Asia World Company to provide electricity for Bago region

An area of Yangon city with power blackout seen this year (Photo:EMG/Myo Min Htet)

Myanmar's Asia World Company has recently been granted permission to distribute electricity to 37 townships in Eastern Bago Region.

Asia World Group is Myanmar’s largest and most diversified conglomerate, which interests in industrial development, construction, transportation, import-export, and a local supermarket chain.

About half of Singapore’s investment in Myanmar comes through Asia World affiliates.

The Asia World Company.

The company is one of 20 private enterprises recently granted permission by Myanmar's government and President Thein Sein to supply electricity to 84 townships in other states and regions.

The winner companies are Gold Energy Limited, which is a subsidiary of Asia World Company, Ruby Dragon Construction, Capital Development, Eden Energy and Natural Resources Development Company.

Private power distribution companies will generate and supply not only electricity to the national grid but also reserve electricity when electricity cut off and power voltage is low.

Moreover, the companies have submitted the proposals to generate reserve power from coal-powered plants or natural gas-powered plants.

While the government outsources power distribution to private companies, there is yet no law in place that sets a standard for electricity supply and costs. Neither was any official announcement made about the contracts.

Many recognise the urgent need to upscale electricity production in Myanmar to meet a growing domestic demand for both businesses and private consumption. But many fear that a lack of regulation will lead to lack of accountability and exorbitant prices.

"If the industrialists invest in private power distribution enterprise, the public can enjoy more electricity. But, they [public] can’t get the electricity charges at the current price," an official from Yangon Region Government Committee said at a recent seminar held at the Sedona Hotel in Yangon.

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MoneyGram expands funds-transfer service to Myanmar via alliance

The Nation

MoneyGram, a leading global money-transfer company, has announced that its international service will be available in Myanmar and will be provided through an alliance with three banks: Asia Green Development (AGD) Bank, Myanmar Citizens Bank (MCB) and Tun Foundation Bank (TFB).

"We are happy to announce that we will be reaching consumers in Myanmar through our alliance with these exceptional bank agents," said Grant Lines, MoneyGram senior vice president for Asia-Pacific, South Asia and Middle East. 

Its money-transfer services will be offered in 10 of Myanmar's 14 states, giving consumers access to affordable remittances. 

It is an important step for MoneyGram as it increases its global footprint and makes services available to more customers worldwide, he said. 

MoneyGram's initial services in Myanmar allow consumers to receive money securely from friends and family through these three banks, which have locations across the country. 

Each bank was selected for its reliability and reputation: MCB is a public bank, TFB is almost 20 years old and privately owned, and the parent company of AGD Bank owns the largest chain of banking businesses in the region. 

According to the World Bank, there were more than 510,000 Myanmar emigrants living across the globe in 2010. It is also estimated that about 2 million former Myanmar residents now work in countries including Thailand, Singapore, Japan, Australia and the United States. The move strategically positions MoneyGram to provide services to previously underserved Myanmar customers, and aims to bring customers closer through money transfers that can be made to and from locations across the globe, it says. 

With the launch of money-transfer services at these three banks, Myanmar consumers can receive funds from nearly 80 countries including Thailand, Malaysia, Japan, Singapore, Canada, the United Arab Emirates and Britain.

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Myanmar real-estate summit to highlight infrastructure

The Nation

The second Myanmar Real Estate Summit (MRES), to be held in Yangon from September 30 to October 1, will hone in on pivotal issues, critical for investing in that country's real-estate development and property sector.

The sector is booming as investors respond positively to the country's economic and political reforms. Burgeoning demand and new opportunities are attracting investments from around the world. 

The extent of this can be judged by the fact that Yangon enjoys the highest property prices in Southeast Asia. The explosion in tourism is also leading to an acute shortage of hotels, residential buildings and mixed-use projects. 

Apart from new projects, old and existing properties are being refurbished and repositioned for generating incremental revenue.

New at this year's MRES is the spotlight on infrastructure developments, incentives for investments in special economic zones like Thilawa and Myothar Industrial Zone Park, the landscape of hotels and resorts in key tourist attractions such as Mandalay, plus discussions on financing and commercial terms including guidelines on land ownership and structuring joint ventures.

The summit will open with a welcoming address by the chairman of the Htoo Group of Companies, to be followed by a presentation on "Urbanisation of Yangon City: Master Plan and Outlook" by a senior official of the Yangon City Development Committee. 

Then there will be another address on "Mandalay as a Tourism and Industrial Hub" by a senior official from the Mandalay City Development Committee.

Among expert speakers from the real-estate industry will be Richard Leech, executive director for retail services at CB Richard Ellis (Vietnam) Co. He is slated to speak on "Retail Sector - Futurescape in Myanmar". 

Also on the speaker panel are Masaki Takahara, executive managing director of the Japan External Trade Organisation, with a presentation on "Infrastructure and Industrial Development: Thilawa Special Economic Zone", and Colliers International Myanmar managing director Tony Picon addressing the "Serviced Apartment Landscape in Myanmar".

The summit expects to draw regional and foreign property investors and developers, real-estate analysts, construction and engineering firms, consultants and brokerage firms, hoteliers, financiers and lenders, banks and financial institutions, asset managers and fund managers, real-estate funds, REITs, hedge funds and private equity, insurance firms, law firms, tax consultants, industry regulators and many more.

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