MOU opens more doors for Singapore firms in Myanmar

Singapore

INTERNATIONAL Enterprise (IE) Singapore on Thursday signed an agreement with the Myanmar Investment Commission (MIC) that will open more doors for Singapore firms to do business in Myanmar.

The opportunities for collaboration are in urban and housing solutions, utilities, transport and logistics, manufacturing, oil and gas, and professional services.

The agreement was one of two inked on the sidelines of the sixth Singapore-Myanmar joint ministerial working committee meeting, which was co-chaired by Minister for Trade and Industry (Trade) Lim Hng Kiang and Myanmar's Minister for Planning and Finance Kyaw Win.

IE Singapore's assistant CEO Tan Soon Kim, who signed the document with MIC secretary Aung Naing Oo, noted that Myanmar has grown steadily since its political and economic reforms started in 2011.

"While teething challenges are present, as with any emerging economy, we note the government's efforts to create a conducive business environment for foreign investors," said Mr Tan, citing the newly-passed Investment Law that shows a commitment to promote investments.

In 2016, bilateral trade between Singapore and Myanmar reached S$3.3 billion. Singapore was Myanmar's top foreign investor in the 2016 fiscal year (ending March 31, 2017) with investments amounting to US$3.8 billion.

According to data from the Asian Development Bank, Myanmar's economy is expected to grow 7.7 per cent in 2017, which would outpace last year's expansion of 6.4 per cent.

The other memorandum of understanding signed on Thursday was between Spring Singapore and Myanmar's Department of Research and Innovation to share expertise in the accreditation of conformity assessment bodies based on international standards and requirements.

The Singapore Accreditation Council, managed under the aegis of Spring Singapore, has been appointed as Myanmar's partner accreditation body.

The council's role is to provide accreditation services to their laboratories, and inspection and certification bodies, as well as provide technical assistance to develop their capabilities in accreditation.

This collaboration will provide greater assurance in the quality of products and services, and facilitate market access for businesses in both countries.

It will also further encourage the exchange of information in areas of common interest such as conformity assessment, accreditation services and related technical and quality issues.

In a statement, Singapore's Ministry of Trade and Industry said that the ongoing negotiations for a bilateral investment treaty between Singapore and Myanmar will be wrapped up by the end of 2017.

This treaty, first announced last November during Myanmar State Counsellor Aung San Suu Kyi's official visit to Singapore, will create a more facilitative environment for investors, and increase the level of protection for bilateral investments.