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Experts say that the new K 1000 bank notes bearing the portrait of Bogyoke Aung San will not affect inflation
The release of new K1000 bank notes bearing the portrait of Bogyoke Aung San on January 7 is not expected to impact inflation, economists and banking experts said in response to market concerns. When the Central Bank circulates new notes into the economy, it will retrieve the equivalent amount of old notes to avoid inflation, said U Than Lwin, a former vice governor of the Central Bank of Myanmar. This is in accordance with monetary rules and regulations, he said. U Than Lwin went on to address rumours that the printing costs for the new K1,000 notes are higher than their value. “It is not true. The CBM would not print new currency if the cost of printing a new K1,000 note is more than K1,000,” he said. -
The land surveys conducted for the construction of Yangon Special Economic Zone (SEZ) in Dala, Kawthmu and Kyunchangone Townships
YANGON- Land surveys have been conducted for the construction of Yangon Special Economic Zone (SEZ) in Dala, Kawthmu and Kyunchangone Townships, says Phyo Min Thein, Yangon Region Chief Minister. The chief minister attended the opening ceremony of 33/11KV and (5)MVA sub-power station situated between Kayinchaung and Kamarkaloke villages in Kyauktan Township, Yangon Region on January 6th and he delivered the above speech. “We had carried out the land surveys for construction of Yangon SEZ in Dala, Kawthmu and Twanty Townships. Moreover, we plan to establish a new International Yangon Jetty in Kawthmu Township to transfer the current jetties in Yangon to the mouth of the river,” said Phyo Min Thein. -
Myeik archipelago has the prospects for the sustainable development for tourism sector
Taninthayi Region where the Myeik, or Margui, Archipelago is located has prospects for the development of tourism. The Myeik Archipelago, which forms a part of the Myanmar coastline, comprises more than 800 unspoiled islands with coral reefs, sea grass, mangroves, and large clay mud, and serves as a habitat for a variety of aquatic animals. The sea-faring Salon ethnic people are also becoming popular on tourist itineraries. Those who wish to invest in the tourism sector in the islands are required to follow the dos and don’ts set by the authorities. The government, on its part, should preserve the traditional culture of the local communities and allow investment which guarantees sustainable development without damaging the natural environment. -
Myanmar has potential investments from Hong Kong and ASEAN countries in 2019 – 2020 fiscal years
Myanmar has potential investments from Hong Kong and ASEAN countries such as Singapore and Thailand in 2019-20 FY, according to the Ministry of Investment and Foreign Economic Relations. Among ASEAN countries, Singapore, Vietnam, Thailand, Malaysia, Indonesia, Philippines, Brunei, Cambodia and Laos made investments in Myanmar. A total of 50 countries invested in 1,876 businesses in 12 sectors from 1988 to November 2019 and the total investment is about US$83 billion. In that period, the investment amount of nine ASEAN countries is over US$38 billion and it is over 46 per cent of total foreign investment. -
Siam Commercial Bank (SCB) and Ayeyarwady Bank (AYA) Bank signed a memorandum of Understanding (MOU) on cross border transfers between two countries
Two private banks, Ayeyarwady Bank (AYA Bank) in Myanmar and Thailand’s Siam Commercial Bank (SCB) have signed a memorandum of understanding (MOU) to collaborate in the development of cross border payments and fund transfer services between the two countries. This cements an October 2019 agreement between the Central Bank of Myanmar and the Bank of Thailand to promote the official use of the Myanmar kyat and Thai baht when trading at the border. The Central Banks also inked a second MOU to promote financial innovation and services for payments through collaboration between the two countries. “We hope to start the work within the year,” U Hpone Thet Oo, vice president of Financial Institutions and Corporate Banking for AYA Bank, told Myanmar Times. -
The companies listed on the Yangon Stock Exchange (YSX) disclose mixed prospects ahead of foreign participation
Companies listed on the Yangon Stock Exchange (YSX) announced mixed prospects for 2020, the year Myanmar is set to allow direct foreign ownership of equities listed on the bourse. The Securities and Exchange Commission of Myanmar announced last July that non-Myanmar individuals and locally-registered entities would be allowed to invest in listed shares of up to 35 percent. Analysts expect the move to spark interest mostly from Yangon-based retail investors, with this to be followed by institutional investors when the bourse has more listings and a broader array of sectors represented by its listed equities. No official timeline was given but analysts expect such trading to begin in the first half of this year. Currently, there are six companies listed on the YSX with a combined market value over K620 billion. Of the companies that released performance announcements this week, First Myanmar Investment (FMI), which is controlled by tycoon Serge Pun, was the most bullish. For the year ended September 30, 2019, FMI announced revenues totaling K168.4 billion, an increase of 29 percent compared to the previous transition period between April 1 and September 30, 2018. However, higher costs resulted in a 27pc dip in earnings to K7 billion for the period. -
KBZPay launched its new quick access loans to drive business growth for agent and merchants in Myanmar
KBZPay has launched Quick Access Loan, a new short-term financing product, to help its agents and merchants improve their cash flow so they can better serve customers and grow their businesses. With the aim of driving financial inclusion, Quick Access Loans have been made available to all KBZPay Partners, who can access instant credit of K300,000 without collateral, guarantors, or application fees. There is further potential for KBZPay Partners to increase their credit limit up to K2,500,000, according to KBZPay. The loan applications would be processed at KBZ Bank branches and would take a few minutes, according to KBZPay. Using the Quick Access Loan function in the KBZPay Partner App, successful applicants will be able to drawdown funds from the line of credit according to their requirements. -
Ministry of Planning, Finance and Industry is drafting the new law, a secured transactions law to help set up Myanmar credit market
The Ministry of Planning, Finance and Industry is drafting a Secured Transactions Law with assistance from the International Finance Corporation, U Htun Zaw, Deputy Director General of the Financial Regulatory Department, said. The aim of the legislation is to facilitate the establishing of a modern and formal credit market through which borrowers can take loans using a broad range of moveable assets as collateral and micro, small and medium-sized enterprises have better access to financing. The new law also provides for a formal registry for moveable collateral and recourse in the event of disputes regarding the rights to collateral. -
The Central Bank of Myanmar (CBM) will auction treasury bonds to finance the budget deficit on 21 January, 18 February and 17 March 2020
The Central Bank of Myanmar will auction treasury bonds to finance the budget deficit on January 21, February 18 and March 17. U Maung Maung Win, Deputy Minister of Planning, Finance and Industry, told the Upper House of Parliament in August 2019 that the government would fund the budget deficit through government bonds and treasury bills. According to the government’s fiscal policy statement, 50 percent of the deficit will be covered by the sales of treasury bills, 21 percent by treasury bond sales and 29 percent by foreign borrowing. Local banks, foreign bank branches, securities underwriter firms and insurance firms are eligible to bid for the two- three- and five-year treasury bonds. -
The industry watchers expected to see more activity in Myanmar’s wholesale and retail market this fiscal year
Industry watchers are expecting the wider presence of foreign supermarkets and retail malls in Myanmar in the coming year. “The market has been developing quickly. So, I think that within the next one or two years the wholesale and retail market landscape will expand,’’ said U Myo Htwe, Managing Director of Pro 1 Global Company, a retail joint venture between local and Thai investors. “Most foreign investors are focusing on the wholesale area because this takes less time and risk compared to retail,” said U Myo Htwe. But this will quickly change. “Over the next two years, we will see much more activity from the retail players in the domestic market, after the foreign investors have studied the conditions and trends,” U Myo Min Aung, a local businessmen in the retail and wholesale industry.
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