doing business in myanmar – what you need to know as a singaporean
Starbucks has been planning to open 20 Starbuck stores using a $6 million investment, and they have announced an extension to their preparation period.
“They have extended their preparation period because they are weighing the decision to enter Myanmar. If they decide not to invest in Myanmar, they will be required to return the investment permit,” said U Thant Sin Lwin, Director General of the Directorate of Investment and Company Administration (DICA).
While preparing to invest in Myanmar under the name “Coffee Concept Myanmar Company,” Starbucks informed the Myanmar Investment Commission (MIC) that they had decided to stall the investment activities in the country. They further said they would inform MIC when they would resume investment activities in a year’s time.
The company has been eyeing Myanmar since 2013. They received official approval from MIC in May 2018, but never opened a franchise store. Now its future in the golden land is in doubt.
Some people thought that Starbucks decision to delay investment in Myanmar might impact the confidence of other investors. However, U Than Aung Kyaw, former Director General of DICA, dismissed the claim saying that the famous U.S. coffee chain’s decision would have no impact on the interest of other foreign investors.
Following the lift of sanctions on Myanmar by the United States in 2012, leading U.S. companies such as Coca-Cola,McDonald’s, and Dunkin’ Donuts expressed interest in opening stores in Myanmar.
During the 2019 Fiscal Year, Myanmar received 20 U.S. investments totaling $432 million. In terms of investment volume, the United States is ranked as the 13th biggest investor in Myanmar, according to data from the Directorate of Investment and Company Administration.
Source: Myanmar Business Today
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