Weekly Business News from Myanmar

US investors are showing their interest in Myanmar as it's opened up and regulated several sectors of the economy such as banking and finance, and education
US investors are showing interest in Myanmar following recent efforts to open up and regulate several sectors of the economy, such as banking and finance, and education. Last Thursday, US Ambassador to Myanmar Scot Marciel met with businessmen from the Union of Myanmar Federation of Chambers of Commerce (UMFCCI) to discuss potential investment opportunities available to US businesses. The US has already sent delegations to Myanmar to review opportunities following the recent slew of reforms in the banking and finance sector, according to the UMFCCI. On November 8, 2018, for example, the Central Bank of Myanmar announced that it would allow branches of foreign banks in the country to offer financing for local businesses and operate other banking services as well as expand.
Myanmar firms should find proper ways to export to overseas markets with the potential to produce quality products
With the potential to produce quality products, local businesses in Myanmar should not be content with the domestic market only and should find proper ways to export to the overseas markets, according to a market expert. Thet Su Hlaing, official representative of Messe Frankfurt Exhibition GmbH for Myanmar, said in an interview that a lot of Myanmar companies have the capacity to expand overseas but are still reluctant to do so due to a lack of self-confidence. “We have found out through our extensive study on this market that a great number of local businesses are able to export quality products that meet international standards, but they are quite satisfied with their market shares domestically,” she said. “As a representative of Messe Frankfurt, we are now working tirelessly to encourage them to expand their businesses beyond Myanmar. We strongly believe they can do it, so we are pushing for that.”
Central Bank of Myanmar (CBM) will allow foreign fully owned banks to operate in Myanmar by the end of 2020
Central Bank of Myanmar will allow fully owned foreign banks by the end of 2020. “We will allow foreign bank as a subsidiary if they want to operate here as a fully owned foreign bank. We have issued a statement on this and will announce the details of the terms and conditions for them. In international practices, a subsidiary can operate in the same way local banks do,’’ U Bo Bo Nge, Vice President of Myanmar, said. Central Bank is considering allowing subsidiaries based in the country, but directly managed by the mother bank instead of allowing foreign bank branches.
Ministry of Education will collaborate with economic sector in order to nurture skilled labor for local and foreign investments
The Minister of the Ministry of Education said his ministry will work with the economic sector in order to nurture skilled labor for local and foreign investments. The meeting was held on February 2 at UMFCCI between members, experts, and local businessmen. The Minister said, “Only when we can effectively connect the two sectors together, will our pool of available workers improve into a skillful and qualified workforce. I believe that private sector will collaborate with us on this matter.” The two sectors will collaborate on educating young people, from primary education to higher education, and work together towards a skillful and qualified labor force. by creating technological and vocational training schools as well as providing non-formal education. One example of non-formal education is a mobile school like myMe Myanmar Mobile Education Project. This is a project that has a bus outfitted with a classroom, and brings the school directly to where children work and live.
Myanmar and China authorities will be signed a bilateral agreement for trading cattle at the border area due to the high demand from China
With Chinese demand for cattle on the rise, Myanmar and China will soon sign a bilateral agreement for trading cattle at the border, U Khin Maung Lwin, assistant secretary of the Ministry of Commerce (MOC), told The Myanmar Times. An agreement to start an official barter system for cattle between Myanmar and the Yunnan Province government in China will soon be signed. The barter system is a trading mechanism under which exports and imports are officially recorded and legalised. Currently, China does not officially allow imports from Myanmar. This will be followed by a second agreement on matters related to the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ), which is required for exporting cattle, between the China’s Ministry of Commerce, the MOC and the Myanmar Veterinary Department under Ministry of Agriculture, Livestock and Irrigation (MOALI).
PTT Exploration and Production (PTTEP) raised investments in Myanmar offshore projects to maintain gas production
Since 2014, a total of 345 million cubic feet of natural gas for daily domestic consumption and export to Thailand is channeled from the offshore Zawtika Project in the Gulf of Moattama to the Zawtika Operation Center (ZOC) in Kanpauk Township, Tanintharyi, said Mr Piya Sukhumpanumet, general manager of PTTEP Myanmar Assets. Natural gas, which is produced at the Zawtika field at Block M9, is being processed at the Zawtika Platform Quarter Complex at the project site and transferred via a 230-km subsea pipeline to ZOC. Located approximately 300 kilometres south of Yangon, the Zawtika gas field development project is being developed by Thailand’s PTT Exploration and Production Public Company Ltd (PTTEP). The company also owns an 80 percent stake in the project, while state-owned Myanma Oil and Gas Enterprise (MOGE) owns the remaining 20pc. A production-sharing contract was signed in 2003 and gas was discovered at M9 in 2007.
Maungdaw- Kanyinchaugn economic zone in Rakhine State will be upgraded with additional projects
The still under-construction Maungdaw Kanyinchaung economic zone in Rakhine State will be upgraded with additional projects and the state government is planning to build a new industrial zone in Ponnagyun, said the State Chief Minister Nyi Pu. Despite worries from investors about the present situation in the state, the Chief Minister claimed that they shouldn’t. “The conflicts occurred in the inner areas of Rakhine State. Investors can make their investments in Mrauk-U, Kyauktaw and Minbya. In Maungdaw, we are developing Kanyinchaung economic zone,” he said. The Kanyinchaung economic zone is located about three miles away from Maungdaw and is invested in via the cooperation of the state government and Nat Myit Ahlin Co. Ltd. The total investment is Ks 2.2 billion with Ks1.5 billion from the state government and Ks0.7 billion from private sector, according to an announcement from President’s Office.
Local financial experts and economists says that Central Bank of Myanmar (CBM) headed in right direction and expected effective for the development of the banking sector
The Central Bank of Myanmar (CBM) has begun taking the initial steps to stand as an independent body, local financial experts and economists say. They added that recent actions taken by CBM early this year are seen as effective for the development of the banking sector. The CBM has started the year strong by preparing to tackle illegal money transfers and implement a national payment system. Experts say if the central bank continues in this vein, it will help develop the financial sector as well as the economy. “In recent years, we have seen many reforms made by CBM such as addressing the regulations of banks. As a consequence, efficient credit supply and strong economic development become more feasible,” financial expert Dr Aung Thuya told Myanmar Times.
Myanmar is planning to export 800 tons of honey to European Union member countries
Myanmar is planning to export 800 tons of honey to E.U. member countries as it received an offer from the E.U., according to Department of apiculture under the Ministry of Agriculture, Livestock and Irrigation. “The E.U. did offer to buy our honey, but beekeeping farms, honey treatment facilities, exporters, as well as our ministry are just preparing so that our products meet their requirements. At the moment, what we have is an offer, but we cannot export yet. However, when we start, we will export around 800 tons. We are testing and preparing what we need to in order to meet their requirements in next two or three years,’’ U Aung Min, Director of the Department of Apiculture, said.
Myanmar remains confident to attract foreign visitors with its natural attractions and traditions to raise tourists’ interest despite international media coverage of conflicts in Rakhine State
DESPITE the current decline in tourists coming from Europe and the Americas due to international media coverage of conflicts in Rakhine state, Myanmar remains confident it can attract foreign visitors in the months to come, according to officials and industry leaders. The nation will promote its natural attractions and traditions to raise tourists’ interest, May Myat Mon Win, chairwoman of Myanmar Tourism Marketing (MTM), said in an exclusive interview. “We have a lot of unexplored attractions across the country. This does not mean that we are not yet ready [for a tourism boom]. With authenticity and commitment, everything is possible,” she said. According to her, it is now time to take another step in the “Myanmar, be enchanted” rebranding campaign launched in late 2018. From this year onwards, Myanmar will mainly focus on tourism marketing by participating in international travel shows, maintaining its current attractions and creating new destinations.