Burma is a large and populated country. It is rich with opportunities in many sectors as it is an emerging economy. It has abundant natural resources and it is located at the heart of the world’s fastest growing region. Since it is at an early stage of economic development it has one huge advantage. It has an opportunity to build an economy that can suit the modern world.
With all these opportunities, the challenges are not far behind. There are many sectors, which will be of interest to businesses from all around the world. However one must not forget that this can be an extremely tough market due to all the risks involved. Companies must take into account all the risks they could face when they develop their long-term business plan for Burma. The Millionaire Blueprint will surely make those risks smaller as the system analyzes all the factors before advising you whether or not to trade.
Let us take a look at some of the risks of investing in Burma:
One of the major tasks that any government based on democracy would need to focus on is political stability. With political instability and ongoing religious conflicts, businesses and their operations are bound to suffer.
In Burma, there is no community consultation or consent for projects. This is the reason why trouble can arise when businesses try securing access to land or other resources. This is particularly troublesome in areas where ethnic minorities reside. The laws to regulate land tenure and environment control are weak and poorly implemented in Burma.
There has also been an increase in incidents where authorities in Burma have intimidated and used criminal prosecutions against the freedom of its citizens resulting in clashes. This was done to clamp down on peaceful protests against international projects. Follow http://www.president-office.gov.mm/ to be up-to-date with the politics in Burma.
Some of the major problems that Burmese face is intermittent power cuts, ancient sewage systems and the lack of sufficient housing for the influx of migrants. Most of the population lives in poverty and deep in debt.
Power outages, telecom services that are unstable and unreliable transportation are issues that the people operating in Burma face everyday.
Businesses will depend more on cash as economy in Burma is cash based. Only a small percentage of their population has access to any formal financial service.
In sectors such as telecom, banking, energy and infrastructure, the foreigners cannot invest without partnering with locals. In such a scenario it becomes very important for the foreign businesses to choose their local partners well. This choice is crucial, as they would need to identify the ones who have the correct knowledge specific to the market. They should also know localization strategies well.
In addition to this, the government is also likely to put pressure on investors in regards to the employment of local workers. The government could place stipulations on local content and push for the purchase of locally available goods for production. The present law does say that local workers must be given preference and local machinery must be used wherever possible.
Lack of skilled labor
Agriculture contributes to about 40% of the GDP and around 70% to 80% of the workforce in Burma is employed in this sector. They engage in traditional farming techniques. This could lead to the lack of skilled labor for foreign businesses investing in Burma.
It is very important for Burma to address these risks and make sure the rewards for the companies and the people outweigh them so that the foreign investment helps them in their path to progress.