Weekly Business News from Myanmar

Financial sector needs to be liberalized to encourage start-ups and support SMEs in Myanmar
Myanmar’s financial sector must progress towards becoming more inclusive of small and medium enterprises (SMEs), which form the backbone of the country’s economy, but face difficulties obtaining access to funds for expansion and growth. “We need to liberalise the financial sector to encourage start-ups and support SMEs. This involves integrating the full-range of financial services into the system, from microfinance and banking to insurance and capital markets, to reduce the risk of financial instability,” said by Daw Thet Thet Khine, Member of Parliament and Member of Banks and Monetary Affairs Development Committee during a recent forum hosted by the American Chamber of Commerce in Myanmar.
After India implemented some restrictions, Myanmar turns to marketable crops to penetrate international markets
Myanmar’s commerce ministry has announced plans to grow crops that can penetrate international markets. Myanmar’s main agricultural exports at the moment are paddy, beans and pulses. Mung beans are a main export to India. However, bean exports have declined recently after India implemented some restrictions. The ministry is discussing the new export plan with the Ministry of Agriculture, Livestock and Irrigation, along with entrepreneurs.
To promote trade and investment ties, Hong Kong leader visited Myanmar for the first time and set out Roadmap
In the first ever visit by a Hong Kong leader to the country, Chief Executive Carrie Lam met with Myanmar officials and Hong Kong investors in Yangon and Nay Pyi Taw on September 15-17 to promote trade and investment ties. On September 16, the chief executive sat down with The Myanmar Times in Yangon’s Kandawgyi Palace Hotel to speak about the next chapter of Myanmar-Hong Kong economic partnerships and investment relations following the conclusion of a free trade agreement. Mrs Lam told the media that the Hong Kong government’s prioritisation of its ties with ASEAN is a strategy to develop its economy and capitalise on the Belt and Road Initiative.
Marketplaces are being constructed as centers for trade in four major cities of Chin state during the 2017-2018 fiscal year
Plans to build marketplaces as centers for trade in four major cities in Chin State during the 2017-2018 fiscal year are underway, Chin State minister for Electricity, Development, Tourism and Transportation Salai Isaac Khen told The Myanmar Times. By March 2018, markets will be built in Hakha, Paletwa, Mindat and Khai Kam. The market in Mindat is now 20 percent complete, Salai Isaac Khen said. The projects are included in the FY2017-18 Budget, but private shop owners have also donated cash for their construction.
Forum on Economy took place in Yangon to promote cooperate in investment and border trade between Myanmar and Yunnan Province of China
Forum on economy and cooperation between Myanmar and Yunnan Province of China was brought in Yangon on Monday. It is the 6th time, initiated by the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Yunnan Provincial General Chamber of Commerce (YPGCC). It aims to promote investment and border trade between the two countries as the forum emphasized on electricity, agriculture, and automobile and so on.
Few business people have insurance, but interest on insurance is beginning to rise
Few business people in Myanmar buy insurance policies to cover their lives, let alone goods and vehicles, said Dr Sandar Oo, managing director of Myanmar Insurance Enterprise (MIE), which is under the Ministry of Planning and Finance. “There are very few people who are covered by insurance, which can protect against losses. For example, during floods or bad storms, those who are not covered by insurance will not be protected from any losses as a result of those events,” she said last week. “There are policies under the (MIE) which cover all the losses suffered,” she added. Moreover, the MIE is backed by State-owned finance, so businesses can easily receive damages for their losses. “When people have insurance to cover their assets, they can enjoy peace of mind.”
Myanmar Thilawa consortium considers investment in Kyaukphyu SEZ (Chairman of Myanmar Thilawa SEZ Holding, U Win Aung)
Yangon-Listed firm Myanmar Thilawa SEZ Holding Ltd (MTSH) may invest in Kyaukphyu SEZ, according to MTSH chair U Win Aung. The fourth annual meeting of the MTSH, a Yangon Stock Exchange-listed (YSX-listed) company, was held at Thuwunna Stadium in Yangon on September 9, where U Win Aung spoke about the long-term plan for the company. “Taking into account the long-term profit/ revenue of the company, we will expand our business beyond Thilawa SEZ. We are examining whether we should invest in Kyaukphyu SEZ.
In order to improve the private sector and reform policies to modernize and develop a market economy, Vice President U Myint Swe graced the 9th regular meeting with entrepreneurs
In order to improve the private sector and reform the policies to modernize and creating the market economy for the entrepreneurs, Vice President U Myint Swe attended the 9th Regular meeting with entrepreneurs for the private sector development at UMFCCI in Yangon, Monday. The Vice President encouraged the private sector development, which provides the technology promotion, human resource capacity and job opportunities. The meeting focused on SMEs sector development, Land reclamation issue, rattan and bamboo products, as well as Ayeyawaddy Region and Rakhine State private sector development.
To boost trading and develop more robust capital markets, First Private Bank (FPB) may mull delisting from the Yangon Stock Exchange (YSX)
First Private Bank (FPB) appears to be mulling a delisting from the Yangon Stock Exchange (YSX) at a time when many more companies are needed on the bourse to boost trading and develop more robust capital markets. Among the 11 general resolutions passed during the company’s 26th Annual General Meeting on August 27 was one delegating authority to the Board of Directors (BOD) to delist FPB’s shares for the purpose of protecting its shareholders “if and when it becomes necessary.” The statement comes just nine months after FPB became the fourth company to list on the YSX. “It means getting the approval of shareholders for the mandate to the BOD. An actual delisting will depend on market conditions. At present, we cannot say anything,” FPB senior executive director and joint secretary of BOD U Zaw Myint told The Myanmar Times during the Yangon Stock Exchange Expo held on September 10.
In cooperation with Korea Engineering Consultants Corp (KECC), a feasibility study is being conducted by Myanmar Construction and Development Public Co to establish an industrial zone and deep-sea port along the coastline of Ayeyarwady Region
Ayeyarwady may follow Kyaukphyu and Dawei to be the next region in Myanmar to embrace a deep-sea port together with other infrastructure projects, with a feasibility of the scheme currently under progress. U Ye Lin from Myanmar Construction and Development Public Co said that a feasibility study is being carried out jointly with South Korea-based Korea Engineering Consultants Corp (KECC) to establish an industrial zone and deep-sea port along the coastline of Ayeyarwady Region. “The Pathein deep-sea port project is currently being implemented in Ayeyarwady Region. The design will be carried out in a similar approach to the proposed Dawei and Kyaukphyu deep-sea ports. Similar to the two proposed ports, we will construct a deep-sea port in Ayeyarwady Region as well.