Navigating Compliance Risks in Myanmar: A Marathon Not a Sprint

As Myanmar continues to navigate its tumultuous post-coup landscape, international businesses operating in the country must be prepared for an extended period of uncertainty and potential disruption. While some may consider exiting the market altogether, adopting a “responsible resilience” strategy can yield long-term benefits.

Survival Mode: Pragmatic Decisions

To ensure business continuity, companies must prioritize survival, leveraging practical wisdom, determination, and ethical judgment to navigate challenges such as logistical hurdles and staff management. This may involve:

Painful decisions about job reductions or salary adjustments: Effective leadership requires listening to employees and making tough choices with sensitivity.
Logistical hurdles: Companies must adapt to changing circumstances and find creative solutions to ensure business continuity.
Staff management: Leaders must prioritize employee well-being and develop strategies to retain key talent in a challenging environment.

Defending Tough Decisions: A Delicate Balance

Business leaders must also be prepared to defend their decisions in a polarized environment. While it’s impossible for companies to remain apolitical, they can take responsibility for their actions while engaging with civil society voices. This may involve:

Conducting credible due diligence: Companies that have done their homework are better equipped to mitigate future sanctions risk.
Demonstrating transparency and accountability: Business leaders must be open about their decision-making process and willing to engage with stakeholders.
Engaging with civil society voices: Companies can take a proactive approach to addressing concerns and building trust with local communities.

Beyond Sanctions: A Viable Business Model

International businesses should focus on demonstrating an alternative business model that is transparent and viable. By doing so, they can contribute positively to Myanmar’s economy while showcasing the benefits of responsible investment. This may involve:

Investing in local communities: Companies can prioritize projects that benefit local people and promote economic development.
Developing sustainable practices: Business leaders must adopt environmentally friendly and socially responsible practices to minimize their impact on the environment.
Fostering partnerships with local stakeholders: Companies can build trust by engaging with local organizations and promoting collaboration.

The Long View: A Commitment to Myanmar’s Future

While the immediate financial rewards may be meager, companies that take the long view and remain committed to Myanmar can reap significant benefits. International businesses that know the country well and have stuck with it through challenging times are best positioned to contribute to its eventual revival.

In this complex and uncertain environment, a “responsible resilience” strategy offers a compelling alternative to exiting the market altogether. By prioritizing survival, making tough decisions, and adopting a long-term view, international businesses can navigate compliance risks in Myanmar and ultimately drive positive change in the country.