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Newsletter | May 2018

News | Inside GMBC | Upcoming Events

Myanmar Newsletter

Dear Reader, 

Welcome to the May edition of our Newsletter. 

The European 'General Data Protection Regulation' is effective as of 25.5.2018. We updated our data protection policies accordingly - thank you for your confirmation and continued interest.

We travelled to the AHK World Conference in Berlin in May to exchange views and gain understanding how the AHKs are developing and adjusting to the digital world. It was most interesting, and we are excited to be part of this process of modernisation.

We would like to highlight the very interesting development on the regulatory side in respect to the new company law, the minimum wage and further developments in the retail and wholesale sector.

If you wish to receive more frequent information, please like us on facebook or visit our website!

Yours truly,


Martin Klose,
Delegate of German Industry and Commerce in Myanmar

News

Political, economic and legal news

  • The new Myanmar Company Law (2017)
    For the purposes of the Myanmar Companies Law (2017), the draft Companies Regulations (2018) have been released for public consultation. Consultation feedback may be submitted by email or fax until 31st May, 2018. Furthermore, in preparation for the launch of a new electronic companies registry system, DICA is preparing a set of prescribed forms which will be needed for all companies to re-register (1 August 2018 - 31 January 2019).

    Linkicon  More information about the draft companies regulation

    Linkicon
      More information about the sample re-registration forms
  • Myanmar opens the retail and wholesale sector to foreign investors - under certain circumstances
    The new Directive 25/2018 allows retail and wholesale trading of all types of commodities which are domestically manufactured or imported from abroad, except those prohibited by law. The new regulation also describes the minimum capital requirement for 100% foreign owned business as well as for joined ventures. Furthermore shops must be at least 929 sqm in size.

    Linkicon  More information

    Linkicon
     
    Access to the Directive 25/2018 (in Myanmar language)
  • New minimum wage rate increased by 33%
    Since May 14 the new minimum wage is legally effective. The government accepted a suggestion of the National Tripartite Committee to set the new wage to 4,800 kyats/day. It applies nationwide to all industries and companies.

    Linkicon  More information
  • Myanmar has a new Minister of Planning and Finance
    U Kyaw Win resigned from his ministerial post at the Ministry for Planning and Finance last week. This week, the government announced his successor, U Soe Win, who has previously worked in the Myanmar banking sector and with Deloitte Myanmar.

    Linkicon  More information
  • Credit Bureau launched
    After years of preparation, the Myanmar Credit Bureau Limited got approved by the Myanmar Central Bank this month. It is expected that the Credit Bureau will make access to finance easier in Myanmar, particularly for MSMEs. The Credit Bureau is a joint venture between the Myanmar Banks Association and Singapore-based NSP Holdings

    Linkicon  More information

Investment and business news

  • German company ChaDo interested in tea market - following the footsteps of Tee Gschwendner and others
    ChaDo, a German company, wants to purchase 20 to 50 tonnes of tea from Myanmar in the next two years. In this context, ChaDo cooperates with the Myanmar Tea Cluster, which is part of the Myanmar Fruit and Vegetable Producers and Exporters Association. Reportedly, ChaDo plans to purchase the tea leaves at $7,000 per tonne but may pay up to $9,000 for higher quality tea leaves.

    Linkicon  More information

  • Power plants from Aggreko (UK) and APR (USA) replaced by rental power projects from VPower & NIHC
    The Ministry of Electricity and Energy has selected the winners of a tender for rental power projects in Mandalay Region. Although the winners have not been formally announced, U Han Zaw, chief engineer at the Electric Power Generation Enterprise, told Frontier that the tender evaluation committee had already made a decision. He confirmed that VPower (Hong Kong) has been selected to operate a plant at Myingyan, while Myanmar's National Infrastructure Holding Company will run a plant at nearby Kyaukse. Both will be fuelled by natural gas from the Shwe field. The plants should be ready by next summer.

    Linkicon  More information

  • LPG market expected to boom in Myanmar but still hampered by infrastructure constraints
    Although the market for liquefied petroleum gas is rising in Myanmar, there is a shortage of retailers and distributors, especially in rural areas. So far, only 3% percent of households in Myanmar use LPG but the government wants to largely expand this figure by as soon as 2020. Market analysts forecast that the demand will grow constantly. Myamar is currently generating 30% of electricity from natural gas fired turbines and 32% from LNG power plants.

    Linkicon  More information

  • Construction permit system in Yangon to be improved with support from the IFC
    The International Finance Corporation will cooperate with the YCDC on updating procedures for issuing construction  permits in the Yangon Region in order to improve efficiency and transparency.

    Linkicon  More information (page 4)



About the GMBC: Since 2015, the German Myanmar Business Chamber (GMBC) is the official membership organization of German businesses in Myanmar. It provides a platform for exchange, dialogue and cooperation for Myanmar and German businesses bringing together corporate activities and strengthening the German business community in Myanmar. The GMBC organizes events on a regular base covering important policy issues as well as interesting business cases. Moreover, these events are made to extend and improve the network of its members. Visit the GMBC website for more information.
This section introduces new members and covers recent activities of GMBC members in Myanmar. If you are a GMBC member and are keen to see your company featured in this section, please contact GMBC.

GMBC member acti
vities

Member news

  • BASF opened a new manufacturing facility in East Dagon Township to produce construction chemicals in Myanmar. More information and here on BASF.
  • Asia World Port refurbished with new equipment. More information

Events

     Past events     Upcoming events
  • June 8: Annual General Meeting at Rose Garden Hotel 
  • June 21: Joint Networking with AMCHAM at Chatrium Hotel Royal Lake
Also check out the new calendar feature on the GMBC website to stay up-to-date about events!

General Information

Energy solutions

AHK insights from the Yangon Investment Forum 2018 on May 9, 2018

During the Forum, the national and local Yangon governments repeatedly highlighted the need of infrastructure investments for Myanmar as a whole and Yangon in particular. H.E. Union Minister for Planning and Finance U Kyaw Win (note: U Kyaw Win stepped down since the Forum, see above) opened the forum by highlighting that the NLD government is going to prioritize infrastructure developments such as energy supply and transportation for its remaining office term (until March 2021). Mr. Chao Choon Ong, Managing Director of PwC Myanmar, concluded in his presentation that “power shortage is the single biggest impediment to industrialization [in Myanmar].” A positively surprising statement was made by Yangon Chief Minister U Phyo Min Thein who stated his vision that “the main supply of energy for the city [Yangon] is expected to be from the renewable energy sources”.  
The Yangon Investment Forum speakers also underlined the need for potential investors to build comprehensive knowledge about market conditions and legal frameworks in Myanmar. Furthermore, they encouraged proper branding and overseas promotion of Yangon as an investment location. The Delegation of German Industry and Commerce in Myanmar will gladly facilitate these activities and serve as a focal point for German companies taking a look at investing in the Myanmar market. 
All presentations and background information can be accessed online at www.yangoninvestmentforum.com/downloads/.

Nyaung-U airport goes green
The Japanese government will support the upgrade of Bagan's airport. The upgrade includes a renovated runway, a new passenger lounge and solar energy installations which shall underline Bagan's ecofriendly tourism strategy.
Linkicon  More information


AHK Business Trip to Myanmar: Water and sewage infrastructure in Myanmar (November 2018)


The German Water Partnership (GWP) and our Delegation of German Industry and Commerce in Myanmar are jointly organizing an AHK Business Trip to Yangon, Naypyitaw and Mandalay from 11 to 16 November 2018. German companies from the water and sewage infrastructure sectors are warmly welcome to join us on this trip. Kindly find more details below.

AHK tender information service
This year, we have successfully launched a new tender information service. This special tender newsletter informs you in a timely manner about tenders opened by the government or international organizations in Myanmar - including information only available via hard copy and Myanmar language. This is particularly ideal for companies not yet represented on the ground but eager to set foot in Myanmar. Please find more information on our website or contact us by e-mail.


Key figures for Myanmar
 GDP growth (est. 2017) 6.4%, GDP: 72 billion USD
 Population (2017) 53 million
 Export goods (2016) 11 billion USD; China, Thailand, India
 Import goods (2016) 16 billion USD; China, Singapore, Thailand
 Export services (2015) 3.86 billion USD
 Import services (2015) 2.44 billion USD
 Current account balance,
 % of GDP (2016)1
 -5.8%
 Exports to Germany goods (2016)2 172.4 million USD; apparel, footwear
 Imports from Germany goods (2016)2 76.8 million USD; machinery, vehicles
 Inflation rate 6.9%
 Unemployment rate3 0.8% (2015, ILO), 4% (2014, Myanmar Census)
 Aggregate measure of labor underutilization 6.9% (2015, ILO)
 Central Bank interest rate
 10%
 Lending/deposit rate 13% lending, 8% deposit
 Exchange rate (May 28, 2018) 1 EUR ≈ 1,586 MMK

1
According to the IMF, the actual deficit may be significantly lower as exports are not always recorded.

2 Using mirror trade data gives significantly higher imports (155.8 million USD) and exports (358.8 million USD).
3 While the census asks 3 questions about the labor force, and only one specifically about unemployment, the ILO survey asks stepwise several questions about employment, which leads, eventually, to a much lower number of unemployed. There is no significant difference in the workforce.
Sources: Trade data: UN Comtrade and UNCTAD (FDI), Economic data: WB and IMF, CBM for interest rates

Upcoming Events

June 8, 2018 | Rose Garden Hotel, Yangon
Annual General Meeting
The AGM of the German Myanmar Business Chamber is to be held on 8th June 2018 at Rose Garden Hotel this year.
Linkicon More Information
June 21, 2018 | Chatrium Hotel, Yangon
Joint Chambers Networking with AMCHAM
A networking night with the members of AMCHAM Myanmar and GMBC will be held at Club Rizzoli, Chatrium Hotel on June 21st 2018.
Linkicon More Information
June 26, 2018 | Münster, Germany
Round Table Myanmar
Join us at IHK Nordwestfalen in the beautiful city of Münster for a morning session on market opportunities in Myanmar.
Linkicon More Information
July 12 to 15, 2018 | Nonthaburi, Bangkok, Thailand
BIOFACH SOUTH EAST ASIA and NATURAL EXPO SOUTH EAST ASIA
For the first time, Germany's world-famous trade fair for organic products is coming to South East Asia
. Make sure you visit!
Linkicon More Information
September 10 -14, 2018 | Yangon, Myanmar
AHK Business Trip: Powering Myanmar's industrial growth with renewable energy (focus: PV & biomass)
Together with the Renewables Academy AG, our Delegation of German Industry and Commerce in Myanmar is organizing an AHK Business Trip to Yangon. During a symposium we will show business opportunities in the sector and discuss related potential challenges. German participants of the AHK Business Trip delegation will also have the chance to meet potential Myanmar business partners in individual B-2-B meetings organized by our team.
Linkicon More Information
September 20, 2018 | Eurogress, Aachen, Germany
10. IHK-Außenwirtschaftstag NRW
Join us at the global IHK-Außenwirtschaftstag in Aachen to discuss with our Delegate Mr. Martin Klose about business opportunities and market entry in Myanmar.
Linkicon More Information
November 11 - 16, 2018 | Yangon, Naypyidaw, and Mandalay, Myanmar
AHK Business Trip: Water and sewage infrastructure in Myanmar (November 2018)
The German Water Partnership (GWP) and our Delegation of German Industry and Commerce in Myanmar are jointly organizing an AHK Business Trip to Yangon, Naypyitaw and Mandalay from 11 to 16 November 2018. German companies from the water and sewage infrastructure sectors are warmly welcome to join us on this exciting trip.
Linkicon More Information

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AHK Myanmar
Martin Klose
Uniteam Building, 6 floor, 84 Pan Hlaing Street Sanchaung TS
11111 Yangon
Myanmar

+95 9 4506 293 64
martin.klose@myanmar.ahk.de