Weekly Business News from Myanmar

Yoma Strategic Holdings plans to take controlling stake and its existing shareholding of Wave Money
Yoma Strategic Holdings will establish a new company, Yoma MFS Holdings (Wave Holdco) to increase its existing shareholding and take a controlling interest in Digital Money Myanmar Limited (“Wave Money”), according to a company press release. Wave Holdco plans to acquire the entirety of Telenor Group’s current 51% stake in Wave Money for US$76.5 million and will raise funds from a consortium of investors led by Yoma Strategic. Upon the completion of the transactions, Yoma Strategic will invest up to an additional US$25 million and become the largest controlling shareholder in Wave Money, cementing its role as a leading player in Myanmar’s fintech sector.
Asian Development Bank (ADB) forecasted Myanmar economy expected to grow 1.8 percent in 2020
The Myanmar economy is expected to grow at just 1.8 percent in 2020, according to updated forecasts by the Asian Development Bank (ADB), released June 18. In its initial forecast in April, the ADB had expected GDP growth in Myanmar to be 4.2pc. The country expanded at 6.8pc in 2019. The ADB revised its forecasts for Myanmar after new data pointed toward a sharp slowdown in regional growth as a result of COVID-19. Growth in developing Asia is now forecast to grow by just 0.1pc in 2020, compared to 2.2pc initially forecast in April. That's the slowest rate of growth for the region since 1961, as containment measures to address COVID-19 hamper economic activity and weaken external demand, the ADB said.
The Construction on China’s BRI deep sea port in Kyaukphyu will start soon as both Myanmar and China sides preparations are on track
The construction of the China-backed Kyaukphyu deep-sea port will begin soon, as preparations on both the Myanmar and China sides are on track, according to the Ministry of Commerce. The project is a crucial part of the Kyaukphyu Special Economic Zone (SEZ) in western Myanmar. The SEZ is expected to boost development in China’s landlocked Yunnan Province and provide China with direct access to the Indian Ocean, allowing its oil imports to bypass the Strait of Malacca. The Kyaukphyu SEZ is a backbone project under the China-Myanmar Economic Corridor (CMEC), which is itself a part of China’s ambitious Belt and Road Initiative (BRI). The project also includes plans to construct an industrial zone with facilities for textile and garment manufacturing, construction materials processing, food processing, pharmaceuticals, electronics, marine supplies and services and research. The entire project is planned to cover 4,300 acres.
Chinese firm is applying to conduct feasibility study on Mandalay – Kyaukphyu railway project
A Chinese company is applying to conduct feasibility studies for a high-speed railway between Mandalay-Kyaukphyu, said U Nyi Nyi Swe, general manager of Myanma Railways. The railway is part of a larger railway project connecting Muse to Mandalay. A memorandum of understanding for the railway was signed between the Myanmar government and China Railway Eryuan Engineering Group Co Ltd (CREEG) on October 22, 2018. “The Muse-Mandalay MoU includes applying for permission to conduct feasibility studies to build the railway from Mandalay to Kyaukphyu. The feasibility study takes two or three years,” U Nyi Nyi Swe said.
KBZ MS Insurance extended free 50 percent bonus COVID – 19 coverage for all existing and new health insurance policyholders until 13 September 2020
KBZ MS General Insurance, a joint venture between IKBZ Insurance and Japanese insurance giant MSI, announced an extension of its free 50% additional COVID-19 coverage for all existing and new health insurance policyholders until September 13, 2020, under its KBZ MS Arrawjan policy. It offers free additional coverage for customers diagnosed with Covid-19, offering an additional 50% coverage on outpatient care, hospitalization fees, and death benefits. The program began on 13 March 2020 and was set to end on 13 June, however, given the ongoing spread of COVID-19 in Myanmar, the insurer has decided to extend the free coverage by another three months until 13 September.
Yangon’s automotive market plunged since mid-March in the current fiscal year
Following coronavirus spread in March in Myanmar, the automotive industry was crashed tremendously, leading to a sharp drop in automobile sales, said car dealers. The auto sales drastically dropped in April-end after the government has imposed a restriction period for events. In the second week of May, cars valued below K20 million were slightly demanded. However, the auto market is still cool. The cars are sold K1 to 3 million lower than the market price depending on types of cars, according to the Yangon car market. The Road and Transport Administration Department (RTAD) has started issuing slips (import permits) to owners of modified cars, with changed body coaches. Normally, the slipping price drops if more modified vehicles are de-registered at the RTAD.
Myanmar’s small and medium-sized enterprises (SMEs) urged State Counsellor to relax COVID – 19 loan policies in order to help businesses thrive
Myanmar’s small and medium-sized enterprises (SMEs) affected by the pandemic need the government to relax its COVID-19 loan policies in order to help businesses thrive, according to industry representatives. Speaking with State Counselor Daw Aung San Suu Kyi on Tuesday, Daw Win Win Tint, managing director of retail giant City Mart Holdings, said small businesses are facing difficulties around lending rules and regulations for the government’s loan program. Much of the government’s COVID-19 relief requires that businesses repay loans in just one year. “Those rules and regulations are out of reach for retail businesses. I would like to request [the government] consider it,” Daw Win Win Tint said.
Israelis firm are striving to expand more in agriculture technology and healthcare sector
Ronen Gilor, Ambassador of Israel to Myanmar, wants to foster stronger ties between the two countries to facilitate the transfer of relevant technology and knowhow from Israel to Myanmar. Since taking up his role in Myanmar almost 20 months ago, Mr Gilor has been working on raising Israeli participation in targeted sectors of the Myanmar economy. He believes the current levels of trade between the two countries are insufficient in optimising the benefits Israel can bring to Myanmar. “Myanmar already knows about Israeli technology, especially in agriculture and healthcare. The challenge is bringing that knowledge here and implementing it,” Mr Gilor told the Myanmar Times.
The Trade Department granted 7,433 import/export licences through online platform over the past two months
The Trade Department with the Ministry of Commerce has issued US$12.777 billion worth 7,433 import/export licences through the online platform over the past two months, to ensure smooth trade amid the coronavirus outbreak. The ministry has launched the online licencing system for export and import businesses starting from 1 April, with a view to reduce the person-to-person contact and mitigate the spread of viral disease. This being so, under the new service, the process of licence applications, fee payment and receiving licences can be done online. The trade department offers an online system for over 700 types of export/import items, including CMP garment and necessary import items such as pharmaceuticals and related items, hospital equipment, foodstuffs, fertilizers, palm oil and oil products, milk and dairy products, electronic devices, fuel oil, lubricants, motorbikes and bicycles, agricultural products, lead, sugar, natural gas and other products. Licence applications can be processed on www.myanmartradenet.com.mm. The companies need to sign up membership, and application fee can be paid with the MCB eCommerce Pay of the Myanmar Citizens Bank. Additionally, the MPU eCommerce pay started on 8 May 2020. The Trade Department of the Ministry of Commerce has been granting reliefs to facilitate trade amid the pandemic period.
Chubb Life Myanmar launched its three insurance solutions to protect customers against rising hospital costs
Chubb Life Myanmar has announced the launch of three insurance solutions namely Chubb Health Shield, Chubb Accident Shield and Chubb Critical Illness Shield. With affordable premium payments, the products are designed to provide a peace of mind and reduce people’s financial burden in the event of illness, accident or hospitalization. Unexpected life events like accidents, surgery, critical illness and death can place tremendous stress on a dependent’s financial and emotional health. With the continued rise in healthcare and medical costs, the need for financial protection is critical to protect family and loved ones in case of a crisis. To provide this, Chubb Life has launched three insurance solutions with various benefits as follows.