Weekly Business News from Myanmar

The Central Bank of Myanmar invited the eight consultant companies to submit a request for proposal (RFP) to hire the consultant to aid in approving the foreign banks and branches to operate in the Myanmar
The Myanmar Central Bank has invited eight companies to submit a request for proposal (RFP), as it will hire one of them as a consultant in approving foreign banks and branches to operate in this country. This will, it is hoped, improve the banking industry of Myanmar. At the meeting of the Central Bank’s Board for Proving Foreign Banks, it was decided to hire a consultant company, one with an office in Myanmar, to examine and give approval for foreign banks and branches. The companies invited to submit the RFP are: Deloitte Touche Myanmar Vigour Advisory, Ltd.; PricewaterhouseCoopers (PwC) Myanmar Company, Ltd.; EY UTW Advisory, Ltd.; KPMG Advisory (Myanmar), Ltd.; Roland Berger Co., Ltd.; Allen & Gledhill, Ltd.; Rajah & Tann NK Legal Company, Ltd.; and finally Baker & Mckenzie Company, Ltd.
State Counsellor invited Czech investors to invest in Myanmar during her official trip to Cezch Republic
In light of incentives for foreign investors including a seven-year income tax reduction in its three special economic zones (SEZ), Myanmar deserves to achieve responsible investments from Czech businesses in the coming months, State CounsellorAung San SuuKyisaid at the Czech-Myanmar Business Forum held in Prague. “Myanmar has the potential to grow into a market similar in size to neighboring Thailand,” she said. “This market is expected to evolve into one of the most dynamic and vibrant markets the modern world has ever seen.” SuuKyi said Myanmar has a population of 54 million, half of whom are aged 30 or below. The nation has a sizeable and expanding internal market which will surely benefit from greater cooperation and integration with external markets, she said. “As the largest country in mainland Southeast Asia, Myanmar not only possesses significant potential for agricultural production, we are also richly endowed with minerals and natural gas,” she said.
Allowing the foreign banks into the retail banking sector in Myanmar expected to drive the consolidation in the local banking industry in response to a more competitive market
The Central Bank of Myanmar (CBM) believes that allowing foreign banks into the retail-banking sector will drive consolidation in the local banking industry and make available a larger pool of funds for growth. “Inevitably, foreign banks will win market share from local banks and we see more mergers of local banks in response to a more competitive market,” CBM vice governor U Soe Thein said in a May 28 interview. U Soe Thein said the CBM will be granting licenses for foreign banks to set up subsidiary banks in the country in addition to having their bank branches here. Setting up subsidiaries in the country will allow these banks to offer retail-banking services. “Generally, they’ll be able to offer most services. For now, they can already provide deposit and loan services,” he said.
TMH Telecom Public Co., Ltd signed a MOU with Shan State Government for a feasibility study on building four hydroelectric stations in northern Shan State
On May 24, 2019, the Board of Directors of TMH Telecom Public Co., Ltd. (TMH) entered into a Memorandum of Understanding (MoU) with the Shan State Government for a feasibility study on building four hydro-electric stations in Namadu, Northern Shan State. Under this MoU, TMH will carry out a feasibility study for planning four hydroelectric stations at this location; each of the stations will have a designed capacity of 29.8 megawatts, for a total of 119.2 megawatts. The feasibility study will look into land rights, conditions between government organizations, permission to access working areas, and other necessary support systems – all of which will lead to a conclusion on whether or not the endeavor will be practicable.
Myanmar Construction Entrepreneurs Federation (MCEF) is planning to set up a loan programme for construction sector
The Myanmar Construction Entrepreneurs Federation (MCEF) is planning to set up a loan programme for members who are in need of capital to start projects. MCEF chair U Shein Win said the central executive committee (CEC) of the organisation decided on the loan programme because small and medium construction firms were finding it difficult to raise the 30 percent minimum capital needed to start projects won through government tenders. The country’s construction sector has been in a slump since 2015 with the property subsector struggling to absorb the oversupply, especially for high-end condominiums. The MCEF will start this programme in the Yangon, Sagaing and Ayeyarwady regions. MCEF general secretary U MyoMyint said the organization would place its own assets as temporary collateral with CHID Bank and would be the guarantor as well as loan provider for its members.
The five companies’ stock trading shares listed on the Yangon Stock Exchange (YSX) reached five month high of K 1.4 billion
Stock trading of 275,325 shares by five companies listed on the Yangon Stock Exchange (YSX) in May reached a five-month high of K1.4 billion, according to YSX monthly report, state media reported. The figure doubled over last month’s record of K506 million with 102,682 shares; while trading value in January was registered at K526 million with 89,576 shares and trading values slid to K409 million and K396 million in February and March respectively as the share price decreased.
Myanmar will sign the new ASEAN Framework Agreement on Services (AFAS) which is structured to substantially eliminate restrictions to trade services among ASEAN member states
During the May 23 session, Pyidaungsu Hluttaw, Myanmar highest legislature, approved a request from the President of Myanmar to sign an ASEAN Framework Agreement on Services (AFAS). The services agreement is structured to substantially eliminate restrictions to trade services among ASEAN Member States, with the goal to improve the efficiency and competitiveness of ASEAN services suppliers. Some members of ASEAN - such as Myanmar, Philippines and Vietnam - still not signed the AFAS. Myanmar though now has plans to sign the agreement at the 35th meeting of ASEAN, which will be held in November this year. “By signing the agreement, more investments from ASEAN countries will come into our country creating more jobs and market opportunities, this will create more foreign currency inflow. We will also need an amendment in legal affairs,” said Dr. Aung Htoo, Deputy Minister of the Ministry of Commerce.
The 3rd Myanmar-EU Economic Forum was held in Nay Pyi Taw to provide the best opportunities for EU investors to enter in Myanmar
The Third Myanmar-EU Economic Forum was held at Kempinski Hotel in Nay Pyi Taw yesterday. In his speech, the Vice President said holding this economic forum for the third time was a firm indication of Myanmar and EU’s strengthened cooperation. He thanked the EuroCham and UMFCCI for organizing the forum and said it would provide the best opportunities for EU investors to enter the country. The Vice President said Myanmar was located in a strategic geographic location between China and India and had the potential to be a bridge between Southeast Asia and South Asia. He said foreign investments had mainly flowed into oil and natural gas, electric power, media and communications, industrial production and real estate. He said these sectors had potential for market expansion but also highlighted there were many other sectors that could benefit both investors and the local people of a region.
The Social Welfare Board launched the pilot project for workplace injury insurance pilot scheme in Yangon and Mandalay Region
The Social Welfare Board is conducting a workplace injury insurance pilot scheme in Hlaing Tharyar township, Yangon and Pyigyitagun township, Mandalay. The aim of the project, which started June 1, is to help employees who are at risk of occupational injuries apply for and enjoy insurance coverage. “The project will be carried out for a period of six months. We will expand it to other townships depending on the outcome. Our aim is to reduce the procedures and redtape for employees who require coverage. In the past, there were 56 steps involved in applying for coverage, but under the project we’ve reduced it to just 31,” said U Maung Maung Aye, director general of the Social Welfare Board. He added that once a new IT system has been implemented, the number of steps will be further reduced.
Yangon Regional Investment Committee (YRIC) permitted eight foreign and three domestic projects which is expected to create over 5,600 job opportunities
The Yangon Region Investment Committee gave the green light to eight foreign and three domestic projects with an estimated capital of US$15.8 million and K6.2 billion, respectively, at a meeting held yesterday. The projects are expected to create 5,630 jobs, according to a press release issued by the YRIC. Since its establishment, the YRIC has approved a total of 204 domestic and foreign projects in the sectors of manufacturing, hotel services, and other services from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, British Virgin Islands, and Seychelles. During the 2017-2018 (August-March) fiscal year, the YRIC permitted 39 foreign and 9 domestic projects to invest in Yangon Region, with a capital of $56.6 million and K23 billion, creating 22,481 jobs.