Here are five industries to watch:

1. Agriculture & Food

Agriculture and food are important areas for cross-border trade between Thailand and Myanmar, supported by the countries’ established trade links, agricultural activities and food-related supply chains. Myanmar’s fertile land and Thailand’s more developed processing and distribution capabilities also create natural synergies for collaboration across the value chain. Opportunities can arise across agricultural products, food processing, sourcing and distribution.

As businesses look to strengthen regional supply chains, companies operating in this sector may explore sourcing, processing and distribution opportunities across both markets, supported by geographic proximity and established trade connections.

2. Manufacturing

Manufacturing is another sector to watch as Thailand–Myanmar business connections develop, supported by geographic proximity, existing supply-chain relationships and connections to wider regional markets. Thailand’s established manufacturing capabilities, technology, and supply-chain networks can also create opportunities for collaboration across production, sourcing, processing and distribution. Potential areas may include contract manufacturing, component sourcing, food and consumer goods production, and regional distribution.

As businesses look to diversify production and strengthen regional supply chains, companies may explore opportunities to source materials, develop production activities or establish partnerships across both markets. Geographic proximity can support closer supplier relationships and regional distribution, while businesses will also need to consider local regulations, workforce requirements, infrastructure and operational capabilities when developing manufacturing activities.

3. Logistics & Transportation

Logistics and transportation are closely connected to the development of cross-border trade between Thailand and Myanmar, as the movement of agricultural products, manufactured goods and consumer products requires reliable transportation and distribution networks. Geographic proximity between the two countries creates opportunities across freight transportation, warehousing, distribution, customs-related services and supply-chain management, supporting businesses that need to move goods efficiently across markets.

As companies expand their regional operations, efficient logistics can become an important factor in managing costs, delivery times and supply-chain reliability. Businesses may therefore explore opportunities to strengthen transportation networks, establish local distribution capabilities, and improve coordination between suppliers, warehouses and customers across both markets. Companies operating in this sector will also need to consider border procedures, regulatory requirements and infrastructure conditions when planning their operations.

4. Energy & Infrastructure

Energy and infrastructure are important foundations for business activity and regional connectivity, supporting sectors such as manufacturing, logistics, construction and commercial services. As businesses develop operations across Thailand and Myanmar, demand can arise for infrastructure supporting transportation, industrial activity, energy supply and commercial operations. Opportunities may therefore extend beyond infrastructure development itself to include engineering, construction, equipment, maintenance and related professional services.

As businesses consider establishing or expanding operations, the availability and reliability of infrastructure can influence where they locate facilities, how efficiently they operate and how they plan for future growth. Companies involved in infrastructure-related activities may explore opportunities to support industrial development and regional connectivity, while businesses across other sectors can benefit from improvements that make trade and operations more efficient.

5. Consumer & Business Services

As business activity develops across different sectors, demand for consumer and business services can also develop alongside it. New and expanding businesses require a range of services to support their day-to-day operations, while growing commercial activity can create additional demand for professional, administrative and workforce-related services. Opportunities may arise across staffing and recruitment, accounting, payroll, corporate services, tax and compliance, and other forms of local business support.

As companies enter or expand in Myanmar, they may need to establish local entities, recruit employees, manage payroll, maintain financial records and meet regulatory requirements. This can increase the importance of service providers that offer practical local expertise and support businesses throughout their operations. For companies expanding across borders, having reliable local support can help them manage operational requirements while focusing on their core commercial activities.

Looking Beyond the Opportunity

Different industries may benefit from stronger Thailand–Myanmar business connections, but identifying an opportunity is only the first step.

Businesses also need the right people, processes and operational support to establish and maintain their activities effectively.

At FocusCore, we support businesses with the practical requirements of setting up and operating in Myanmar, helping companies manage their operational needs while they focus on their core business.

Regional opportunities can open new possibilities. Strong local operations help businesses prepare to pursue them.

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For businesses, these ties go beyond trade and investment; they can also influence supply chains, logistics, manufacturing, distribution and the need for reliable local business support.

Greater Cross-Border Trade

Thailand and Myanmar share a close geographic connection, making cross-border trade an important part of their business relationship. As commercial activity develops, businesses may have more opportunities to connect with suppliers, customers and business partners across the two markets, creating potential opportunities to reach new customers, diversify sourcing and develop broader regional business relationships.

For companies considering regional expansion, understanding the local market and having the right operational structure can be important first steps.

Supply Chain and Logistics Opportunities

Greater connectivity can also create opportunities across supply chains and logistics.

Businesses involved in manufacturing, sourcing and distribution may look for more efficient ways to manage the movement of goods and coordinate operations across borders. This may support businesses in improving supply-chain efficiency, coordination and resilience across the region.

Manufacturing and Distribution

Myanmar can also be relevant to businesses looking to develop regional manufacturing, sourcing or distribution activities.

For companies entering or expanding in a new market, potential opportunities may include developing local production capabilities, strengthening supplier networks, accessing regional markets and establishing distribution activities across multiple locations.

Growing Demand for Business Support

As more businesses explore cross-border opportunities, the need for reliable local support can grow alongside them.

Companies may require assistance with:

• Company formation and corporate structuring
• Accounting and bookkeeping
• Tax and compliance
• Payroll and HR administration
• Licences and permits
• Corporate secretarial services
• Staffing and local operational support

These functions may not always be at the centre of an expansion strategy, but they are important to establishing and maintaining an effective and compliant business operation.

Building the Right Foundation for Business

Regional connectivity can create opportunities, but businesses also need to be prepared to operate effectively within the local market.

For companies exploring opportunities between Thailand and Myanmar, building strong local operations and scalable support functions can provide a solid foundation for managing business activities effectively.

At FocusCore, we support businesses with the practical requirements of setting up and operating in Myanmar, helping companies manage their operational requirements while they focus on their core business activities.

Regional opportunities create possibilities. Strong local operations help businesses turn those possibilities into sustainable activity.

The post Thailand–Myanmar Business Ties: What Could This Mean for Businesses? appeared first on FocusCore Myanmar.

Key Challenges Faced by MNCs and How Corporate Secretaries Can Help

One of the primary challenges MNCs face is adapting to the diverse cultural norms and communication styles across different regions. Corporate secretaries, with their deep understanding of local customs and stakeholder management expertise, can help bridge the cultural divide and facilitate effective collaboration.

Another significant challenge is addressing political instability and regulatory uncertainties. Corporate secretaries, with their expertise in compliance and risk management, can guide MNCs through the complex web of policies, laws, and regulations, ensuring that the organisation remains compliant and resilient in the face of political upheaval.

Developing reliable infrastructure is another challenge that MNCs must overcome. Corporate secretaries can leverage their knowledge of local markets and networks to identify and navigate the available resources, helping MNCs establish efficient operations and supply chains.

Overcoming institutional voids, such as the lack of specialised intermediaries and contract-enforcing mechanisms, is also a critical challenge. Corporate secretaries can play a pivotal role in navigating these complexities, leveraging their expertise to identify and establish the necessary partnerships and systems.

Finally, MNCs must be prepared to adapt to rapid changes in emerging markets. Corporate secretaries, with their ability to gather and analyse data, can provide valuable insights to help MNC leaders make informed decisions and stay ahead of the curve.

The Value of Corporate Secretaries for MNCs

As gatekeepers of corporate governance, corporate secretaries are uniquely equipped to help MNCs thrive in the global marketplace. Their expertise in compliance, risk management, and local market dynamics makes them invaluable partners for MNCs looking to overcome challenges and achieve long-term success in new markets. By leveraging corporate secretarial services, MNCs can navigate complex market entry processes more effectively, ensuring compliance, managing risks, and positioning themselves for sustainable growth in diverse global environments.

Learn more about choosing the right corporate secretarial service provider.

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The post Maximise Your Business Potential: Essential Financial Insights for the Year Ahead! appeared first on FocusCore Myanmar.

As the financial market in Myanmar tries to reform from a collateral-based loan to credit-based system, having a GAAP accounting system to monitor the company’s financial position and performance becomes vital for any business at all stages of development.  Not only does it help business owners make informed decisions, it also helps businesses build credibility and communicate effectively with shareholders, investors, and regulators.

SMEs especially should keep their book keeping and financial statements up to date with accurate data and proper accounting standards from inception. This is especially relevant in times like this.

The Myanmar government announced last month, March 2020 an initial stimulus package of approximately 70 million USD to alleviate the impact of COVID-19 on local businesses and the economy at large. On 29 March 2020, one of FocusCore’s clients tasked our team to provide a turnkey service for COVID-19 Fund application. The loan application was submitted on 1 April 2020 and was approved by Myanmar Government on 8 April 2020. Our client was awarded with a 12 month loan at 1% per annum.

“We took the decision to outsource our accounting and finance department to FocusCore since we incorporated in 2015, which means our accounts are kept to a high standard. With their professional guidance, we always file our taxes on-time with the respective tax office in Yangon.  This certainly helped with the loan approval process.” said the SME owner after receiving the approval notice from DICA.

When businesses follow correct accounting standards and practices, applying for stimulus packages from their respective Government in a time of crisis becomes much easier. Businesses that interpret their results using informal accounting practices and failing to file taxes on time or not filing at all will be at a disadvantage in the long term.  

The Government also announced easing deadlines for tax payments for Myanmar-owned businesses that have been hit by the global pandemic. Qualifying businesses now have until the end of September to make their quarterly corporate income tax and monthly commercial tax payments.

Corporate Income Tax can now be made at the end of the current fiscal period ending 30 September. 

The deadline for monthly commercial tax payment has also been extended to 30 September. 

Businesses will be exempt from paying 2 percent advance income tax on exports until the end of the current fiscal period ending 30 September.

Since 2014, FocusCore has been advising companies in Myanmar for compliance, accounting and legal services. We strive to take the corporate administration load off operational staff, so they can do what they do best and focus on their core business. Contact us today to discuss how you can streamline your business performance and build a better business for tomorrow.

The post Success during COVID-19: Myanmar SME receives Government COVID-19 Fund at 1% interest with the assistance from FocusCore Corporate Services. appeared first on FocusCore Myanmar.

June 2019 Lippotex engaged FocusCore Myanmar to setup their first overseas subsidiary in Myanmar: Worker Apparel Co., Ltd.

“ln 2019, we planned to open a production plant in Myanmar. Like many foreign investors, we were keen to understand more about how to invest in Myanmar. FocusCore has delivered us an excellent, fast-response, and professional service towards our company incorporation, successful MIC application approval, and any questions raised by us. We are grateful and really appreciate FocusCore, Thank you.”

Tan Song Shui, Managing Director Lippotex Malaysia & Myanmar.

FocusCore Myanmar Co., Ltd. opened in early 2014.  We have helped many foreign companies with their MIC application approval and witnessed ongoing growth not only in client numbers but also rapid changes for the population. Growth of job vacancies, and overall prosperity and people buying power. If you are considering investing in Myanmar contact us today. This is once in a lifetime opportunity to join the up-swing of a frontier economy.

The post Myanmar MIC approval for Lippotex: Penang based manufacturer focused on textile related products and work wear apparel find synergy with FocusCore Myanmar. appeared first on FocusCore Myanmar.

The President, CEO and Treasurer of the American Chamber of Commerce Myanmar (AMCHAM) all lauded FocusCore for its knowledge, professional support and high-touch client service.

“Rarely do we find a professional services firm with such a thorough understanding of Myanmar’s ever-changing legislative landscape,” said U Khin Maung Win, President of AMCHAM.

“FocusCore assisted us in closing gaps in financial reporting that proved critical to our operational procedures.  They have demonstrated an up-to-date understanding of the Tax Administration Law (TAL), Myanmar Companies Law (MCL) and prevailing Myanmar practices that give us the utmost confidence in renewing our partnership. I have heard firsthand from our treasurer, Andrew Lee, of our organization’s immense satisfaction with FocusCore.”

FocusCore are totally committed to helping companies start and operate in Myanmar. From Company Incorporation to staffing to bookkeeping and compliance and much more – with also fast track solutions so your company can start trading very quickly.  Call us today.

The post AMCHAM appoints FocusCore Myanmar as preferred vendor for bookkeeping, corporate secretarial and compliance matters. appeared first on FocusCore Myanmar.

A distinction was made to highlight the detail that subsidiaries can be a local bank. Their company incorporation structure being such that they are operating as an individual business. Whereas local branches of foreign banks are part of the head office. In future, any existing or new branches can register to operate as subsidiaries.

It is interesting to note that within the CBM, the Foreign Bank Selection Committee, which oversees the selection process of Foreign Banks, is now inviting “eligible consulting firms having an office in Myanmar to submit the Proposals for rendering consulting services in the selection of foreign banks”.

FocusCore opened in Myanmar in 2014. We, like many others, saw the waves of change arriving in Myanmar. These have been ongoing, introduced by a government with the express objective of opening Myanmar to the world. We have services to help companies establish company incorporation here, also providing these new companies with a fast track route to operating in Myanmar. For these and established organisations, our services also include bookkeeping, office and personnel search, and corporate legal services.

If you have been following our blogs you will have seen our many texts on the changes arriving in Myanmar. We are often one of the first sources to bring news. For up-to-date guidance on procedures here, and with always a finger on the pulse of information, contact us – we can provide valuable information, and rapid and durable solutions.

The post Myanmar – Foreign Banks now permitted to provide retail services across Myanmar appeared first on FocusCore Myanmar.

1.) Why is insurance important to an emerging market?
2.) How does insurance underpin market-entry and business operational risk?
3.) Why Myanmar?
4.) What does it mean for Myanmar?

1.) Why is insurance important to an emerging market?

When an economy is growing quickly, as with Myanmar, insurance services play an important role in managing risk. For companies, their shareholders will demand insurance to protect their investments. Import and export activity requires insurance. Individuals, benefiting from a booming economy, with increased spending power, should be able to obtain insurance for their homes, family, life and health. Insurance is a catalyst allowing, and protecting, further growth in the economy.

By the structure of syndication an insurance provider can spread the risk of their portfolio with syndicates and insurance companies. This level of security provides confidence that is even more important in emerging markets. The insurance structure is often a group of insurance companies who work with contracts within the group. This allows even high value items to be insured with confidence. It is important to understand the strength that this structure provides.

One of the best known is Lloyd’s of London. In fact Lloyd’s is not an insurance company but a “marketplace”, which started in 1686. Today these insurers and reinsurers sign Terms of Business Agreements (TOBAs) linking their companies. This assures the insurance user that the risk is covered. The Lloyd’s market motto is Fidentia, Latin for confidence. Authorised financial backers and syndicates provide a collective resource to cover insurance claims.

“Improving access to insurance is particularly valuable for people with low incomes, who often struggle to manage unforeseen financial shocks.” (Sigma Insurance report, part of Swiss Re Group). The report emphasises, “these people are particularly vulnerable to shocks such as illness, incapacity to work, and the effects of natural catastrophes and extreme climate events, such as droughts. For insurers, opening up a new risk pool of several million customers on the cusp of transformative growth is an attractive proposition to embrace inclusive insurance of emerging consumers. It also helps close the protection gap for a large segment of the world’s population”. There are also patterns of microinsurance emerging in many countries, specifically designed to help low income individuals and families.

Another company with a focus on emerging markets and market entry is Willis Towers Watson who conclude, “Ultimately the goal is to secure a growth path and enhanced profitability which is sustainable”.
Unlike day to day decisions for purchases, such as your weekly shopping for food or larger items, insurance needs care. You are hoping it will never be needed but you have to trust the insurance provider will cover you in case of loss. Insurance is like the oil in the engine of commerce that keeps it running. If a company or individual needs to borrow funds, the lenders will demand insurance. Insurance can calm transactions by removing risk exposure that un-protected could block a deal. Insurance allows both companies and individuals to benefit from a more stable route forward. This applies to both huge conglomerates and small companies. Insurance is the logical, sensible service to adopt.

Over the years there have been cases worldwide of catastrophes. In one incident a factory caught fire and exploded. In another, chemical leakage has contaminated water courses. In one case the company was under-insured. The damage was so great to the region, local government and citizens took the company to court and won. The court awarded damages far in excess of the insurance value the company had chosen, indeed by a factor of 100, leading to the collapse of the company, with disposal of remaining assets. Taking insurance makes sense, but so does the careful and appropriate selection of cover.

It is not in the scope of the document, but it is interesting to note the growth internationally in a pattern to conform to international solvency standards. These are designed to protect consumers, retain financial stability and build trust in insurance companies. There are also deposit insurance systems (DIS) to create confidence for depositors.

In the words of Sigma (part of Swiss Re Group), “Emerging Markets will Drive Global Insurance Growth over Next Decade. Our forecasts show that emerging Asia will lead the charge for premium growth, expanding by three times the world average over the next two years.”

2.) How does insurance underpin market-entry and business operational risk?

There are many types of insurance to cover a range of risks across a wide range of industry and businesses. Policies will state what is covered and what is not included. It all comes down to managing risk. There is:-

Operational risk – the risk of a change in asset value following losses.

Business risk – the risk that results from wrong decisions e.g. backing new products, strategies or services.

Business success is not 100 percent certain. Questions arise, such as, is our strategy correct? Entering a new region and market adds to the risk. Insuring your developments adds strength and confidence to your entire company operation, especially in the new region, assuring both customers and investors. Insurance helps companies manage their operational risks. A crisis without insurance also leads to a reputational risk for the company. Also, if you are entering a new region there are compliance risks if you do not fully understand comply with national laws and guidelines

3.) Why Myanmar?

All regions, sectors, industries, commerce, families, and individuals benefit from insurance. The World Health Organisation estimates that 100 million people a year fall into poverty due to unexpected medical costs.

The value of insurance is even greater today due to the wider range of insurance cover that is now available. In India there is even a test phase for rainfall insurance that has been provided for 600 farmers.

Myanmar has a remarkably low take up of Insurance. Most citizens in Myanmar do not use insurance services. There are approximately 55 million citizens in Myanmar. Until 2013, Myanma Insurance was the sole insurance service in Myanmar. Myanma is a state controlled service. The range of insurance had been relatively limited by global standards. The opportunities in Myanmar for insurance providers are enormous.

Now, insurance and insurance broking business is conducted through either a company incorporated in Myanmar or a company established outside Myanmar with an established place of business in Myanmar.

The huge opportunity in Myanmar is recognised by insurance companies – alongside the huge risks for companies and individuals if they continue in old patterns and do not use insurance services.

Changes in regulations in Myanmar are very significant for the insurance sector. It is widely recognised that the Insurance Sector in Myanmar needed to change, to respond to huge increases in trading and overall economic activity in Myanmar. Last year official statements stated that work was underway “to solve the problems of the insurer and the insurance companies in line with law and rules, to establish the Open Insurance Market Operation, to establish the Pure (Perfect) Competition Market, to be non-monopolistic stage, enable to operate the co-insurance by the local/foreign companies, to have heterogeneous products, to create free entry to and exit from the insurance industry and to collect the transparent and free information in Insurance Sector of Myanmar”.

Asia and the Far East has the largest potential for growth in insurance policies. Providers realise that they must grab market share, be the first entrant wherever possible. It is easier to grow client volumes in emerging markets.

Many reports echo patterns around the world where Insurance companies are strong investors in national bond markets, so this is another boost for Myanmar. Reports indicate that at present in Myanmar the insurance sector accounts for 0.07pc of GDP.

4.) What does it mean for Myanmar?

Reduced risk, more attractive environment for investors, further spurs for growth and prosperity. The global insurance industry, after years of development, is well practiced in spreading their insurance risks, so they can be sure they can reimburse the claimant and or company if a claim is submitted. For Myanmar, the exponential rise in exports and imports, the rapid rise of construction of residential and commercial sites, and growth year on year of sales and the range of products available, all means insurance is more important. Asset values rise and need to be insured.

Furthermore, changing and unpredictable weather patterns add importance to insurance, so this is a sensible practice for business and individuals – insure your trades, possessions, and also obtain the benefits of health insurance. Companies who do not offer staff benefits such as health insurance, may find that staff leave for a competitor, who does provide insurance. It is still a candidates’ market in Myanmar, with more vacancies than candidates for many roles.

The range of risks that can be covered continues to grow. In general terms, forms of insurance include:-

• General Insurance: This is any insurance policy but does not include life insurance comes under general insurance.
• Fire Insurance.
• Marine Insurance: This includes cargo insurance, hull insurance and freight insurance.
• Miscellaneous Insurance: home insurance, credit insurance, vehicle insurance. There are many other types of general insurance.

It is a sad fact that emerging countries tend to be affected by insurance gaps. There are increasing reports of natural catastrophes. This hits emerging economies and citizens. With insurance, you have the reassuring fact that help is at hand.

The MOPF’s announcement No 1/2019 officially permits companies wishing “to operate the business of insurance, underwriting agency or insurance broking with foreign investment” to open for business in the country. FocusCore opened in Myanmar to help companies become established here and our services have grown to provide a full range of corporate services. We are delighted to see this development that will be of value to existing and new companies in Myanmar. Our extensive network of contacts covers Government and Commercial Sectors, allowing us to offer you efficient and informed guidance to facilitate your profitable company operations in Myanmar. Come to Myanmar now and see how this growing market can be a positive expansive step for your company and investment.

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