Title: The Next New Normal: Opportunities and Challenges in Digital Transformation
Date: 3 September 2020 , 4 P.M
Speaker:
Moderator: Dr. Tun Thura Thet (Member, Digital Economy Development Committee)
Contact address: pr@umfcci.com.mm
Organizer: UMFCCI
Title: Series 4; Updates on Banking & Finance Industries
Date: 4 September 2020, 4:00 P.M to 5:40 P.M
Speaker:
Moderator: Mr. Thompson Chau (Chief reporter and associate editor, The Myanmar Times)
Contact Address: https://www.eventnook.com/event/register/71049
Organizer: Myanmar-Hong Kong Chamber of Commerce and Industry
Myanmar is exporting more fishes, prawns and other marine products to 40 countries including China, Japan, Korea, Thailand, the US, the Middle East countries and European Union. The country has gained high demand from foreign markets as more marine products are produced safely, according to the Basic Training Course for Safe Maritime Production Batch (1/2020) opening ceremony. There are currently 124 aquatic processing industries and 27 of them have permission to export to EU. As per the export countries’ requirements of food safety, the relevant country’s department has to issue necessary health certifications and quality assurance. As every country asks for the food safety system now, the Department of Fisheries is focusing on serving in accordance with the foreign markets.
This year’s marine export volume is over US$ 750 mln, an increase of $110 compared to the year-ago period. In this financial year, 50 quality controllers from fish and prawn processing factories will attend the training, and 50 people in the next budget year in coming September. As Myanmar is a member of World Trade Organization (WTO), fish and prawn processing factories are implementing the WTO Agreement on the Application of Sanitary and Phytosanitary Measures and following the guidelines of ASEAN, China, France, the US and the European Union.
The fishery products such as alive or freezing products, dry or salted products are being exported to over 40 countries.
Those who involved in the whole process such as fishing boats, fishing ports and fish breeding ponds are implementing the Good Aquaculture Practices (GAqP) and the processing plants are implementing the Good Manufactured Practice (GMP), the Sanitation Standard Operating Procedure (SSOP) and Hazard Analysis and Critical Control Points (HACCP). The maritime products from 49 fishery breeding ponds of Rakhine State, Taninthayi Region, Ayeyawady Region and Yangon Region are being implemented as per National Residue Monitoring Plan and 23 factories were permitted to export to the EU. In 2020, the Department of Fisheries has been cooperating with private business persons and giving basic training courses to helmsmen and 120 marine workers from 4 standard fishing ports and training courses to produce the fishery products safely.
Source: The Global New Light of Myanmar
Myanmar has attracted over US$24.6 billion over the four years under the incumbent government, and Singapore tops the list, according to the Directorate of Investment and Company Administration (DICA). The Myanmar Investment Commission (MIC) and the respective investment committees granted permits and endorsements to 1,004 foreign enterprises between 2016-2017 Financial Year and as of July-end in the 2019-2020FY, with estimated capitals of $24.6 billion.
Of them, Special Economic Zones raked in investments worth $1.348 billion from 58 enterprises under the Special Economic Zone Law in the past four years, while FDI of $23.26 billion flowed into the country under the Myanmar Investment Law, the DICA’s data showed. The FDIs flow into oil and gas, power, transportation and communication, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing, trading, logistics and other service sectors. Under the Myanmar Investment Law, transport and communications sector tops the investment line-up, followed by manufacturing in the second place and real estate in the third place. Of 36 foreign countries investing in Myanmar in the past four years, Singapore put the most massive investments, followed by China and Hong Kong SAR.
Meanwhile, Japan is the largest investors in the special economic zones under the Special Economic Zone Law, followed by Singapore and Thailand. Manufacturing sector pumped in the most massive investments in the zones. MIC is prioritizing the labour-intensive businesses. In the incumbent government period, domestic and foreign projects employ over 500,000 residents, according to the DICA. Those enterprises have created over 19,000 jobs in the 2016-2017FY, 110,000 jobs in the 2017-2018FY, over 53,000 jobs in the 2018 mini-budget period, over 180,000 jobs in the 2018-2019FY and over 182,000 (Oct-July) in the 2019-2020FY respectively.
Source: The Global New Light of Myanmar
Construction of the Korea-Myanmar Industrial Complex (KMIC) will commence in December despite the COVID-19 pandemic. The project is estimated to generate US$4.7 billion worth of value from investments and generate more than half a million jobs in support of Myanmar’s development. Launched during the visit of South Korean President Moon Jae-In to Myanmar last September, the KMIC is the first government-level project between the two countries.
The KMIC, which is being developed under a joint venture between Korea Land and Housing Corp, Global SAE-A Co Ltd and the Ministry of Construction, will developed across 556 acres of land in Nyaung Na Pin village in Hlegu, Yangon. Korea Land & Housing Corporation will hold a 40 percent stake in the project while Global SAE-A Co will hold a 20 pc stake. KMIC is valued at US$110 million and received approval from the Myanmar Investment Commission in 2019. The detailed design of the project is being finalized and construction will start by the end of year. The tender to develop the project will be called in October and after which construction of the first phase of the KMIC will commence in December. The first phase of the project will be implemented on 315 acres of land and involve facilities for food and beverage, cut-make-pack manufacturing and logistics and warehousing. The second phase, which will take place across 240 acres of land, will developed with the construction materials, electronics and computer parts manufacturing in mind. The whole industrial zone will be complete in 2022. The KMIC will include residential and commercial developments in addition to industry. The entire project will also be developed as a smart and eco-friendly industrial zone using Korean technology.
The Ministry of Construction will develop an outer ring-road and provide electricity and water access at the industrial zone with a US$70 million loan from the South Korea Economic Development Cooperation Fund. It has already received US$62 million in funds. Officials will start drawing more interest to the project among investors in Korea next month. Meanwhile, KMIC officials will cooperate with Korea government institutions to support businesses with consulting services and access to financing. The Koreans are also expending construction of the Dala Bridge in Yangon, which is now being carried out around the clock to be complete within the targeted timeframe despite COVID-19. The bridge, also know as the Myanmar- Korea Friendship Bridge, is expected to cost US $168 million. Construction of the bridge, which will connect Dala township across the Yangon River to downtown Yangon, began in May 2019 and is slateed to be complete in October 2022.
Source: Myanmar Times
Japan will provide ¥45 billion in emergency funding to assist Myanmar in supporting the economy in the wake of COVID-19. Japanese Foreign Minister Toshimitsu Motegi extended the financial support during his meeting with State Counsellor Daw Aung San Suu Kyi in Nay Pyi Taw on August 24. This will consist of ¥30 billion in emergency budget support and ¥5 billion in official development assistance (ODA) loans to help small and medium-sized enterprises(SMEs) in Myanmar respond to COVID-19. Japan is pursuing cooperation with Myanmar in all areas, including health, education, agriculture, and administrative capacity building while promotion responsible investment by Japanese companies.
The two sides also discussed plans to facilitate a rapid economic recovery in Myanmar and keep the channels clear for more Japanese investments in the country. Negotiations to relax travel restrictions to allow Myanmar technicians and businessmen to enter Japan under a business track program starting next month also took place. Japan has so far provided technical as well as medical supply and equipment assistance equivalent to US$30 million to Myanmar.The additional support came shortly after more than K80 billion was freed up for the prevention, control and treatment of COVID-19 activities in the coming fiscal year under a Debt Service Suspension Initiate (DSSI) endorsed by the World Bank and countries under the G20. The DSSI was endorsed in April in response to a call by the World Bank and the International Monetary Fund(IMF) to grant debt-service suspension to the poorest countries to help them manage the impact of the COVID-19 pandemic.
The main goal of the DSSI is to allow poor countries to concentrate their resources on fighting the pandemic and safeguarding the lives and livelihoods of the most vulnerable people. Borrowers therefore commit to use freed-up resources to increase social, health, or economic spending in response to the crisis. Myanmar has so far also received half of a US$700 million fund provided by the IMF in July to support its economy. The second tranche of funds will be received in the coming fiscal year. The government will also be able to tap into remaining funds from the World Bank, Asia Development Bank and Japan International Cooperation Agency awarded this year to support the economy moving forward. It will also be spending more to ease the impact of COVID-19 on the economy, leading to a forecast budget deficit of 5.41 pc of GDP this year.
Source: Myanmar Times
MasterCard announced that they are planning to establish a local branch office in Myanmar and that they will appoint a country business development manager. MasterCard aims to support the advancement of Myanmar’s digital payments ecosystem and its efforts to build a futuristic and inclusive cashless society. The establishment of the local office also underscores MasterCard’s long-term commitment to advancing Myanmar’s national digital agenda and reflects the company’s continued confidence in the market. Myanmar’s GDP growth is expected to rebound to six per cent in 2021, making it one of the fastest-growing economies in the Southeast Asian region.
The market has successfully leapfrogged several of the usual transition steps on its way to becoming a digital economy. The government of Myanmar has been actively leveraging these advances to lay the foundation for a new payments’ infrastructure designed to allow entrepreneurs and businesses to capitalize on vision to enable sophisticated capabilities like real-time payments for its citizens and businesses, Myanmar is at a truly pivotal stage in its economic evolution.MasterCard has a long and established history in partnering with hundreds of nations around the world on growing and scaling their payments ecosystems. MasterCard’s ambition for Myanmar is no different – the organization is focused on bringing its global best practices, coupled with a deeply rooted local presence and understanding of the domestic environment, to bear, to help the country secure a digital future defined by efficiency, agility, and security.
As Myanmar continues its digital transformation, it is also necessary to empower its people with the skill sets and knowledge they need to participate actively in the digital economy. MasterCard will bring to Myanmar decades of experience in technology skilling that will enable the country to accelerate human capital development. Furthermore, as part of the organization’s commitment to growing the local talent pool, MasterCard is well on its way to assembling a local leadership team which will be integral for sustainable, domestically relevant, long-term success” he added. MasterCard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible.
Source: The Global New Light of Myanmar
Myanmar’s border trade with China has registered a decrease of US$147.27 million between 1 October and 14 August in the current financial year 2019-2020. Data from the Ministry of Commerce show the value of Myanmar-China border trade in all five borders touched over $5.07 billion in the current financial year, which significantly plunged from over $5.2 billion recorded in the year-ago period.This FY, border trade values totalled $4.19 billion through Muse border, $126.29 million via Lwejel, $471 million via Chinshwehaw, $279.25 million via Kampaiti, and over $4.84 million via Kengtung. The Commerce Ministry’s data showed a drop in trade value through all those border areas between Myanmar and China.
The decline in trade is attributed to the trade suspension and trade delay amid the tight security measures of coronavirus. China has been stepping up border control measures to contain the spread of the coronavirus infection.Next, the export of agricultural products is often halted, on account of China clamping down on illegal goods.Myanmar merchants are facing difficulties in exporting goods to China through the legitimate channel as they find the tax levied by China is too high.In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the relevant departments and Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts.
The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s MOC is trying to boost exports of rice, broken rice, agro-products, fruits and fisheries to China through diplomatic negotiations. After a series of negotiation between Myanmar and China, the General Administration of Customs of the People’s Republic of China (GACC) granted licences to 43 Myanmar companies on 10 July 2020 to export the rice to China through a legitimate trade channel.Myanmar exports rice, sugar, pulses, sesame seeds, corn, dried tea leaves, fishery products, minerals, and animal products to China. At the same time, it imports agricultural machinery, electrical appliances, iron and steel-related materials, raw industrial goods, and consumer goods from the neighboring country.
Source: The Global New Light of Myanmar
Title: Tourism and COVID-19 in Myanmar; Priorities for Restarting Tourism
Date: 27 August 2020, 1:00 P.M
Speaker:
Moderator: U Win Min (Senior Program Associate, Myanmar Center for Responsible Business)
Introductory Keynote: Daw May Myat Mon Win ( Chairperson of Myanmar Tourism Marketing Association)
Contact Address: https://us02web.zoom.us/…/register/WN_s7a78VfoRUm8WirciepqVw
Organizer: Myanmar Tourism Marketing
Capital Taiyo Life Insurance and Myanmar Citizens Bank have announced that they will cooperate to provide life insurance products in Myanmar. Capital Taiyo Life and Myanmar Citizens Bank (MCB) signed announced in Friday that they had signed an agreement on June 29 to provide bancassurance products via MCB’s network of branches. The agreement brings about the sales, distribution, promotion and marketing of Capital Taiyo Life Insurance’s life insurance products to MCB’s customers.
Bancassurance is a business model in which banks and insurance companies work together to sell a wide variety of insurance products through the bank branches. Earlier this year, the Insurance Business Regulatory Board (IBRB) under the Ministry of Planning, Finance, and Industry issued a directive allowing banks and microfinance institutions to operate as agents selling insurance products. The MOU signed with Capital Taiyo Life Insurance will kick off a nine-month pilot project where Myanmar Citizens Bank will conduct sales of life insurance. The government’s directive allows banks to enter into partnership with two life insurance companies per bank, and Myanmar Citizens Bank selected Capital Taiyo Life Insurance as one of its partners.
Insurance companies in Myanmar can see bancassurance growing significantly and becoming the predominant sales channel in the future. Yangon Stock Exchange listed Myanmar Citizens Bank, established in 1992, is one of the first private commercial banks in the country and has nearly 50 branches covering 26 towns in the country. Capital Taiyo Life Insurance is joint venture between Capital Life Insurance, a domestic life insurance company established 2013, and Taiyo Life Insurance, one of the largest life insurance companies in Japan.
Source: Myanmar Times