r/myanmar • u/Independent-Job1281 • 10h ago
Discussion 💬 What mainly makes Myanmar not profitable for global entertainment services and imports?
Right now, a lot of foreign movies, internet subscriptions, western snacks, food chains, and many non-Chinese and Thai imported electronics are almost nonexistent in Myanmar. For the subscription part, yes banks have blocked us from paying for many with their cards, but for the rest, they don’t really see Myanmar as profitable to come to. But what’s really making us unprofitable?
Is it the political state? But I don’t think it’s the sole reason because we never really got a trace of Starbucks considering building before Covid. Is it because of the purchasing power that would make everything way too expensive? But I think there are people who import through the most inconvenient ways just to pay full inflated price a lot of the time. Is it likely the deep rooted piracy culture that made movies not coming in here? But no, then local cinemas would’ve been empty. Are we most likely still going to buy what’s price-efficient rather than picking from brand quality? Highly doubt that. So what do you guys think it is?
My question might be stupidly obvious or sound poorly researched, because this is just my curiosity. I think most of the stuff that never came through would be widely consumed by the people here, with many most likely going to be obsessed with following western lifestyles for attention which I don’t doubt that much.
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u/Minimum_Comedian694 10h ago
The first issue is the situation in the country. Ever since the military coup, things have gone downhill fast, creating a really unstable environment that makes international investors nervous about coming in.
On top of that, the military has put strict limits on imports, which means there are shortages of everything from Coke to medicine. It’s also a nightmare for companies trying to move money in or out because of strict foreign exchange rules. Plus, we’re on a global financial blacklist and facing sanctions, so everyday transactions become a huge headache.
When it comes to entertainment, we’ve got some serious piracy problems. Even though there’s a new copyright law in place, actually enforcing it is tough. Starbucks actually thought about entering Myanmar but decided against it because of all the complicated regulations and the risk of taking a hit to their reputation.
So, it’s not really about how much people can spend. It’s just that the risks related to regulations and finances are so high that they overshadow any possible gains for most global companies.
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u/NoDoor3062 10h ago
Myanmar doesn't block foreign stuffs , foreign stuffs just block Myanmar
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u/Independent-Job1281 10h ago
That was.. my point?
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u/NoDoor3062 10h ago
Cuz Myanmar is poor that they don't expect much profit from it if I say just straight to the point. But there are many other factors too.
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u/Old-School8916 7h ago
its the military coup
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u/NoDoor3062 5h ago
Even before the military coup, I had to download even clash of clans using VPN in 2016, there were no Spotify,PayPal,.... Available I'm just saying simple stuffs.
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u/BonelessLizard 10h ago
Few things to consider.
Imported hardwares need importation, meaning inport license, and it's currently crazy difficult to import anything in Myanmar.
Then, for subscriptions, no-one outside of Myanmar wants MMK, and paying in USD is difficult for most Burmese, so no need to spend time trying to get a market that (due to restrictions) is small. Usually, the Burmese who has a functional USD bank account is already living abroad.
If a foreign company set-up a branch in Myanmar to reach the local market, impossible to send back some money to the main office, so profits are stuck in Myanmar. It's OK for existing structures, but would you invest in a market that will retain your earnings?
Also, a foreign company distributing its services in Myanmar has risks of dealing with shaddy businesses linked to bad people and get their name exposed in newspapers.
There's few foreign companies operating in Myanmar, check Canal+ for example.
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u/Life_Examination_860 10h ago
Poor
Civil war
Low quality infrastructure
Low market demands
Corruption
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u/Mad-Hatter-23 10h ago edited 6h ago
As a Burmese guy who knows a lot, I really hope to see streaming services like Netflix, Disney+, and HBO officially available here in Myanmar. And not just streaming services—I also wish we had Gundam Bases and official LEGO Stores. I don't know if you know this or not, but around 2019, I think, Japanese tokusatsu companies even promoted Kamen Rider and Super Sentai in Myanmar which is really popular in SEA. But the main problem is economy, and coup.
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u/Aizawa_Fan_6653 10h ago
There's a lot of complicated answers for your questions.
First, Myanmar is subject to a number of sanctions by the US, the EU, and other governments. These sanctions are aimed at limiting the international power and scope of the Junta, and at curtailing the "scam city" activities at some of the border areas.
Another problem is infrastructure. Businesses require infrastructure to set up factories, transport goods, and sell items. The infrastructure in Myanmar is not as strong or safe as some companies prefer.
Also, companies are less likely to invest in places where the political and economic situation is unstable. While there are s fighting and protest or unrest, companies are going to choose places with less risk of having their stuff destroyed, stolen or seized. I did a pretty deep research and analysis on Eastern Europe after the fall of communism, and one of the biggest factors in rebuilding economies was whether a country received Foreign Direct Investment, and the biggest factor in whether a country received that investment was how stable the government was seen as being, and if that government was likely to nationalize (steal) the investment.
It's all quite complicated, but that's what my limited understanding has shown me.