The Myanmar kyat has strengthened against the greenback and is now trading at K1465 per US dollar. In comparison, the exchange rate was more than K1500 per US dollar in November 2019.

Export volumes have been rising, that indiciating Myanmar goods are still affordably priced. For the first four months of fiscal 2019-20, which is between October 1, 2019 to now, export volumes hit US$5.7 billion, up more than 28 percent from the same period in the previous fiscal year.

Imports for the same period totaled US$6.3 billion, which is up by just 19 pc year-on-year.  That’s led to a trade deficit of around US$600 million in the current fiscal year, compared to more than US$1 billion in the previous corresponding period. The rise in exports was driven by higher demand for manufactured goods like garments, agriculture commodities and minerals, the data showed.

But due to the upcoming general election and a slowdown in the global economy, foreign investors are expected to become more cautious when channeling foreign currency into Myanmar. This implies that the kyat could lose steam against the US dollar in the months ahead.

Under the National Export Strategy 2020-2025, the priority sectors are agro-processing, textile and garment, electrical components, fisheries, forestry products, information technology, logistics services, quality management, trade information, innovation and entrepreneurship.

The authorities will suspend issuing car import permits to senior government officials. However, the suspension of the plan was communicated verbally. There has not been an official announcement so far.

The development comes after opposition from the local automotive industry in response to a January 2 announcement by the Ministry of Commerce (MOC) saying that senior government officials, such as directors general, deputy directors general, and those with a minimum of 25 years of excellent service would be given import permits for vehicles on favourable terms – which included tax exemptions – as rewards for their work.

The vehicles approved for import would be determined by the ministry on a yearly basis and would be allowed into the country directly without going through a showroom or car dealership.

This plan would raise feelings of unfairness among people who have to pay taxes to the government for the cars they buy through ordinary channels. It would also cause price instability in the local car market. It further stated that the plan would damage companies assembling vehicles for sale in the local market, and car sales centres owned by local companies. According to government information, there are over 34,000 government officials who would qualify for the permits.

At the January 31 press conference, Peter Beynon, chair of the British Chamber of Commerce, said that if the government implements the plan, Myanmar would lose an estimated US$400 million in tax revenue that could be used for building roads and other infrastructure.

Sorce: Myanmar Times

Investments from China and Hong Kong in power generation projects in Myanmar have hit a total of almost US$800 million (K1.15 trillion) in just over three months.The Directorate of Investment and Company Administration (DICA) announced that, between November 2019 and January this year, that it had approved projects by a joint-venture between China National Technical Import and Export Corp and Hong Kong-listed VPower Group.

The four projects, all by China National Technical Import and Export Corp and Hong VPower Group, are part of the Ministry of Electricity and Energy’s (MOEE) emergency power tenders called in June last year. The four projects are expected to start generating power soon, with the 150 MW plant in Kyaukphyu, Rakhine, expected to start in March. The 350 MW and 400 MW plants in Thanlyin and Tharkayta in Yangon Region, are expected to come online in April and May, respectively. Another project by MCM Power Co, a Myanmar-South Korean joint venture, for a 40 MW gas-fired plant in Bago Region, was approved last month, also under the MOEE’s tenders.

In a project unrelated to the MOEE’s emergency power tenders the Myanmar Investment Commission (MIC) also approved a project last month by Kyaukphyu Electric Power Co, a joint venture between Myanmar’s Supreme Group and China’s state-owned Power China Enterprise. The project is for a 135MW combined cycle gas turbine power plant worth US$173 million in Kyaukphyu, Rakhine.From the start of the current fiscal year 2019-20 on October 1, to January 24 this year, MIC has approved foreign investments totalling US$2 billion.

Source: Myanmar Times

Singapore’s sovereign wealth fund, GIC Pvt Ltd (GIC), and Norway’s private equity firm, Norfund, have bought a substantial stake in Yoma Bank, led by tycoon Serge Pun.GIC and Norfund will be buying a 30 percent stake in Yoma Bank for K130 billion (US$89 million) in the latest round of funding.

Yoma Bank became the first bank in Myanmar last year with a foreign stakeholder following a decision by the International Finance Corporation (IFC) to convert a $5 million loan into a 5pc equity shareholding.As GIC is operating many different businesses, their experience across the regions is the one of the best things to get out of.Ayala, with investments in real estate, telecommunications, energy and infrastructure, will acquire stakes in Singapore-listed Yoma Strategic Holdings and Yangon-listed First Myanmar Investment (FMI), becoming the second-largest shareholder in both.

The deal with Ayala represented the first major foreign investment in a company listed on the Yangon Stock Exchange since Myanmar’s securities commission announced in July that non-Myanmar individuals and entities would be permitted to acquire up to 35pc of listed firms.Yoma group raised $70 million early in 2019 from Thai institutional investors in the first foray by a Myanmar-focused company into the corporate bond marketFMI is consistently ranked among the most transparent companies in Myanmar. Yoma Bank was established in 1993 and has 80 branches around Myanmar, with more than 3000 employees. The bank also operates Wave Money, a joint venture with Telenor Myanmar, to provide financial services via mobile phones.

Source: Myanmar Times

Trade volume between Myanmar and China is reached to US$1.337 billion within two months of this fiscal year and Myanmar had a trade surplus as it imported US$551 million worth of products from China.

Myanmar exported over US$785 million worth of products to China in that period. Both countries are opened business centers and implemented to boost border trade and investments.

Ministry of Commerce will sign MoUs with the China to establish border economic cooperation zones and will invite tender for Expression of Interest (EOI) for local businessmen to participate to work in the zones in Muse, Kanpiketie, Laukkai and Chinshwehaw.

Myanmar sent a proposal to China to sign the MoU to implement border economic cooperation zones and if the China replies about it, both countries will sign the MoU and formed a free trade zone in Shweli.

Source: Eleven Media, Myanmar

A signing ceremony for implementation of Yangon Amata Smart and Eco City was held at the Kempinski Hotel in Nay Pyi Taw yesterday.The Urban and Housing Development (UHDD) and Amata Asia(Myanmar) Limited also signed a land lease agreement on the occasion.

The project aims to attract more foreign investments, to boost the industrial, foreign export and human resources sectors of the nation, in addition to being a major source of assistance to socio-economic development.Yangon Amata Smart and Eco City Limited will implement a Smart and Eco City project with an investment of US$ 1 billion on 2,000 acres of land near Laydaunkkan Village between East Dagon and South Dagon Townships in Yangon Region and it will create up to 33,000 jobs.

33,000 job opportunities will be created through the establishment of the industrial zone. Moreover, the government can earn tax yearly as well as promote foreign exports and human resources sectors and socio-economic development. Yangon Region Minister for Electricity, Industry and Transportation,said that the Yangon Region Government would provide the needs concerning Yangon Amata Smart and Eco City project.

Source: Eleven Media

The Myanmar Insurance Association (MIA) is set to introduce qualification programmes of the UK’s Chartered Insurance Institute (CII) to Myanmar.The two industry bodies inked a deal late last year for MIA to hold exams for CII qualifications from April onwards. Candidates in Myanmar no longer need to travel abroad for the CII examinations and can now enrol and sit for the assessment within the country.A key challenge for Myanmar’s insurance sector since November 2019 liberalisation is the lack of qualified professionals to support the fast-expanding operations of the multinational insurers and joint ventures.

The capacity of insurance professionals is severely limited because insurance in Myanmar is still in its early stages of development. Until two months ago, no foreign insurers can operate in Myanmar, except the three Japanese providers who were given licences in Thilawa Special Economic Zone.For the industry to grow, companies need insurance agents across the country, in major cities as well as in rural areas, to promote and reach out to communities. Myanmar’s insurance penetration is among the lowest in the world.Last year the government awarded licences to five foreign insurers and half a dozen joint ventures to operate in the domestic market, marking Myanmar’s first-ever licencing to foreign fully-owned life insurers.

British Prudential, Japanese Dai-ichi Life, Hong Kong AIA, US Chubb and Canadian Manulife can now issue life insurance policies with their fully-owned subsidiaries. Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance and Mitsui Sumitomo Insurance have set up JVs with local partners to offer general policies while Taiyo Life Insurance; Thai Life Insurance and Nippon Life Insurance have also joined the market via local JVs.London-headquartered CII is a professional body dedicated to building public trust in the insurance and financial planning profession. It also has offices in Hong Kong, Dubai and Mumbai, and provides membership services and professional development.

Source: Myanmar Times