Soilbuild – a small Singapore construction firm that ventured into Myanmar 30 years after its founding

Soilbuild Construction Group took the plunge to expand overseas even though it was fully aware the move offered no guarantees of profit. Its executive director explains why. SINGAPORE: When it comes to ensuring the growth of our local companies, the most common refrain nearly all bosses of small- and medium-sized enterprises (SMEs) hear is this: […]

Fighting against potential financial risks

Reading through the 7/2017 directive by the Central Bank of Myanmar (CBM) on the implementation of the Asset Classification and Provisioning Regulation, the words and phrases that captured my attention were: “cash flow pattern of the borrower”, “credit risk analysis” and “term loans with up to a maximum maturity of three years.” These technical terms […]

Myanmar drafts digital economy master plan

The Digital Economy Development Committee (DEDC) is drafting the Myanmar Digital Economy Development Master Plan to develop and regulate the country’s booming digital economy, committee member U Mya Moe Aung said. In addition, the DEDC will prepare a short-term (2-3 years) and a medium-term (3-5 years) working programme. It will start implementation when the master […]

Financial services among the fastest growing sectors in Myanmar

The financial sector rose the most among 15 sectors managed by the government in the first six months of the 2017-18 fiscal year, growing 22 percent as a result of the implementation of new financial services, U Set Aung, deputy minister of the Ministry of Planning and Finance, at Pyidaungsu Hluttaw meeting on Thursday. “If […]

Businesses, government must embrace digital technology to stay relevant

To develop and expand, Myanmar must embrace and keep up with the pace at digital technology is changing the economy and the way companies do business around the world, tech experts at the Digital Transformation Summit said. The summit was jointly held by the Myanmar Federation of Chamber of Commerce and Industries (UMFCCI) and US […]

Dilemma on minimum wages could lead to better productivity

Concern is rising among employers over demands that the minimum wage be raised to K4,800- K6,600 ($4-$5.20) per day from K3,600 per day currently. That’s a potential increase in wages of more than 80 percent, a move which, if implemented, could put many companies out of business. The Confederation of Trade Unions in Myanmar (CTUM), […]

Why the construction sector is ailing and how it could recover

To help the construction and real estate sectors expand and stay profitable, government support in the form of tax and loan policy reforms is necessary, developers said. Currently, developers must pay taxes of up to 10 percent on the sale of condominium units priced between K100 million to K500 million. Meanwhile, buyers must pay a […]

SMEs voice frustration over confusing government policies as challenges mount

Small and medium enterprises (SMEs) are still struggling to compete and expand five years after U Thein Sein’s former government established a central committee to support the sector and after the Central Bank of Myanmar recently permitted banks to approve loans without collaterals. On top of limited access to capital, insufficient supporting infrastructure, high taxes […]

Businesses urge overhaul of banks’ loan policy

Banking experts and senior officers from the International Council of Small Business (ICSB) said Myanmar must change its loan policy to make it easier for businesses to access debt for growth. In Myanmar, loans issued to businesses are approved based on collateral and are mostly extended over a short term. Compared to other countries, the […]

New insurance scheme to provide aid in obtaining loans

Co-operative Bank (CB) is preparing to launch a new Credit Guarantee Insurance (CGI) system so that it can extend wider financial assistance to the country’s small and medium enterprises (SMEs). CGI covers businesses against non-payment of debts owed to them by business customers for goods or services provided on credit terms. As part of that […]