Myanmar Monitor

Photo Credit: Frontier Monitor

Economy, Investment and Trade

Bankers warn unrealistic deadlines will cause economic disruption
(25 September 2017) Banking industry executives warn that a severe disruption to the economy may occur unless a deadline for complying with new lending regulations is eased. The regulations, most of which took effect on 7 July, include stricter treatment of non-performing loans, an increase in minimum capital requirements and higher risk weightings for fixed assets and certain loans. The main concern of bankers is a regulation covering widely-used overdraft lending. Mr Azeem Azimuddin, chief financial officer of AYA Bank, said that the new regulations are beneficial, but the timing and timeline for compliance is something that needs to be fixed.
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Chinese car-maker looking to produce cars in Mandalay
(22 September 2017) Chinese firm Shining Star International Holdings (SSIHL) is looking to start production of cars within the Mandalay Industrial Zone in the near future. According to SSIHL’s chairman, Yan Yu, the application form for the Myanmar Investment Commission is being drafted, while the exact location for production and assembly has already been selected. SSIHL expects to generate an estimated 10,000 cars per year, and to raise US$50 million of capital for the first phase. SSIHL has applied for permits and is still waiting for the permission to import raw materials in order to begin car production in Myanmar.
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Transport infrastructure hindered by budgetary constraints
(21 September 2017) Myanmar’s transport sector requires US$60 billion in investment in the next 15-20 years to develop railways, aviation and maritime infrastructure, according to U Win Khant, permanent secretary of Myanmar’s Ministry of Transport and Communications. Three existing airports are being upgraded through a public-private partnership (PPP) system. U Win Khant also lamented the difficulties in implementation due to budgetary constraints, and said that PPP is the only way to realise Myanmar’s transport master plan due to poor infrastructure, limited budgets and weak legislation.
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Foreign & Internal Affairs

Aung San Suu Kyi discusses the Rakhine crisis and the Myanmar economy
(27 September 2017) In a rare interview, Myanmar’s State Counselor Aung San Suu Kyi shared her opinions on the Rakhine crisis, international relations, as well as domestic and foreign economic priorities. Despite recent concerns over strains to the ASEAN relationship resulting from the Rakhine crisis, she believes that ASEAN countries still enjoy a good internal relationship both regionally and bilaterally. She also reassured foreign investors that development in the country would bring about stability and reduce conflict, and highlighted the need for investments to help develop basic infrastructure in the country.
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Malaysia breaks away from ASEAN statement on Myanmar
(26 September 2017) Malaysia disavowed a statement issued by ASEAN chair, the Philippines, as misrepresenting “the reality” of an exodus of 430,000 self-identifying ethnic Rohingya from Myanmar. Senior diplomats and foreign ministers of ASEAN nations discussed the contents of the statement on the sidelines of the United Nations General Assembly in New York before it was published, the Philippines Department of Foreign Affairs (DFA) and Malaysian government sources said, but no consensus was reached. Malaysian Foreign Minister Anifah Aman said that Myanmar must halt “atrocities which have unleashed a full-scale humanitarian crisis” and that a long-term solution to the conflict must be found.
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