Myanmar

CHAPTER 4. Policy implications
The survey described above provides a wealth of
information on the business environment for firms in
Myanmar, the challenges they face and the issues
of most concern to them together with aggregate
information about participating firms. This information
is of high value to policymakers looking to implement
reforms that promote the private sector, create jobs,
facilitate growth and enable broad-based economic
development. The Government, the private sector and
the international donor community must each play
their part in developing and implementing the reform
agenda. Some key policy implications emerging from
the survey are discussed below.
Business environment
The importance of the business environment in
promoting growth, productivity, employment and wellbeing
has been well established (Abe and others,
2012). The poor regulatory environment that plagues
Myanmar has been discussed above. The survey
results reveal dissatisfaction with several aspects of
the business environment, with corruption and access
to skilled labour, technology and land heading the list,
although the importance of each of these obstacles
appears to vary by sector. Furthermore, smaller firms
reported having more trouble accessing finance while
younger firms reported greater problems with the
administrative bureaucracy. Infrastructure constraints
are even more severe in some geographic regions. To
address these issues the following recommendations
are proposed:
• Streamline procedures for business registration,
licences and permits. This requires enhanced
coordination between the various line ministries
concerned. This would enhance the entry of new
firms and reduce administrative transaction costs
for SMEs. In this regard, a centralized database
of business registrations and reliable industry
directories could be developed;
• Improve access to basic infrastructure such as
electricity and water supplies. Ensure that access
is equitably distributed across all geographic regions
with specific industrial zone development plans;
• Provide assistance to entrepreneurs and SMEs in
overcoming specific challenges faced by them, such
as access to finance and dealing with bureaucracy.
This could take the form of an incubation programme
and/or a full-fledged SME Development Centre;
• Establish “single-window” SME service centres
throughout the country to handle all applications
for registration, licences and permits as well as
to disseminate regulatory, financial, technical and
market information. These centres could provide
consultancy services and act as business incubators
by providing financing, tax-related and other technical
assistance to startups and entrepreneurs;
• Create a regular consultation mechanism between
the Government and businesses, through which
concerns can be aired and then addressed for all
sectors and all sizes of firms through a nuanced
policy approach.
Market and supply conditions
Regional integration and exposure to global competition
will provide opportunities as well as challenges for firms
in Myanmar. Having been sheltered for decades, firms
in Myanmar now face the daunting task of competing
with foreign firms locally as well as attempting to gain
market share overseas. The survey results reveal that
most firms still have localized concerns, as smaller
firms tend to obtain their revenue from local sources;
issues such as foreign competition, foreign exchange
and international sanctions were not reported to
be obstacles to business activities. Most firms also
report ambivalence to the launch of the AEC. Key
requirements in this area are proposed below:
65