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Two Japan Banks First Foreign Banks to Open Myanmar Branches
April 29, 2015 by
Thiha
Japan’s two top banks are set to open branches in Myanmar this week, becoming the first foreign banks to set up shop in the country: a place viewed by many as one of the “last frontiers.”
Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corp. will open branches on Wednesday and Thursday in the center of Myanmar’s capital Yangon. Singapore’s Oversea-Chinese Banking Corp.O39.SG +0.55%, which was also granted approval to open a branch, will start operations Thursday.
Last October, Myanmar awarded banking licenses to nine foreign banks including Mizuho Bank, Australia & New Zealand Banking. and Industrial & Commercial Bank of China.
For Japan’s top three lenders to each be granted banking licenses in the third world country is a big score for the Japanese government, which has been making great efforts to beef up its presence in Southeast Asia.
Since taking office in late 2012, Prime Minister Shinzo Abe has repeatedly traveled to the region, accompanied by large delegations of corporate executives. Japan’s financial regulators and top bankers have also made frequent trips to Myanmar over the past few years.
“We are confident that our bank can help transform Myanmar’s financial sector into one that is well-developed, and can effectively spur and drive sustainable economic growth,” Go Watanabe, the chief executive officer for BTMU’s Asia & Oceania said at opening ceremony for his bank’s branch in Yangon’s business district.
The Tokyo lender hopes to increase loans to Japanese and other foreign companies looking to do business in Myanmar.
Meanwhile, SMBC will open a branch Thursday in Pabedan Township in the center of downtown Yangon. The lender said it hopes to ramp up its transaction business and lending in foreign currencies. It can also provide online local currency money transfers through its local partner Kanbawza Bank, a bank spokesman said.
For Japanese companies, Myanmar is becoming a key area as the country has been controlled by military regimes and cut off from many things because of sanctions from western nations.
Companies such as Hitachi Ltd.HTHIY -0.81% and Marubeni Corp.MARUY +1.32% have announced plans to expand their presence there as they see many investment opportunities in the country, which suffers from poor infrastructure.
For foreign banks, business is still limited as they are not allowed to operate a retail-banking business and are not permitted to lend money to local companies.
Source: Wall Street Journal
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Auto Policy to be Set Up Within Six Months; Japan to Provide Assistance
May 12, 2015 by
Thiha
A comprehensive automobile policy will be set up within six months with Japanese assistance, said Dr Soe Htun, chairman of Automobile Manufacturers and Distributors Association.
The policy will ensure the public’s convenience and protection, he added.
Dr Soe Htun said the new policy might cause some fluctuation in motor vehicle prices once it comes out but it will help lessen Yangon’s heavy traffic problem.
“We are setting up this policy as there was previously none in Myanmar. There is now no consistency as policies are different across different departments. There is also no limitation for which models can be imported, although this regulation exists in many countries.
“The new policy would help improve the quality and safety of imported cars, and it should be followed by everyone in the private and government sectors.”
Sources say that the policy would address a wide range of issues including sidewalks, motor vehicle import regulations, permits to import vehicles with left-hand drive or right-hand drive, safety concerns, along with other regulations included in the policies of other countries.
Dr Soe Htun said that after the establishment of the policy, there would be benefits such as the presence of safer, higher quality cars and new job opportunities. In addition, government departments have to follow this policy along with the citizens.
The chairman also claimed that there would be collaborations among the Ministry of Industry, Myanmar Board of Engineering, his association, the Ministry of Commerce and other relevant government departments.
“The collaboration is essential to be able to set up a uniform policy. A draft policy was set up two years ago but was not completed. This time we have improved it.”
Source: Myanmar Business Today