Name : Noriaki Matsuda
Company : TKP Corporation, Myanmar Sakura
Position : General Manager
MI: When was the first time you visit- ed Myanmar?
This is my very first visit to Myanmar. The moment I got this job in Yangon, I found many business opportunities are opening up in this country. I’m pleasantly surprised by the improvement of internet facilities, mobile phones and roaming facilities. The access is quite good. I saw a huge increase in number of cars on roads in Yangon and banking system is quite nice too. Myanmar has very good potential, business environ- ment is extremely favourable. It has an adaptive young population. In my opinion, Myanmar people are fast learners and huge investment amounts from many countries is coming into this country.
MI: What are your impressions of the country now and what do you see in the future?
That’s the interesting thing. Many govern- ments and international organizations are waiting to see what Myanmar can do and lending hands for help, including the Japan government too. Our government is also urging the Japanese companies to invest in Myanmar while it is helping at Government to Government level. At the policy level, I believe Myanmar government is taking all good and appropriate measures.
MI: Could you share with us TKP group’s present activities inMyan- mar?
Well, TKP provides total outsourcing ser- vices for companies with the concept of “Uniting IT and Business”, creating new business models for the market. TKP is rec- ognized as No.1 company in rental and event space rental business in Japan which is the main business of TKP. It is actively develop- ing derivative businesses such as rental ser- vice, bridal service, property management service and training & HR service.
We are rapidly expending on global basis. In November 2010, we established TKP New York, Inc. Starting with New York, we will continue to expand our business in other parts of the United States such as Chicago and San Francisco.
In Asia, we opened our first conference cen- ter in Shanghai in 2011, next in Hong Kong in 2012, in Singapore in 2013 and now ex- panding to other Asian countries.
We are now cooperating with Sakura Busi- ness Centre from Yangon, to expend our business. So the companies and groups from Japan can easily arrange office space and meeting rooms when they come to Myanmar for business.
We will offer fully-equipped premium ser- viced offices and virtual offices for multina- tional corporations and emerging compa- nies.
MI: What are your company’s objec- tives?
Our key concept is to create a new business model by uniting IT and real businesses. We provide beneficial one stop services from online to offline channels to the customers. Our company can provide a broad array of services to respond to every customers’ need.
We offer monetization solutions of the un- utilized assets including both unprofitable properties and off-peak hours. This enables us to decrease the purchase cost.We are also devoted to developing the derived business- es around our core business area.
MI: How does working in Myanmar under the present business climate compare with other ASEAN coun- tries?
Myanmar is lagging behind when com- pared with other countries in South East Asia but it has been just a couple of years .Myanmar can easily be at the stage where they are doing as well as other AEC mem- bers because we can see the progress in the previous years and the government is way ahead of the curve on many of these reform programmes. A break from the past, was the holding of an auction for telecoms licences, which passed heavy scrutiny. Telecoms is seen by many economists as one of the most important development areas in Myanmar and a sector, that like many, was monopo- lised for years by a state-run firm.
MI: What do you see is still lacking for the preparation of ASEAN free trade area in 2015?
I think this is the right time for Myanmar to have this very important discussion on how to involve in the AEC and the global community. I have every confidence Myan- mar will be a leading contributor to ASEAN integration, including economic integration. We are pleased to see that the Government and private sector are focused on the road ahead and that other ASEAN Member States are showing strong support. There is still much to be done if ASEAN is to achieve the 2015 AEC target.
MI: In which sectors do you see stron- gest business opportunities in Myan- mar?
We can see many business opportuni- ties in Myanmar , like in oil and gas, food production, agriculture, construction and manufacturing. Things like investment in technology to lift manufacturing standards are also critical in keeping Myanmar com- petitive in the international arena. The in- augural edition of Manufacturing Myanmar will deliver a presentation of manufacturing solutions from well-known international brand names to the manufacturing com- munity in Myanmar, providing a valuable platform for the sourcing of the necessary automation needed to boost capabilities, and increase output of Myanmar’s manufac- turing industry.
The Myanmar economic growth in recent years is evident at every turn. As more and more businesses enter this market, we saw a need for them to have a seamless office space solution where they can just plug in and work. Sky rocked up property market prices and lack of office spaces will also lead to the prosperity of office space renting mar- ket in the coming future.
MI: What types of new businesses you are seeing venturing into Myanmar right now?
In all fronts concurrently – F&B, industrial, logistics, agriculture, real estate, tourism, etc.
How does the serviced office industry in Myanmar compare with elsewhere in Asia?
Serviced Office industry is definitely open- ing up here as people become more aware and appreciate the advantages of utilizing a serviced office compared to conventional office space.
Be that as it may, this is still considered a budding market in terms of the varied facil- ities and services provided as well as knowl- edge about serviced offices compared to say, United States , where serviced offices as well as virtual offices are widely used, by both local and foreign companies due to their flexi- bility, affordability and convenience.
Myanmar is an incredibly unique market for serviced offices, in terms of the critical shortage of commercial space and the vol- ume of transient businesses (i.e. foreign companies entering Myanmar for the first time).
MI: What are the primary challenges of running a serviced office business in Myanmar?
The challenges are similar to running any businesses in this country – there is a lot to navigate, from expectations of the authori- ties, the local processes and procedures to different work culture and a lack of trained workforce.
MI:What are the challenges with the local workforce? How do you address these?
There is definitely a need to build a more skilled workforce here. While the strengths are in their willingness to learn and flexi- bility to adjust, there are issues of language barrier, lack of relevant work experience and the understanding of international standards and practices.
MI: What is the current situation for foreign nationals to open a company in Myanmar?
A recent enacted Myanmar business law has resulted in a more favorable environment for foreign investors. Myanmar currently offers two options for foreign investors who want to register a business entity in Myan- mar – a MCA (Myanmar Companies Act) company or a MIC (Myanmar Investment Council) company.It is possible for foreign investors to own 100% of either one. As a value-added business service, Office space and meeting rooms facilitate its clients in this matter, if needed.
MI: What defines a good business role model in Japan ?
In Japan, inevitably Japanese business cul- ture is different to that of the US or Europe. In fact, certain aspects of Japan’s business culture, especially the very stable long-term relationships resulting from the conser- vative Japanese sense of loyalty to trusted partners, can be very beneficial for those foreign companies that understand how to swim with the cultural tide instead of vainly struggling against it.
MI: Beside serviced offices, what busi- ness opportunities do you see emerg- ing in Myanmar right now?
As long as there’s a market demand, there is a business opportunity. There are many real demands waiting to be met here, from hu- man resource management and hotel man- agement to IT services and consumer foods production.
MI: What’s next for TKP in Myanmar?
We want to strengthen our presence here,including finding new and different ways to contribute to and be a part of the growth story of Asia’s last frontier. We will certainly continue to focus on providing serviced of- fices and meeting spaces in Myanmar.
MI: From a business standpoint, what do you feel are the biggest challeng- es facing you and your company in Myanmar in the next 1-3 years?
Myanmar is currently getting lots of atten- tion from the international community. Global organizations like World Banks, ADB , United nations are also coming in for help. I think the biggest challenges would be after election 2015. There will be quite numerous business climate changes according to the political environment.
What advice can you share with entre- preneurs wanting to start or expand their business into Myanmar?
As Myanmar is starting to open up more, foreign investors and entrepreneurs could see it as an oasis of opportunity or crisis of confidence. The challenge lies in learning how to make every opportunity work for them while navigating through the crisis. One just needs to take the plunge.
