As an ardent follower of business and development history, Myanmar Strategy has an interesting observation about the various development or progress in Myanmar and how the country has skipped some of the traditional development steps in the past. More importantly, how this history may help to better understand potential new business development trends in Myanmar market for our clients and partners alike.
Color TV
While some of the neighbor countries were still
stuck with black and white TV signals back in 1981, Myanmar embraced the latest
system available in those days and dived straight into color TV broadcasting.
Instead of starting with a cheaper and ‘easier-to-implement’
black and white TV broadcast, Myanmar indeed skipped the nostalgic black and
white TV step and went directly to Color TV network and broadcast.
Mobile
Phone
It was probably one of the most popular complaints
until the mobile networks and usage started to penetrate the Myanmar market in 2012-2013
that how expensive it was to get a land line phone installed. Even for those
who could afford all the costs associated with owning a land line, it was still
a big struggle just to get all the required permits and approvals for the
landline.
Therefore, it was not a surprise when Myanmar
skipped another old nostalgic step of getting land line phones into a high percentage
of households by embracing mobile phones and network once the mobile phones were
made available to Myanmar consumers early this decade.
Myanmar has skipped some of the development steps
as provided in the two examples above. More importantly though, we continue to
ask –
WHAT OTHER STEPS MYANMAR MIGHT SKIP AGAIN IN
THE NEXT PHASE OF DEVELOPMENT?
WHAT POLICY DIRECTIONS THE GOVERNMENT POLICY
MAKERS MIGHT WANT TO CONSIDER?
Energy
Needs
Is Myanmar going to continue to rely on fossil fuel
energy by continuing to invest or open to the fossil fuel plants,
infrastructure and policies?
Or will Myanmar skip (or minimise) fossil fuel step
in the development ladder and directly embrace the newer and environmentally
friendlier renewable energy such as solar, wind, wave, and hydro technology,
infrastructure and policies?
It is worth highlighting that the overall cost of
renewable energy has gone cheaper than the fossil fuel in many parts of the
world now. Therefore it is no longer just about saving rain forest and ‘hugging
a few trees’ anymore. Instead, renewable energy is and will continue to be a financially
competitive or viable option for the consumers.
Mall &
Physical Infrastructure Development
In our opinion, malls with the right strategic mix
of services and products and with the right location and target clients in
Myanmar will continue to enjoy growth for the next two decades, at least.
However, it is worth exploring whether the same level of investment and
commitment in ‘online malls’ or ‘mobile commerce’ in Myanmar would result in
potentially much higher return on investment?
Remember? Myanmar has skipped a few steps along the
development ladder. Therefore it is possible that consumers in Myanmar might be
ready to explore and spend more in online malls instead of doing at the
traditional shopping centres.
Banking
Trends
As various new banks with new ambitions to conquer
the country and sound expansion strategy to support such ambitions open up new
physical branches and ATM locations across the country, Myanmar Strategy could
not stop wondering whether similar level of investment and commitment in mobile/online
banking and payment system would provide much higher long-term return on
investment compared to the projected returns from the traditional branch and
physical banking business model?
We would be very happy to further discuss with
developers, investors and bank shareholders some intriguing strategic sweet
spots that Myanmar Strategy sees in the Myanmar market.
Myanmar Strategy continues to wish a resounding
success to all our stakeholders and clients, partners, in general, to the
Myanmar business community for 2018.
Our recently published Myanmar Strategy Insights:
>> 2nd January 2018: Myanmar Business Trends 2018
>> 4th January 2018: Myanmar Wish List for 2018
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