Weekly Business News from Myanmar

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  Few business people have insurance, but interest on insurance is beginning to rise

  Few business people in Myanmar buy insurance policies to cover their lives, let alone goods and vehicles, said Dr Sandar Oo, managing director of Myanmar Insurance Enterprise (MIE), which is under the Ministry of Planning and Finance. “There are very few people who are covered by insurance, which can protect against losses. For example, during floods or bad storms, those who are not covered by insurance will not be protected from any losses as a result of those events,” she said last week. “There are policies under the (MIE) which cover all the losses suffered,” she added. Moreover, the MIE is backed by State-owned finance, so businesses can easily receive damages for their losses. “When people have insurance to cover their assets, they can enjoy peace of mind.”
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  Myanmar Thilawa consortium considers investment in Kyaukphyu SEZ (Chairman of Myanmar Thilawa SEZ Holding, U Win Aung)

  Yangon-Listed firm Myanmar Thilawa SEZ Holding Ltd (MTSH) may invest in Kyaukphyu SEZ, according to MTSH chair U Win Aung. The fourth annual meeting of the MTSH, a Yangon Stock Exchange-listed (YSX-listed) company, was held at Thuwunna Stadium in Yangon on September 9, where U Win Aung spoke about the long-term plan for the company. “Taking into account the long-term profit/ revenue of the company, we will expand our business beyond Thilawa SEZ. We are examining whether we should invest in Kyaukphyu SEZ.
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  In order to improve the private sector and reform policies to modernize and develop a market economy, Vice President U Myint Swe graced the 9th regular meeting with entrepreneurs

  In order to improve the private sector and reform the policies to modernize and creating the market economy for the entrepreneurs, Vice President U Myint Swe attended the 9th Regular meeting with entrepreneurs for the private sector development at UMFCCI in Yangon, Monday. The Vice President encouraged the private sector development, which provides the technology promotion, human resource capacity and job opportunities. The meeting focused on SMEs sector development, Land reclamation issue, rattan and bamboo products, as well as Ayeyawaddy Region and Rakhine State private sector development.
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  To boost trading and develop more robust capital markets, First Private Bank (FPB) may mull delisting from the Yangon Stock Exchange (YSX)

  First Private Bank (FPB) appears to be mulling a delisting from the Yangon Stock Exchange (YSX) at a time when many more companies are needed on the bourse to boost trading and develop more robust capital markets. Among the 11 general resolutions passed during the company’s 26th Annual General Meeting on August 27 was one delegating authority to the Board of Directors (BOD) to delist FPB’s shares for the purpose of protecting its shareholders “if and when it becomes necessary.” The statement comes just nine months after FPB became the fourth company to list on the YSX. “It means getting the approval of shareholders for the mandate to the BOD. An actual delisting will depend on market conditions. At present, we cannot say anything,” FPB senior executive director and joint secretary of BOD U Zaw Myint told The Myanmar Times during the Yangon Stock Exchange Expo held on September 10.
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  In cooperation with Korea Engineering Consultants Corp (KECC), a feasibility study is being conducted by Myanmar Construction and Development Public Co to establish an industrial zone and deep-sea port along the coastline of Ayeyarwady Region

  Ayeyarwady may follow Kyaukphyu and Dawei to be the next region in Myanmar to embrace a deep-sea port together with other infrastructure projects, with a feasibility of the scheme currently under progress. U Ye Lin from Myanmar Construction and Development Public Co said that a feasibility study is being carried out jointly with South Korea-based Korea Engineering Consultants Corp (KECC) to establish an industrial zone and deep-sea port along the coastline of Ayeyarwady Region. “The Pathein deep-sea port project is currently being implemented in Ayeyarwady Region. The design will be carried out in a similar approach to the proposed Dawei and Kyaukphyu deep-sea ports. Similar to the two proposed ports, we will construct a deep-sea port in Ayeyarwady Region as well.
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  The government ceased issuing and renewing 8,000 jade and gemstone mining licenses since July 2016

  8,000 jade and gem¬stone mining licens¬es have not been renewed since the govern¬ment ceased issuing and renewing them in July 2016. In their effort to reform the 1995 Gemstone Law, the NLD-led government has stopped issuing licens¬es siting adverse environ¬mental impacts, corrup¬tion, and armed conflict caused by the previously monopolistic industry. According to the Minis¬try of Natural Resources and Environmental Con¬servation, depriving the 8,000 license-seekers, large, medium, and small enterprises in Kachin, Sagaing, and Mandalay Regions, of permission to proceed has resulted in vacant mines from Mogok to Lone Khin.
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  In order to promote Beijing’s Belt and Road Initiative, Hong Kong’s Chief Executive Carrie Lam visited Myanmar during 14-17 September 2017

  HONG Kong’s Chief Executive Carrie Lam will visit Myanmar on September 14-17 in an effort to step up its game in ASEAN and is expected to promote Beijing’s Belt and Road Initiative. Mrs Lam will be speaking at the 14th World Chinese Entrepreneurs Convention (WCEC) on September 16, which is held by the Yangon-headquartered Myanmar Chinese Chamber of Commerce (MCCC). She will also meet with officials in Nay Pyi Taw and conduct visits to businesses in Yangon. ASEAN and the city announced the conclusion of negotiations on a free trade agreement (FTA) recently. The ASEAN-HK FTA is expected to be signed in November this year. Businesses in Myanmar told The Myanmar Times that they believe the FTA would facilitate inward investments into Myanmar and provide much-needed capital, particularly in infrastructure, manufacturing and property sectors.
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  As the agriculture sector is the main driver of the country’s economy and food security, Myanmar must promote the cultivation of new plant species and seeds production

  Myanmar must build businesses in the cultivation of new plant species and seed production, Union Minister for Ministry of Agriculture, Livestock and Irrigation Dr Aung Thu said. “As the agriculture sector is the main driver of the country’s economy and food security, I urge businesses to carry out sustainable seed production and work with the government to cultivate new plant species,” he said at the 10th East Asia Plant Variety Protection Forum held at the Department of Agriculture Research on September 12. Although Myanmar is an agriculture-intensive country, the production of pure-strain seed production - which supports the development of agricultural products – is done only by the State. The private sector has so far been absent on this front. “As such, there has so far been little investment in this sector," Dr Pa Pa Win, assistant research officer from Department of Agriculture Research, told The Myanmar Times.
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  Myanmar needs to establish a regulatory road-map for the banking sector by giving the local banks more clarity on the progress and timing of upcoming regulations

  Myanmar needs to establish a regulatory roadmap for the banking sector. This will give the local banks more clarity on the progress and timing of upcoming regulations, allowing them to gear up for further reform and growth. “Carrying out regulatory reform at an unmeasured pace can cause trouble,” said Azeem Azimuddin, CFO of Ayeyarwady Bank, during a panel at the 2017 Myanmar Global Investment Forum in Nay Pyi Taw today. In Myanmar, the speed at which new financial regulations were meted out by the Central Bank since 2013 had been exacerbated by the Global Financial Crisis. That resulted in mistakes that have inhibited growth.
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  Businesses are more optimistic about investing in the Myanmar compared to last year

  Prospects for the Myanmar economy are looking promising despite the unrest in northern Rakhine, officials from the public and private sector said today. Inflation pressures are expected to ease and private and public investments in infrastructure services and non-commodity sectors such as light manufacturing and hospitality are forecast to grow, said U Maung Maung Win, Deputy Minister of Planning and Finance, during his keynote speech during the 2017 Myanmar Global Myanmar Investment Forum holding in Nay Pyi Taw. U Maung Maung Win said during a sideline interview with The Myanmar Times that the Ministry of National Planning and Finance has set an economic growth rate target of 7 percent for current fiscal year.