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Myanmar Citizens Bank to increase SME access to finance

Yangon-listed Myanmar Citizens Bank (MCB) inked an agreement with the International Finance Corporation (IFC) to increase access to finance for small businesses and individuals. The IFC will provide advice to the public lender to transform and modernise its business operations to better serve small businesses.  The project will be delivered over two years and will focus on optimising products and channels, improving branch and sales networks, optimising credit and risk management strategies as well as streamlining organisational management. The IFC says the project is in line with the government’s Sustainable Development Plan to 2030 and with IFC’s goals to end extreme poverty and boost shared prosperity. The institution has invested in two other projects to boost Myanmar’s banking sector. “Providing access to banking services which were previously unavailable is one of the first steps to alleviating poverty,” it said. Source: Myanmar Times

Trading on Stock Exchange Opened-Up to Non-Locals

Foreign nationals and overseas entities – including locally-registered wholly foreign-owned enterprises as well as joint-ventures with local businesses – are to be permitted to buy shares on the Yangon Stock Exchange (YSX).  Although the change has been approved by the country’s market regulator, the Securities and Exchange Commission of Myanmar (SECM), formal approval from the YSX is required before the proposal can move forward. The change is in line amendments to the Companies Law of 2017, which allow overseas investors to own a 35% stake in a Myanmar-registered business without prior government approval.  Under the terms of the latest SECM regulations, however, companies listed on the YSX will be required to declare the percentage of their shares that are available to overseas buyers in advance.  They will also be required to obtain prior approval from the SECM for the specified percentage of shares, while the YSX will be obliged to…

Overseas Businesses Approved to export rice and other commodities

The Ministry of Commerce (MOC) will now allow foreign and joint venture companies to export specific food and commodity items, according to Notification 24/2019 released on 6 June. Overseas investors in the country can now open wholly foreign-owned companies or form joint ventures with local companies for the purpose of exporting goods across seven product categories - rice (including value-added rice and broken rice); other agricultural items (including beans, pulses, corn and processed and semi-processed fruits); meat and fish; paper and paper pulp; seeds; purified metals; and wood-based furniture.  In order to identify approved local producers and suppliers, overseas-owned businesses may seek recommendations from the relevant ministries. Competition is likely to become more intense for local producers as foreign companies come with larger capital pools and marketing networks, said U Than Oo, secretary of Bayintnaung Rice Commodity Market in Yangon. Source: Myanmar Times

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Corporate Governance Code (CGC) to be ready in 2020

Myanmar is aiming to publish a Corporate Governance Code, said U Aung Naing Oo, permanent secretary of Ministry of Investment and Foreign Economic Relation. In a bid to improve corporate governance and transparency in Myanmar, the government is planning to introduce a Corporate Governance Code (CGC) by 2020.  Once implemented, the CGC is expected to boost investor confidence and draw more foreign direct investment (FDI) into the country.  A draft report on the code by the Directorate of Investment and Company Administration (DICA), Securities and Exchange Commission of Myanmar (SECM) and Organisation for Economic Co-operative and Development (OECD) is expected to be ready this year. Currently, the corporate governance structure in Myanmar is still relatively undeveloped, but reinforcements are on the way.  The Myanmar Institute of Directors, for example, has set benchmarks for corporate governance practices among Myanmar companies and aims to support corporate boards of directors in achieving loftier standards of transparency. Source: Myanmar…

Guest Lecturer at Lingnan University for Master of Science in International and Development Economics

HKMMCCI was invited to give a guest lecture at Lingnan University for the programme of Master of Science in International and Development Economics (MIDE), which specializes in the Belt and Road Initiative and the Great Bay Area Development. On 30 April, President Dr K W Lin was delighted to give his 2-hour presentation with a topic of China-Myanmar: Past, Present and Future. President Dr K W Lin gave his presentation to students of Lingnan University and shared his insight and analysis on the current issues related to dynamics of the Belt and Road Initiative and Myanmar

Myanmar Cultural Day 2019

Myanmar, bordered by India and Bangladesh to its west, Thailand and Laos to its east and China to its north and northeast; it's a new era for this extraordinary and complex land, Myanmar Cultural Day that organized by Hong Kong Macau and Myanmar Foundation (HKMMF) was held on 27 April at City University of Hong Kong for everyone to learn about the collective yet diverse cultures and traditions in one nation! The event was well attended by over 50 people, including the representatives of Myanmar Consulate Office and Myanmar National Airlines, Myanmar students in Hong Kong, local students, and our partners and friends with various backgrounds. Programmes such as the sharing on Yangon's untold stories, moving meditation & mindful listening, Myanmar traditional performance and Myanmar food tasting interested audiences and gathered Myanmar interested parties together, where networks and constructive conversation were built. Presentation to understand Myanmar; Myanmar dance by Myanmar…

Myanmar is keen on Belt and Road Initiative (BRI)

Myanmar has been part of the Belt and Road Initiative (BRI) development strategy since its adoption by the Chinese government and it is willing to continue participating in beneficial projects, State Counsellor Daw Aung San Suu Kyi said on 24 April 2019. The state counsellor made the remark in a meeting with China’s President Xi Jinping, according to Voice of America’s Myanmar service. President Xi said he desired the strengthening of mutually beneficial cooperation with Myanmar within the BRI framework.  According to a statement from the Office of the State Counsellor, the heads of state also discussed the acceleration of cooperation between the two countries to improve the lives of their citizens. Chinese President Xi Jinping (right) welcomes Daw Aung San Suu Kyi at the Great Hall of the People in Beijing, China, on 24 April 2019 The meeting on Wednesday also discussed China’s continuing help for Myanmar’s efforts to…

Five Overseas Life Insurance Businesses Granted Myanmar National Operating Licences

Five overseas-owned life insurance businesses have been granted provisional licences to provide insurance services in Myanmar. The five insurers – Prudential plc of the UK, Dai-ichi Life Holdings of Japan, Manulife of Canada, AIA of Hong Kong, and Chubb of the US – are expected to begin operating by the end of 2019. Under the terms specified by the Ministry of Planning and Finance, the five companies will be required to submit an irrevocable and unconditional proposal bond of US$400,000 by 26 April in line with the conditions agreed in their initial applications.  In addition, any insurance companies that failed to secure operating licences (as well as those with an existing representative office in Myanmar) may enter the local market via a joint venture with a domestic life insurance company. As of 2017, Myanmar’s life insurance premium revenue was only at $13 million.  Previously, the government held a long monopoly…

Yangon’s One-Stop Service Centre is now opened for Overseas Investors

A One Stop Service (OSS) centre, designed to meet the needs of overseas investors, has been launched in Yangon. The Centre is operated under the auspices of the Directorate of Investment and Company Administration (DICA), the centre will facilitate the submission of applications for various investment-related services, including requests for import or export licences, tax registration, visas and work permits. In addition, potential investors in the Yangon region will be able to apply for a number of investment clearances and government permits via the OSS’ single-window service.  These include administrative permissions that fall within the remit of the Yangon Electricity Power Supply Corporation, the departments of labour, immigration, customs, internal revenue, mining, agriculture, fisheries, environmental conservation, housing, and hotels and tourism, as well as the directorates of industrial supervision, inspection and trade.  This will represent a streamlining of the current process, which requires overseas investors to coordinate with multiple government…

Overseas Investors Allowed to Hold Maximum 35% Stake in Local Banks

The Central Bank of Myanmar (CBM) issued Circular Letter 1/2019 on 29 January, 2019, stating that domestic private banks will now be able to accept up to 35% equity investments from foreign banks and financial institutions. The Circular Letter comes into effect immediately. Domestic private banks that wish to accept foreign investments under the circular are required to submit a set of documents to the CBM, including a copy of the mutual agreement describing the equity investment ratio, the terms and conditions of the investment, and others. Any such equity investment arrangement between a domestic private bank and the local branch or subsidiary of a foreign bank (that is permitted to carry out business in Myanmar’s banking sector), must also comply with the cross-holding restrictions under Section 61 of the Financial Institutions Law of Myanmar (notwithstanding Section 62, which normally excludes foreign bank branches from those requirements). Source: lexology

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