JANUARY 2017

MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

EMERGING MARKETS:

Myanmar, perhaps one of the world’s last untapped • Languages: Burmese. Other major dialect languages spoken new frontiers, has opened its borders to the include Shan, Karen, Kachin, Chin, Mon and Rakhine. English is also spoken, particularly by the educated urban elite. international community and encouraged business • Time Zone: UTC +6.30 hours investment with the recent release of economic • Population: 55 million sanctions. As a former military state, the country has • Capital City: made progress along the path of democracy. With • Largest City/Commercial Capital: a population of over 55 million and most natural • Dialing Code: +95 resources unexploited, Myanmar is poised to assume Transportation geopolitical-business importance in the years to Commuting by public transport in Myanmar is difficult and time come. Myanmar’s GDP has increased by 20 percent consuming. In Yangon, the easiest way to get around is by taking since 2007 and is expected to grow between five and a taxi. There are more than 65,000 taxis in the city which can be hailed on the street. Officially registered taxis have red license six percent in the coming years, driven by improved plates and the driver’s identification card is visible. Recently, the business confidence and new investment laws and conditions of taxis have improved, with many now having air economic policies. conditioning and seatbelts.

Key Challenge Areas Pickup trucks are often converted into passenger-carrying vehicles. Motorcycles are not permitted within the city limits of Input from Cartus’ Destination Service Provider on the ground in Yangon and bicycles are not currently permitted on major roads Myanmar, highlights the following key areas for assignees: in the city but are likely to be allowed again in the near future. Transportation Housing (including electricity issues) Buses are the cheapest form of transportation and approximately 3.14 million passengers take buses in Yangon city daily. The bus Education/Schooling network is extensive with over 300 bus routes and a fleet of about Healthcare 7,000 buses that make over 30,000 daily bus trips. Buses are Safety and Security usually old and not air-conditioned and very crowded with local Visa and Immigration commuters, particularly during peak traveling hours. While there Doing Business in Myanmar: Cultural Issues are a lot of buses in the city, they are not recommended as a commuter option for assignees traveling to Myanmar.

Myanmar in Brief Yangon has a Circular Rail system of 39 stations that connects • Type of Government: Presidential system, Unitary state, many towns within a loop service, which takes nearly three hours Republic, Constitutional republic to complete. The train loop, however, does not extend into the • Currency: Kyat main business district. Commuters are forced to take buses • Weights and Measures: Non-metric system of measure and taxis in the commercial area, resulting in severe congestion problems. Similar to the bus network the train system as it is • Climate: Myanmar generally enjoys a tropical monsoon today, is not a recommended transportation option for assignees. climate. Climate conditions differ widely from different places Although in the coming years, there are plans to upgrade both due to varying topographical situations. March to mid-May the train and bus networks. are usually summer months. Mid-May to end of October experiences rain and the colder season starts in November and ends late February.

CARTUS | MARKET WATCH: MYANMAR / JANUARY 2017 | PAGE 1 OF 5 JANUARY 2017

MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

EMERGING MARKETS: MYANMAR

Program Advice Some of the renting norms in Yangon to note: It is recommended that assignees do not drive in Myanmar as • Detached houses and apartments are typically available. the roads are generally in poor condition. Typically, the assignee • A typical lease term is a year and is renewable upon lease and their family are provided with a company car and driver for negotiation. Six month leases can also be negotiated however the duration of the assignment. Foreigners can drive but must this is rarer and only applicable for apartments. apply for a local license as an international driving license is not • A holding deposit of one to two months is required which can accepted, although it can be shown to the authorities to obtain then be off-set against the rent. a local license. Local driver’s licenses may be applied for in • Agents typically charge up to one month’s rent on signing Yangon, if all the required documentation is obtained. For those the contract. wishing to get a local driver’s license, the application process is encumbered by the need to process the application in the capital • The stamp duty fee paid to the government is 0.5% of the total city, Naypyidaw, approximately four hours drive from Yangon. lease amount. • The security deposit tax fee paid to the government is 2% of As most taxis in Myanmar are not metered, it is advisable to the security deposit. know the usual traveling fare and negotiate for a reasonable • Some landlords may prefer conventional payment fare prior to entering a cab, as drivers may overcharge. In recent methods such as cash. These payments are usually made in years, taxi companies have been introduced, which offer cabs denominations of US$100 using clean notes. Transfer payments with taxi meters. These are a safer option at night, although we are becoming more common however. recommend that women on their own do not take a taxi at night time. Assignees are also advised to avoid taking buses and trains. • Typically three month’s notice before the end of the lease year Buses are usually overcrowded and most signs at bus stops and is required. terminals are in Burmese, making them difficult to comprehend. • The rental amount and security deposit must be paid in full The slow speeds and low service levels of trains are attributed to before the tenancy starts and before the handing over of keys. the poor state and maintenance of the rail line. They are usually As quality housing is very limited and rising inflation adds to the overcrowded and in poor condition. With the lack of pro-active housing costs, assignees often select ‘apartment hotels’ which are and routine maintenance across all sectors of public transportation the equivalent of serviced apartments, or temporary housing for (taxis, buses and trains), safety can be compromised. their long-term stay in the country. Many serviced apartments do not meet international standards and come without a fully-equipped HOUSING kitchen. Although there are some good quality serviced apartments Since 2016, rental properties have become more affordable, by international standards, often what is referenced as a serviced with rates declining by 10% to 20%. However, due to a lack of apartment in Myanmar is actually a converted hotel suite that available housing stock, prices still remain relatively high by world includes the daily service and laundry options. standards. Property prices in a preferred expatriate community like In recent years, the number of hotels has increased, with a wide Golden Valley may range from USD3,000 to USD15,000 per month, range available, from two star to five star accommodation. This with larger houses renting for around USD25,000, depending has eased pressure on the number of available rooms and prices. on location and amenities. Most properties in Myanmar are let Serviced apartments remain limited, but new apartment buildings unfurnished or semi-furnished and as power outages and surges are currently under construction, which should help to increase are a regular occurrence, a back-up generator and voltage availability in the long term. regulators are recommended. Program Advice Assignees are strongly advised to negotiate a one year lease, with an option for another year and a clause that caps rental increases at 5%.

The lack of available serviced accommodation means that waiting lists are still commonplace in Yangon. Although not as long as in previous years, to ensure bookings, assignees are advised to book at least six months in advance and confirm reservations with payment, as soon as possible.

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MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

EMERGING MARKETS: MYANMAR

As the market opens up, more businesses are adding facilities Health spending on medicines, medical equipment, and building to accept credit card payments, however, travelers to Myanmar infrastructure for health insurance will be quadrupled and a should be prepared to settle their bills in cash, noting that long-term move towards universal healthcare coverage (UHC) there are only a limited number of ATM machines that dispense is underway. foreign currency. Assignees should be made aware of this before relocation begins. Though public hospitals lack modern medical facilities and sufficient equipment, private clinics and hospitals such as the International SOS Clinic at Inye Lake, LEO Medicare at Victoria EDUCATION/SCHOOLING Hospital, Pun Hlaing Siloam International Hospital, Asia Royal There are a number of schools in Yangon that identify themselves Clinic, Bahosi Medical Center, and Shwegondaing Specialist as ‘international schools’. Currently, there is a waiting list for some Center have internationally qualified medical personnel and grade levels, particularly in popular schools such as International provide high quality medical care. Additional international School of Yangon, British International School, Yangon International hospitals are expected to be set up in Myanmar in the next School and Network International School. few years.

Application Registration School Annual Tuition Fee Program Advice Fee Fee Assignees should take all sensible health and hygiene International USD250 USD8,000 Pre - Kg (USD11,820) School of Yangon Kg - G5 (USD18,960) precautions. Drinking unbottled water for example should be (ISY) American G6 - G8 (USD20,910) avoided and precautions should be taken for insect, dog and Curriculum G9 - G12 (USD21,230) snake bites, tropical fever as well as gastric and respiratory British USD200 USD5,000 Pre Nursery (USD14,990) infections. Assignees should ensure they have all necessary International Nursery (USD14,990) vaccinations prior to moving to Myanmar. School (BIS) Reception (USD18,520) British Year 1 - 6 (USD21,280) Road traffic accidents are a common cause of hospitalization. Curriculum Year 7 - 9 (USD22,330) It is necessary that assignees and their families have Year 10 - 11 (USD25,670) Year 12 - 13 (USD26,990) comprehensive medical coverage to ensure an acceptable level of medical support in the country. Additionally, emergency Yangon N/A USD1,000 Pre-School (USD7,200) evacuation assistance to neighboring Bangkok and Singapore International Pre - Kg (USD7,800) School (YIS) Kg (USD14,520) which can provide the appropriate medical care, should also American G1 - G8 (USD16,116) be included. Curriculum G9 - G12 (USD17,600)

*Based on 2016/2017 academic year SAFETY AND SECURITY Program Advice Compared to other Southeast Asian cities, Yangon has a low reported crime rate. Most commonly reported crimes are Assignees and their families should enquire about the school those of opportunist theft by pickpockets or of unattended vacancies and submit applications to preferred schools early items. Violent crime and civil unrest are not common although as it may take time to gain acceptance. Additionally, proper there was a series of bombings in the country in 2011. As a adherence to paperwork procedures, deadlines and payment of precautionary measure, many expatriate-style homes typically application fees should be made in a timely manner to secure have gated entrances or high wire fences. a school place. Currently, the majority of schools require an in- person interview and admission tests that will be vetted against Program Advice other applicants for placement in the school. We are aware that waiting lists or ‘candidate pools’ are being created for some Assignees are advised to take sensible safety and security grades, typically in the primary levels, as school applications precautions. They should remain aware of their environment at have increased with the rise in the expatriate population. all times and not wear, display or draw attention to themselves Similarly, local nationals do compete for places as some of the or their belongings. Assignees should also be aware that outside schools are open to the best students regardless of nationality. Yangon in more remote areas, there is a lack of police presence which may make overland travel for non-Burmese speakers challenging. In all aspects of safety and security, assignees should HEALTHCARE seek the guidance of and heed the advice of security specialists. The quality of healthcare in Myanmar is generally poor, constrained by low government funding. Myanmar is ranked amongst the world’s lowest in public sector health spending per capita, with the government spending less than one percent on health in 2010, according to figures compiled by Global Health Facts.

CARTUS | MARKET WATCH: MYANMAR / JANUARY 2017 | PAGE 3 OF 5 JANUARY 2017

MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

EMERGING MARKETS: MYANMAR

Step Two. The FRC and Long Term Stay Permit Applications. This process includes applying for the respective endorsements and support letters. Companies must have a registered entity in Myanmar to be able to sponsor the assignee and to receive these endorsements. Once issued, the Long Term Stay Permit will be valid for three to twelve months. The FRC and the Long Term Stay Permit process takes between 10 days and five weeks to be completed (depending on each case). Step Three. The Guest Resident Report. Once the FRC and Long Term Stay Permit have been collected, a Guest Resident Report must be applied for at the Township Immigration Department where the assignee will be residing. It is also important to note that landlords have a responsibility to notify local authorities when an expatriate is staying in their property. This must be done within the first week of the tenant’s arrival. Hotels also have a similar responsibility for expatriates staying with them. VISA AND IMMIGRATION Step Four and ongoing. Weekly Update of Residence Report For tourists and business visitors traveling to Myanmar, nationals Guest List. Upon collection of the Guest Resident Report, a from 50 countries may apply for the appropriate entry visa weekly update (every seven days) must be done at the district on arrival at Yangon International Airport. These countries ward where the assignee is residing. (This is typically applicable are Australia, Austria, Belgium, Brunei, Bulgaria, Cambodia, for hotels and serviced apartments.) Canada, China, Croatia, Cyprus, Czech Republic, Denmark, DPRK, Estonia, Finland, France, Germany, Greece, Hungary, DOING BUSINESS: CULTURAL ISSUES India, Indonesia, Ireland, Israel, Italy, Japan, Korea (South), Laos, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Netherlands, There are three key cultural business drivers in Myanmar which New Zealand, Norway, Philippines, Poland, Portugal, Romania, are critical to be successful there. Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, The first is the importance of hierarchy within the Burmese culture. Taiwan, , United Kingdom, United States of America When meeting someone, it is important to use their title and full and Vietnam. Citizens from all other countries need to secure an name. There are many honorific titles used in Burmese culture to entry visa prior to their travel to Myanmar. denote the various levels people have within society, and it would be considered disrespectful to drop their title when addressing There are three types of entry visas issued on arrival: tourist visa, them, especially when working with the government. For this business visa, and transit visa. Tourist visas are issued for up to reason, business cards are critically important and should be 28 days (renewable in-country for up to 14 days), while business exchanged with the right hand holding the business card and the visas are generally valid for a period of 70 days. Business visas left hand touching the top of your right forearm combined with may be extended for a longer period. Documents required for a slight body bow. Even though English is the business language a business visa on arrival are 1) Passport valid for a period of at in Myanmar, more respect will be shown to Burmese business least six months at the time of entry; 2) Invitation letter from the partners and colleagues by adding a Burmese translation on host company; 3) Two recent color photos; 4) Copy of business the reverse of a business card. Due to the hierarchical culture, license of the host company 5) Visa fee. management is typically top down with the boss being actively Obtaining the right to work in Myanmar is a four step process. involved in all decision making. A healthy debate of opinions from the team is not usual, as they are more comfortable being told Step One. The first step is to enter the country on a business what the decision is. visa. Business visas are valid for 70 days and can be obtained either at the Airport Immigration Section on arrival or from a Myanmar Embassy prior to departure. The assignee will need to remain in Myanmar while the remaining three steps are completed. If assignees need to travel outside the country they will need to apply for a multiple entry business visa in order to leave the country after their Foreigner’s Registration Certificate (FRC) and Long Term Stay Permit applications are finalized.

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MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.

EMERGING MARKETS: MYANMAR

The second key cultural driver is the importance of relationships. Connections drive business in Myanmar and cannot be underestimated. It is not ‘what you know’ but ‘who you know’. With connections, favors are given and received, and the ‘mutual obligation’ is expected to extend beyond just business. For example, a potential business partner might expect support in getting a visa for their child to study overseas. Even though it might not be possible to give the support they are requesting, giving them advice to reach their goal, and making further introduction to someone who could help would be highly valued. Due to the importance of relationships, sharing meals together is essential. Eating together and participating in sporting activities like golf as often as possible develops the essential trust that is required to work well together. For this reason an invitation like this should not be refused.

The third key cultural business driver is the importance of harmony and maintaining composure at all times. If a situation is frustrating, it is important that this is not visible to business partners. Heated debates which might be common and actually respected in a home country, can be a deal breaker in Myanmar because of the emphasis on keeping harmonious relationships. A smile and a laugh can go a long way in Myanmar, ‘keeping calm’, eating well, and enjoying the company of business partners is important to foster the long-term business relationships that are essential for success in this emerging market.

Cartus thanks our Destination Service Provider, Asian Tigers Mobility for the information provided for this issue of MarketWatch. We also thank BAL Corporate Immigration for their contribution to the visa and immigration section.

Visit http://guidance.cartusrelocation.com/emerging-markets-resources for the latest presentations and publications about relocation in emerging markets around the world.

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©2017 Cartus Corporation. All Rights Reserved. Cartus and the Cartus logo are registered trademarks of Cartus Corporation. Sources: Asian Tigers Mobility, BAL Corporate Immigration The information provided in this MarketWatch publication is provided in good faith but is not intended to provide specific advice or to take the place of either written law or regulations. Conditions in many emerging markets change quickly, so Cartus does not guarantee the accuracy or endorse any of the views or opinions given by any third parties and accepts no liability for the data and information included within.

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