmar) market which has an estimated 60m people and an economy McKinsey has estimated could grow to $200bn by 2030”.
Last month DICA announced that 31 new local and foreign projects had been approved by The Myanmar Investment Commission (MIC). These were projects mainly in real estate and garments sectors. Foreign investment is rising but further investment is needed. Investors have been watching the political changes closely and now many expect, with the new administration, foreign investment will grow even more rapidly.
Announcements from DICA included five joint-venture investments, 2 housing developments, a private hospital and in January four more foreign investments and one joint-venture project. Forecasts show that Myanmar will see US$6 billion in pledged foreign investment for the 2015-16 the financial year.
We predict more administration changes are likely with more guidelines on how you should run your business. It is even more important that you really understand the processes and the changing elements in Myanmar. We advise you to save your expenditure, outsource these processes and retain your focus on your company products and production – do what you do best. We have worked with companies, who now have their incorporation completed and for whom we provide a wide range of corporate services. We consider ourselves experts with further local experience having helped dozens of companies. This figure will double or triple this year.
We confidently predicted the expansion of the Myanmar economy and we were correct – we cannot stress sufficiently how the signs remain positive. Your company may lose out if you are not in the market, ready to share in the country’s prosperity. The FocusCore Myanmar sphere of activity has also grown via local companies.
Staffing Problems resolved
We now have associates, who can help you find the right people – MyWorld Careers will find talented candidates for your company, across all sectors especially engineering, sales & marketing, customer service, technology and accounting & finance. They have already built a database of over 15,000 professionals in Myanmar.
World Class Office Space
Yangon’s first International grade serviced offices, Arcc Offices at Hledan Centre launched last year. Equipped with the best IT connectivity, ergonomic and functional office furnishing and the highest quality materials and fit-out, which include modern communication facilities with enterprise-grade telephony and high speed broadband connectivity with a dedicated connection. The offices are located in Yangon’s prime midtown district in Kamayut Township, right across Yangon University and walking distance to Hledan Market. Conveniently positioned within a mixed use development providing enviable shopping and dining facilities supported by ample parking in an accessible location within close reach to five star hotels, transportation hubs and business services.
FocusCore are strategic partners with ARCC to provide you with readily available serviced office space.
ARCC arrived early and is well positioned to supply space for incoming companies, so you are ready to operate from day 1.
You can visit THE coffee experience, close to the ARCC offices, in the form of the new coffee haven ‘Espressonite’ FocusCore was chosen to help their start in Myanmar: http://myanmarcs.focuscoregroup.com/espressonite-myanmar-new-local-coffee-chain-selects-focuscore-for-launch-in-myanmar/
Investment Opportunities – Real Estate
We have been forecasting change in the construction sector adding our recommendation for the Condominium Law to be introduced, as reported in our interview with Myanmar Insider, last year. We were among the first companies to report on this topic. Agreement was reached on 22 January 2016 and the new law awaits Presidential approval.
We said that to boost Myanmar Foreign Direct Investment (FDI) the Condominium Law was needed. This change will enhance liquidity in the market and grow consensus leading to further Foreign Direct Investment.
There had been a plateau in construction project prices, an active supply with further approvals granted but notably some which are in superb locations – premium condominiums. These real estate projects provide investors with huge opportunities. Contact us to know more about these projects.
We are sure that more foreign companies will arrive in Myanmar – they are needed, especially training companies, firms in the service sector. The country is rich in resources, with a young population and many willing to work hard. FocusCore has been in this market over 2 years. Call us now and start planning your setup in Myanmar