Weekly Business News from Myanmar

Union Minister of Hotels and Tourism called for community-based tourism development in Shan State
Union Minister for Hotels and Tourism and Chairman of the Tourism Committee, U Ohn Maung, attended meeting (2/2019) of the Shan State Border Area Tourism Committee (SSBATC) held at the State cabinet office on 15 June. The Union Minister first delivered a speech where he said his ministry has set the Look-East policy and Look-West policy to attract foreign tourists. He said they have coordinated with related ministries to relax some visa restrictions. He said the ministry has set up a digital marketing taskforce and is increasing its cyber activities, adding that he wants the states and regions to follow suit. The Union Minister said they have invited GTMH Telecom company to explain technical assistance for developing the tourism sector in Nyaungshwe. He said there is a need to supervise hotels and tourism businesses in Shan State so that they may operate in accordance with the law.
In partnering with Grab, Myanma Insurance will launch the group Personal Accident Insurance (PAI) schemes which will coverage for drivers and passengers in the case of an accident
Grab has partnered with state-owned Myanma Insurance to launch a group Personal Accident Insurance (PAI) scheme which covers its drivers and passengers in the case of an accident during a GrabTaxi, GrabThoneBane or GrabBike ride. It is the first ride hailing company to procure a group PAI policy in Myanmar, covering four-wheel, three-wheel and two-wheel motorbike taxis in Yangon, Mandalay and Bagan. Now, every Grab in Myanmar is insured, in line with its commitment towards achieving zero preventable incidents on its platform. Grab’s group PAI policy offers coverage for drivers and passengers in the event of accidental death, permanent dismemberment and bodily injuries as a result of accidents. This coverage includes total personal accident benefits for the driver or passenger of up to US$7500 per person, subject to aggregate limits including US$10 million per accident in Myanmar. Each incident will be evaluated individually by Myanma Insurance.
Economic growth of Myanmar predicted to rise from 6.4 percent to 6.5 percent in this transition period
The economic growth of Myanmar is predicted to rise to 6.5% in 2018/19 from 6.4% in the transition period, according to a semi-annual report on “Myanmar Economic Monitor: Building Reform Momentum” launched by the World Bank on Tuesday. The report focuses on recent economy developments, prospects and policy priorities in Myanmar with the use of available data reported by the government of Myanmar and additional information collected as part of the World Bank Group’s regular economic monitoring and policy dialogue. Manufacturing and services sectors show strong performance for economic growth. The service sector is expected to grow well with the growth to 8.3% in 2018/19 compared to 8.2% in 2017/18 because of increased activity in the retail and wholesale sector. The economic outlook remains positive with the growth expected to reach 6.7% by 2020/21 due to easen trade restrictions, launch of mega infrastructure projects and opened-up financial sector to bigger foreign competitions.
Myanmar will invite local investors to submit the Expression of Interest (EOI) for Economic Zones along China-Myanmar border areas
Myanmar will invite local investors to submit Expression of Interest (EOI) for Myanmar-China Economic Cooperation Zones at the Myanmar-China border areas, according to U Aung Htoo, Deputy Minister of the Ministry of Commerce. The Ministry has approved the rules and regulations for the projects, only local inves-tors are eligible to submit an EOI. “When the zones come into exist, illegal trade will disappear itself,” U Aung Htoo add-ed. The zones will be implemented in Kan Paite Tee in Kachin State, Muse and Chin Shwe Haw in Shan State, all of which are located at the Myanmar-China border. The government hopes that the zones will boost both local and foreign investments in the region, and create more jobs for local people while at the same time increasing trade between the two countries and productivity of small and medium enterprises.
Ministry of Commerce has drafted the regulations to relax the import of foreign alcohol ban
The Ministry of Commerce has drafted regulations that would allow the import of foreign alcohol, a senior official says, and in the process overturn a decades-old ban that has encouraged rampant smuggling. The rules have come out of a review that the President’s Office initiated earlier this year at a meeting of the National Economic Coordination Committee, said U Khin Maung Lwin, an assistant secretary in the office of the minister for commerce. The Ministry of Commerce was put in charge of the review and has formed a committee led by the deputy minister that also includes the permanent secretaries of other ministries. The committee is examining not only the import but also the manufacture and distribution of alcohol, as well as excise rules, said Khin Maung Lwin.
Myanma Agricultural Development Bank has been distributing over K13 billion in loans to farmers in Sittway for growing rice in rain-fed fields this year
The Myanma Agricultural Development Bank has disbursed more than K13 billion in loans to farmers in Sittway Township for planting rice in rain-fed fields this year. “Out of the 26 Village-tracts in the township, farmers from 24 Village-tracts have obtained loans at K150,000 per acre so far. Farmers can get loans for up to 10 acres of land,” said U Kyan Gyi, the Manager of the Sittway branch Myanma Agricultural Development Bank. The bank branch has been disbursing agricultural loans to Sittway rice farmers since 13 May, covering over 1,700 farmers cultivating rice on 9,100 acres of land. The bank had disbursed more than K15 billion to farmers in Sittway last year and has so far recovered 99 per cent of the loans.
In collaboration with local digital payment service provider, Ongo, Myanmar Microfinance Company (BRAC) will provide the fully digitize the latter’s loan repayments in Myanmar
Ongo, a local digital payment service provider, last week announced a partnership with BRAC Myanmar Microfinance Company (BRAC) to fully digitise the latter’s loan repayments. Under the agreement, BRAC borrowers can quickly and easily pay back their loans with the Ongo mobile app or with an Ongo QR Card at any of Ongo’s 1800 agents across Myanmar. BRAC, which aims to create employment and income opportunities for people living in poverty, particularly women, has lent more than US$76 million to a total of 131,319 borrowers since 2014. Ongo operates in 55 Myanmar cities to over 130 corporate clients, 26,000 merchants and 500,000 consumer users. All Ongo mobile wallet accounts are regulated by the Central Bank of Myanmar under the Mobile Banking Licence directive, in partnership with Myanmar Oriental Bank.
By cooperation with a local distributor, Dagon Win Win, Thailand’s leading beverage company, Ichitan Group launched its new energy hybrid energy drink “T247” in Myanmar market
In order to seize on the burgeoning trend for healthy beverages within the expanding Myanmar market, a new energy hybrid energy drink, named “T247”, has been launched. This new drink is backed by Ichitan Group, Thailand’s leading beverage company, in cooperation with Dagon Win Win, a leading local distributor. Their ambitious goal is to achieve 60 MB sales in the first year. Tan Passakornnatee, the President of Ichitan Group, PLC., said: “Myanmar is one of the fastest growing economies in Southeast Asia, and has a lot of potential. Considering the continuous GDP growth from 6.1 percent in 2013 to 8.4 percent in 2017, the country has seen rising disposable income among households. According to a consumer survey by Frost & Sullivan, a large portion of the population is young and hardworking, and they enjoy energy drinks over soft drinks. This trend has boosted the energy drink’s popularity, rising from only ten brands in 2010 to the 15-20 brands available today.”
Ministry of Commerce permitted nine wholly foreign retail and wholesale providers to operate in Myanmar
Two years after the Myanmar Investment Commission's announcement, the Ministry of Commerce (MOC) has permitted nine wholly foreign retail and wholesale providers to operate in the country. These include investors from Japan, Thailand, US, Singapore, and the Netherlands. The nine non-Myanmar companies are able to secure a green light from the authorities since the government moved to partially open up the retail and wholesale market two years ago. The Myanmar Investment Commission issued the List of Restricted Activities No. 15/2017 in April 2017, which allowed foreign businesses to invest in retail and wholesale without restriction. It then took the commerce ministry over one year to follow up with a Directive. They include Mycare Unicharm Co, Otsuka Pharmaceutical, DKSH, Toyota Tsusho, Unilever, Mega Lifesciences and NTT Com Myanmar, which is the latest entity to receive an MOC permit.
Ministry of Hotels and Tourism (MOHT) ordered business owners in tourism industry to stop collecting payments in the form of US dollars
For the second time, the Ministry of Hotels and Tourism (MOHT) has ordered business owners in the Myanmar tourism industry to stop collecting payments in the form of U.S. dollars. If companies want to continue accepting U.S. dollars, a letter sent by the MOHT to the Myanmar Tourism Federation (MTF) said, they must apply to become an authorized dealer (AD) with a money changing license from the Central Bank. The letter was signed by MTF General Secretary U Kyi Thein Ko and sent to the MTF’s 11 affiliate organizations last Thursday. Its authenticity was confirmed to The Irrawaddy on Friday by a tourism ministry official. Dated June 11, it said the move is part of a Central Bank plan to de-dollarize the Myanmar economy, and it ordered the entire industry to follow the procedure under the authority of Myanmar’s Foreign Exchange Regulation Act, which prohibits conducting business in or exchanging foreign currencies without Controller-granted permission or AD status.