Myanmar signs up for the Asian Development Bank’s Trade Finance Program

The Government has executed a framework agreement with the Asian Development Bank (ADB) in relation to the introduction of the Trade Finance Program (ADB TFP) in Myanmar. The ADB TFP fills market gaps for trade finance by providing guarantees and loans to banks to support trade. Backed by its AAA credit rating, the ADB TFP works with over 200 partner banks to provide companies with the financial support they need to engage in import and export activities in Asia’s most challenging markets. The program supports a wide range of transactions, from commodities and capital goods to medical supplies and consumer goods. With dedicated trade finance specialists and a response time of 24 hours, the ADB TFP has established itself as a key player in the international trade community, providing fast and reliable trade finance support to fill market gaps. (Source: http://www.irrawaddy.org/business/burma-signs-trade-finance-agreement-with-adb.html, 10 September 2015)

Jardine Lloyd Thompson establishes Myanmar representative office

Britain’s Jardine Lloyd Thompson Group (Jardine) has opened a representative office in Yangon. Jardine, which provides insurance, reinsurance, employment related advice and brokerage services, joins a growing list of international insurers with local offices.  Jardine, like all foreign insurers operating in Myanmar, is not permitted to provide insurance services directly. Instead, it will cooperate with Myanmar insurance companies and local businesses by providing information about Jardine’s products.  The Yangon office will provide information to Jardine’s international clients seeking to invest in Myanmar. (Source: http://www.mmtimes.com/index.php/business/16483-jardine-lloyd-thompson-opens-local-office.html, 15 September 2015)

Myanmar Gold Entrepreneurs Association advocates new centralised exchange

The Myanmar Gold Entrepreneurs Association (MGEA) has given its backing to proposals to establish centralised gold market exchange. According to the MGEA, a well-regulated market would help the industry meet international standards in relation to quality and pricing, while centralising trading. The MGEA expects that the market would initially have a local focus before going on to establish relationships with international partners. The MGEA envisages that the new market will maintain close links with local banks negating the need for cash transactions which characterise informal trading. Myanmar’s local gold price generally depends on two factors, the strength of the US dollar-Myanmar kyat exchange rate and the price of international gold. (Source: http://www.mmtimes.com/index.php/business/16484-golden-push-for-local-market-plans.html, 15 September 2015)

Yangon City Development Committee announces details of Comprehensive Urban Transport Plan

The Yangon City Development Committee (YCDC) has announced that the Comprehensive Urban Transport Plan for Greater Yangon (YUTRA) will be implemented on a buy-operate-transfer basis between the YCDC and private companies. The Japan International Cooperation Agency (JICA) has been assisting the Government to develop the Myanmar’s National Transport Master Plan and the YUTRA. The JICA has conducted a number of infrastructure surveys on behalf of the YCDC and estimates YUTRA will cost approximately US$24 billion. YUTRA incorporates three distinct phases or ‘action plans’ – a short term action plan until 2018, a mid-term action plan until 2025 and a long term plan until 2035. (Source: http://consult-myanmar.com/2015/09/16/yangon-urban-transport-plan-to-cost-us24-billion/, 16 September 2015)

Myanmar National Airlines and Sabre Corporation Ltd enter into comprehensive distribution agreement

State-owned flag carrier Myanmar National Airlines (MNA) has signed a comprehensive distribution agreement with technology provider Sabre Corporation Ltd (Sabre). Sabre will make MNA’s fares available to more than 100,000 travel agents in the Asia Pacific region. MNA, which is re-branded from Myanma Airways in 2015, recently announced it plans a direct flight between Yangon and Singapore and has said that it plans to expand to other Southeast Asian destinations in the future. (Source: http://www.thuraswiss.com/update/myanmar-news-database, 17 September 2015)

World Bank provides US$400 million interest-free loan to support National Electrification Plan

The World Bank has approved a US$400 million interest-free loan to assist with the financing and technical assistance of Myanmar’s National Electrification Plan (NEP). The loan will be made by the World Bank’s International Development Association (IDA). Under the NEP, the Government proposes to accelerate the expansion of the Myanmar’s national electricity grid and build off-grid power solutions in rural areas, in a bid to fulfil its stated goal of universal access to electricity by 2030. According to the IDA, the project will benefit over 6.2 million people by bringing electricity to more than 1.2 million households in Myanmar by 2021. The money will be used to expand the existing electricity grid by adding medium- and low-voltage distribution networks, and by giving more towns and homes access to grid-based electricity. This will also include off-grid electrification systems such as solar systems and mini-grids to bring electricity to rural communities far from the national grid. (Source: http://www.mmbiztoday.com/articles/world-bank-give-400m-improve-electrification,19 September 2015)

Daizen Myanmar to develop logistics hub in Thilawa SEZ

Daizen Myanmar Co. Ltd (Daizen) will shortly commence construction of the Thilawa Logistics Center to be based in the Thilawa special economic zone (Thilawa SEZ). Daizen has engaged Modair Engineering Ltd as the project sub-contractor. The Thilawa Logistics Centre is expected to provide cross-sector support to companies involved in importing/exporting from the Thilawa SEZ, from the procurement of raw materials to the distribution of products to consumers. The Thilawa Logistics Centre will provide warehousing, freight forwarding, transportation and processing services – such as x-ray inspection, tagging, packaging and labelling – as well as customs clearance, consulting and operations services. Daizen will also facilitate retail distribution by establishing a “transfer logistics center” connecting wholesalers and retailers, as well as cold-chain logistics for the food and beverage industry and is expected to be operational by May 2016. Daizen holds a ‘free zone permit’ but will be able to allocate warehousing space for both free zone and non-free zone clients. (Source:http://www.mmtimes.com/index.php/business/16597-japanese-company-to-build-logistics-centre-at-thilawa-sez.html, 22 September 2015)

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