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

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

A senior official has announced that four government-owned banks that have similar business scopes will be merged in order to help provide more loans for micro, small and medium enterprises (MSME), and farmers. They will combine the banks that currently serve similar purposes and to do so they will seek advice from the World Bank.

The exercise will involve Myanma Economic Bank, Myanma Foreign Trade Bank, Myanmar Foreign Investment Bank, and Myanmar Agricultural Development Bank. The plan is to first merge Myanma Economic Bank and Myanmar Agricultural Bank in order to modernise a loss-making lending scheme that involved one-year loans at reduced interest rates to farmers.The idea is to issue loans based on the crops they grow, adding that a similar loan system had proven Successful in Thailand.Bankers from Thailand were invited to the workshop to share their experience and methods.

Another effort to modernise lending in the agricultural sector is the formation of credit guarantee corporation (CGC) spearheaded by the Central Bank of Myanmar.Such an entity would help spread the burden of risk for farmers and business owners who cannot put up collateral.They tried to buy a combine harvester through a bank loan last October but it wasn’t successful because the purchase needed so much collateral as well as financial statements. It’d be very convenient if there is an intermediary organisation like a CGC.

Source: Myanmar Times

AIA Myanmar aims to provide high quality life insurance to meet the needs of policyholders in Myanmar.AIA is one of five wholly owned foreign life insurance providers allowed by the government to operate in Myanmar after the government opened the country’s domestic insurance market to foreign investment last year. AIA received a life insurance licence from the Ministry of Planning, Finance and Industry to operate in Myanmar last November.

AIA provides its service in 18 markets in Asia Pacific and provides long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. It also provides employee benefits, credit life and pension services to corporate clients.

AIA Myanmar CEO Nhon Ly said “We aim to build excitement around the life insurance industry and convey our promise of healthier, longer, better, lives for all. Alongside our commitment to grow the country’s blossoming insurance sector with our partners, we aim to organise more unique occasions to better connect with the people of Myanmar and achieve a brighter future together filled with even more amazing memorable moments.”

In order to expand Yangon Water Bus services, the government needs to construct more jetties, said Daw Nilar Kyaw, Minister for Electricity, Industry, Road Transportation and Communications for Yangon Region.Currently, the Yangon Water Bus is operating in the Hline River.

The jetties need to support our water bus. At present, the water bus can be operated only in Hline River.To develop Yangon Water Bus operations, the Myanma Port Authority (MPA) is collecting rent for only two jetties out of nine, which are used by the Yangon Water Bus.The nine jetties are Botahtaung Terminal (No.4 bridge), Nan Thi Da Terminal (Pansodan Street), Lan Thit Jetty (Lan Thit Street), Kyimyindine Terminal Zay Gyee jetty, and Hline railway station terminal from Yangon side, and Hsarparchaung, Thamadakanchay, Angyithinbawkyin from Insein and Dala side.

The Yangon Water Bus has suspended services since last September for renovation. During this period, the authority has conducted major repairs on vessels and jetties, and planned to buy new vessels to start operations in Ngamoyeik creek, build jetties along Ngamoyeik creek, renovate the Thanlyin jetty, and install machines for the new payment system. The company provides services from Insein jetty to Botahtaung jetty, using 11 motor vessels..The Yangon Water Bus is also offering daily services for pilgrims and riverine cruise tours.

Source: Global New Light of Myanmar

Grab is providing premium rental services using seven-seater Alphard vehicles in Bago, Mandalay, Bagan and Chaungthar in addition to Yangon, announced Grab Myanmar.It is one of the parts of “Grab for Good” arrangement from the Grab with a five-year goal till 2025 to have benefits in communities from South-East Asian countries.

Grab Myanmar introduced premium rental services for business people and local and foreign tourists. They can attend meetings in Yangon and tour around the town. The customers can use premium rental services in packages. Now they can travel to Bago, Mandalay, Bagan and Chaungthar. All-inclusive fares in Yangon areas are Ks15,000 for one hour, Ks26,000 for two hours, Ks40,000 for four hours, Ks110,000 for ten hours and Ks22,000 for airport transfer package.Grab has partnered with Myanmar Insurance, a state owned insurance enterprise, to provide personal accident insurance (PAI) scheme to its driver-partners and passengers.

Grab’s group PAI policy offers coverage for drivers and passengers in the event of accidental death, permanent dismemberment and bodily injuries as a result of accidents. This policy provides the eligible insured person for an accidental death of US$5,000 per person, subject to aggregate limits including US$10 million per occurrence in Myanmar.Grab has partnered with Myanma Insurance for the personal accident insurance scheme which covers driver-partners and passengers in the case of an unfortunate accident during a GrabTaxi, GrabThoneBane or GrabBike ride.

Source: Eleven Media

Prudential Corporation Asia has received a life insurance licence from the Ministry of Planning and Finance (MoPF) of Myanmar, the insurer has announced in a statement. The newly-granted licence will allow Prudential to start conducting life insurance business in Myanmar.

According to Prudential, Myanmar has a fast-growing middle class, as well as an increasingly urbanised and tech-savvy population. The country has around 57 million mobile subscriptions, with a mobile penetration of around 105%. The insurer will attempt to harness its wide-ranging digital capabilities and broad range of offerings in Asia, and implement a digital-led strategy, complemented by face-to-face distribution, to broaden access to life insurance in Myanmar.

In April 2019, Prudential was named by MoPF as a preferred applicant to operate a wholly-owned life insurance operation in Myanmar. Last month, Prudential Myanmar moved into its new corporate office in Sule Square in Yangon, reinforcing its commitment to the long-term development of the country, the statement said. “A key focus of Prudential Myanmar will be to support national efforts to raise life insurance penetration, at just 0.05% of GDP in 2018 and financial inclusion in the country,” said Asit Rath, CEO of Prudential Myanmar.

Source: Insurance Business Asia 

Automobile company Suzuki Myanmar Motor Co Ltd has announced a new instalment-payment scheme on November 7, for four models in its local line-up of vehicles. The new scheme is being offered in collaboration with Co-operative Bank Public Co Ltd (CB Bank).

The Suzuki models available beginning this month, under the scheme are the Ciaz sedan priced at K27 million, Ertiga mpv at K27.2million, Suzuki Swift GL and GLX hatchbacks at K20.9million and K24.1million, respectively. The initial down payment can be 20pc or 25pc of the car’s price, with 7 years of repayment period. Besides this, the new financing scheme also includes insurance coverage for the vehicle provided by GGI Insurance. People who want to purchase a car under the scheme will need to apply through CB Bank with a passport photo, national identity cards, a copy of their Household List, and original ward and police station recommendations.

Applicants who are employed are also required to provide recommendations from their company’s human resource department, three months of salary slips, and bank account book with least six months history. Self-employed applicants are required to show their business licence or company registration documents, two years of financial statements, tax receipts for two years, a bank account history of six months, and photo of their business.

Source: Myanmar Times