New G Bank branch opens in Myawady border town

by SERVICES

As new banking services expand in Myanmar’s economic sector, Glory Farmer Development Bank, or G Bank for short, opened a new branch office in Myawady Township, Kayin State, on 7 August. With the new branch in Ward 4, Bamar Su 8 in Myawady and its headquarters on Yuzana Road in Bayint Naung Warehouse, Yangon, G Bank offers standard banking services such as depositing or withdrawing cash, domestic and payment orders during its operating hours and is striving to extend its reach to other prominent cities across the nation.

G Bank is offering a maximum interest rate of 8.7% in a fixed deposit account with a minimum tenure of one year to commemorate the opening of its Myawady branch in addition to other souvenirs.G Bank aims to offer balanced, outstanding services to all its customers in line with its code of conduct and integrity while keeping astride with technological developments to ensure banking services are accessible to all people.

G Bank opened its first branch in Monywa, Sagaing Region, in the month of September in 2018 and bases its mission on developing the agricultural sector, which can be regarded as the lifeblood of the nation.G Bank’s objectives also include making banking services accessible to everyone through the use of technology while incorporating ingenuity, responsibility, accountability, ethics and rules and regulations issued by the Central Bank of Myanmar in its services.

Source: The Global New Light of Myanmar

JV to build Ayeyawady International Industrial Port in Pathein

by LOGISTICS

Ever Flow River Group Public Company (EFR) joined hands with Ayeyar Hinthar Holdings Co., Ltd (AHH) to implement Ayeyawady International Industrial Port (AIIP) and set up a joint venture namely A Logistics Co., Ltd, according to the EFR’s press statement. Unison Choice Services Limited, a subsidiary of EFR, owns 60 per cent of shares of A Logistics Co., Ltd and 40 per cent are held by AHH Co., Ltd. They signed an agreement to implement multi-sectoral infrastructure development project AIIP in Pathein town, Ayeyawady Region.

The JV has carried out a feasibility study for over a year. The project includes bonded warehouses, container yard, international port terminals, and necessary infrastructure. Later, the port can handle international ships and ocean liners, as per the statement. The project is situated on about 6,700 acres of land in Pathein-Ngaputaw Highway. As per the agreement, A Logistics Co., Ltd will operate AIIP project, build the workforce, work design, support logistics to manufacturing and trading sectors, provide ocean freight service to penetrate the local products to the international market, import raw materials for CMP businesses and agriculture sector, and offer comprehensive logistics services.

Upon the completion of the project, it will bring about the market competitiveness, promoting Myanmar’s agro products in the international market, access to high-quality products, local productivity growth and job opportunities. 

Source: The Global New Light of Myanmar

Prudential Myanmar introduces first-of-its kind digital health and fitness module on AI-powered app Pulse

by SERVICES

To promote healthy habits among the people of Myanmar, Prudential has launched its first fully digital product PRUTerm Digital. PRUTerm Digital is a one-year term-life insurance product that provides financial protection against unfortunate and unforeseen events such as death, disability, and additional benefits for hospitalization due to accidents. Available exclusively on Prudential’s artificial intelligence(AI)- powered app- Pulse, PRUTerm Digital is an affordable product at 25,000 Ks and provides standard insurance coverage of 2.5 million Ks for one year. In addition, the customers can start enjoying the “Healthy Habits” pilot module on Pulse, which is designed to help them purse and track fitness activities, and receive rewards of free, additional insurance coverage based on their progress.

Pulse is now available in Myanmar and downloadable for free on both Apple App Store and Google Play Store. Through Pulse, Prudential aims to make healthcare accessible and affordable for everyone in Myanmar. To provide a seamless and delightful experience to customers, Prudential uses the latest advancements in AI and machine learning to automatically capture key customer information fields from their NRCs, followed by instant underwriting along with instant issuance of the insurance policy. The purchasing experience will be amongst the simplest with just a few clicks and digital payment through the WavePay App. Pulse also helps users to “earn points” easily by doing at least 15 minutes of daily healthy habits such as walking and running. The points automatically lead to an increase in insurance coverage at no additional cost. There are also other exciting and exclusive benefits to be enjoyed if users “share” with friends and family.

“Healthy Habits” of PRUTerm Digital reaffirms Prudential’s commitment to helping Myanmar people and communities lead healthy lives.It aligns with the company’s brand spirit of “We DO Health” and “We DO Fitness”. Prudential is committed to bringing in the latest insurtech and healthtech advancements to Myanmar through its AI powered app Pulse, which has been downloaded more than 8 million times in Asia, helping individuals and families get the most out of their lives. Research has proven that carrying out a healthy activity for just 45 minutes every day can go a long way in transforming the health and well being of individuals across age groups. Technology can also play a significant role in quipping individuals with the tools and features to purse and track health and fitness activities of their choice.

Source: Myanmar Times

Traders to broker direct imports, exports between Myanmar, India

by TRADING

The Upper Myanmar India Association will start its own trade brokering business after the Myanmar economy returns to normal following the COVID-19 pandemic. The purpose is to connect traders from Myanmar and India who want to business. Even though traders from India want to do business in Myanmar, many have no point of contact here. So if India’s traders who trade care accessories, medical products or peas come for business.

Since the outbreak of COVID-19 in March, trade between the two countries has come to a halt and border gates at Chin State, Sagaing and Mandalay, which have been the main trading routes between northeastern India and Myanmar since 2017, have closed. Trade is conducted via maritime routes only. In fiscal 2018-19, trade totaled US$201 million. This is consisted mainly of exports worth US$177.5 million. Both countries had just opened the border checkpoint between Reekhorda town in Chin State and Zowkharthar village in Mizoram, in August 2018.

The Reekhorda-Zowkharthar post is the second trade gate between Myanmar and India. The other trading post is located at Tamu in Sagaing Region and Moreh in Manipur, India, which opened up for regulated trade in 2018. There is also an integrated check post (ICP) in Tamu- Moreh, allowing both Myanmar residents and foreigners to enter India as well as goods on vehicles. Before the pandemic, the Japan International Cooperation Agency had been upgrading a road linking Reed to Tiddim and Kalay in Chin State to improve trade. Myanmar mainly exports betel nuts, beans and pulses as well as garments and plastics to India at the border.

Source: Myanmar Times

German companies in Myanmar struggle to meet investment targets

by INVESTMENT

German companies in Myanmar are scaling down further investments and expansion plans as COVID-19 continues to play out across the country as well as the rest of the world. The Delegation of German Industry and Commerce in Myanmar (AHK) recently released its business outlook survey report- AHK World Business Outlook 2020 Results for Myanmar- measuring business confidence and the impact of the coronavirus on German companies in Myanmar.

The majority of German companies in Myanmar expect the economy to recover by next year at the earliest, while 46.7pc in the survey expect an economic recovery in the course of 2020. More than two thirds of the companies see the lack of business support measures as the main challenge to overcome the current economic crisis. The support measures provide a number of very interesting incentives and are certainly perceived as helpful but 75pc of the companies who responded in the survey also suggested that the measures might not be enough to overcome the crises and would hope for more support.

Total trade volumes between Myanmar and Germany surpassed US$820 million in fiscal 2018-19. This year, Myanmar exported a total of US$620 million worth of goods, mainly garments and textiles, to Germany. It imported a total of US$190 million worth of goods, mainly machinery and pharmaceutical products from Germany. Meanwhile, five other German businesses have invested US$34 million worth of investments in Myanmar to-date. The largest investment by a Germany company in Myanmar is Metro Wholesale, which has channeled approximately US$10 million in its retail operations in the country.

Source: Myanmar Times

71 projects worth $7.9B added to Myanmar Project Bank

by INVESTMENT

A total of 71 new projects have been added to the Myanmar Project Bank since the start of the year, taking the list of projects to 129. The new projects include the US$900 million Yangon Elevated Expressway, $847 million No.1 Steel Mill in Myanmar in Myingyan, $660 million Sagaing international textile-based industrial cluster and the $524 million Bago-Kyaikhto highway.

The 71 projects have a combined value of $7.9 billion. The other projects include power infrastructure, solar and wind projects, roads and bridges, and recommissioning of state-owned factories. The Myanmar Project Bank was launched on February 26 with 58 projects. The loftiest project is the Yangon Central Station, which involves an investment of more than $2.1 billion. The project bank is an interactive web-based platform designed to highlight investment projects in line with the implementation of the Myanmar Sustainable Development Plan (MSDP) for 2018-2030.

The project bank represents “an online one-stop-shop, where all information on projects designed to implement the MSDP can be easily accessed with a single click”. It also establishes a reliable and transparent system which links major investment projects with appropriate sources if finance including Public-Private-Partnerships and provides more opportunities for the private sector to contribute to national development. All the projects are strategic in nature and align with MSDP.

Source: Myanmar Times

Myanmar govt’s plan to promote local tourism clashes with COVID-19 preventative measures

by HOTEL & TOURISM

The government has launched a plan to boost local tourism as international tourists remain locked out of the country due to commercial flight restrictions, this has clashed with its efforts to control COVID-19. On July 30, several famous pagodas in Bagan banned travelers from visiting 17 famous pagodas due to “health concerns.”This was despite local having already booked their transport and accommodation. Meanwhile, famous beaches in Ayeryawady like Ngwe Saung and Chaung Tha remained off-limits to visitors during that weekend, with travelers being advised that COVID-19 inspections were yet to be complete in the area.

The decision to reopen famous tourist destinations as part of the government’s tourism recovery plan will be made by the Central COVID-19 Committee. While precautions are necessary in managing the pandemic domestically, tourism businesses say they are unable to resume operations even though the government has pledged support for the sector. The majority of local agencies have suspended their operations while just a few are providing booking services for air ticket and hotel rooms. Many tour operators expect the Myanmar tourism industry to bounce back only next year.

The majority of locals are expected to travel mainly for religious reasons and during long weekends for relaxation purposes, local travel and tourism firms. Meanwhile, the Ministry of Hotel and Tourism will start conducting a survey on domestic travelers in an effort to support and improve the sector. The online survey includes 18 questionnaires related to the spending power, duration of travel and lodging preferences of local travelers.

Source: Myanmar Times

Domestic gold price hits new record high amidst global price hike

by ECONOMY

With the record high global gold price, the domestic gold price also hit a new record on 7 August with K1,332,500 per tical, according to the domestic gold market. Although the domestic gold price was a record high at K1,307,000 per tical (0.578 ounces, or 0.016 kilograms) on 5 September 2019, the gold price is a new record high again. While the domestic gold price was highly recorded at K1,300,000 per tical on 5 September 2019, the price of the global gold price has only risen to $1,550 per tical. With the rising of the global gold price, the global gold market saw the gold being sold for $20,000 per ounce on 5 August and the price continued to hike and hit a new record high at $2,062 per ounce on 7 August.

With the rising of the global gold price, the domestic one also hit the new record. The dollar versus the kyat exchange rate was K1,373 per dollar on 7 August. At present, there is a high demand for gold in the local market, according to a domestic gold trader.
With the slightly rising of domestic gold price together with the global gold price starting from 2019, the local gold price reached K1,000,000 per tical between 17 January and 21 February, K1,100,000 between 22 June and 5 August, K1,200,000 between 7 August and 4 September and, then reached an all-time high of K1,300,000 on 5 September 2019.

In April, the coronavirus risks caused the shutdown of the gold market, and the market reopened on 18 May with a minimum rate of K1,214,100 (27 May) and a maximum rate of K1,236,000 (18 May). The price was moving in the range of K1,209,600 on 6 June and K1,219,500 on 1 June. The local gold reached the lowest level of K1,216,500 (1 July) and the highest level of K1,296,500 (27 July), according to the gold traders.

Source : The Global New Light of Myanmar

Commerce ministry in Myanmar says corn exports “very promising”

by TRADING

While overseas demand for some Myanmar commodities has fallen short of forecasts this year due to COVID-19, exports of several locally produced crops have nevertheless risen and some even look promising.Myanmar corn is usually exported to China but demand from Thailand has raisen since the start of the 2019-20 fiscal year. According to the Minstry of Commerce, more than 60 percent of this year’s corn exports went to Thailand via the Tachileik and Myawaddy border towns.

The other Myanmar crop for which overseas demand has been promising is the avocado. According to the Myanmar Avocado Producer and Exporter Association, interest from Singapore and China on Hass avocados grown and harvested in Myanmar has been increasing. Hass avocados are the most commonly grown avocado variety in the world. Its fruit has high oil content and a nutty, rich taste. Its flesh is smooth textured and it has a thick skin casing.

In fact, Myanmar only started harvesting Hass avocados two years ago. as volumes are still low and due to disruptions caused by COVID-19, exports have yet to commerce. But demand is already growing. This year’s avocado cultivation has been successful and China has recently offered to import 500 tonnes per year. Singapore also wants 15 tonnes per week. There is a potential to break into the international market due to high interest from China, Singapore,Taiwan and Hong Kong.

Source: Myanmar Times

Rice export through sea trade up by $180 mln this FY

by TRADING

Myanmar rice export through sea trade generated an estimated income of US$581.6 million as of 17 July in the current financial year and the figures reflect an increase of $181.4 million compared with a year-ago period, as per data from Myanmar Rice Federation (MRF). Myanmar maritime trade constituted over 85 per cent of rice exports. Earlier, border trade was relatively high compared to sea trade in terms of rice exports. Since the previous financial year, border trade has dropped, and currently, it accounts for just 14.8 per cent of the total rice exports.

Rice exports through the borders have generated an estimated $96.68 million in the current financial year, which plunged from $173.3 million registered in the corresponding period of last year. Myanmar primarily exports rice to China through the borders. However, trading in agricultural products has been halted on account of China clamping down on illegal trade and China’s precautionary measures to contain the spread of coronavirus. It is difficult to ship rice in the rainy season. In July, rice prices significantly plunged as against June, said traders from Bayintnaung market. The volume of rice and broken rice exported between 1 October and 17 July in the 2019-2020FY has been estimated at over 2.25 million metric tons, worth over $678.29 million, according to an announcement from the MRF. In the current budget year, Myanmar has shipped rice to 66 foreign markets. China is the main buyer of Myanmar rice, followed by Malaysia and Madagascar. The Philippines is the fourth-largest buyer and Cote D’Ivoire the fifth-largest buyer of Myanmar rice.

In 2019-2020FY, Myanmar has exported broken rice mostly to Belgium, followed by Senegal, China, Indonesia and the Netherlands. Broken rice has been placed in 57 foreign markets. ASEAN countries constitute 17 per cent of Myanmar total rice exports. The European Union countries account for over 20.45 per cent of rice exports, while 30.2 per cent of total rice exports in Myanmar goes to African countries. According to the work coordination meeting held on 26 June, 150,000 tonnes of rice will be exported each in July and August. And, 100,000 tonnes of rice will be sent to the external market in September, totalling rice export quota of 400,000 tonnes. The Ministry of Commerce, Myanmar Inspection and Testing Service (MITS), the authorized organization of the State and MRF implemented rice reserve scheme on 30 April. The state has purchased an adequate amount of rice (50,000 tonnes). Myanmar shipped 3.6 million tonnes of rice in the 2017-2018FY, which was an all-time record in rice exports. The export volume plunged to 2.29 million tonnes, worth $691 million, in the 2018-2019FY.

Source: The Global New Light of Myanmar