Weekly Business News from Myanmar

UMFCCI and Czech Chambers signed a Memorandum of Understanding (MOU) to foster cooperation with potential partners in Myanmar
BUSINESSES from the Czech Republic are keen to explore opportunities for cooperation with potential partners in Myanmar, with their interest stoked by the recent visit of state leader Aung San SuuKyi to the Central European country, a Myanmar business chief said. Zaw Min Win, president of the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI), who accompanied State CounsellorSuuKyi on her trip, said both sides gained from productive meetings. “The Czech Republic is really worth visiting. During this trip, we had fruitful discussions with senior officials and Czech businesses,” he said in a phone interview while in Prague. “We strongly believe this trip benefits Myanmar businesses and the country as a whole, as both sides are keen to revitalise and expedite development of the former investment and trade ties that existed between the two countries in 1960s and 1970s.”
European Union Ambassador encouraged EU companies to consider on investing in Myanmar even as trade sanctions loom
YANGON—EU Ambassador Kristian Schmidt has encouraged European companies to consider investing in Myanmar, saying its “potential for further growth is very significant” as garment exports to the EU have already overtaken those of Sri Lanka, Thailand and Tunisia. “I would like to see more European companies investing all over Myanmar, in the different states and regions,” the ambassador said, addressing more than 500 business leaders and policymakers from Europe and Myanmar at the Myanmar-EU Economic Forum in Naypyitaw on Thursday. To attract more investment, however, he said that the government needs to urgently address some burning human rights issues and the damage to Myanmar’s “corporate brand” caused by the crisis in Rakhine State.
Yangon Region Government is striving to invite long-term Foreign Direct Investment (FDI) for low cost housing projects in Yangon
Foreign investors will be invited to develop long-term low-cost housing projects in Yangon, said Yangon Region Chief Minister U Phyo Min Thein at a press conference on the Yangon Region government’s third-year performance, held on Wednesday. The regional government is planning to invite foreign investors to develop more low-cost homes across Yangon as local developers can only invest in projects where apartments are sold under a five-eight year payment plan, said U Phyo Min Thein. Low-income buyers will find it difficult to buy apartments under the short-term payment plans, as the apartments are priced beyond their earnings, he said. That is why the government will seek foreign investors who can invest in the region’s housing projects, particularly for low-income families, for a period of 15 to 20 years, he added.
Foreign education providers are expressed their interest to invest in Myanmar’s education sector to fill the void for high quality education in Myanmar
The private education industry in the country continues to evoke interest from foreign education providers, with several having invested here in the past year ever since the government loosened regulations for the setting up of such educational institutions. Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) officials recently met with private education providers from the US, UK and Canada to discuss their interest in investing in the country’s education industry. Acting Director General of Directorate of Investment and Company AdministrationU Thant Sin Lwin said Chinese education providers were also interested in setting up centres teaching the Chinese language. UMFCCI vice chair U Maung Maung Lay said as an emerging economy, Myanmar needs a trained workforce and these education providers can fill the void for high quality education.
Myanmar and Chinese official indentified three locations for the border economic cooperation core zone of the China-Myanmar Economic Corridor
Three locations have been identified by Myanmar and Chinese officials under a memorandum of understandingfor the border economic cooperation core zones of the China-Myanmar Economic Corridor. U Khin Maung Lwin, deputy secretary of the Ministry of Commerce, told the Myanmar Times that the country’s central committee for the Border Economic Cooperation Zone (BECZ), which met recently, decided on the areas for the core zones at Muse and Chin Shwe Haw in the northern part of Shan State and Kan Pite Tee in Kachin State. He said the ministry would initiate a call for applications for expressions of interest (EOI) soon, adding that for the agreed upon Muse core zone, an export product manufacturing processing and warehouse area would be located at Panghsang (KyuKoke)-Wantain-Nwan Yin (Kyin San Kyawt)-Mantman (Shweli) while an import processing and warehouse area would be located at Salant (Manhiro)-Salin and Namkhang-Naungtaung.
The Central Bank of Myanmar invited the eight consultant companies to submit a request for proposal (RFP) to hire the consultant to aid in approving the foreign banks and branches to operate in the Myanmar
The Myanmar Central Bank has invited eight companies to submit a request for proposal (RFP), as it will hire one of them as a consultant in approving foreign banks and branches to operate in this country. This will, it is hoped, improve the banking industry of Myanmar. At the meeting of the Central Bank’s Board for Proving Foreign Banks, it was decided to hire a consultant company, one with an office in Myanmar, to examine and give approval for foreign banks and branches. The companies invited to submit the RFP are: Deloitte Touche Myanmar Vigour Advisory, Ltd.; PricewaterhouseCoopers (PwC) Myanmar Company, Ltd.; EY UTW Advisory, Ltd.; KPMG Advisory (Myanmar), Ltd.; Roland Berger Co., Ltd.; Allen & Gledhill, Ltd.; Rajah & Tann NK Legal Company, Ltd.; and finally Baker & Mckenzie Company, Ltd.
State Counsellor invited Czech investors to invest in Myanmar during her official trip to Cezch Republic
In light of incentives for foreign investors including a seven-year income tax reduction in its three special economic zones (SEZ), Myanmar deserves to achieve responsible investments from Czech businesses in the coming months, State CounsellorAung San SuuKyisaid at the Czech-Myanmar Business Forum held in Prague. “Myanmar has the potential to grow into a market similar in size to neighboring Thailand,” she said. “This market is expected to evolve into one of the most dynamic and vibrant markets the modern world has ever seen.” SuuKyi said Myanmar has a population of 54 million, half of whom are aged 30 or below. The nation has a sizeable and expanding internal market which will surely benefit from greater cooperation and integration with external markets, she said. “As the largest country in mainland Southeast Asia, Myanmar not only possesses significant potential for agricultural production, we are also richly endowed with minerals and natural gas,” she said.
Allowing the foreign banks into the retail banking sector in Myanmar expected to drive the consolidation in the local banking industry in response to a more competitive market
The Central Bank of Myanmar (CBM) believes that allowing foreign banks into the retail-banking sector will drive consolidation in the local banking industry and make available a larger pool of funds for growth. “Inevitably, foreign banks will win market share from local banks and we see more mergers of local banks in response to a more competitive market,” CBM vice governor U Soe Thein said in a May 28 interview. U Soe Thein said the CBM will be granting licenses for foreign banks to set up subsidiary banks in the country in addition to having their bank branches here. Setting up subsidiaries in the country will allow these banks to offer retail-banking services. “Generally, they’ll be able to offer most services. For now, they can already provide deposit and loan services,” he said.
TMH Telecom Public Co., Ltd signed a MOU with Shan State Government for a feasibility study on building four hydroelectric stations in northern Shan State
On May 24, 2019, the Board of Directors of TMH Telecom Public Co., Ltd. (TMH) entered into a Memorandum of Understanding (MoU) with the Shan State Government for a feasibility study on building four hydro-electric stations in Namadu, Northern Shan State. Under this MoU, TMH will carry out a feasibility study for planning four hydroelectric stations at this location; each of the stations will have a designed capacity of 29.8 megawatts, for a total of 119.2 megawatts. The feasibility study will look into land rights, conditions between government organizations, permission to access working areas, and other necessary support systems – all of which will lead to a conclusion on whether or not the endeavor will be practicable.
Myanmar Construction Entrepreneurs Federation (MCEF) is planning to set up a loan programme for construction sector
The Myanmar Construction Entrepreneurs Federation (MCEF) is planning to set up a loan programme for members who are in need of capital to start projects. MCEF chair U Shein Win said the central executive committee (CEC) of the organisation decided on the loan programme because small and medium construction firms were finding it difficult to raise the 30 percent minimum capital needed to start projects won through government tenders. The country’s construction sector has been in a slump since 2015 with the property subsector struggling to absorb the oversupply, especially for high-end condominiums. The MCEF will start this programme in the Yangon, Sagaing and Ayeyarwady regions. MCEF general secretary U MyoMyint said the organization would place its own assets as temporary collateral with CHID Bank and would be the guarantor as well as loan provider for its members.