A new arbitration bill comes into force

A new arbitration bill has come into force in Myanmar .It replaces the existing arbitration legislation of 1944. Although Myanmar signed and ratified the New York Arbitration Convention in 2013, it has relied on the legislation of 1944 until now. But with the new bill in force, Myanmar has now the domestic legal framework to fully comply with the New York Convention. Under the Convention, arbitral awards issued in a country whch is a party to the Convention should be automatically enforced in other countries party to the Convention . The new law is said to mainly follow the language of the New York Convention. The new bill is believed to be an encouraging development for foreign investors and for foreign investment into Myanmar . The lack of a domestic legal framework to enforce arbitral awards had been one of the top 10 legal risks for foreign investors in Myanmar. Despite the new law, Myanmar is yet to develop its own domestic court of arbitration and it is also necessary to train some Supreme Court judges about the process of enforcing arbitral awards. For these reasons it will take some time for Myanmar to enforce arbitral awards in Myanmar courts.

                                                                                                                15 January 2016

A draft amendment to the Mining law of 1994 approved

                After more than 3 years of discussion in the parliament,an amendment to the Mining Law of 1994 of Myanmar was approved. It will become law 90 days after approval, according to the parliamentary procedure. The amendment includes new tax rates on mineral trading. Under the new amendment:

                -The licence for large-scale mining fields was extended from 5 to 15 years.

                -The licence for small-scale fields was increased from 3 to 7 years.

                There will be a new set of lower taw rates for profits on mineral trading- 5 percent for gold, platinum and uranium, 4 percent on silver, cropper, tin, nickel and titanium and 3 percent on iron, zinc and lead.

                While the old Mining Law of 1994 dealt with mineral exploration, measurements, production and large-scale and small-scale mining activities, the amendment deals with medium-scale production and purifying and trading activities.

8 January 2016

Myanmar gold exchange to be opened in 2016

                        According to the vice-chair of the Myanmar Federation of Mining Association, Myanmar first official market for gold and metal will be opened in Yangon early this year. The secretary of Myanmar Gold Entrepreneurs Association said,” Myanmar has never had an official gold market and there are only traditional markets. The emergence of the official gold market may keep the exchange rate and the price of goods stable and gold would be allowed to be exported through the new exchange while foreign buyers will also be able to buy other metals on the new market. It is learned that the President’s Office has already granted permission for the new market. It is also learned that debate is still going on as to which Ministry should be responsible for granting licences to qualified individual traders.

5 January 2015

More foreign banks getting licences next year

            The Central Bank of Myanmar announced on 14 December that it plans to issue a second round of foreign bank licences early in 2016. Nine foreign banks were issued with licences in the first round and they were required to put up a minimum of US$75 million in paid-in capital to set up a branch. US$ 40 million was deposited with the Central Bank. According to a Central Bank notice, foreign banks that have representative offices in Myanmar or those in the process of opening one can apply. It is learned that the licence will be for onshore wholesale banking. At present international banks are permitted only to lend to foreign businesses and domestic banks and not allowed to engage in retail operations.

            It is also learned that paid-in capital for the second round would be $75 million.

            In connection with the announcement, the Chief Executive at the United Bank of India’s Yangon office is reported to have commented ” …there is huge potential hare and a lot of unexplored markets”.

EOI for fourth telecommunication operator

            The government of Myanmar has invited international companies to submit expressions of interest (EOI) to set up a joint venture with a local consortium in order to become a minority stake holder in the fourth telecom operator of the country. However, Norway’s Telenor and Qatar’s Ooredoo, two foreign operators which were granted licences in 2013 own their local subsidiaries. Myanmar’s third telecom operator is the Myanmar Posts and Telecommunications (MPT). At present Telenor, Ooredoo and MPT have 11.8, million, 4.8 million and 16 million subscribers respectively.

            The initial duration of the fourth licence will be 15 years and can be renewed for at least 10 years.

            The secretary of the tender selection committee said that the licence will be granted next year, subject to approval, once the joint venture has been formed.

                                                                                                16 December 2015

Myanmar launches first stock market
    The Yangon Stock Exchange (YSX), Myanmar’s first-ever stock exchange market was opened on 9 December 2015.The companies first listed at the exchange are: First Myanmar Investment, First Private Bank, Great Horkham, Myanmar Agrilbusiness Public  Corporation, Myanmar Citizens Bank, and Myanmar Thilawa SEZ Holdings. It is learned that these companies will start selling shares in late February or early March, 2016. The YSX is capitalized at over US$ 32 million and is a joint venture between the state owned Myanmar Economic Bank, the Daiwa Institute of Research and the Japan Exchange Group. The MEB holds a controlling share of 51 per cent while the Daiwa Institute of Research and the Japan Exchange Group holding 30.35 per cent and 18.75 per cent respectively.
    According to Dr. Maung  Maung Thein,current Deputy Minister for Finance, who is also the chair of the Myanmar Securities and Exchange Commission, among the 10 securities companies that have been selected as players in the exchange, Kanbawza Bank Ltd has been licensed to provide services. The remaining companies will licensed later.

Special Trade Preference s for Myanmar
    Myanmar has been excluded for the last 27 years from the United States Generalised System of Preferences (GSP). The GSP was set up in1974 to strike duties off imports from122 countries. According to a US Embassy spokesperson, the United States has resumed review of Myanmar’s eligibility for GSP benefits. Under the GSP Statute, a country has to meet various requirements to be eligible for GSP which include, among others, the protection of internationally recognized worker rights and the provision of adequate and effective protection of intellectual property rights. These are among the considerations in the review of Myanmar. The spokesperson also said that the US will, beyond GSP, continue to review all their policies towards Myanmar, including economic and commercial engagement in light of the recent elections which represents a significant step forward in the democratic transition.
    At present, bilateral trade between Myanmar and the US for the year ending in October was just over $300 million, according to the Ministry of Commerce.
US sanctions relaxed on Yangon Port
    A general license has been issued by the US Treasury Department to allow trade to pass freely through Yangon’s blacklisted Asia World Port Terminal and other key infrastructure hubs,including Yangon International |Airport and all other trade links. The move is expected to boost the minimal bilateral trade between Myanmar and the US and constitutes Washington’s first relaxation of sanctions on Myanmar since the elections on 8 November.
                                                                                                           11 December 2015