Myanmar’s economy continues to show resilience despite the ongoing global slowdown and domestic uncertainties, according to a new World Bank report. The Myanmar Economic Monitor for December 2019 estimates that Myanmar’s economy grew at 6.3 percent in 2018-19, marginally higher than 6.2 percent in 2017-18. Economic growth is expected to reach 6.4 percent in 2019-20, helped by growing investment in the transport and telecommunications sector and planned infrastructure spending by the government before the 2020 elections.

The service sector is the main driver of growth in Myanmar and is expected to grow by 8.4 percent in 2018-19. A slow recovery in tourism related services is offset by robust growth in wholesale and retail trade. The industrial sector is expected to grow by 6.4 percent, on the back of strong manufacturing growth offsetting slower growth in construction. Firms in Myanmar need greater access to inputs such as finance, land, and skills, better connectivity, and an enabling business environment to support a responsible private sector.

The report recommends that polices should be geared towards private-sector led growth by fostering market expansion, improving the allocation of resources and developing the capacity of market participants.The Myanmar Economic Monitor is a biannual analysis of economic developments, economic prospects and policy priorities in Myanmar. The publication draws on available data reported by the Government of Myanmar and additional information collected as part of the World Bank Group’s regular economic monitoring and policy dialogue.

Source: World Bank

The Ministry of Planning, Finance, and Industry is seeking expressions of interest from both domestic and foreign investors interested in participating in the recommissioning of the Myingyan Steel Mill.The steel mill, located near Sar Khar village, Myingyan Township in Mandalay Region, is reported to have a production capacity of 1.8 million tonnes a year.

The state-owned entity No. 1 Heavy Industrial Enterprise, which operates the Myingyan mill, is seeking investors to participate in the running of the mill. No. 1 Heavy Industrial Enterprise is under the control of the Ministry of Planning, Finance, and Industry.The government is willing to consider a range of proposals for different types of public-private partnerships including the possibility of limited disposal of certain designated product lines currently located at the mill.

At present, some 90 percent of the country’s steel needs is imported, with the other 10pc coming from local production.The South East Asia Iron and Steel Institute estimates that Myanmar’s steel demand will continue to expand at an average growth rate of 8pc a year, with steel demand in the country could exceeding 3 million tonnes in 2020 and reaching 5 million tonnes in 2025.

Source: Myanmar Times

Financial authorities held a meeting with small- and medium-sized enterprises in Kayin State yesterday to discuss granting loans to enterprises.
Some 150 businesspersons from Kayin State attended the meeting with the committee on providing financial assistance for private sector development, which was led by Deputy Minister for Planning, Finance and Industry U Maung Maung Win.

The local businesspersons requested that authorities relax rules for obtaining SME loans, extend the loan period and coordination from the governmental departments for granting land ownership documents, and decrease interest rates.

The officials from the committee explained the loan process and discussed the issues presented by the businesspersons. Kayin Region Chief Minister Daw Nan Khin Htwe Myint, Kayin State Minister for Planning, Finance and Development Affairs, officials from the Myanma Agricultural Development Bank and from the Central Bank of Myanmar were also present at the meeting.

Source:Global New Light of Myanmar

Imports of raw materials by CMP businesses have been valued at US$608.9 million for the three months since October in the 2019-2020 fiscal year, an increase of $49.49 million compared with the year-ago period.Meanwhile, the exports of finished industrial goods touched a high of $2.6 billion between 1 October and 3 January in the current fiscal, an increase of $588.6 million compared with the corresponding period of the 2018-2019 financial year.

Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the cutting, making, and packaging (CMP) basis, and it contributes to the country’s GDP to a certain extent.The CMP industry has emerged as a very promising one in the export sector. The value of CMP exports was just $850 million in the 2015-2016 fiscal year, but it tripled within two years to reach $2.5 billion in the 2017-2018FY, as per figures provided. In the first month of the current financial year, exports of clothes produced under the CMP system topped $320 million.

Japan is the largest market for Myanmar apparel, followed by the European Union. The Myanmar Garment Manufacturers Association has more than 500 members, and garment factories in Myanmar employ more than 500,000 workers. Investors prefer to invest in cheap-labor countries like Myanmar.

Source: Global New Light of Myanmar

Two private banks, Ayeyarwady Bank (AYA Bank) in Myanmar and Thailand’s Siam Commercial Bank (SCB) have signed a memorandum of understanding (MOU) to collaborate in the development of cross border payments and fund transfer services between the two countries.This cements an October 2019 agreement between the Central Bank of Myanmar and the Bank of Thailand to promote the official use of the Myanmar kyat and Thai baht when trading at the border.

The Central Banks also inked a second MOU to promote financial innovation and services for payments through collaboration between the two countries.Even though trading at the Thai-Myanmar border is already conducted in kyat and baht, payments that are processed through the banks are conducted in US dollars, resulting in leakages through foreign exchange losses.Through this MOU, they can bring more of the payments through the formal channel and make the process more convenient.

This will also encourage remittances through proper channels. Even though there large numbers of Myanmar migrant workers in Thailand, international money transfers take place via the unofficial Hundi system and there is no guarantee the funds will be safe.Trade volumes at the Thai-Myanmar border, including Tachileik, Myawaddy, Kawthoung, Myeik, Htee Khee and Maw Taung during fiscal 2018-19 amounted to US$3.8 billion, according to government data.

Source: Myanmar Times

KBZPay has launched Quick Access Loan, a new short-term financing product, to help its agents and merchants improve their cash flow so they can better serve customers and grow their businesses.With the aim of driving financial inclusion, Quick Access Loans have been made available to all KBZPay Partners, who can access instant credit of K300,000 without collateral, guarantors, or application fees. There is further potential for KBZPay Partners to increase their credit limit up to K2,500,000, according to KBZPay.

The pilot launch of the Quick Access Loan feature in May, 2019, close to 2,917 KBZPay agents and merchants have received loans totaling K1.66 billion, according to KBZPay. They have seen their revenues grow due to the increase in KBZPay transactions they were able to facilitate for customers. KBZPay agents and merchants are increasing their revenues as they earn a fee for facilitating phone top-ups, domestic remittances, along with cash in and cash out transactions.

“Many of our 270,000 KBZPay agents and merchants across Myanmar run businesses which need short-term financing that is quickly available. With our Quick Access Loan function, we offer our partners a ‘financial cushion’ for growth and working capital management.They increase their KBZPay transaction volumes, our partners not only earn more transaction fees, but they also become eligible to borrow larger amounts so they can scale their growth. After all, the success of our partners’ businesses is also our success,” said U Soe Ko Ko, head of agent banking, KBZPay.

Source: Global New Light of Myanmar

Western Union has terminated its contract with the Tatmadaw-owned Myawaddy Bank, becoming the latest foreign company to disassociate itself from military-associated companies.Western Union, which provides money transfer services, confirmed with rights group Burma Campaign UK on Tuesday its decision to cut ties with the subsidiary bank of the Union of Myanmar Economic Holdings Ltd (UMEHL), one of the two military conglomerates.

The move came after a 2019 August report by the UN-mandated International Independent Fact-Finding Mission on Myanmar that called for sanctions against military-owned businesses and companies with dealings with the military.Western Union is still cooperating with Ayeyarwady Bank, CB Bank, First Private Bank, KBZ Bank, Yoma Bank, UAB Bank and MAB Bank in Myanmar.This is a significant step forward in our campaign to stop international companies funding genocide and crimes against humanity in Burma.

They expect other companies, such as Kirin Holdings of Japan, to follow Western Union’s example and cease doing business with Burma’s army.They will be stepping up pressure on other companies on our ‘Dirty List’ including Portia Management Services, a British company managing a military-owned port in Yangon, referring to the list of international firms which Burma Campaign UK says are doing business with the military or engage in investments involving human rights violations or environmental destruction.

Source: Myanmar Times 

Companies listed on the Yangon Stock Exchange (YSX) announced mixed prospects for 2020, the year Myanmar is set to allow direct foreign ownership of equities listed on the bourse. The Securities and Exchange Commission of Myanmar announced last July that non-Myanmar individuals and locally-registered entities would be allowed to invest in listed shares of up to 35 percent.

There are six companies listed on the YSX with a combined market value over K620 billion.The main revenue driver was financial services, led by higher interest income earned from digital credit, mortgages, microfinance and overdrafts. FMI said it will continue to invest in its core businesses, namely financial services, real estate, healthcare and tourism.

The financial services sector is expected to continue growing at a “remarkable” rate, with its subsidiary, Yoma Bank, aiming to lend largest sums of money to the small and medium-sized enterprise (SME) segment this year.Things were rougher for TMH Telecom Public Limited (TMH). The firm announced revenues totaling K2.9 billion for the year ended September 31, 2019, which is 45pc lower than the half year ended September 31, 2018. This was because it cut under-performing projects and mainly focused on more viable long term investments during the period.

Source: Global New Light Of Myanmar

The Hồ Chí Minh City Development Joint Stock Commercial Bank, HDBank, on 18 December 2019 opened a representative office in Myanmar and signed a comprehensive co-operation agreement with Viettel Global Investment JSC, which are expected to help promote economic growth, trade and investment.The inauguration of the office took place in the presence of Prime Minister Nguyễn Xuân Phúc, State Bank of Vietnam governor Lê Minh Hưng, Central Bank of Myanmar governor Kyaw Kyaw Maung and other many senior officials from the two countries.

Vietnamese commercial banks have always been supported and facilitated by the Government, the central bank and other relevant agencies of Myanmar, and the presence of HDBank, the fourth Vietnamese bank in Myanmar, is a clear demonstration of that spirit of co-operation. HDBank’s expansion into Myanmar in line with the integration policy of the Government of Việt Nam, and consider this is a strategic step by HDBank in a potential market that is on its way to integrating into the ASEAN and world economy.

Viettel Global will support HDBank and its partners and customers in terms of telecom services and IT solutions, create convenient conditions for the bank to participate in its telecom projects and co-operate with it for domestic and international payment services. HDBank will offer credit services, deposit products and other banking services to Viettel Global, its staff and customers.In recent years HDBank has made strong efforts to expand domestic market share and meet the requirements of international integration.It has always been proactive in adopting international best practices in banking management and modern technology in all aspects of business and management.

Source: Việt Nam News

From April, 2017 to 2019-20 FY, the Ministry of Health and Sports allocated a budget of Ks 6 billion for health research, according to official figures. The ministry provided assistance to conduct more research works. In 2018-19 FY, the ministry conducted 855 researches. In 2019-20 FY, the ministry continues working on health research. To systematically carry out research, Research Review Boards are formed at departments and universities under the ministry.

Dr. Myint Htwe, Union Minister for Health and Sports said: “Myanmar Medical Research Conference is held annually. At the 46th Conference, 45 basic research papers, 38 applied research papers, 27 social and health system research papers and 80 poster papers were submitted. At the 47th Conference, 55 basic research papers, 42 applied research papers, social and health system research papers and 90 poster papers were submitted.”

An official of the Ministry of Health and Sports said: “The ministry has received a budget allotment of Ks3,000 million for research this fiscal year. The minister has urged officials to spend this budget on therapy and applied research.” In 2018-19 FY, the ministry allotted a budget of Ks 1,500 million to conduct Implementation Research, Clinical Research and Public Health Research on a priority basis. On December 14, 2018, the ministry formed the Research Proposals Preliminary Scrutiny Board in order to carry out the systematic allocation of budgets and review research proposals.

Source: Eleven Media