GE calls for US support in Myanmar investments

A senior official from General Electric has warned that US businesses could lose out to their global rivals unless Congress allows US government agencies that support business development to operate in Myanmar.
Stuart Dean, GE’s chief executive officer for Southeast Asia, told The Myanmar Times last month that while the business environment is “very pro-US”, firms from Europe and Japan will be better placed to capitalise on opportunities in Myanmar unless changes to US policy are enacted soon.
While trade sanctions have garnered most of the headlines, Mr Dean said it is the absence of US agencies – the Overseas Private Investment Corporation (OPIC), Export-Import Bank of the United States and Trade and Development Agency – that is hindering trade.
The agencies assist American companies with finance, insurance and feasibility studies.
“The frustrating thing is that all three are biting at the bit to get started here but they need Congressional approval to get involved,” Mr Dean said, adding that the Export-Import Bank , which does not loan to Myanmar, is not considering entering Myanmar until 2014, a date he said in his personal opinion was “late.”
OPIC, a development finance group had its operations suspended Myanmar in the 1990s due to concerns over human rights issues, took its first step towards resuming operations on May 21 when Deputy Minister for Commerce Dr Pwint San signed an Investment Incentive Agreement with the group during President U Thein Sein’s visit to Washington.
GE became the first major US company to re-enter Myanmar following the easing of US sanctions in July 2012. The company’s first deal was to provide medical equipment to two Yangon hospitals through local partner Sea Lion.
In September the group’s aviation branch, GE Capital Aviation Services Limited, leased two Embraer aircraft to state-owned Myanma Airways. Two months later GE entered Myanmar’s energy sector, signing a deal with TOYO Thai Power Corp concerning a natural gas-fired power plant in Yangon’s Ahlone township.  The company opened its Yangon office on May 23. At a ceremony in Nay Pyi Taw the previous day, GE announced that it had signed a memorandum of understanding with lighting firm Lighting Co Specialists and letter of intention with technology company Partners Associates.
As The Myanmar Times reported last week, GE generated revenues of US$50 million in Myanmar last year and Mr Dean said he expects this figure to double in 2013.
“We see huge potential and are currently in discussions to deepen our local partnerships,” Mr Dean said.
Mr Dean downplayed the difficulty of working around the Treasury Department’s Specially Designated Nationals List but said the GE office opening had been delayed because names of those invited to the ceremony needed to be checked against those on the list.
The process of clearing about 400 individuals, both Mr Dean and chief country representative Andrew Lee said, took far longer than expected.
US companies are barred from engaging in business with individuals and companies tthat appear on the SDN list.
After quickly establishing its first relationship with Sea Lion in 2012, Mr Dean said that finding more local partners had proven to be more difficult than initially anticipated.
“We thought it might be easier after that. But it was much more challenging finding other distributors,” he said.
He added that the electric power sector was particularly difficult because many companies hoping to work with GE had also worked under the former military government, which put them in a “grey area”.
‘We have to be extremely careful,” he added.

Source : http://www.mmtimes.com/index.php/national-news/6921-ge-calls-for-us-support-in-myanmar-investments.html