Singapore firms hang on as Myanmar unrest escalates
Singapore
SINGAPOREAN firms are doing their best to continue operating as usual, even as protests in Myanmar over the military's coup have escalated into a general strike.
Despite issues like intermittent communications and potentially slower port clearance, they have no intention to exit the country yet, as they still see opportunities in the long term and hope that the unrest will be temporary.
Andrew Chan, managing director of Asiatic Agricultural Industries, noted that the agrochemical firm has been in Myanmar since 1998 and is no stranger to operating in countries with political instability.
"This is not new to us... and is probably temporary," he said, adding that customers are still placing orders with Asiatic.
However, the unrest could make it harder for the relevant government agencies to clear the goods upon arrival. Mr Chan said the company will monitor the situation and get updates from customers, so as not to be caught in a situation where it is unable to collect payments on goods already shipped to the country.
"We have our team there and our customers are there; they know the situation. The important thing is to keep talking and have a feel of what's happening... We just make decisions as the situation pans out."
Meanwhile, recruitment firm PeopleWorldwide Consulting is still conducting interviews even though the interviews are "sporadically affected" by the Internet availability, and workers hired for clients may not be able to fly out due to Myanmar's current suspension of flights, said managing director David Leong.
Dairy and agricultural product exporter Teck Huat & Company, which derives half of its overall revenue from Myanmar, remains positive on prospects in the country, even though its restaurant and hotel customers had been badly hit by the Covid-19 pandemic before this latest crisis emerged, said managing director Teo Ching Wei.
Overall, the coup itself may not be so much a worry for firms, as some expect that the current government will maintain existing economic policies and trade flows - so as to not "impact their own economic viability", as PeopleWorldwide's Dr Leong put it.
The unrest is comparatively less worrying than the ongoing pandemic for companies like Modern Montessori International Group (MMI Group). Covid-19 restrictions have kept its Myanmar preschool closed, and forced discussions with a second franchisee to be put on hold.
"The main concern is the impact of Covid-19 on our business as schools remain closed, as the country is still grappling with the pandemic," MMI Group chairman T Chandroo said. When asked if MMI Group will stay put in Myanmar, Dr Chandroo said he will "wait and see" before deciding on the next course of action.
Nevertheless, the Singapore Business Federation (SBF) said the firms it is in touch with are hoping for a "swift and peaceful resolution", to minimise disruptions to business operations and activities.
The unrest, coupled with Myanmar being known to be tricky to navigate, could also dampen the country's appeal as a frontier market offering untapped opportunities in sectors like agriculture and infrastructure.
Myanmar has drawn interest from Singaporean firms in recent years. In an SBF survey of over 1,000 companies last year, 21 per cent of them reported a presence in Myanmar, up from 18 per cent a year ago.
But one firm told The Business Times that it had slowed its investments into Myanmar before this, as the environment was uncertain even under the previous government.
Mr Teo added that laws and regulations can be unclear in a developing economy such as Myanmar. Securing skilled labour can also be a challenge. Even so, "Myanmar is a beautiful country... and we've never regretted it since the day we started".
Separately, the Monetary Authority of Singapore said on Tuesday that it has not found "significant funds" from Myanmar firms and individuals in banks in Singapore. It added that financial institutions should remain vigilant to transactions that could pose risks to the institution, and fund flows potentially related to illicit activities.
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