May 4, 2015

Realtors in Myanmar seek to build up property business network

Realtors in Myanmar gathered here recently to seek ways of building and strengthening a network among the nation's real estate industry business amid slumping property market.

Real estate agents, brokers and other industry figures urged the government to issue licenses for real estate brokers, draft a real estate law and build a business network with realty associations in other ASEAN member countries.

The proposed real estate law, which is at the drafting stage, will be the first of its kind in Myanmar if introduced.

Since the beginning of this year, the once overheated property market in Myanmar has cooled down, fueling speculations that Yangon's real estate market will continues to fall this year from the peak.

Despite such prediction, sale and rental prices for apartments and houses in Yangon's main townships and suburbs remain unchanged.

Real estate traders insisted that there are positive sign despite current sluggish property market in Yangon, which is expected to grow 8 percent this year.

Office apartments market may enjoy a significant rise as local and foreign investors show great interest in Myanmar's real estate industry, one of the top sectors of foreign investment.

Yangon will continue to remain a major commercial center, predicting that the trend still makes it hard to strike a balance between supply and demand in 2015.

Focusing on three major constraints of Myanmar's housing property market - political change, economic outlook and limitation on foreign investment, estate agents said locals are upset about high rental fees which are on the rise almost every six months.

The government is working on a policy to solve the land-related problems.

According to experts, Myanmar's property market sees vitality thanks to the government's real estate property tax law. However, the estate prices are predicted not to fall in the future.

Meanwhile, Myanmar Real Estate Services Association has advised the government to reduce high tax fees in a bit to lure all tax payers.

Real estate remains the sixth largest sectoral foreign investment in Myanmar with 2.27 billion U.S. dollars, accounting for 4.21 percent of the total of 54.086 billion dollars as of February 2015 since late 1988 when the country opened such investment.

Source:Xinhua

May 1, 2015

Foreign insurance companies who meet their standards allow to work in SEZs says IBSC.

.Foreign insurance companies who meet their standards allow to work in SEZs says IBSC Insurance Business Supervision Committee (IBSC) will be the only granted foreign insurance company which meets their standardizations to work in Thilawa Kyaukpyu and Dawei special economic zones, according to its committee.

The committee said they will announce the profile of companies who are eligible to make business in SEZs during May.

“We have already drawn for the standardizations for foreign insurance companies. We will announce the standardizations later,” said Dr. Maung Maung Thein, Chairperson of the IBSC.

Moreover the companies who are allowed to work in SEZs need to pay US$30,000 license fees.

At present, Myanmar allowed foreign insurance companies including from Europe and South East Asia countries to open representative offices. Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. Ltd., Tokio Marine & Nichido Fire Insurance Co. Ltd., Taiyo-Life Insurance Co. Ltd., Poema Insurances, American International Assurance Co. Ltd., Samsung Life Insurance Co. Ltd., The Great Eastern Insurance Assurance Co. Ltd., Prudential Holdings Ltd., ACE INA International Holdings Ltd., Pana Harrison (Asia) Pte. Ltd., Manulife Financial Life Insurance and Wills are among the foreign insurance companies who have been granted to open representatives’ offices in Myanmar.

Local insurance companies have two kinds of insurance businesses. The first one is life insurance companies and the second is more general insurance companies.

Local and foreign insurance companies will have to collect insurance rates fixed by the IBSC and they can be granted general insurance including fire insurance.
Headline.

Source: Eleven Weekly Media

Apr 29, 2015

Oil Imports to Come by Sea

Sea-based import of 95 RON oil will begin in May, according to an announcement from the Association of Local Oil Importers.

Association secretary U Win Myint told Myanmar Business Today that maritime import has become more important as the cost of road transport from the Myawaddy border with Thailand has increased significantly.

U Win Myint said, “It is five times more expensive to import oil by truck, and the quality inspection process is much quicker on ships.”

The imported oil will be inspected by the Thanlyin Oil Refinery, and stored near the Thilawa special economic zone.

U Tin Naing Soe, Head of refined oil trade department said, “There has been increased consumption of 95 RON, and traders can acquire cheaper, higher quality oil from overseas.”

The Association of Oil Importers has stated that 95 RON will be imported from Singaporean and Malaysian companies starting in May.

Source: Myanmar Business Today

World Bank unveils US$1.6bn loan

The World Bank’s International Development Association has declared that it will contribute US$1.6 billion as a long-term, interest-free loan to Myanmar as part of its Country Partnership Framework.

The loan, set to distribute between 2015 and 2017, is the first complete project of many stemming from the first alliance since 1984 between the World Bank and Myanmar. Under this project, health-care services and conditions of around 3 million pregnant women and children are targeted as well as improving the living conditions, including access to electricity, of 6 million people.

The International Finance Corporation says it will be contributing US$1 billion and technological support worth US$20 million.

“The framework’s objective is to reduce the poverty rate and for the private sector to grow by allowing more people from a wider spectrum to participate. Only then will the poor and the needy will be able to benefit from the current improvements. In our task to improve the lives of the citizens, we hope to continue to work together with the government, private organisations and investors,” said the World Bank’s SEA Deputy Director Ulrich Zachau.

The World Bank’s declaration also stated that it would work to decrease poverty in remote villages and areas where 75 per cent of the country’s poor live, aiding the effort in economic governance to better help the poor and for an additional 3.5 million people to gain access to electricity.

It also aims to improve health care, education, small businesses development, IT and banking services and invest US$150 million to create private-sector business opportunities.

Source: Eleven Weekly Media

Trade with US reaches US$550 million

Trade between Myanmar and the US reached US$550 million in the 2014-15 fiscal year, said the Ministry of Commerce.

"Trade between Myanmar and the US increased to reach US$550 million. Goods imported from the US hit US$500 million and our exports gained US$50 million," said director Win Myint from the ministry.

The ministry explained that Myanmar imported consumer products worth US$428 million and investment-related equipment worth US$50 million and raw materials worth US$21 million.

Foreign investment in Myanmar hit US$8 billion while the country imported investment-related items worth US$7.3 billion.

Myanmar’s exports are split into seven groups, including agricultural products, and imports are divided into three main groups: investment-related items, raw materials and consumer products.

The foreign trade volume from April 1 to 17 this fiscal year saw a slight drop as it reached US$551 million, compared with that of last year which hit US$613 million in the same period.

Source: Eleven Weekly Media

Apr 24, 2015

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Apr 23, 2015

Schneider Electric and KTK Electrical Engineering partner to manufacture International Quality High Tech Medium Voltage Switchgear in Myanmar

Schneider Electric, the global specialist in energy management, and KTK Electrical Engineering, a leading electrical panels manufacturer and electrical products distributor in Myanmar, have signed a partnership agreement to provide a range of pre-designed and type-tested Air Insulated Switchgear in order to support the growing electrical distribution network of Myanmar.

This partnership allows the licensing of Schneider Electric NEX Air Insulated Switchgear technology and design to KTK Electrical Engineering, who will henceforth manufacture it in Myanmar.

NEX 17.5kV Air Insulated Switchgear is the result of worldwide acquired experience (more than 20,000 items of switchgear installed world-wide) and the incorporation of innovating solutions designed from tried and tested equipment such as high performances breaking devices, digital control, monitoring and protection chains, and enclosures able to withstand internal arcing.
It is the draw-out metal enclosed switchgear functional units with high performance breaking devices (vacuum technology) for indoor installation. The switchgear are equipped entirely with Schneider Electric’s Medium and Low Voltage equipment, such as Evolis, withdrawable, vacuum technology circuit breaker, sensors, MV connections, Sepam multi-function protection relay and Low voltage cabinets.

This fully IEC 62271-200 standard compliant product offers much better safety for the public and operators alike against electrical, mechanical and thermal effects of a fault. It is particularly suitable for the Medium Voltage section of HV/MV and MV/MV substations in all electrical distribution markets such as utility, energy, infrastructure and industry thanks to its robust design, pre-designed solutions, easy installation, reliability and reduced maintenance.

With this partnership, Schneider Electric underlines its commitment to develop local partners and contribute to the advancement of technological capacity in the country.

“We are proud to be part of Myanmar’s development in the electrical sector and to provide the possibility of locally manufacturing our NEX Switchgear. KTK Electrical Engineering, with many years of experience installing medium voltage equipment, the professionalism and expertise of their team, is for us a key partner to providing our solutions and technologies to customers in Myanmar.” stated Pascal Reigner, Country President of Schneider Electric Myanmar.

KTK Electrical Engineering will provide the complete solution to the users in Myanmar, leveraging their in-depth knowledge of the market and country’s electrical network.

“With this licence partnership, we make a leap in the manufacturing technology to produce the international quality level cubicles as per IEC standard. We are very proud to be the pioneer in Myanmar market to manufacture and provide first ever Type Tested Air Insulated Switchgear locally.” stated Ko Kyaw Thein Khine, Managing Director of KTK Electrical Engineering.

Schneider Electric Myanmar aims to unite information technology with energy infrastructure to create smart, energy efficient homes, buildings, and cities that create a greener community and a more sustainable future, with a priority to seek out and work with local talent and business partners to develop customized solutions meeting Myanmar’s unique needs.
This partnership is a new step in the implementation of this pledge over the years to come.

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About Schneider Electric

As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in Utilities & Infrastructure, Industries & Machines Manufacturers, Non-residential Building, Data Centres & Networks and in Residential. Focused on making energy safe, reliable, efficient, productive and green, the Group's 150,000 plus employees achieved sales of 24 billion euro in 2013, through an active commitment to help individuals and organizations make the most of their energy.

www.schneider-electric.com.mm


About KTK Electrical Engineering

KTK is in the business line of trading, manufacturing and factory automation of electrical goods. KTK produces Low Voltage, Medium Voltage, High Voltage Switchgear panels, Distribution Transformers and Semi-manufactured Elevators. KTK provides consultation, installation and services on electrical fields and project trading according to tender basis. KTK emphasizes value creation for customers by giving strong technical supports, absolute solutions and consultations. KTK believes it is one of contributions in gearing the power of local economy in electrical sector by technology transferring and manufacturing the global standard electrical products for our nation.


About NEX Air Insulated Switchgear

• Draw-out metal-enclosed switchgear functional units
• Indoor installation
• Vacuum breaking technology
• Rated insulation voltage: 17.5 kV
• Nominal current: 630 A to 2500 A
• Main circuit and Earthing switch short-time withstand current: up to 31.5 kA 3s
• Internal arc withstand: up to 25 kA 0.5s ALFR
• Three cubicle widths for the range



Please contact at Evelin Petkov, Business Development Director at evelin.petkov@schneider-electric.com
19B, 19th Avenue, Mayangone Township, Yangon, Myanmar
Tel: +95 (1) 9661120
Website: www.schneider-electric.mm

 
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