United Kingdom companies are keen on opportunities in Myanmar, but can struggle to get accurate information on the local business environment, according to Lisa Weedon, Yangon-based director of United Kingdom Trade and Investments.

A large-scale summit is being organised for London this week, aiming to assist UK firms with identifying opportunities and understanding the situation on the ground, along with receiving practical advice.

“There’s an awful lot of interest in what’s happening here from the UK business community in terms of the opportunities it might present. And there’s an awful lot of people who struggle to get accurate up-to-date information, so the objective of this conference is to take a little bit of Burma to London and showcase what there is in terms of business opportunities,” said Ms Weedon in a Yangon interview.

British companies tend to be more risk-averse than some of the other countries in the region, she said.

“I’m trying to demystify a little bit for them what this country is, and what the opportunities are and how to do business here,” said Ms Weedon. “Make it a little less scary and encourage them to not just dip their toe in the water but jump in and begin doing business here.”

Several senior Myanmar government officials and prominent businesspeople from companies such as City Mart and Parami Energy are slated to attend the February 19 conference, which is expected to attract 150 to 200 attendees.

Ms Weedon said British companies have been particularly successful in Myanmar working in financial services and energy, adding there will be sessions directed to those industries.

While these two sectors are increasingly important, she said she is most impressed when British business has a measurable local impact. While admitting UK investment has been somewhat limited, she pointed to Unilever’s second factory as an instance of local job creation by a UK firm.

The UK is listed as the fifth-largest approved investor in Myanmar by the Directorate of Investment and Company Administration (DICA), and the largest non-Asian source, representing about 7 percent of the total. However, Ms Weedon said that much of that is investment from the British Virgin Islands, which is investment that does not provide an economic benefit to the UK economy.

“DICA’s system at the moment doesn’t separate sort-of genuine UK investment and BVI investment, so that’s why those figures look a lot more optimistic then I’m afraid they are,” she said. “In reality we are in the same place as the French and the Germans. We account for 1 or 2pc of Myanmar’s total investment.”

Asked whether she thought international interest is waning in Myanmar, Ms Weedon said many companies are consolidating the position they’ve already developed.

“There was definitely a kind of gold rush in 2012. The world and his wife was on a plane because they heard Myanmar was the new hot spot, the place to go. And I think those people came but they quickly realised there’s undoubtedly opportunity but it’s not a quick win. And if you want to do business here you’ve got to be willing to invest, to stick it out,” she said.

Source: Myanmar Times (By Jeremy Mullins   |   Sunday, 15 February 2015)