Weekly Business News from Myanmar

Myanmar Tourism Bank was opened its first branch in Yangon in order to support for the development of the tourism sector with low interest and long-term loans
Myanmar Tourism Bank was opened with an investment of 22 billion Kyats with the permission of the Central Myanmar Bank of Myanmar. Myanmar Tourism Bank holds the full commercial license in 2018 in order to support for the development of the Tourism sector, founded by public tourism industry. It will offer low interest and long-term loans for tourism sector. Director General, Financial Institutions Supervision Dept. (Central Bank of Myanmar), Than Than Swe said “Myanmar Tourism Bank is to support financing for tourism industry promotion and to encourage the use of local currency in cross border tourism sector. Central Bank is supporting every sector to promote the country’s economy. We will monitor the Myanmar Tourism Bank every week and every month. We have plans to give permission to more foreign banks.” Currently, 27 local banks and 13 foreign banks are operating in Myanmar. 26 shareholders from tourism industry invested in Myanmar Tourism Bank as an initial stage. The Myanmar Tourism bank will support the 5% of the annual profit to the ministry and for the tourism industry development, the chairman said.
Asani Yangon International Terminal is developing a container terminal in Ahlone Township as trade volumes expected to rise in the coming years
Adani Yangon International Terminal is developing a container terminal in Ahlone township, which is by the Yangon River, in anticipation of higher trade volumes in the coming years. The company, which is registered in Myanmar and incorporated in Singapore, received approval from the Myanmar Investment Commission on April 26 to develop, operate and maintain the Ahlone International Port Terminal (2) (AIPT) under a 50-year Build, Operate and Transfer agreement with the government, according to the Directorate of Investment and Company Administration (DICA). AIPT (2) will be developed across 50 acres of land owned by Myanmar Economic Corporation, which is currently operating AIPT (1), according to DICA. The company will enjoy income tax incentives for the first three years of operations, said Daw Mya Sandar, director of DICA. Construction of the US$290 million port, which will be built from scratch, is expected to begin in September. Phase 1 of development will involve enough capacity to handle between 100,000 and 150,000 twenty-foot equivalent units (TEU), or twenty-foot containers, when it is completed within the targeted 12 months.
Local retailer communities urged government for more regulation in retail sector to protect local retailers before allowing foreign companies to compete in the local market
As foreign retailers enter the domestic market, the government should work to ensure a level playing field, said local retailers. During the Private Sector Development Committee meeting with President U Myint Swe on April 27, Daw Su Hlaing , Secretry of Myanmar Retailers Association, voiced concern for the survival of local retailers in the face of foreign competition. She said the government should have a plan to protect local retailers before allowing foreign companies to compete in the market, adding that local companies face challenges such as a lack of funds, high interest rates and expensive rental, making it hard for them stay profitable. In comparison, foreign retailers enjoy many incentives under the Myanmar Investment Law that make it easier for them to do business in the country, she said.
Government will collaborate with local and foreign associations to draft a new framework for rating system in order to raise the standard and quality of the local hotel industry in Myanmar
The government will collaborate with local and foreign associations to draft a new framework for rating local hotels. According to the Ministry of Hotels and Tourism, the rating system is being built with the goal to attract more tourists. “As a first step, the government has already formed a group with local associations to draft a star rating framework for hotels, the group will be chaired by the Myanmar Hotelier Association with members from Myanmar Tourism Federation, Foreign Investment Hotels Association and Myanmar Market Development Association, and with World Travel Organization,” said U Myo Win Nyunt, Director of Hotels and Tourism Supervising Department.
Myanmar’s overseas trade reached at USD $ 19.9 billion as of 26 April of this 2018 – 2019 fiscal year which is up nearly USD$ 700 million when compared to the same period of last fiscal year
Myanmar’s overseas trade stood at US$19.9 billion as of 26 April this 2018-2019 Fiscal Year, up by nearly $700 million from that of the corresponding period last 2017-2018 FY, when the country’s external trade totalled $19.2 million, state media reported. During seven months, the country’s export of domestic products topped $9.6 billion, whereas its imports of foreign goods exceeded $10.3 billion, resulting in a trade deficit of $700 million, which decreased by over $1.7 billion, as against the same time last FY, when Myanmar recorded a trade deficit of $2.4 billion.
The implementation of a National Statistics Policy which will give priority to local industrial production, trading, wholesale and retail and investment will be finalized this year
The implementation plan for a national statistics policy which gives priority to the private sector in areas such as local industrial production, trading, wholesale and retail will be finalised this year, says U San Myint, director general of Central Statistical Organisation. After the government approves the action plan, which is being drawn with assistance from the World Bank, 10 working groups will be formed to ensure it is properly implemented in the coming budget year, U San Myint said. The statistics will be updated once every five years until 2030. Statistics from the private sector that will be collected will cover areas such as production, local and foreign trade, wholesale and retail, and investments. The purpose of the data collection is compile accurate statistics that reflect the country’s economy. “To begin with, we will conduct surveys of micro-, small-, and medium-sized enterprises with the help of experts from Denmark this month,” U San Myint said.
A new 2020 Myanmar report by the global research and consultancy firm Oxford Business Group (OBG) will shine a spotlight on the ongoing liberalization of the financial services sector
A new report by the global research and consultancy firm Oxford Business Group (OBG) will map out Myanmar’s ongoing efforts to open up its economy to the outside world, and the legislative and regulatory reforms that are being implemented to accommodate the nation’s plans. The Report: Myanmar 2020 will shine a spotlight on the ongoing liberalisation of the financial services sector, including opportunities that are fast becoming available to foreign insurance players following the implementation of the new legislation that paves the way for joint ventures. The life segment, which now allows 100% foreign ownership to a limited number of firms, will be a specific focus. Elsewhere, the impact of recent moves to allow foreign banks to engage in wholesale banking services and trade finance for the first time will be explored, alongside efforts to ease access to credit, such as allowing lenders to offer higher interest rates for borrowers unable to meet strict collateral requirements.
The French Development Agency (AFD) will provide financial support to Myanmar with a loan € 35.7 million (Ks 60.2 billion) to upgrade five hydropower plants throughout Myanmar
Myanmar is set to receive a €35.7 million (K60.2 billion) loan from the French Development Agency (AFD) to upgrade to five hydropower plants, President U Win Myint said in a message to the Assembly of the Union (Pyidaungsu Hluttaw). The term of the loan is for 13 years, with a seven-year grace period, at an interest rate of 0.68 percent, said Deputy Minister of Planning and Finance U Maung Maung Win. The funds are expected to be used between this year and 2024 for heavy maintenance work and upgrades to the Ye Nwe, Mone Chaung, Zaung Tu, Kinda, and Thaphan Seik hydropower plants. After the upgrades, the plants are expected to be able to run at full capacity, raising power generation from 565 million kilowatt hours to 646 million kilowatt hours. Due to the lack of heavy maintenance in the past, the plants had experienced some breakdowns Deputy Minister of Electricity and Energy U Tun Naing told the hluttaw.
The 9th coordination meeting of the Private Sector Development Committee (PSDC) was held in Nay Pyi Taw for raising ease of doing business ranking
Vice President U Myint Swe who is also the Chairman of the Private Sector Development Committee attended and addressed the 9th coordination meeting of the Private Sector Development Committee (PSDC) held in the meeting room of the Ministry of Commerce yesterday morning. Present at the meeting were committee Deputy Chairman Union Minister Dr. Than Myint, members Union Ministers Dr. Aung Thu, U Win Khaing, and U Ohn Maung, Union Attorney General U Tun Tun Oo, Deputy Ministers U Maung Maung Win and U Aung Htoo, Central Bank of Myanmar Deputy Governor U Soe Thein, chairmen and vice chairmen Deputy Governor U Soe Thein, chairmen and vice chairmen of five work committees, officials from Group on increasing Ease of Doing Business Ranking, Permanent Secretaries, Directors-General, President of Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and departmental officials.
Myanmar received over USD $ 2 billion in foreign direct investment (FDI) in five months from October 1 to April 5, 2019
Myanmar received over $2 billion in foreign direct investment (FDI) from October 1, 2018, to April 5, 2019, according to Directorate of Investment and Companies Administration (DICA). During this six month period, DICA approved 147 new foreign investments worth $1.38 billion. However, existing investments also received new cash flows. When combining that two amounts together is makes for a total of approximately $1.9 billion. However, there is additional cash invested through special economic zones (SEZ) — SEZs are separately administered from the Union government, under Myanmar Special Economic Zone Law — which add more to the total. "Existing companies in special economic zones (SEZ) expanded their investments by $121 million, which puts the country’s total at over $2.03 billion," said U Than Sin Lwin, acting Director General of Directorate of Investments and Company Administration. Myanmar as a whole approved 22 proposals last week. Myanmar Investment Commission (MIC) approved 2 investments, Yangon Region Investment Committee approved 15 investments, Bago Region Investment Committee approved 3 investments, Ayeyarwaddy Region Investment Committee approved 1 proposal, and Karen State Investment Committee approved 1 proposal.