ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Myanmar life insurance market holds significant growth potential which is generating high interest among foreign providers

  The government is expecting a total of 29 foreign and local life and non-life insurance companies to operate in Myanmar. So far, four foreign life insurance companies have applied to form joint ventures with local partners while five non-life foreign insurance companies may also form similar partnerships, Daw Sandar Oo, the Chair of Myanmar Insurance Association, said during the Into Myanmar: Insurance Summit 2019 in Yangon yesterday. “We have received the joint venture proposals and will announce the result of the joint venture companies at the end of July,” said U Thant Zin, Director of Financial Regulatory Department under the Ministry of Planning and Finance (MOPF). Foreign insurers are able to take stakes of up to 35 percent in local insurers.
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  Myanmar Government lifted the ban on the exportation of raw teak and timber from state and privately-owned plantations

  The Myanmar government will again allow the exportation of raw teak and timber from state and privately-owned plantations, Ministry of Natural Resources and Environmental Conservation deputy permanent secretary U Kyaw Zaw said, but a ban on raw teak and timber from natural forests will remain in place. U Kyaw Zaw said the decision was finalized on May 31. “Only timber from private and state-owned plantations will be allowed for export. We have already adopted proper verification procedures, because government leaders are very concerned that timber from natural forests could be mistakenly allowed for export,” he told The Irrawaddy. Teak exports are still subject to an approval process through the ministry, which will grant or deny permission on a case-by-case basis in response to requests from companies, he said.
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  Magwe Region Government granted the permission to three companies in order to refine crude oil produced from its hand-dug wells into gasoline

  Magwe Region will soon be refining crude oil produced from its hand-dug wells into gasoline, with certain details such as water allocation to be settled before refining can commence. Magwe’s Minister of Natural Resources, Environment, Electricity and Energy U MyintZaw said arrangements were being made, including giving permission to three companies - Power 95, Myanma Mandai and Pyae Sone Win – to refine crude oil into gasoline. Another two companies will be given permission out of 10 that have applied. Hand-dug oil wells continues to be a lucrative source of income for regional governments. Magwe has received K14 billion from June 2016 to June 2019, from K7.5 billion during the previous government’s term.
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  The two days event of 4th Emerging Asia Banking & FinTech Summit was held in Yangon with the aim to bring together key industry players across the Asia

  The 4th Emerging Asia Banking & FinTech Summit began on Tuesday in Yangon to bring together key industry players across the Asia. This is to discuss the opportunities and challenges, form strategic alliances and action points for banking and financial institutions. The 2-day summit focuses on ASEAN digital banking trends, opportunities and challenges, Digitization of financial services, latest developments in the banking legal framework and digital payment systems. The organizer stressed that the summit would provide an opportunity for the banking sector to get clarity on the regulation to grow and evaluate strategic options and collaboration to move forward. CEO, Magenta Global Pte Ltd, Maggie Tan said “Myanmar has taken a bit lead forward now with the recent announcements. I think that is the future. You know the future really is towards digital banking and financial inclusion. I think it is both steps that the country is taking in order to open up the sectors. And I am sure more investments and activities access to financing how the economy growth. So the future looks so extremely bright.”
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  Yangon Regional Government is striving to build an international port at the mouth of Yangon River

  At a press conference on Yangon Project Bank on June 3, U Phyo Min Thein, Chief Minister of Yangon Region, announced that his regional government will build an international port at the mouth of the Yangon River. It will be very much like the one in Singapore. He said: “Along with Yangon Special Economic Zone, we will build a massive port at the mouth of the Yangon River. We have the advantage of being able to transport goods to other inland regions close to our country through this port. However, because these projects are so huge, we can’t implement both at the same time. We need to balance between supply and demand.” Through the new port, he said that goods can be exported to inland regions such as Yunnan Province, China. This trade route would be much shorter than the existing trade route that passes through the Strait of Malacca and thence to the South China Sea.
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  Myanmar made the discussion with the authorities from the Yunan Province and Shanghai Province to export agricultural and livestock products from Yangon market

  Myanmar is currently having discussions with authorities from Yunnan province and Shanghai province in order to export agricultural and livestock products from the Yangon market, said U Phyo Min Thein, Chief Minister of Yangon. “We are trying to find a stable market to help develop the agriculture and livestock sectors. It is now difficult to store and transport goods after they are moved to the border. Therefore, we are in discussion with authorities from Yunnan and Shanghai to export the products from Nyaung Hnapin Agriculture and Livestock Economic Zone to the two provinces,” he added. Shanghai currently imports 90 percent of agriculture and livestock products they consume. Therefore, Myanmar has a prime opportunity to export value added food products to the Chinese market, they can do this by air or through land crossings.
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  Myanmar and Thailand authorities are signed an agreement to allow vehicles from both side cross border to facilitate overland cross-border trade between two countries

  Overland cross-border trade between Myanmar and Thailand will officially commence at the end of July following an agreement to allow vehicles from both sides across the border to facilitate the transportation of goods between the two countries. The agreement, which followed discussions that started a year ago, will see the governments of both countries issue licenses to logistics companies to transport goods overland through the Yangon (Thilawa)-Myawaddy-Mae Sot-Bangkok (Laem Chabang) route. Under the agreement, 100 vehicles from each country will be granted temporary one-year passes to transport goods across the border along the route. Thilawa would be where all Thai vehicles will have to stop for customs inspections while Thailand will carry out customs inspections in Mae Sot.
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  Myanmar is not ready for digital economy despite authorities have prepared to implement a digital transformation roadmap for the years 2015 to 2020

  Myanmar has prepared a digital transformation roadmap for the years 2018 to 2025 built off a master plan drafted by the Digital Economy Development Committee (DEDC). Yet, the country is not ready for the digital economy, if indicators such as network readiness index, e-government development index, cyber security index and ICT development index are anything to go by. Based on measurements on digital readiness, Myanmar has a long way to go, as indicators showed that the country ranked among the lowest in a 10-member Asean grouping. At an event promoting the digital economy at MICT Yangon on June 8, Former Deputy Minister of Communication and Information Technology U Thaung Tin said that the country also lacks a legal framework for cybersecurity or laws governing e-commerce transactions.
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  Yangon Region Chief Minister vowed to block the foreign fuel retailers from operating fuel stations in Yangon

  YANGON — The Yangon Region government has blocked foreign companies from operating fuel stations in the country’s largest city because their corporate practices are “not compatible with our business culture”, chief minister U Phyo Min Thein says. Speaking at a press conference on Wednesday, the chief minister also said the regional government hopes to expand its network of Yangon Petrol stations, which some have argued are anti-competitive. While the launch of Yangon Petrol has coincided with the regional government ban on foreign fuel stations, Phyo Min Thein offered a different – and seemingly bizarre – justification for keeping them out of the market. In Myanmar, he said, it was common for distributors to provide fuel to local stations with no upfront charge and then collect payment once it has been sold.
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  Joint venture with Kanbawza Group (KBZ), Thai state owned PTT Public Company (PTT) will enter for the oil-terminal development and retail business expansion in Myanmar

  The Kanbawza Group (KBZ) and Thai state-owned PTT Public Company (PTT) will enter into a joint-venture agreement through their subsidiaries for oil-terminal development and retail business expansion, the companies’ said in a press release. KBZ’s Brighter Energy Co and Brighter Energy Retail Co will partner with PTT’s subsidiary PTT Oil and Retail Business Public Co Ltd (PTTOR). The development of the oil terminal will include the procurement of petroleum products, management of jetty, oil storage terminal, liquefied petroleum gas (LPG) filling plants and wholesale business of petroleum products located in southern Yangon’s Thilawa area.