Politics
NLD proposes U Htin Kyaw as its principal candidate for President
U Htin Kyaw is likely to be Myanmar’s next president, taking over from President Thein Sein at the start of April.
U Htin Kyaw, aged 69, is a close associate of Aung San Suu Kyi with strong connections to the senior echelons of the NLD and has had training in economics from universities of Yangon and London. Aung San Suu Kyi has made it clear that, although she is barred from the presidency herself, she expects to be calling the shots in the running of the country, and expects the president to follow her bidding.
The other candidates for president put forward by the parliamentary parties are Henry Van Thio (NLD’s Upper House candidate) and Sai Mauk Khan and U Khin Aung Myint, the USDP’s Lower House and Upper House candidates respectively. Each house will select one candidate from this list, who will then be put up—alongside one other nominee of the military – for selection by the Pyidaungsu Hluttaw, a combined sitting of both chambers of parliament.
Given the NLD’s overwhelming majority, U Htin Kyaw is widely expected to win through. The other two final candidates will then become vice-presidents.
Please use the following link to see a short report from the BBC’s Jonah Fisher on the selection process:
http://www.bbc.co.uk/news/world-asia-35770535
The following report from the Myanmar Times is a useful summary of the issues surrounding Aung San Suu Kyi’s role in a “government by proxy” and also of the structure of the National Defence and Security Council, in which the military effectively control a majority of members.
http://www.mmtimes.com/index.php/national-news/19251-outsourcing-the-presidency-the-problems-with-the-proxy.html
Economics
World Bank issues “shared prosperity” policy notes on Myanmar
In re-affirming its belief that the Myanmar economy has the potential to grow at 8% per annum in the next 5 years, the World Bank has issued policy notes outlining three priority areas on which the new administration needs to focus if this is to be achieved.These are: (i) continued economic opening and diversification, with a level playing field for the private sector and a shift to more productive and labour-intensive activities (ii) improvements in the provision of services in education, healthcare and energy and (iii) improved accountability and transparency in the public sector.
The World Bank highlights access to social services, reducing rural poverty, private sector competitiveness, financial inclusion, energy policy and public sector governance as its six key “pathways” to growth and shared prosperity.
Please use the following link to read the World Bank’s policy notes:
http://www.worldbank.org/en/country/myanmar/publication/all-aboard-policies-for-shared-prosperity-in-myanmar
Business
UK’s $300mn export credit facility
Coinciding with a visit to Yangon by its transport minister, Lord Ahmad, the UK has launched a $300mn facility to support UK exports to Myanmar. In addition to providing cover for UK exporters competing for business in Myanmar, the UK will also offer lending support to the Myanmar government in projects with a notable UK content. The minister indicated that infrastructure is a priority area. He also used the occasion of his visit to launch the UK’s “Business is GREAT” campaign, designed to help connect British suppliers to companies in Myanmar.Please use the following link to read the UK government’s press release on Lord Ahmad’s visit:
https://www.gov.uk/government/news/lord-ahmad-visit-builds-trade-ties-between-uk-and-burma
BIDV, E Sun, Shinhan Bank and State Bank of India to obtain banking licences
The Central Bank has announced that it is awarding four new foreign banking licences to BIDV of Vietnam, E Sun Commercial Bank of Taiwan, Shinhan Bank of Korea and the State Bank of India. This brings the total number of foreign bank licences to thirteen.http://www.mmtimes.com/index.php/business/19338-cb-names-four-new-faces-for-myanmar-s-banking-sector.html
MPT at 18mn telecom subs, Telenor at 14mn, Ooredoo at 6mn; Ooredoo obtains $300mn in loans from IFC/ADB
The number of mobile phone subscribers has continued to grow. The market leader remains state incumbent MPT, which is working with Japan’s KDDI and has 18 million subs. Telenor follows with 14 million, with Qatar’s Ooredoo placed third at just under 6 million, according to the Myanmar Times.ARPU rates seem to have have slipped somewhat to the $4.7 to $4.8 level, with competition and the build-out into rural areas.
http://www.mmtimes.com/index.php/business/technology/19286-ooredoo-user-growth-rate-doubles.html
Ooredoo has separately announced it is to receive $300mn in finance from a combination of the IFC and ADB to be used in the rollout of its telecom network.
http://ifcextapps.ifc.org/ifcext%5Cpressroom%5Cifcpressroom.nsf%5C0%5C89CA9D27E24D304085257F6900173DA4
Developments in mining sector
In the mining sector, PanAust Group (a subsidiary of Guandong Rising Assets Management) has been awarded three licences to explore for copper and gold mining opportunities in the Sagaing Region. PanAust Group operates a copper and gold mine in Laos and is exploring copper and gold opportunities in Papua New Guinea and Chile. The company plans to carry out geochemical sampling and mapping with a view to identifying drill targets by the end of the year.http://www.panaust.com.au/sites/default/files/u12/CompanyAnnouncement_MyanmarLicence_FINAL_0.pdf
The Myanmar Times has also reported that two mining companies from Australia and India have applied for licences to explore for copper and chromite in Chin State. Their applications will be assessed by the state, which will then issue its recommendations to the Union government for its consideration.
http://www.mmtimes.com/index.php/business/19341-two-foreign-companies-apply-to-explore-for-minerals-in-chin-state.html
Second gas column success for Woodside
Australia’s Woodside Energy has announced it has encountered a second gas column in its exploration areas off the Rakhine coast. (It announced success in the more southerly Shwe Yee Htun block in January). Woodside has a 40% interest in the northern Thalin block, alongside Daewoo International’s 60% interest. A link to Woodside’s press release follows:http://www.woodside.com.au/Investors-Media/announcements/Documents/12.02.2016%20Woodside%20Makes%20Second%20Gas%20Discovery%20in%20Myanmar.pdf
Nissan plans car assembly operation
The Myanmar Times has reported that Nissan expects the first cars from its assembly line to reach the market later this year. Production will scale up to 10,000 units / year with a move to a new production line in Bago later.http://www.mmtimes.com/index.php/business/19055-myanmar-made-nissans-to-arrive-this-year.html
IFC mulls $10mn CB for AWBA
DealStreetAsia reports that the IFC is considering a $10mn financing facility to Myanma Awba, an agricultural group producing crop-protection products, fertilisers and seeds. If approved, the loan will be used to support the construction of a new agro-chemicals plant, as well as AWBA’s micro-finance activities.http://www.dealstreetasia.com/stories/ifc-announces-10m-loan-to-myanma-awbas-expansion-31910/
DealStreetAsia has also reported that another Myanmar group (MAGDPL) plans to invest $29mn over three years on a facility to handle agricultural products at the Thilawa SEZ.
http://www.dealstreetasia.com/stories/myanmar-dealbook-a-wind-powered-project-to-kick-off-in-the-coastline-of-myanmars-delta-western-coastal-city-kyauk-phyu-to-complete-k40-million-waste-incineration-project-32928/
