Weekly Business News from Myanmar

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  According to the notification No.6/2018 released on 8 November 2018, Central Bank of Myanmar allowed all branch of foreign banks to provide commercial services to local businesses

  Foreign banks in Myanmar are being allowed to provide commercial services, setting them on more equal footing with the local banks as the sector implements further reforms, U Soe Thein, Vice Governor of Central Bank of Myanmar (CBM), told The Myanmar Times on November 9. “Financing and lending to local businessesis is now open to all foreign bank branches. As technical matters are involved, further clarifications and details will be released,” he said. According to Notification No. 6/2018 dated November 8, all branches of foreign banks have been given the right to provide financing and other banking services to local businesses. While applauding the move, officials from local banks said the CBM should elaborate on what constitutes “other banking services”.
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  Myanmar government is interested in continuing its ban on all illegal wildlife trade across Myanmar and border areas

  Calls for an end to growing wildlife trade in Myanmar’s border areas have positively resulted in arousing the government’s interest to continue its ban on all illegal wildlife sales across the nation, according to Christy Williams, country director of WWF Myanmar. “We see a lot of positive intention to cooperate, and have a very excellent cooperation with the Union government. We stand ready to support Yangon region government’s ban on wildlife sales. The next step is to officially announce this ban nationally, so that the whole Myanmar can be free of wildlife crime,” he said in an exclusive interview. Last month, Yangon became the first city in Southeast Asia to become “illegal wildlife trade free”. In every district and township in Yangon region, anyone caught selling or carrying illegal wildlife products will now face enforcement under the new Protection of Biodiversity and Protected Areas Law enacted in May this year.
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  Local taxi companies have been asking the government to set regulations to save local taxi business after they were squeezed by foreign competition

  Local taxi companies say they are facing a poor business environment even with the departure of ride-hailing company Uber from Myanmar earlier this year, leaving competitor Grab to dominate the local market. Before Uber and Grab started operating in Myanmar, taxi services were largely provided by two local companies: Hello Cabs and Oway Ride. But four months ago, Hello Cabs cancelled its taxi app because it could not compete with Grab. In fact, local taxi operators have been asking the government to set regulations to help save local businesses, as they are no match for the likes of Grab.
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  Alibaba Group plans to grow its business in Myanmar by at least five-fold in the coming six to eight months (Frans Maas, Managing Director of Shop.com.mm)

  DRIVEN by rapid gains in smartphone use and people’s willingness to try new things in Myanmar, Alibaba Group plans to grow its business by at least five times in the country in the coming six to eight months, according to Frans Maas, managing director of Shop.com.mm, which is now under the fold of the Chinese e-commerce giant. Myanmar’s biggest online shopping platform was acquired by Alibaba earlier this year. “It is ambitious but we believe it is possible. Even though Alibaba has a very long-term vision, we hope to grow rapidly in this country,” Maas said in an exclusive interview.
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  Myanmar expects to increase EU garment exports by 13 percent if Myanmar doesn’t lose GSP

  Myanmar expects its garment exports to EU, which is now 47 percent of the total gar-ment export, increased by 13, according to Daw Khiang Khaing Nwe, Joint Secretary of Myanmar Garment Manufacturers Association, at the press conference on Novem-ber 30. “Our exports to the EU from Cut-Make-Pack (CMP) factories account for 47 percent of the total export. In 2018, exports to the EU increased significantly. If we can keep this momentum, the EU will account for 60 percent of Myanmar’s total garment export in 2019,’’she said. Myanmar’s garment sector went flat when the U.S and Western countries imposed economic sanctions. Myanmar’s garment export suffered badly in 2001, and was $400 million, while Vietnam’s garment sector was exporting $1.3 billion worth of garment products.
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  Government’s efforts raised to promote Rakhine State as an investment destination

  Rakhine State is being prioritised as a destination for investments within Myanmar says a senior trade official. Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) Executive Committee Member U Htun Htun Naing said yesterday that a delegation from Myanmar will be visiting India for a three-day trip next week to promote Rakhine State as an investment destination. He said this at an event to announce UMFCCI will be hosting the “Invest Myanmar Summit” in Nay Pyi Taw on January 28 and 29 next year.
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  Yoma Strategic inked a franchise deal with US Focus Brands to bring Auntie Anne’s soft pretzels brand to Myanmar in coming months

  Singapore-listed Yoma Strategic inked a franchise deal with US Focus Brands to bring Auntie Anne’s soft pretzels brand to Myanmar, opening the first outlet in Yangon in the coming months. Myanmar is currently among the last frontier markets in ASEAN which the brand has not established a presence. Auntie Anne’s, founded in 1988, is the world’s largest hand-rolled soft pretzel franchise, being known for its bakery products. The companies in a joint release said “more ambitious expansion planned over the next five years” following the first store. Myanmar is set to be the latest addition for the American soft pretzel franchise. Auntie Anne’s has 1,800 outlets across 30 countries and has established a strong presence in the ASEAN region, including Thailand, Philippines, Cambodia, Indonesia, Malaysia, Vietnam, Laos and Singapore.
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  Myanmar needs to ensure safe and efficient use of its airspace ( Mr.Brian Davis, Vice President for airlines at Honeywell Aerospace and aerospace leader at Honeywell International in Malaysia)

  Debate is growing over Myanmar’s infrastructure needs in the aviation sector and whether there is an economic case for a proposed new airport near Yangon in the short-term. Brian Davis, vice president for airlines at Honeywell Aerospace and aerospace leader at Honeywell International in Malaysia, tells Frontier about his company’s cooperation with the Department of Civil Aviation and why larger airports and longer runways alone are not enough to ensure efficiency and safety.
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  Framework agreement to develop Kyaukphyu Special Economic Zone Deep Sea Port project was signed in Nay Pyi Taw

  The framework agreement on Kyaukphyu Special Economic Zone Deep Sea Port Prject was signed by the Kyaukphyu SEZ Management Committee and CITIC Consortium at the Ministry of Commerce in Nay Pyi Taw yesterday. At the ceremony, Myanmar Special Economic Zone Central Body Chairman, Union Minister for Commerce Dr. Than Myint and Ambassador of People’s Republic of China to Myanmar, Mr. Hong Liang, delivered the opening speeches. CITIC Group Chairman Mr. Chang Zhenming, and Kyaukphyu Special Economic Zone Management Committee Chairman and Deputy Minister for Planning and Finance U Set Aung delivered messages of thanks.
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  Foreign Direct Investment (FDI) in Myanmar will take a hit if European Union (EU) removes Generalised Scheme of Preferences (GSP) privileges to Myanmar

  Foreign direct investments (FDI) will suffer a blow if the EU withdraws its Generalised Scheme of Preferences (GSP), under which Myanmar enjoys easy trade access to the world’s largest trading block. EU FDI in Myanmar as well as FDI from countries which target the EU market through the country could take a hit should the EU cancel its GSP privileges to Myanmar, said U Aung Naing Oo, Director General from Directorate of Investment and Company Administration (DICA). The EU is considering removing the GSP due to the ongoing crisis in northern Rakhine. Last week, an EU monitoring mission visited Myanmar to meet with government officials, businesses and labour associations as part of it decision making. As a whole, FDI from the EU accounts for 10pc of total FDI to Myanmar. Most of the funds are channeled into the garment manufacturing sector. Myanmar exports almost half its garment products to the EU.