The recent political change in Myanmar has seen it turn a corner. The opening of the country and the relaxing of international sanctions have resulted in a flurry of excitement from potential investors. IDC called it an ‘unpolished gem’ and promised high levels of growth within the IT industry this year. Several companies have already entered the market, including Coca-Cola, but many are wary and unsure about entering the market so soon. To test opinion on Myanmar, we interviewed 54 IT and business professionals, asking if they thought the country’s IT market had great potential.

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MYANMAR [BURMA] : SP TLIGHT
Introduction
The recent political change in Myanmar has seen it turn a corner. The opening of the country and the relaxing of
international sanctions have resulted in a flurry of excitement from potential investors. IDC called it an ‘unpolished
gem’ and promised high levels of growth within the IT industry this year. Several companies have already entered the
market, including Coca-Cola, but many are wary and unsure about entering the market so soon. To test opinion on
Myanmar, we interviewed 54 IT and business professionals, asking if they thought the country’s IT market had great
potential.
Yes No Don’t Know
66.7%
90%
31.4%
10% Inside Myanmar
1.9%
Outside Myanmar 38%
2.3% 59.1%
“Do you think there is great potential for IT in
Myanmar [Burma]?” [source: IDG Connect]
“Country Breakdown: Inside/Outside
Myanmar [Burma]” source: IDG Connect
Findings
As Myanmar is barely a year into its newfound freedom, creating a wide-ranging sample from the country itself proved
difficult. We did however, get a decent response from professionals further afield, many of whom have first-hand
experience of the country. This provides valuable insight, and helps illustrate the situation.
The general consensus is that Myanmar does indeed hold great potential within its IT sector, with a total of 66.7%
agreeing with the statement. People within the country itself are overwhelmingly positive- 90% think their country
holds potential for the future. When looking only at respondents outside of Myanmar, the levels of negativity rise, with
38% disagreeing with the statement. But overall the results point to a positive future for the country.

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Reasoning
When asked for their reasons, both sides agreed that the country offers what is essentially a clean slate; there
is a lack of infrastructure, industry and skills. But it seems how this void is viewed affects the answer. The
interviewees who feel positively about the opening up of the country think a workforce willing to learn, the ability
to enter a competition-free market and growth in other sectors that will inevitably require IT presents a great
opportunity. One interviewee explained, “Burmese companies are just at the nascent stage of their development
and most of them don’t even have access to the World Wide Web. Think about how much IT it would need to
just bring them so that they can compete at the world stage.”
“Most Burmese companies
don’t even have access to the One response from within the country said, “IT is very popular within
World Wide Web. Think about Myanmar as a commodity. However, there is poor infrastructure and
grounding in the basics to be able to understand and develop the
how much is needed in IT so new and novel applications Myanmar needs to address its problems.
that they can compete at the Much is needed in the areas of education, training and development of
world stage.” standards.”
On the other hand, the negative responses cite skills shortages, poor infrastructure and a lack of industry as
barriers for investment. Several respondents also commented how they didn’t feel the country was ready yet
because there was so little on the ground, but possibly would be in the future around 10 years from now. The
government was the most dividing subject among interviewees. Some cited a fresh government and a wave
of new legislation as a boon, however it seems some are distrustful of the government and reluctant to believe
things will change. One interviewee explained, “This is one of the most repressive regimes on the planet. Until
democracy comes to Myanmar I plan on boycotting any business involved there.”
Background
Despite Myanmar’s checkered past, in the last 12 months the country IDC has called Myanmar an
has turned a corner. The release of the pro-democracy party leader Aung
San Suu Kyi after nearly 20 years of house arrest, free elections and the
‘unpolished gem; virtually
easing of international sanctions on the country have seen the nation take one of the last untapped
a U-turn. ICT markets in the APAC
region’
As well as greater freedom and the hope of improving the lives of the
people, companies around the world are seeing real potential for the
country to become the next major emerging market. Companies such as Coca-Cola and ad agency WPP are already
starting to build a presence, and executives are flying out on a regular basis to scope out the landscape.
$268.45m
15%
2011 2012 2013 2016
“15% expected growth in Myanmar’s IT sector in 2012
reaching $268.45 million in 2016”, [source: IDC]

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An Unpolished Gem
One of the big areas opening up is IT. IDC recently released a report into the country’s IT sector, calling its greenfield
market an ‘unpolished gem’. “Myanmar is virtually one of the last untapped ICT markets in the Asia/Pacific region
with fast rising potential. For IT spend alone, IDC is expecting 15% year-on-year growth in 2012, and the market
is expected to reach US$268.45 million by 2016.” That represents a massive annual growth rate of 14% over
five years. IDC predicts Yangon and Mandalay will be the two leading IT hubs for foreign market-entry and IT
consumption, with telecoms, government, utility and energy, financial services, hospitality, and media sectors all
major areas for growth.
The government has taken steps towards the future, with both a long-term plan looking to 2030 set up in 2005 and
a more near-term one that addresses the plans for the next few years. These kind of goals help focus initiatives and
funds, and with so much change on the table coming all at once, focus will definitely be needed. The telecoms area
may be the first to take the leap, with Myanmar’s Post & Telecommunications Department Director General, Khin
Maung Thet, saying a new communications law is being studied to create four new telecommunications licenses in
the country that are open to both local and foreign investors. Previously foreign investors were barred from holding a
license.
Blind Spots, Stumbling Points and Dangers
550,000 1% mobile penetration
mobile subcriptions
[source: World Bank]
Despite the buzz and talk of potential, Myanmar has been an information black spot for IT, and the information that
is available is usually either outdated or comprised of sketchy estimates. World Bank data shows there were around
100,000 internet users as of 2009, a number which had stayed level for the previous few years, while broadband is
virtually non-existent. Mobile subscriptions stand at around 550,000, which equates to a penetration figure of around
1%. Socialbaker, a site providing regular Facebook figures, doesn’t have
any Myanmar figures, although as the things open up this is bound to
The government wants to triple
change. According to StatCounter, mobile access to the internet has
risen sharply from practically nothing at the start of the year to just under the size of the economy in the
9%, with Android being the most popular user choice. For desktops, next five years, but things are
Windows is king, and web browser choice is split 50/50 between IE and moving so quickly that the
Firefox. country risks overloading its
rickety institutions.
Piracy levels in the area remain murky; neighbours such as Vietnam have
software piracy levels around 80%, meaning some companies, such
as Microsoft, are nervy about entering the market. Introducing an IP system, trademark registry and corresponding
intellectual property law may help to alleviate fears, but that in itself could bring more problems. The government
wants to triple the size of the economy in the next five years, and to facilitate that has been passing dozens of new
bills. Things are moving so quickly that according to Reuters, the country ‘risks overloading its rickety institutions.’

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These rapid changes could lead to a host of problems.
The fast rate at which new bills are being passed could
lead to poorly thought and inadequate legislation, Expert Opinion
which would only put off investors and cause trouble for
people and companies on the ground. The government John Naing,
recognises their lack of knowledge and expertise in many Citrix Systems
areas and have been recruiting help from neighbours Systems Administrator
such as Singapore and Japan, but other dangers remain.
The country has a serious unemployment problem, and
expanding too quickly into areas that require specialist
skills will create a major skills shortage. Already vast I grew up in Burma, and left around 17 years ago. I
amounts of people are unemployable for skilled work, have lived and worked in the States since. My whole
many in general are unfamiliar with modern technology family are still back home, and I will soon be joining
such as smartphones and desktop computers. them.
Sustainable growth and education are essential to
prevent future problems. The current situation in the country is very promising,
and so I want to go and give it a try. My two elder
brothers work in real-estate and selling motor vehicles,
and are both doing very well. They say things are
Conclusion looking bright and asked me if I wanted to come back
and work with them and have a go, so I agreed.
By 2015 the government is hoping for 50% of the My field of work is IT. Currently I work as a Citrix
country to have wireless access. But with around 80% of systems admin; I do a lot work with application
the country’s 60 million people living in rural areas, many deployment and managing servers, as well as
of them in poverty, there are several issues that first enterprise data centres. If my brothers want to do
need to be addressed: Fixing the chronic lack of decent something in IT, I will go down that road, if I want to do
infrastructure, including the rolling power cuts; further something myself, they have said they will help me out.
relaxing internet censorship; and dealing general lack If we find a partner from overseas that wanted to come
of familiarity with technology. These are thing that won’t in and do something in IT, we’d be open to engaging
happen overnight. To fulfil its potential, Myanmar has with them. Under current laws outside investors need a
to move at the right pace and think things through, not local partner- they can’t come in by themselves.
charge ahead blindly.
A lot of companies from Asia are coming into Burma
and testing the water, but so far there is very little
indication of major US or UK corporations making
About IDG Connect the move. So far only a handful of companies, such
as Coca-Cola have started up, just to test. I think all
of them are waiting for the new bill to come from the
IDG Connect is the demand generation division of
government. The new investment law, amongst other
International Data Group (IDG), the world’s largest
things, will remove the requirement for a local investor,
technology media company. Established in 2005, it
should be out by the end of August, but there are no
utilises access to 35 million business decision makers’
confirmed details yet.
details to unite technology marketers with relevant
targets from any country in the world. Committed to
For IT in the country, there is actually nothing really
engaging a disparate global IT audience with truly
solid, almost no companies that are doing IT as a main
localised messaging, IDG Connect also publishes
business. Although there are a few modern pop shops.
market specific thought leadership papers on behalf of
I think it’s very open for any companies who start doing
its clients, and produces research for B2B marketers
business in Burma.
worldwide. For more information visit:
http://www.idgconnect.com/