For foreign investors in Myanmar, coup adds new uncertainties

The possibility of Western sanctions leaves foreign entrepreneurs in Myanmar worried about their future prospects.

On February 1, Vijay Dhayal, an Indian business consultant in Myanmar’s biggest city, Yangon, received a call at 6am (23:30 GMT) from a member of his team telling him that a coup was under way, plunging what had been a routine Monday morning into turmoil The military had begun detaining civilian leaders, overthrowing Myanmar’s democratically elected government and turning the clock back to the period between 1962 – when Myanmar’s military first took control, 14 years after independence – and 2011, when it ushered in parliamentary elections and democratic reforms. In addition to concerns about human rights and civil liberties, the coup has also raised flashing question marks for the foreign businesses who had, since 2011, seen Myanmar as a high-risk but potentially highly lucrative place to invest in, mainly as a base for manufacturing goods at low cost for export. It has also become an attractive market, as consumer demand for everything from soaps to smartphones and motorbikes has grown.