Singapore strengthens economic ties with Myanmar
A deal will open doors for Singapore firms to explore opportunities in Myanmar.
The International Enterprise Singapore signed a Memorandum of Understanding with the Myanmar Investment Commission (MIC) to strengthen economic ties between the two countries and to open the doors for more Singapore firms to set up shop in Myanmar.
The deal provides an opportunity for Singapore firms to explore collaboration in urban and housing solutions, utilities, transport and logistics, manufacturing, oil and gas and professional services in Myanmar's market.
“Myanmar has shown steady growth since its political and economic reforms started in 2011. Whilst teething challenges are present, as with any emerging economy, we note the government’s efforts to create a conducive business environment for foreign investors. For instance, its newly-passed investment law shows the government’s commitment to promote investments. Through this MOU, we hope to further collaboration between both countries on urban solutions, transport and logistics, utilities and professional services,” IE Singapore's Assistance CEO Tan Soon Kim said.
As of end March 2017, Singapore was Myanmar’s top foreign investor with investments amounting to US$4.3b. As Myanmar’s key cities develop, IE Singapore has been working closely with Singapore companies across all sectors to contribute to the growing infrastructure and lifestyle needs of the burgeoning urban population.
For instance, through IE Singapore’s introduction and facilitation, BreadTalk successfully negotiated its franchise model with Myanmar conglomerate Shwe Taung. Its first stall in the country has opened in Shwe Taung’s landmark Junction City mall, occupying a prime space on the ground floor.
Meanwhile, Bok Seng Logistics made its first in-roads into Myanmar after identifying a credible local business partner with IE Singapore’s facilitation. In February, it signed a MOU with Ayeyar Hinthar, the largest conglomerate in the Ayeyarwaddy Region which owns the Pathein Industrial City (PIC), the region’s first large-scale industrial park. With this, it will explore provision of logistics hubs services to the PIC and beyond.