A new entrant into Myanmar’s car market is set to make its presence felt next year.Renowned German luxury carmaker Audi AG will be open its official showroom at a site in front of Inya Lake at the sixth mile of Pyay Road, Yangon.This was announced by Audi Myanmar Operations Director Antoine Jeanson during an event last week to mark the entry of the famed brand into Myanmar.

The announcement the official sales and service centre in Yangon marks Audi’s continuing expansion in the region after the launching of Audi Vietnam in 2008 and Audi Cambodia in 2014.Audi Yangon will bring access to the latest Audi models for customers in Myanmar seeking to discover premium driving dynamics.Now Myanmar has changed also the regulations for foreign investments making things a lot easier.The market is gathering momentum to become more active. Audi introduced new models in November, so Myanmar buyers will see new Audi cars in 2020.

All Audi cars to be launched in Myanmar will feature engine delivering high torque, efficient power and low fuel consumption.The brand is well-known for lightweight design combined with optimised metals to ensure solid, safe and agile chassis. Audi cars officially imported in Myanmar will benefit from a warranty with unlimited mileage during the first three years.“Timing is right as Myanmar’s economic growth will accelerate with the reforms undertaken by the government.Audi Yangon is expected to open its doors to the public in the last quarter of 2020.

Source: Myanmar Times

A new power substation was opened at Shwe Pan Gon village, Wetlet Township, Shwebo District, Sagaing Region on 10 December to mark the 50-per cent electrification milestone in the country. The 66/33KV 30MVA Shwe Pan Gon power station was opened by Sagaing Region Chief Minister Dr Myint Naing and officials.

After the opening ceremony, the officials toured the station. “Our village mainly focuses on the agricultural sector, like the neighbouring village. Earlier, we could not use agricultural machines and rice mills because we did not have full-time access to electricity. Now, we can use those things because a power station has been constructed,” said U Han Tun, a local villager from Shwe Pan Gon village.

The new Shwe Pan Gon power substation was conNew 66/33KV 30MVA power substation in commission to mark 50% electrification in Myanmar structed with K1.919 billion allocated from the Sagaing regional government’s funds for 2018-2019FY. The station will supply electricity to 114 villages in Wetlet Township and 42 villages in Ayadaw Township.

Source: Global New Light of Myanmar 

The Yangon authorities are planning to relocate the Kyimyindine fish market to another place, said Mayor U Maung Maung Soe. He made the remarks at a press conference on the Yangon City Development Committee’s performance, held on 9 December at the Yangon City Hall. Local residents and people from neighboring wards were irked by offensive odor emanating from the market and the passage of container trucks at night, said the Mayor.

To relocate the market, two places have been identified — the mouth of Yangon River or Shwepadauk area. The designated sites should have cold storage and must accommodate boats, according to the Yangon City Development Committee. On 13 August, the Yangon Region Chief Minister had met with representatives from CITIC Myanmar Company and discussed matters related to the establishment of a fish auction market.

A feasibility study is being undertaken to set up a fish auction market in Dala Township. A systematic fish market will be developed in Yangon, said U Phyo Min Thein, the Yangon Region Chief Minister during a press conference at the Yangon Region Investment Committee office.

Source: Global New Light of Myanmar 

The European Union (EU) may be preparing to revoke the Generalised System of Preferences (GSP) status granted to Myanmar, according to U Zaw Min Win, chair of Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).U Zaw Min Win said he was informed of the developments by the ambassadors of the EU and UK but did not know the extent of pressure for it.

Duty-free exports to the EU from Myanmar rose from €535 million in 2015 to an estimated €2.3 billion in 2018. If the GSP is withdrawn, the most affected sector will be garments.Should those privileges be withdrawn, U Myint Soe, chair of Myanmar Garment Manufacturers Association told The Myanmar Times that Myanmar will have no choice but to find new markets and continue to export.“We can’t stop of the GSP is withdrawn. Our electricity situation has improved and if other sectors like shipping and productivity improve, we can still compete in the global market even without duty-free opportunities,” he said.He added that banking services and international fund transfers need to improve, too.Nevertheless, if Myanmar no longer enjoys GSP access, CMP exports will be taxed from 12pc to 15pc, according to the Myanmar Garment Entrepreneurs Association.“It is not easy for a business to enjoy profit margins of 5pc or 1pc. Adding that to not having GSP benefits, we will have to take measures to stay competitive,” said U Myint Soe.

EU has given GSP to Laos, Cambodia, Vietnam, Myanmar and Bangladesh and if Myanmar’s privileges are revoked, the country will have to compete with those who still enjoy GSP in the market, he added.“EU will only go for cheaper prices and they are only buying from Myanmar because of its competitive price. If the prices increase because of tariffs, they will not buy from here anymore,” he said.

Source: Myanmar Times

 AIA will partner with local firms AYA Financial Group and Max Myanmar Group (AFG Max) to set up its life insurance venture in Myanmar.The new venture will leverage AFG Max’s extensive retail customer and business partner networks to offer life and health insurance to the newly opened-up market, the Myanmar Times reported.

AIA is one of five international insurers that were awarded licences by the Ministry of Planning, Finance and Industry to operate a wholly owned subsidiary in the country.“The partnership will focus on making strong social impact and providing insurance offerings to people of Myanmar, through a combination of AIA’s deep insurance experience across Asia-Pacific and AFG Max’s local expertise,” AIA said in a statement. “The partnership also aims to raise the awareness of life and health insurance in the country, which are crucial to help Myanmar people live healthier, longer, better lives.”

AYA Financial Group is one of the largest financial services companies in Myanmar. Under its belt are AYA Bank, a major player in the market; general insurer AYA Sompo Insurance, a joint venture with Sompo Japan Nipponkoa Insurance; and securities dealer AYA Trust Securities.Meanwhile, Max Myanmar Group is a conglomerate involved in various sectors such as infrastructure, manufacturing, construction, transportation and logistics, energy, hotels and tourism, agriculture, and retail trading.

Source: Insurance Business Asia 

Higher exports in the last two months of the 2019-2020 financial year have resulted in a trade surplus of US$45.6 million, according to data provided by the Ministry of Commerce. In the current fiscal, there has been a significant drop from a trade gap of $654.98 million registered in the corresponding period of the 2018-2019FY, according to data from the Ministry of Commerce.

Between 1 October and 29 November, Myanmar’s external trade increased to $6.16 billion from $5.24 billion recorded in the same period of the previous FY. In the October-November period, exports were estimated at $3.106 billion and imports were valued at $3.06 billion. Compared to the previous fiscal, exports showed an increase of $810.8 million, while imports jumped by $110.27 million.

The government is trying to cut the trade deficit by screening luxury import items and boosting exports. Myanmar’s trade deficit was pegged at $1.14 billion in the 2018-2019 fiscal year, $1.3 billion in the last mini-budget period, $3.9 billion in the 2017-2018FY, $5.3 billion in the 2016-2017FY, and $5.4 billion in the 2015-2016FY, according to statistics released by the Central Statistical Organization.

Source: Global New Light of Myanmar 

The Directorate of Investment and Company Administration (DICA) has announced that it is now able to accept online payments for the registration of companies at its Myanmar Companies Online (MyCO) webiste. DICA previously accepted cash payment for company registration at its headquarters and branches offices for the convenience of people who did not have credit cards.

DICA says the ability to accept payments online from people who have credit cards effective this month is part of its efforts to make MyCO a fully online system. The registration of companies through MyCO was launched on August 1, 2018, to simplify the setting up of businesses in the country.

The removal of unnecessary restrictions on registering companies and the MyCO online registration system have had significant positive impact on the World Bank’s assessment of Myanmar in the Ease of Doing Business report said U Aung Naing Oo, permanent secretary of the Ministry of Investment and Foreign Economic Relations. In starting a business, Myanmar leapt to 70th place from 152nd according to the World Bank’s report of the Ease of Doing Business Ranking 2020 for 190 countries.

Source: Myanmar Times 

KBZ MS General Insurance, a joint venture between IKBZ, a major private non-life insurance company, and Japan’s Mitsui Sumitomo Insurance started operations yesterday.

With Myanmar allowing foreign-owned insurance companies to operate joint venture businesses with local insurers, IKBZ and MSIG have formed KBZ MS General Insurance. IKBZ was the first private insurance company in Myanmar, and since its establishment, it has been one of the top 50 taxpayers for five years in a row.

MSIG is the top insurer in Asia offering international insurance, and is listed among the top 10 insurance companies globally.Through the joint venture, KBZ MS would bring modern technology and international insurance expertise to Myanmar market and provide high-quality insurance services to the Myanmar people.

Source: Global New Light of Myanmar 

The new phase of the European Union’s SMART Textile and Garments project will bring together brands, trade unions and business associations to boost social and environmental sustainability in Myanmar’s garment industry.The project, funded by the EU, was officially launched in Myanmar on 6 December 2019.The European Union’s unwavering commitment and support plays an important role in improving decent work conditions and responsible business practices in Myanmar.

“The project’s aim to is to further strengthen sustainable production practices and responsible supply chains in Myanmar and Europe,” said Jacob A. Clere, team leader of SMART Myanmar. The SMART Myanmar project has been working with garment factories since 2013 to promote sustainable consumption and production (SCP) of garments bearing the label “Made in Myanmar” – a concept with emphasis on resource efficiency and social responsibility. SMART Textiles and Garments builds on SMART Myanmar and will expand training and capacity building programmes for social and environmental performance to more than hundred garment and textile factories in different locations across the country.

Europe is one of the world’s largest consumer markets and European consumers pay a lot of attention to where the products they buy come from and how they are produced. Sustainable production and respect for international labour standards are therefore important topics in the EU’s trade relations with Myanmar and this makes our cooperation with the Myanmar garment sector through the SMART Textiles and Garments programme so important.In fiscal year 2018-19, Myanmar-made garments were among the largest export categories in the country, with over US$4 billion worth of garments exported, according to the Ministry of Commerce.Since 2013, Myanmar’s garment sector has shown staggering export oriented growth. The garment industry serves largely the European market and has created job opportunities for thousands, mostly women.

Source: Myanmar Times