Weekly Business News from Myanmar

Yoma Bank will provide digital small business loans to shop sellers via its latest unsecured small business loan product, SMART Credit Plus
Yoma Bank has just partnered with Shop (shop.com.mm) sellers via their latest unsecured small business loan product, SMART Credit Plus. SMART Credit Plus was unveiled earlier this year when Yoma Bank entered strategic partnerships with Wave Money and the Union of Myanmar Travel Association (UMTA), offering SMART Credit Plus loans to their agents and members. Currently, SMART Credit Plus is available only to merchants and agents of Yoma Bank’s corporate partners. Shop has now become the third corporate partner to work with Yoma Bank in offering this loan product to its merchants. Through this partnership, Shop sellers will now be able to apply for SMART Credit Plus loans through an online platform. They will not need to physically go to a branch, nor will they need to provide collateral, guarantors, or extensive documentation.
Two Japanese owned companies will buy 28.5 percent of stake each in Toyo Thai Power Myanmar Co, to bolster their overseas operations
Shikoku Electric Power Co. and Chugoku Electric Power Co. said Thursday they will buy a 28.5 percent stake each in Toyo Thai Power Myanmar Co. as they seek to bolster their overseas operations, state media reported. The two electric power companies declined to provide the value of their stake in the company, which runs a gas-fired power plant in Yangon. But a Shikoku Electric spokesman said it will cost 4 billion yen to 5 billion yen ($36.4 million to $45.7 million).
Myanmar is likely to bolster European Union (EU) tourism through Visa-free program
Myanmar is likely to bolster European Union (EU) tourism through Visa-free program
Ministry of Agriculture, Livestock and Irrigation was held Myanmar Coffee Forum 2019 in Mandalay Region to accelerate the development of coffee sector in Myanmar
Myanmar Coffee Forum 2019 was held in Mandalay yesterday by the Ministry of Agriculture, Livestock and Irrigation. This forum moved to form a Coffee Board to push for production of quality coffee and expanding the export market. Vice President U Henry Van Thio said in his opening address that the aim of the forum was to – “To keep our coffee sector on its development trajectory, to deal with the current situation, and to fulfill the needs for the development of coffee”. The second coffee forum has come two years after the first one, which was held in Nay Pyi Taw on 23 May, 2017. In his capacity as the Chairman of the Body for Protecting Farmers’ Rights and Promoting their Interest, Vice President U Henry Van Thio appreciated the successful implementation of the decisions taken at the 2017 forum, and pointed out some more requirements.
American investors entering Myanmar are likely to focus on the IT sector in Myanmar
According to U Thant Sin Lwin, the Acting Deputy Director General of the Directorate of Investment and Company Administration (DICA), American investors entering Myanmar are likely to focus on the IT sector here, a field which is already booming. On April 30, nine American companies and local businesses organized a business meeting in Yangon. Its purpose was to discuss possible cooperation on trade, investments, and economic collaboration. At the meeting, both sides discussed possible investments in various sectors. Among these were oil and gas, water treatment, information technology, communications, the media, hotels and tourism, publishing, agriculture, livestock and fisheries, construction, banking, automobiles, shoe making, transportation, and logistics.
Government is drafting a Corporate Governance Code with the aim of improving corporate governance standards in Myanmar
Myanmar is aiming to publish a Corporate Governance Code, said U Aung Naing Oo, permanent secretary of Ministry of Investment and Foreign Economic Relation. A draft report on the code by the Directorate of Investment and Company Administration (DICA), Securities and Exchange Commission of Myanmar (SECM) and Organisation for Economic Co-operative and Development (OECD) is expected to be ready this year. An MOU to draft an official Corporate Governance Code was signed in November last year with the aim of improving corporate governance standards in Myanmar, which, in turn, will support the further development of the country’s capital markets. “We will need a strong framework to effect strong corporate governance standards for Myanmar companies. A Corporate Governance Code which conforms with the current conditions of Myanmar is expected to be ready in 2020,” said U Aung Naing Oo.
Myanmar Investment Commission (MIC) approved the projects in education services and Golf Resort & Lodging services on B.O.T basis which will create 217 job opportunities
The Myanmar Investment Commission (MIC) meeting (7 / 2019) was convened at the meeting room of MIC in the morning on 11th May 2019 in Yangon. U Thaung Tun, Chairman of MIC, Dr. Than Myint, Vice Chairman of MIC and (9) members attended the meeting.
Pyidaungsu Hluttaw approved to borrow 1.4 billion baht from Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA) to reduce power shortage in Yangon
The Pyidaungsu Hluttaw has approved the borrowing of 1.4 billion baht from Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA) to supply more electricity in Yangon Region. With this loan, the Ministry of Electricity and Energy will make sure that Yangon’s power distribution system is improved and the frequency of power shortages reduced, said deputy minister U Tun Naing. The project term is from 2020 to 2022 and power plants and transmission lines will be built and upgraded in North Dagon, North Okkalapa and Shwepaukkan in Yangon. Currently, many townships in Yangon are experiencing blackouts every day. The interest rate for the loan is 1.5 percent per year and the loan term is 30 years. According to the agreement, 50pc of the contract’s value must be used for buying products and services from Thailand under an official tender system.
In collaboration with the DaNa Facility and UK aid-funded program, Myanmar Investment Commission (MIC) will organize one day workshop to promote and facilitate foreign investments
The Myanmar Investment Commission (MIC) collaborated with the DaNa Facility, a UK aid-funded program, to organize a one-day workshop to promote and facilitate foreign investments. Over 50 officials, who represented 16 different agencies of the Myanmar Government that deal with such investments, were in attendance. The workshop provided an enhanced understanding of foreign investors’ requirements. It also dealt with the adverse effects of bureaucratic rules and regulations on investors, as well as ways to support DICA in responding to their needs. This workshop was the first in a series designed to attract both domestic and foreign direct investment; the series as a whole will reach out to investment agencies in the various states and regions of Myanmar. The second workshop (16-17 May) will be held in Yangon, and cover lower Myanmar; the third (20-21 May) will be held in Mandalay, and cover upper Myanmar. All three will review the Myanmar-language version of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) Handbook on Investment Promotion and Facilitation. This document was prepared jointly by DICA and the DaNa Facility.
Government are still striving to get Japanese Government’s support on the building of Hanthaarwaddy International Airport in Bago Region
The government is still expecting to build Hantharwaddy International Airport in Bago with support from the Japanese, said U Win Khant, Permanent Secretary of the Ministry of Transport and Communications. “As Hantharwaddy is an essential airport, we’ve been trying hard to get construction started. We are seeking help from Japan to manage the construction of aircraft runways,” U Win Khant said during a press conference detailing the government’s performance in its third year in power, on May 13. U Aung Ye Tun, assistant permanent secretary of the same ministry, said negotiations with Japan’s Ministry of Land, Infrastructure, Transport and Tourism are ongoing. A tender for the construction of the US$1.5 billion airport was first launched in 2012. The project was awarded to a consortium comprising Japan’s JGC Corporation, Singapore-listed Yongnam Holdings and Singapore’s Changi Airports International.