Myanmar banks to inspect borrowers’ income disclosures: Central Bank

Myanmar banks should inspect borrowers’ disclosed income before extending loans to them, according to the Central Bank of Myanmar (CBM). This is to ensure the disclosures are legit and that borrowers are not involved in potential money laundering activities. For example, some borrowers can disclose certain items as bank loans to avoid being taxed.

In February, the Paris-based inter-governmental Financial Action Task Force (FATF) put Myanmar on its grey list, implying that it had found strategic deficiencies in the country’s ability to counter money-laundering and terrorism financing. The decision places Myanmar banks, financial organisations and the CBM under negative pressure as international lenders now regard Myanmar as a high risk borrower.

The FATF wanted other countries to be more careful as money laundering is the conduit for illegal property, gold, gems and jewellery sales in Myanmar. The FATF deems cases of tax evasion and laundering the money and assets obtained from tax-related and other crimes as criminal cases.

As such, the CBM is taking efforts to prevent Myanmar from falling the FATF’s black list. It is now increasing supervision and inspections of Myanmar’s lenders based on money laundering risks, complexity and individual bank’s transactions. Among the measures is the latest requirement for banks to supply information on income sources regarding bank loans whenever requested by the CBM.

Meanwhile, when submitting instances of increased bank capital and share transfers, the shareholder himself should pledge that the funds represent taxed income and is free from money laundering activities. Approvals will be granted only when these declarations are submitted to the Ministry of Planning, Finance and Industry and Anti-Money Laundering Central Board for inspection of clearance from money laundering, the CBM stated.

Source: Myanmar Times

Wave Money wins“Best Digital Wallet of the Year” and“Best Mobile Payments Service” at Global Retail Banking Innovation 2020

Wave Money, the leading mobile financial service provider in Myanmar, won the “Best Digital Wallet of the Year” and “Best Mobile Payments Service” award at the Global Retail Banking Innovation 2020 organized by the Digital Banker. Wave Money was highly commended for delivering innovative services and social impact, particularly to the unbanked and underserved communities. Heldin Singapore, the annual awards recognized Wave Money as an outstanding financial institution among the world’s top financial institutions, and that showed excellence in digital
innovation, social and digital inclusion, and service delivery to vulnerable sectors during this COVID-19 pandemic.

The Digital Banker is a global trusted news, business intelligence and research partner to the worldwide financial services sector. One of its flagship programmes, the Global Retail Banking Innovation Awards recognizes and celebrates the world’s outstanding retail banking and financial institutions with a distinguished contribution to the industry.
Best Digital Wallet Launched in 2018, WavePay is a super app that meets the lifestyle needs of digital natives while helping advance greater financial inclusion among the unbanked population in the countryside.


WavePay is a convenient, secure, simple and reliable way to remit and receive money, pay utility bills and loans, top-up mobile services, shop online as well as pay at physical checkout counters. In October 2020, Wave Money has set a new record as the WavePay application crossed 1.1 million monthly active users, and an impressive daily average growth of 162% in new WavePay registrations this year. Best Mobile Payment Service Wave Money has brought the benefits of financial services to millions of Myanmar people who were previously unbanked and underserved. During this challenging COVID-19 era, Wave Money has been fully leveraging its platform to help the Myanmar community.


Millions are using WavePay to conveniently and securely transfer money and make daily payments and financial transactions in the comfort and safety of their homes. Government, humanitarian agencies and corporates are also using WavePay to digitallydelivering COVID-19 emergency cash to vulnerable sectors, including at-risk communities in rural, remote Myanmar Wave Money also initiated “WavePay It Forward” to help government, non-government institutions, and humanitarian agencies leverage the digital to deliver essential payments and mobilize relief funds for those severely impacted by the COVID-19 pandemic.

Wave Money has the largest agent network in Myanmar, covering 89% of the country with over 64,000 agents as of November 2020. Over the years, Wave Money has seen exceptional business and customer growth, which reflects service and technology excellence. From an annual remittance value of 2 trillion Myanmar kyat in 2018, Wave Money moved 6.4 trillion Myanmar kyat (US$ 4.3 billion) in 2019. As of September 2020, Wave Money’s total remittance value was already at 8 trillion MMK (US$5.9 billion).

Source: The Global New Light of Myanmar

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Myanmar exports plunge by $1.2 bln as of 11 Dec amid COVID resurgence

Myanmar exports over past two months of the current financial year 2020-2021 plummeted to US$2.647 billion, reflecting a tremendous drop of $1.2 billion compared with a year-ago period of the previous FY, according to the data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $3.847 billion, according to the data released by the ministry. Both sea trade and border trade dropped amid the coronavirus impacts. The neighboring countries tightened border security and limited the trading time to contain the spread of the virus. Moreover, the severe container shortage has become the biggest disrupter in shipping amid the coronavirus impacts, on the back of robust demand on the Asia-Europe and transpacific trade.

Container shipping costs are drastically surging. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for exporters. Of the seven export groups, agricultural exports showed an increase of $147 million against a year-ago period. Meanwhile, exports of livestock, forest products, minerals, fishery products and finished industrial goods declined. Between 1 October and 11 December of the current FY, export values have registered at $845.63 million for argo products, $14.4 million for livestock, $184.233 million for fishery products, $233.448 million for minerals, $23.7 million for forest products, $1.257 billion for manufactured goods, and $88.574 million for other goods.

The country’s export sector relies more on the agriculture and manufacturing sectors. At present, CMP garment exports drastically dropping as the western countries cancelled order amid the COVID-19 crisis. The Ministry of Commerce is focusing on export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade
environment.

Source: The Global New Light of Myanmar

Development of Korean industrial zone to commence this month in Myanmar

The first phase of construction of the Korea-Myanmar Industrial Complex (KMIC) in Hlegu township, Yangon, will commence on December 24.

Construction of the basic infrastructure such as roads and essential services needed for the project, which will be funded by the Korean Economic Development Cooperation Fund, is expected to complete by 2023. The total capital expenditure expected is in access of US$100 million, but create about 100,000 new jobs.

The KMIC will be jointly implemented by the Ministry of Construction and state-owned Korea Land and Housing Corporation on 558 acres of land in Nyaung-nhit-pin, Hlegu. The project will be managed by KMIC Development Company Ltd and will include Myanmar’s first online land reservation system.

The land rental rate is between US$69 and US$75 for one square meter and investors can start applying for their desired plots on January 21, 2021. When KMIC is complete, it will be worth US$4.7 billion and create more than 500,00 jobs. “It is important to build up industrial zones which can help investors do business in Myanmar. This will also improve local and foreign investments,” said Construction Manager U Han Zaw.

At the annual general meeting of the Union of Myanmar Federation Chambers of Commerce and Industry, it is said that KMIC will be implemented to be as successful as the Thilawa Special Economic Zone. Thilawa SEZ in Yangon Region has been successful and can be used as a good benchmark for other similar projects like the KMIC.

Source: Myanmar Times

US dollar slides after CBM sells $3 mln in local forex

The US dollar against Kyat weakened to K1,350 within a week in the local forex market, following the Central Bank of Myanmar selling 3 million dollars, local forex market data indicated. When the dollar value was substantial in the local forex market, the Central Bank of Myanmar (CBM) started to sell 3 million dollars from the state’s foreign exchange reserves at an auction rate on 14 December. A dollar exchange rate stood above K1,400 on 15 December 2020. The rate fell to K1,350 on 21 December, with a decrease of over K50 within a week.


“The dollar gain will benefit the exporters. Yet, it will hike up the local food prices. The currency intervention is required to steer the own currency value, U Than Lwin, senior consultant to Kanbawza Bank shared his opinion. “A too-strong or too-weak dollar is not good for the economy. It is one of the responsibilities of the CBM to control the price. That is why the CBM practised the foreign exchange intervention,” he elaborated.


This year, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October and K1,303 1,330 in November. Last year, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market. 

Source: The Global New Light of Myanmar

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China to implement two of three border trade zones

China will construct just two out of the tree trade zones slated for development at the Muse-Ruili (Kyegaung) designated areas. Under the initial Muse-Ruili (Kyegaung) project agreement, the two governments had agreed to designate the area as a Core Zone for trade between China and Myanmar while the Kyu Kote – Pang Sang – Wantain- Kyin San Kyawt zone would be designated as an Export Product Manufacturing Processing and Warehouse Area.

But, the Chinese government drafted plans only for two projects in Shweli (Kyegaung) and Wantain instructed Myanmar to pursue development work on the sites of these two projects, said U Khin Maung Lwin, assistant secretary for the Ministry of Commerce. He also said that they had designated three locations initially. The Chinese government had been expected to implement the trade zone from Kyu Kote to Pang Sang. They had discussions with them to develop these places. But according to the latest development, they made plans only for Kyegaung and Wantain. Currently, ground surveys are being completed to assess the land conditions in the designated areas.

When the land areas are designated in longitude and latitude for the Muse-Ruili Core Zone, the two governments will sign a China-Myanmar Framework Agreement. The Muse-Ruili Core Zone is envisioned to be a triangle-shaped area, stretching from Nam Phat Kar to northern Namkham and up to Kyukote (Pangsang) in the south. The trade zones are part of the China-Myanmar Border Economic Cooperation Zones. Up until recently, Myanmar had been expecting to develop core zones in three locations- Muse, Chin Shwe Haw and Kan Pite Tee.

Source: Myanmar Times

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NearMe, OK Dollar join forces for easier digital payments

Two Myanmar digital payment firms have partnered up to push for a cashless system in the country. The two digital service providers, offline payment aggregator NearMe and mobile wallet service OK Dollar, have jointly announced a collaboration to offer digital payments for NearMe’s micro, small and medium-sized enterprises (MSMEs) in the country.

The partnership is an effort to encourage the customers of NearMe’s retail partners throughout the country to limit the infection risks by using digital options like OK Dollar, according to the companies’ release. This partnership is an effect to reduce the usage of cash spending during the COVID-19 period. Starting from this year, their retail and delivery partners like OK Dollar can accept multiple payments. With the steady growth of users, NearMe is well-positioned to meet the needs of the businesses in Myanmar by extending reach and accessibility offline through the timely collaboration with OK Dollar.

Launched in 2015, NearMe enables retailers to sell digital goods and tickets, collect bill payments, process personal loan applications, and accept electronic payments. The firms has over 50,000 retail partners nationwide. In September, NearMe attracted financial help from Sumitomo Corp, a Japanese Fortune 500 global trading and business investment company. The funds will enable NearMe to offer more digital solutions to its retail partners seeking technology to help them grow in the post COVID-19 period.

Source: Myanmar Times

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Entrepreneurs are worried about their future economic situation due to COVID-19

A report released by the Asia Foundation said some business owners were worried about the future of their business, as some businesses were still closed and some COVID-19 lines were closed. Due to the continued outbreak of COVID-19 disease, it is likely that businesses in Myanmar will continue to lag behind in terms of sales and profits. A second survey by the Asia Foundation on the economic impact of COVID-19 found that the effects were more varied and that some businesses were able to adapt to minor impacts and epidemics, but that some businesses were still closed and were not selling, and business owners were worried about their business prospects.

Manufacture of garments in Yangon and Mandalay Region, Myanmar’s urban townships; Transport and hotel services are the hardest hit compared to other places and businesses. However, despite no significant improvements in business performance, business owners are becoming more optimistic about the viability of businesses on COVID-19. It is clear that the government should continue to support businesses, especially those that are particularly vulnerable.

In addition, the government should consider the potential link between economic downturn and lockdowns, or the number of COVID-19 outbreaks. Both COVID-19 global epidemic impact assessments on businesses are based on data from the Asia Foundation’s Myanmar Economic Environment Index (MBEI) survey. The survey asked respondents their views on the business environment and compared the results in states, regions and townships in Myanmar.

Source: Daily Eleven

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B2B: INTRAPRENEURSHIP

Date: 25th December 2020, 8:00 PM

Speakers:

  • U Aung Soe Thar ( Chairman, Myanmar ComBiz Group)
  • Daw May Myat Mon Win ( General Manager, Chatrium Hotel, Royal Lake Yangon)
  • U Myo Min Thu ( Chief Executive Officer, AYA SOMPO Insurance)

Moderator: Doctor Aung Tun Thet (Chairman, UNGC Network Myanmar)

Organizer: Myanmar B2B TV

Shetrade launch

SheTrades Myanmar: Virtual Launch

The SheTrades Myanmar Initiative aims to increase the competitiveness of women-owned businesses in Myanmar and connect them to global markets. Funded by the Government of the United Kingdom, the initiative is a component of the Trade and Investment Project (TIP). The virtual launch aims to give the participants an overview of the initiative, its goals and activities, as well as an opportunity for women entrepreneurs to discuss key issues and challenges in trade.

Date: 18 December 2020

Time: 16:00 – 17:30 Yangon, Myanmar (MT)

Register Here: https://bit.ly/2W2kNXm

Organizer: International Trade Centre, SheTrades, British Chamber of Commerce Myanmar, UKaid