Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Start it up: Laying the groundwork for start-ups to flourish during ideation

  Myanmar’s start-up ecosystem is coming into its own amid the development of several clusters in Yangon and an easing of business conditions in the country as a whole. Myanmar rose by six places in the World Bank’s “Doing Business 2020” report to 165th out of 190 economies after introducing a mandatory online platform for company registration and reducing incorporation fees, among other measures. Loring Harkness, CEO of Mote Poh, a Yangon-based start-up that enables companies to offer employees benefits and discounts redeemable via a mobile app, told OBG that changes to the Myanmar Companies Law of 2017 has made a material difference. Since August

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Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Electric solutions: The authorities adjust tariffs with an eye to reinvesting in building capacity and universal electrification

Uncategorized

  Although Myanmar’s installed generation capacity is 5 GW, actual generation capacity sits between 2.9-3.1 GW. With the Ministry of Electricity and Energy (MoEE) predicting that daily demand will increase by another 1.5 GW over the next few years, the authorities are looking at avenues to boost production levels. The World Bank expects demand to be even higher, forecasting an average annual growth rate of 11% to 2030, with peak demand reaching 8.6 GW by 2025. In addition to the future hikes in demand, only

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Pham Hong Hai-CEO-HSBC Vietnam

The power of choice: Harnessing gas resources to meet domestic power needs

  Despite being Myanmar’s most valuable export commodity, there is still an imbalance in the supply and use of gas. The country produces 1.8bn standard cu feet (scf) of natural gas per day, but consumes just 100m scf per day. In addition, there is an extensive network of natural gas pipelines that run through most of the energy demand hubs in the country. Nonetheless, Myanmar still imports gas, as most of the domestically produced gas is exported to China and Thailand. In 2017 Myanmar exported some 13.44m tonnes of natural gas and earned more than $3bn in revenue. However, as its economy grows, Myanmar could

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Éric N’guessan-Managing Partner-EY Côte d’Ivoire

New city rising: Chinese investment drives large-scale development

  Mandalay is booming on the back of rising international investment and government efforts to foster the northern city as an engine of national growth. Local officials expect the economy to grow by 8.1% in 2019, outpacing national GDP growth of 6.1% and the city’s 2018 growth rate of 7.2%, the regional chief minister, U Zaw Myint Maung, told local press in March 2019. “Situated between India and China, Mandalay will experience a housing and infrastructure boom in the future that will position the city as one of the most important hubs in the region,” U Han Thein Lwin, CEO at Shwe Taung Engineering and

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Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Growing greener: ASEAN green and sustainable bonds are on the rise

  The year 2019 marked the second anniversary of ASEAN’s inaugural bond issue under the organisation’s common Green Bond Standards (GBS) – a RM2bn ($480m) issue by the Malaysian government-controlled asset manager, Permodalan Nasional. Since then, the green bond market in Asia Pacific has won many accolades, with 2018 seeing the region record the second-highest volume of outstanding, climate-aligned bonds worldwide, according to a study by the London-based Climate Bonds Initiative (CBI). The CBI documented a record $389bn in outstanding green bonds around the world for 2018, up $72bn on 2017. Demand for these products is growing across the region as investors seek ethical investment

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Emmanuel Macron-President of France

Policy evolution: Increased financial flexibility allows greater access to the market

  In January 2019 the Central Bank of Myanmar (CBM) gave the green light for banks to raise the share of home loans in their portfolios to 5% of the total and to extend debt instrument maturities beyond the previous limit of three years. The move saw credit extended to the real estate sector surge by 200% in the first quarter, albeit from a small base, in the process enfranchising thousands of would-be homeowners with the financial flexibility to purchase their own property. According to the CBM, housing loans extended by private banks almost doubled between the fourth quarter of 2018 and the first quarter

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Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Infrastructure drive: Road and rail upgrades are set to unlock economic development and provide opportunities for private investment

  In a bid to address an existing infrastructure deficit, Myanmar is ramping up activity in the transport sector, which is expected to encourage further economic development. In March 2019 State Counsellor Daw Aung San Suu Kyi and Thailand’s Prime Minister PrayutChan-o-cha officially opened the second Thai-Myanmar Friendship Bridge, two decades after the first one was built in 1997. The Thai-funded bridge in Myanmar’s east, which connects the city of Myawaddy with Thailand’s Mae Sot district over the Meoi River, cost around $126m to construct

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Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Port of call: Increased trade and freight movement is encouraging greater investment in maritime infrastructure

  Myanmar has a total of nine coastal ports and more than 400 inland river ports. Its location close to major shipping routes and some of the world’s emerging economic powers, combined with a growing openness to international trade, could see the country unlock much-needed investment in maritime infrastructure in the decade leading to 2030. High Potential Myanmar’s coastal ports are at Sittwe, Kyaukphyu, Thandwe, Pathein, Yangon, Mawlamyine, Dawei, Myeik and Kawthaung. Although the Myanma Port Authority manages the ports, most cargo terminals are privately

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Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Gears in motion: The established garments segment continues to expand, while foreign automakers move to set up local operations

  Garment manufacturing has been the driving force behind the development of Myanmar’s manufacturing sector. The Myanmar Garment Manufacturers Association (MGMA), the primary trade association supporting the industry, estimates the segment employs 450,000 workers, more than 90% of whom are women, across its 600 member factories. Garment exports rose from $349m in 2010 to $4.6bn in 2018. The MGMA maintains the industry is on track to create 1m jobs and meet the target of $10bn of exports under the Myanmar Garment Industry Strategic Plan 2014-24.

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Daniel Asare-Kyei-CEO-Esoko; Curtis Vanderpuije-CEO-ExpressPay; and Daniel Marfo-General Manager-Zipline Ghana

Diverse offerings: Physical retailers trial multiple models to compete for a piece of the burgeoning retail market

  As Myanmar’s economy continues to expand, with GDP growth forecast at over 6% in 2019 and 2020, the country’s young urban population benefits from increasing opportunities to sample new food, beverage and entertainment options, particularly as incomes and leisure times rise. Furthermore, the government’s move to open wholesale and retail markets to 100% foreign ownership is expected to accelerate the entrance of overseas brands, and promote consolidation in the country’s highly fragmented retail sector. According to real estate service provider Colliers, a steady stream

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