Emerging from years of military-socialist rule, Myanmar saw many economic and political reforms that resulted in the lifting of many of the economic sanctions imposed on the country in 2013. Since then, the economy has significantly grown, with a GDP of 8.5 percent and a FDI record high of $8 billion in 2014, based on figures from the Directorate of Investment and Company Administration.
According to Biswas Surajit, VP of Sales for ASEAN at Robert Bosch SEA, the security market in this region has been growing steadily, with the current security market size in Myanmar amounting to an estimated US$12 million at a CAGR of 15 percent for the period 2013 to 2017.
Forging partnerships with local companies in big cities like Yangon and Mandalay would be key to penetrate the local market as there is no e-commerce. “Products should be weatherproof or heat-resistant to endure the hot weather and priced competitively,” advised Jimmy Ma, GM of GD Guardian Trading.
TOURISM-RELATED INFRASTRUCTURE
Tourism has always been a key economic driver in this country, attracting more than three million tourists in 2014, according to the Ministry of Hotels and Tourism. Following the Tourism Master Plan that was finalized in 2013, the government of Myanmar intends to carry out 38 projects amounting to about $486.6 million over the next few years.
Projects on the table include the construction of a new international airport at Hanthawaddy, scheduled to begin in 2016, and the ongoing expansion of Yangon international airport. An e-visa system was introduced at Yangon international airport in December 2014 and its trial success has led to plans for its installment in other airports as well. As tourist numbers are expected to increase to five million this year, the hospitality sector is opening up, with 31 foreign investor companies granted permits to open hotels in six different areas, including Yangon, Mandalay, and Bagan.
The Ministry of Construction is also looking over bids for the upgrading of the Yangon-Mandalay Highway, which involves the addition of four more traffic lanes and installation of guard rails, fences, and video surveillance to improve safety on the 587-kilometer expressway.
TELECOMMUNICATIONS
Previously considered to be one of the least-developed telecommunication markets, Myanmar experienced a 46.9-percent growth this fiscal year and now boasts a mobile penetration rate of over 50 percent with double the number of active users in 2015 compared to the year before, based on reports by TeleGeography, a telecommunications market research and consulting firm.
This came as a result of a partnership agreement inked between state-owned Myanmar Post and Telecommunications and Japanese companies KIDDI and Sumitomo in 2014 and the entry of international telecoms groups Telenor Norway and Ooredoo of Qatar into the market.
OUTLOOK
It is expected that the security market in Myanmar will continue to grow in the near future. With several key sectors seeing an influx of investments and projects, a corresponding increase in demand for security goods and services will not be far behind.