Weekly Business News from Myanmar

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  “A Bank” will provide K 10-300 million loans to local small and medium enterprises aiming to help the development of SMEs sector

  Ayeyawaddy Farmers Development Bank widely known as ‘A Bank’, will provide K10-300 million in loans to small and medium enterprises, the loans will be given with the aim of helping them improve, according to the Department of Industrial Supervision and Inspection. The loans include operating loans, fixed asset loans, invoice financing, green investment loans, and agricultural contract loans, according to A Bank. The terms of the loan are three years with 13 percent annual interest rates in addition to repayment of 3 percent of the service fees every month. The loan payments must be made every month or every three months. To obtain operating loans and fixed asset loans, customers must provide documents of ownership for assets such as buildings, cars, and jewelry. These must be provided in addition to other paperwork such as bank statements for the last year, personal information, company business plan, copy of membership card, and tax clearance form.
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  Financial Regulatory Department (FRD) and Deloittee Myanmar jointly organized Myanmar Insurance Workshop in Myanmar in order to the knowledge and the best practices for sustainable development of insurance sector in Myanmar

  The Financial Regulatory Department (FRD) and Deloittee Myanmar jointly organized Myanmar Insurance Workshop in Yangon, Friday. The workshop is a platform to share the knowledge by the experts and the best practices for sustainable development of insurance sector in Myanmar. It also focuses on actuarial service and product development in Myanmar, date privacy best practices, insurance intermediaries and guidance on industry best practices. The insurance sector development is very important for the State economic growth. But, the insurance penetration rate is just only 1 % in Myanmar, said the Planning and Finance Deputy Minister.
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  The exports of aquaculture products to European Union (EU) is limited due to the lack of proper laboratory facilities

  The lack of proper laboratory facilities is limiting exports of aquaculture products to the European Union (EU). Aquaculture exports to the EU make up 8 percent of total fisheries exports, with the main consumers being migrant workers in the 28-member EU. Myanmar Fishery Federation vice-chair Daw Toe Nanda Tin said the lack of proper laboratory facilities to test for contamination of aquaculture products has held back more exports to the EU. “It cannot be done in laboratories in Myanmar yet. It’s because of that. The US also has some regulations on natural environment,” she said.
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  Myanmar Timber Enterprise will cut the annual limit for logging teak and hardwood quota by half during the 2019-2020 logging season

  The Myanma Timber Enterprise will reduce the annual limit for logging of teak and hardwood by up to 50 per cent, and produce only enough timber to meet the cost of production during the 2019-2020 logging season. The Union Minister for Natural Resources and Environmental Conservation, U Ohn Win, made the remarks at the coordination meeting of the Myanma Timber Enterprise (MTE) yesterday at its head office in Insein Township of Yangon Region. He said the MTE will reduce logging activities in natural forests as far as it can, and will only cut down trees aged 30 years and above in Mandalay and Sagaing regions, in accordance with the rules set by the Forest Department. The Union Minister spoke of the need to ensure the natural environment is not damaged during the logging process and to block old timber production routes for prevention of illegal logging. He said they will replant triple amount of fallen trees in a region in developing high-valued plantations. The Union Minister gave instructions to open additional elephant camps to ensure families adequate financial support for working elephants, the mahouts and their families after the reduction in logging from the Union policy.
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  The 10th coordination meeting of the private sector development committee was held in Nay Pyi Taw to discuss how to eradicate illegal trade in Myanmar

  Vice President U Myint Swe said that the main obstacle toward Myanmar’s economy was the illegal trade sector. As the illegal trade sector still remained strong it was a great hindrance to businesses conducted legally. He said this as Chairman of the Private Sector Development Committee, while addressing the 10th coordination meeting of the Private Sector Development Committee (PSDC) held at the Ministry of Commerce in Nay Pyi Taw yesterday morning. In addressing the meeting the Vice President said that the PSDC had been formed with 20 members by Notification No. 79/2016 dated 24 October 2016 of the Office of the President to accomplish five main tasks. Five work committees led by 3 deputy ministers and 2 permanent secretaries had been formed to implement the Committee’s main tasks.
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  Consumer Price Index (CPI) reached 154.56 percent in the late of June which up 9.51 percent when compared to the same period of last year

  Consumer Price Index (CPI) reached 154.56 per cent in late June, up 9.51 per cent compared with the same period last year, according to the report on the CPI and inflation rate issued by the Central Statistical Organization (CSO). According to the calculations using 2012 as the base year, the CPI for food group hit 170.65 per cent with the non-food group, reaching 131.92 per cent. An increase in the CPI is due to a significant increase in commodity prices. According to the same calculation, the CPI increased from 141.13 per cent in June to 148.95 per cent in November last year. In late June, all regions and states saw a slight increase in the CPI. Mon State saw the highest with 1.44 per cent and Sagaing Region, the lowest with 0.03 per cent.
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  The Central Bank of Myanmar and the Bank of Thailand will collaborate in financial matters to assist on the development of trade and investment

  Central Banks of Myanmar and Thailand will collaborate in financial matters to assist the development of trade and investment, according to the Central Bank of Myanmar (CBM) Wednesday, Xinhua reported. A meeting between the central banks of the two countries, held in Nay Pyi Taw Tuesday, discussed adopting a framework for comprehensive use of Myanmar kyat and Thai baht in border trade, signing of a memorandum of understanding on payment system between the two central banks and challenges in implementing them.
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  “Gig” economy is expanding as companies turn more cautions when hiring workers, is growing in Myanmar

  Across Asia, contract and freelance positions in firms from start-ups to large conglomerates are becoming more commonplace. While still novel in Myanmar, the so-called “gig” economy is expanding as companies turn more cautious when hiring. Meanwhile, workers are opting for the freedom to maintain a better work-life balance or opportunity to earn from diversified sources of income. A 2019 global Deloitte survey of over 13,000 millennials found almost half of respondents believe gig workers earn as much as those in full-time jobs and the same number think gig workers have a better work-life balance. In Asia Pacific, eight in 10 talent managers hire or use gig workers, according to a 2018 report from KellyOCG. In Myanmar, freelance and contract jobs are becoming a good way for companies to avoid the commitment of hiring full time and for jobseekers to earn extra income. Compared to the rest of the region though, gig opportunities are less common, said Ma Honey Mya Win, founder of Chatesat, an online platform which connects freelancers to employers.
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  Ministry of Hotels and Tourism (MOHT) launched its new portal aiming to promote Myanmar’s tourism activities and create interest in the visitors from all parts of the world

  The Ministry of Hotels and Tourism (MOHT) launched a new portal on 31st July, Wednesday, as part of its efforts to reach visitors seeking a unique Asian experience. Launching of newly portal is aimed to promote Myanmar as an emerging tourist destination offering diverse experiences of abundant resources, culture and natural heritage, genuine hospitality and spiritual values, to create an environment for the visitors to meet at a single place and to give services to the international tour agencies which are interested in tourist destination of Myanmar if they want to seek markets in the tourism promotion.
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  IKBZ insurance’s survey resulted that insurance is a largely unknown concept in Myanmar

  IKBZ Insurance conducted a survey among a representative group of 1,000 adults from seven regions and states in Myanmar. Half of the respondents were male, and half were female. The survey was conducted between April and May of this year. What were the results? Astoundingly, it was found that only 17 percent of the survey participants were familiar with the insurance policy options available in the market, or indeed of the general concept of insurance at all. One out of every three respondents felt that insurance products were too complicated. However, after the concept of life and health insurance was explained, 63 percent of those surveyed expressed some level of interest in protecting themselves and their families through an insurance plan.