Five companies granted the Yangon Stock Exchange (YSX) underwriting licences

                The Security Exchange Commission of Myanmar (SECM) announced that it has given underwriting licences to applicants that are ready to begin their operations. KBZ Securities Co Ltd and Myanmar Security Exchange Centre Securities Co Ltd were given licences on 26 February 2016 and Aya Trust Securities Co Ltd, CB Securities Co Ltd and KTZ Rubi Hill Securities Co Ltd were licensed on 1 March 2016.

                                                                                                                                                10 March 2016.

Myeik archipelago (The Mergui archipelago)---new investment destination

                Thailand tourism minister has made her first trip to Myeik archipelago to assess the opportunities for investment along the untouched coastline of Tanintharyi Region. Officials from Thailand and Myanmar have been discussing improved cooperation in promoting tourism in the area. Following the annual tourism forum in the Philippines in late January, the two countries met in February to discuss marketing themselves as a single destination. Subsequently, Thailand’s minister of tourism and sports, Kobkarn Wattanavrangkul, visited Myeik with a private sector delegation to assess the opportunities for development, as part of a programme called ASEAN connect. “We want people from other parts of the world to visit ASEAN countries, and we would like to focus on Myanmar. We can use the strength of our two countries combined- Myanmar has many untouched destinations, and Thailand has connectivity and airlines, “she said in an exclusive interview in late February. According to an official of the Ministry of Hotels and Tourism,Myeik remains virtually untouched with just 11 hotels in operation offering 441 rooms and there is so far just one wholly foreign- owned investment in the area – the Pearl Laguna Resort, on 13 acres of land in Myeik township.

                The Thailand minister thought that Myeik still has a long way to go in developing connectivity, launching flight routes, building hotels and providing reliable electricity. She also believes that Myeik’s opportunities to invest will develop as infrastructure improves. So Myeik has a great potential for both foreign and domestic investment.

                                                                                                                                                  11 March 2016

The Companies applying to become Myanmar’s fourth mobile operator confirmed

                Singapore’s Singtel, Hanoi- based Viettel, China Telecom, France’s Free, MTN of South Africa, Hong Kong’s ICOM and Beijing Xinwel have been confirmed by industry sources as the seven companies that have sent in their expressions of interest to become the fourth mobile operator of Myanmar. The winner of the tender will combine with a local consortium comprising 11 public Myanmar Companies and a government stakeholder to from a joint venture. It is learned that, with the new entrant, three goals, namely-providing affordable access, universal coverage and value-added services, are envisaged to be achieved.

                At present, about 70 percent of the Myanmar telecom market is already occupied by two foreign operators, Oredoo and Telenor and the state-owned Myanma Posts and Telecommunications (MPT).

                                                                                                                                        10 February 2016

Myanmar Condominium Law

                The Myanmar Condominium Law, drafted by the Ministry of Construction and had been stuck in the parliament for the past three years , due to difference of views between the Upper House (Amyotha Hluttaw) and the Lower House (Pyithu Hluttaw),was passed by the Parliament on 22 January for approval by the President. The Law approved by the President with some amendments was adopted by the Parliament on 28 January. The adoption of this long-awaited law could constitute a heartening boost to the stagnant property market of Myanmar and hoped to bring in nearly US$ 1 billion and also increase in tax revenue.

                Under the Condominium Law, foreigners can buy 40 percent of high-rise apartments that means 4 apartments out of every 10 on sale, provided the apartments are on the sixth floor or above. It is learned that the Law will also be applied to the existing condominiums if they meet the requirements contained in the Law.

                Though static right now, the Myanmar property market is hoped to develop beyond 2016 and people look forward to changes in the market and better prices. One member of the Lower House ( U Khine Maung Yee) said the new law would strengthen the property market and this will be of great interest to foreign investors doing business in Myanmar.

                                                                                                                                30 January 2016

Myanmar’s first EITI report 

                Myanmar was accepted as a candidate country with the Extractive Industries Transparency Initiative (EITI) in July 2014 and its first EITI report was issued recently. The report profiles extractive companies and details legal ownership. It also lists licenses and the areas they apply to and provides basic information about the award processes by which licenses were given. However, the report does not cover all the companies active in the natural resource sector and included 30 Jade and gem companies and 14 mining firms. The companies covered in the report account for 100 percent of revenue from the oil and gas sector. Revenues received by the government from the extractive industries totaled k3 trillion (US$ 2.2 billion). 85 percent of this and 13 percent and 2 percent are said to come from the oil and gas sector, from gems and jade sector and from other minerals respectively.Although all the companies in the extractive industries sector are not covered in the first report, it is hoped that the scope of the report would expand with every year.

                                                                                                                                22 January 2016

 Optimism on Myanmar’s potential for international investment

                The Secretary General of the ASEAN-Korea Centre said that political stability and reform-oriented new government will open Myanmar up to international investment. He also said that Myanmar, with a large population and a strategic location in a dynamic region, has great potential for development, that Korean companies are interested to expand their business relationship with Myanmar and that political development towards further stability will fuel economic growth and foreign investment. The Centre predicted, in its press release, that the launch of the ASEAN Economic Community (AEC )will herald a new wave of infrastructure projects in Myanmar, including rail and highways across the country. Despite the importance of the infrastructure and energy sectors in Myanmar at this juncture in time before the new government comes to power, Korean companies are said to be also willing to invest in manufacturing and services sectors.

                According to the data from the Directorate of Investment and Company Registration(DICA) , total Foreign Direct Investment(FDI) in Myanmar reached US$58.19 billion in 2015.

                                                                                                                              18 January 2016