Firms line up for Myanmar

Some changes are evident already to anyone visiting Myanmar. Hotel rooms going empty a year ago are now full to capacity, at four or five times the rate, as the country's vast tourism potential begins to take off. ATMs, which were once a rarity, are found in the dozens in major cities, following agreements with two global payment companies. So you can withdraw Myanmar kyats using your Visa or MasterCard credit card.

These developments underscore the government's willingness to draw upon investment and experience from abroad to open up Myanmar's economy. Another good example is the work underway to build a modern financial system, for which Myanmar is seeking the help and advice of institutions such as the World Bank, the International Monetary Fund, Standard Chartered and other financial institutions.

Doing business in Myanmar, however, remains difficult, as many of our clients tell us. The financial system is at an early stage of development. Very few people have bank accounts and facilities for wire transfers are poor. The speed of legal and regulatory change adds uncertainty to the challenges, as do skill shortages.

Moreover, targeted US sanctions against Myanmar remain in place, including in key areas such as financial services. Given that the bulk of global trade is denominated in dollars, until the US removes uncertainty by lifting the sanctions, as the EU has done, potential US and other investors and trading entities will continue to hesitate making commitments.

Addressing the long list of political, economic and social challenges will take time after Myanmar's five decades of isolation. But it's neither reasonable nor desirable to expect everything to happen overnight. The democratic process needs time to work and it's crucial that the country gets its reform process right. What's also critically important is that foreign investment into Myanmar takes place in a sustainable manner that does not promote change for change's sake, but for the "betterment of society", as called for by Aung San Suu Kyi at the ASEAN 100 Leadership Forum in Yangon in December.

One thing seems certain - Myanmar is not turning back. And no one should doubt the huge potential the country has as it seeks to catch up with its ASEAN neighbors. Myanmar's GDP grew 6.5 percent in the last fiscal year and may reach 6.75 percent in 2013, according to the IMF. Official Myanmar figures suggest foreign direct investment was up by five times in the same period, to more than $1.4 billion. We believe this momentum will pick up further - with investment diversifying from the energy sector to manufacturing, tourism, agriculture and banking - as multinationals buy into Myanmar's great prospects.

The author is group executive director and CEO Asia, Standard Chartered.