Weekly Business News from Myanmar

Central Bank of Myanmar permitted Japanese Yen and Chinese Yuan as the settlement options for banks in across border payments and transfer to facilitate the border trade development
The Central Bank of Myanmar (CBM) officially introduced Japanese yen and Chinese yuan as settlement options for banks in cross border payments and transfers. With the aim of facilitating border trade, the CBM’s January 30 directive permits banks with Authorised Dealer licenses for foreign exchange to open yen and yuan accounts and settle trades in those currencies. However, opening personal accounts or legal entities in the two foreign currencies are not permitted.
Negotiation between China and Myanmar government still underway to change the size, scale or location of the Myitsone dam project in Kachin State
Negotiations are underway to change the size, scale or location of the Myitsone dam project in Kachin State, U Thaung Tun, Minister of Investment and Foreign Economic Relations, told the media at the Myanmar Investment Summit in Nay Pyi Taw. A special commission comprising of senior government officials has been formed to review the Myitsone dam project and will release a report on the matter. The Myitsone project does not involve just the dam but includes various other projects. As such, officials are working on a solution, which could involve changing the size or location of the project to avoid adverse impact to local communities or the environment, U Thaung Tun said. The project had been suspended during U Thein Sein’s administration and is currently still under review by the government.
Union Minister of Investment and Foreign Economic Relations reaffirmed the plans to establish standard operating procedures (SOPs) and land bank to ease investment regulations in bid to attract foreign investment
U Thaung Tun, the Union Minister for Investment and Foreign Economic Relations and the Chairman of the Myanmar Investment Commission, attended the second day of the Invest Myanmar Summit 2019 in Nay Pyi Taw, and re-affirmed plans to establish standard operating procedures (SOPs) and a Land Bank to ease investment procedures. The setting up of the Ministry of Investment and Foreign Economic Relations, which was formed recently to attract foreign investment, is among the significant changes being made in Myanmar, said the Union Minister. The ministry’s MyCo System is offering online registration to companies, he added. He also stressed the important role played by the youth in the Fourth Industrial Revolution, appreciating the aptitude displayed by Myanmar youths who achieved success in the Robot Olympics.
State Counsellor tempted woo foreign investors to invest in Myanmar in the wake of falling Foreign Direct Investment and slowing growth
State Counsellor Daw Aung San Suu Kyi on Monday urged an audience of business bosses to invest in Myanmar in the wake of falling foreign direct investment and slowing growth, pledging to “build an investment-friendly environment”. She was speaking at the first official investment conference organised by her National League for Democracy-led government intended to win support for her handling of the economy. However, businesses were lukewarm about the speech, which did not touch upon the impact of political crises and offered few details on new reforms. Over the last year, Myanmar’s government has been under increasing pressure to bolster the economy and support the private sector. Approved FDI fell short of the official estimates by around 50 percent between April and October 2018, while a survey for European companies last month revealed that business confidence has fallen to a three-year low.
The collaboration between government and business community, two days Invest Summit was held in Nay Pyi Taw to provide the business opportunities for local and international investors and discuss the country’s potential investment potential
The Myanmar government opened a two-day investment summit in Naypyitaw on Monday aimed at drumming up interest in the country, showcasing some 120 projects worth more than $3 billion combined. The Invest Myanmar Summit 2019, the country’s first, is part of the government’s efforts to counteract a significant decline in foreign direct investment (FDI) in Myanmar over the last two fiscal years. A collaboration between the government and business community, the event aims to provide an opportunity for businesses to meet and for local and international investors to discuss the country’s investment potential. More than 1,600 local and foreign delegates are expected to attend and 40 companies are exhibiting.
Myanmar government will establish a land bank to provide easy access to the information about available land for foreign investors
The Government will establish a land bank in order to provide information about available land for foreign investors, this is so they can have easy access to information when deciding where to make investments, U Thaung Tun, Union Minister of the Ministry of Investment and Foreign Affairs, said. “Myanmar makes up the biggest land area in Southeast Asia in terms of area and has a lot of land available for industrial investments. However, there are a lot of problems regarding land use. We are trying to provide information on how to acquire and rent the land, and how to change the status of the land into industrial use in accordance with land use policy and Myanmar Investment Law,’’ he said. In order to form a land bank, the government will collect the data of usable land across the country and change it in to electronic data. By doing so the government can provide accurate information about land which will ultimately improve Public Private Partnership and foreign investments.
Yoma Strategic Holdings raised USD $ 70 million from Thai institutional investors in the first foray of a Myanmar- focused company into the corporate bond market
Yoma Strategic Holdings has raised THB2.3 billion (US$70 million) from Thai institutional investors in the first foray of a Myanmar-focused company into the corporate bond market. The Serge Pun-chaired company this month announced that it had filed a bond offering of THB2.3 billion, which is equivalent to the maximum approved guaranteed amount of US$70 million on the day of pricing, with the Securities and Exchange Commission of Thailand (SEC). The issuance took place on January 25. The bonds were more than 2.5 times oversubscribed by Thai institutional investors. The five-year fixed rate bonds are priced at 3.38 percent per annum, which represents a premium of 124 bps above Thai government bonds. The bonds are rated triple A by virtue of them being guaranteed by the Asian Development Bank’s Credit Guarantee and Investment Facility (CGIF).
U Thaung Tun, Union Minister for Investment and Foreign Economic Relations highlighted Myanmar’s economic and investment opportunities related reform initiatives while his participation in World Economic Forum 2019
Union Minister for Investment and Foreign Economic Relations U Thaung Tun highlighted Myanmar’s economic and investment opportunities and latest investment related reform initiatives during the meetings and bilateral discussions as part of Myanmar’s participation in the 2019 Annual Meeting of the World Economic Forumheld in Davos-Kolsters, Switzerland, from 22 to 25 January 2015. Under the theme “Globalisation 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution,” the Union Minister exchanged views on international procedures and best practices of investment and trade facilitation with heads of State and Government, Ministers, Senior Officials from International Organizations and business leaders. Union Minister attended the Opening Session and Special address as well as Informal Gathering of World Economic Leaders, held on 22nd and 23rd respectively.
US industrial and manufacturing giant General Electric Co (GE), Vietnam plant stepped up its investments in manufacturing technology and digital innovation with “Brilliant Factory” in the CLMV economies
US industrial and manufacturing giant General Electric Co (GE) is stepping up its investments in manufacturing technology and digital innovation with the first “Brilliant Factory” in the CLMV (Cambodia, Laos, Myanmar and Vietnam) economies. The New York-listed multinational is known for innovative creations in various sectors, including the electric light bulb, the first US jet engine for commercial aviation, “rotate-only” CT scanner and HA Gas turbines, which recently won a Guinness World Record for efficiency, according to Wouter van Wersch, President & CEO of GE Asia Pacific, at a briefing for ASEAN media visit, which The Myanmar Times took part. Among those milestones, the “Brilliant Factory” in Haiphong, northeastern Vietnam, is the latest example, he continued. The firm boasts 23 factories in the region but only five “Brilliant Factories” - production unit with advanced manufacturing technologies and digital efficiency - worldwide.
Ministry of Planning and Finance urged four state owned banks to relax the 0.03 percent services fee foreign currency deposits
The Ministry of Planning and Finance, under the Union Government, has pleaded with four state-owned banks to remove the 0.03 percent service fee placed on foreign currency deposit that are being charged to customers. The four state-owned banks include Myanma Economic Bank (MEB), Myanma Agriculture and Development Bank (MADB), Myanma Foreign Trade Bank (MFTB) and Myanmar Investment and Commercial Bank (MICB) are all regulated by the Central Bank of Myanmar (CBM). “There are no state-run banks that are facing losses, they always have a big margin. However, they charge customers a 0.03 percent service fee on foreign deposits. It is not fair to customers by charging this foreign currency deposit fee. There are four state-owned banks and we have requested them to drop the service fees. By dropping the service fees, we hope that they can gain more trusts from customers,’’ said U Soe Win, Union Minister of the Ministry of Commerce, at the regular meeting between U Myint Swe, Vice President No. 1 of Myanmar, and local businessmen.