POLITICS
State Counsellor Aung San Suu Kyi visits US—President Obama promises to remove sanctions and restore GSP benefits
President Obama suggested the removal of sanctions would happen “soon”, but did not provide more detail on timing. The restoration of Generalised System of Preferences benefits should result in duty free imports into the US of Burmese goods. Reuters has indicated certain other restrictions will remain in place. http://www.reuters.com/article/us-usa-myanmar-idUSKCN11M05I
For more details, see a separate brief note, including the official White House statement, which has been posted to this website.
EU indicates it will not repeat UN resolution condemning Myanmar’s human rights record
The EU’s move reflects the Myanmar government’s “bold measures to improve human rights and re-invigorate the peace process”, as well as the release of political prisoners. The EU also welcomed the establishment of a commission, headed by former UN secretary general Kofi Annan, to investigate violence between religious groups in Rakhine state. http://www.reuters.com/article/us-un-assembly-eu-myanmar-idUSKCN11T27Y
ECONOMICS
Government raises Ks 200bn (c.$160mn) in second treasury bond auction
Of the funds raised, Ks 120bn was sold to private banks (AYA Bank, CB Bank and Myawaddy Bank—which is controlled by MEHL) and the balance to the state-owned Myanmar Economic Bank. The amount raised was in line with the target declared in the days running up to the auction, and the applicable yield was 8.84%. http://www.mmtimes.com/index.php/business/22644-bankers-satisfied-with-first-treasury-auction.html
Restructuring plan for Myanmar Agricultural Development Bank
The government is considering moving MADB from the purview of the Ministry of Agriculture to the Ministry of Planning and Finance as part of an effort to improve it operations and profitability. However, the bank, which has been consistently loss making, and relies on low-cost funding from Myanmar Economic Bank and the Central Bank, would first have to be structured into a proper entity with a Board, management and shareholders. A feasibility study will first need to be undertaken into this, as well as an investigation into the bank’s financial health.
This is being seen as the first step in the NLD’s proposed review of state-owned enterprises, which was promised in last year’s elections. http://www.mmtimes.com/index.php/business/22359-corporatisation-for-madb-next-step-in-state-enterprise-reform-efforts.html
IFC targets $800mn portfolio in Myanmar by mid-2017
Dealstreet Asia has reported that the IFC’s current portfolio ($386mn) is also expected to reach $600mn by the end of 2016—including $40mn of long term financing for Sembcorp’s 300MW power plant at Myingyan. According to the report, the IFC favours investments in the agricultural supply chain – distribution, logistics, cold chain and storage—which it believes plays to Myanmar’s competitive advantage. http://www.dealstreetasia.com/stories/ifc-to-reach-portfolio-of-600-million-investment-by-end-of-2016-53535/
US AID to provide guarantees for $10mn in microfinance loans
According to the Myanmar Times, the guarantees are being provided to 5 microfinance lenders and will cover 50% of their losses on qualifying assets. The lenders are free to stipulate the rates of interest applying to the loans but, as part of the package, have agreed to extend new lending to small agricultural enterprises without relying on groups of people to serve as guarantors for the loans’ repayment. US AID is hopeful the scheme will benefit c. 5,000 enterprises altogether. http://www.mmtimes.com/index.php/business/22637-usaid-backs-mfis-with-10m-guarantee.html
BUSINESS
Plans to open up insurance market
The Myanmar Times has reported the government plans to open the insurance market in Myanmar to foreign firms in 2017 and to reduce the restrictions on domestic firms. At present, not only the products that may be offered by the new private sector firms, but also the prices at which they are offered, are mandated under government regulations. A number of foreign firms have opened representative offices but, without licences to serve the domestic market, their activities have been strictly limited. In the long-term, they can offer badly need industrial expertise and capital, but at the risk of putting the domestic firms at a severe competitive disadvantage. http://www.mmtimes.com/index.php/business/22703-insurance-market-will-be-open-to-foreign-firms-in-2017-ministry.html
Plans to upgrade regional airports for tourism
The Myanmar Times has reported that the Japan International Cooperation Agency will be working with the government on the plans. In their sights are the airports at Heho, Nyaung-U which are close to the popular tourist destinations of Inle Lake and Bagan. The suggestion is that the work, which would include upgrading the airports to enable them to accept international flights, would be completed over 10 years from 2018, assuming the funds can be made available. http://www.mmtimes.com/index.php/business/22312-airport-upgrades-in-myanmar-s-lesser-known-hotspots-means-more-international-flights-and-tourists-insiders.html
IFC to support AWBA’s agricultural expansion with $10mn CB
The CB is to be used to finance the first phase expansion of a new crop protection facility, to built in Hmawbi, which it is expected will be capable of supplying up to 50% of Myanmar’s crop protection needs. http://alturl.com/ednn4
IFC mulling support for Bel Ga brownfield poultry breeding farm and hatchery project
Bel Ga is a Vietnam-based JV between a Dutch company, De Heus Animal Nutrition, and a Belgian company, Belgabroed, which is engaged in poultry breeding and hatchery. De Heus has already been working on a feed mill in Myanmar, which it expects to be commissioned imminently. https://disclosures.ifc.org/#/projectDetailESRS/1500
IFC considering loan to United International Group for Amata hotel projects
UIG currently operates three tourism hotels in Myanmar and is planning two further hotels, one in Bagan and another in Nyaungshwe. The total cost is estimated at $29mn and the IFC is considering offering loans with a combined value of $13.5mn, in two phases. https://disclosures.ifc.org/#/projectDetailSII/5400
Toyo Seikan and Loi Hein to build JV dinks can manufacturing plant at Thilawa
Dealstreet Asia has reported that Japan’s Toyo Seikan has received approval for a steel can manufacturing JV with Myanmar’s Loi Hein, to be located at Thilawa. The steel cans are to be used for Loi Hein’s energy drinks. http://www.dealstreetasia.com/stories/loi-hein-to-start-ops-for-23-5-m-can-manufacturing-for-their-products-in-2018-50456/
Yoma Strategic appointed exclusive distributor for JC Bamford (JCB) in Myanmar
JCB is the world’s third largest manufacturer of construction equipment and the JV will cater to the full range of equipment it produces. Find out more
