Myanmar
Myanmar is a perfect example of what we view as “the next frontier” of untapped markets in which we aren’t yet investing but are closely watching. It’s truly a wonderful place that has seen a big change in policy and global perceptions. My most recent visit included a trip to Mandalay, an incredible city with its royal palace still intact. The city remains in a time warp but 640 kilometers to the south, the country’s largest city and former capital, Yangon has skyscrapers and development. Growth has also been robust, with GDP growth of more than 8% in 2013 and 2014 and expected at a similar pace in 2015.
However, Myanmar’s capital markets have a long way to go before we can consider investing there in a meaningful way. Elections coming up in November could have a big impact on acceptance by the U.S. and other countries that have had embargoes and other constraints to doing business there. If Myanmar can successfully hold an election that’s considered to be fair, we might see more constraints loosened.
During our visit, my team and I met with officials who are planning a stock exchange, but it will take some time to develop the necessary financial system infrastructure. Implementation of foreign investment will take time; in order to invest, we need custodial banks and so on.
To do business effectively in a country, we believe it’s important to understand the culture and the people, including traveling there and talking with ordinary citizens as well as government officials and business leaders. Myanmar is steeped in history and is deeply religious; gold-covered pagodas can be spotted in nearly every city, and in the countryside, you can sense the deeply embedded spirituality in the culture.
