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Myanma Foreign Trade Bank is Home to Foreign Business in Myanmar, it
is originated as Foreign Department of The State Commercial Bank
established in 1954. All local banks and foreign banks were nationalized in
1963 and new Bank Law was enacted in 1976 and Myanma Foreign Trade
Bank took over Foreign Exchange Division of Union of Burma Bank. In 4th
July 1990, the Financial Institutions of Myanmar Law was enacted,
Myanma Foreign Trade Bank was deemed to have been established and
attained the status of a separate legal entity and to provide the external trade
and non-trade foreign exchange operations in harmony with market oriented
economy.
Myanmar has replaced the centrally planned economy with a more
liberalized economic policy based on market oriented economic system
since 1989. In moving towards a sound and efficient financial system, it
would facilitate to conduct in domestic and external trade, promoting the
role of private sector and opening up to foreign investment. Amendments of
the existing laws were made and new laws were promulgated in banking,
customs and taxation areas.
The Myanma Foreign Trade Bank is carrying out its operations with full
capacity to the following main functions: Providing foreign banking services such as maintaining foreign currencies
accounts.
 Issuing , advising and confirming letters of credit and drawing, accepting
and collecting bills of exchange.
 Inward and outward remittances.
 Issuing and advising bank guarantees and Financing for Government
project .
 Collecting foreign cheques and draft, collecting credit cards.
 Communicates and conducts international banking business with foreign
correspondent banks.
 Issuing the authorization to pay for the Grant Aid Projects.
 Calculates and announces the daily foreign exchange rates by using CBM
reference rate.
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MFTB is focusing on both the government and private sectors, its foreign
exchange transactions of trade and non-trade volume are larger than others.
MFTB is one and only bank in Myanmar which endeavors to cooperate with
other overseas financial institutions through Cooperation Agreements and
Credit Line Agreements in order to support and development of various sectors.
In collaborations with the Export-Import Bank of neighboring countries,
Myanma Foreign Trade Bank has been assisting financial facilities to
implement important projects in the areas of infrastructure, agriculture,
industrial and telecommunications.
As the bank is striving for improving its services in order to meet the needs of
its customer, the bank has received the Century International Quality Era Award
in the Gold Category for the Year 2007 which is presented by the Business
Initiative Directions (BID), Madrid, Spain for achievements in quality,
leadership, excellence and customer satisfaction. The bank, at present, is
performing its international banking services through its comprehensive
network of over 250 banks in 50 countries.
E-mail ; [email protected]
[email protected]
Website ; mmftb.com
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Our vision for the twenty-first century is to become a modern developed
nation that meets the aspirations of its people for a better life; and to
achieve greater integration with the international community by 2020.
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actively engaged in building a new, modern, peaceful, developed and
democratic nation
Focusing on People Centered Development by reducing poverty and
developing rural areas
necessary to strengthen systematic market economic system and to
accelerate the pace of economic development
Rule of Law and improving people service delivery
Promoting efficiency and effectiveness
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Focus more on political reforms:
Peace Talk, Bi election, Release of prisoners
Focusing on good governance,
Clean government
Institutional reforms
Second
Stage
• FESR
• Quick Wins, Long term development
• People centered Development
Econo • People Centered Government
mic
• Close cooperation, coordination and collaboration among the ministries, regional
Reform and local governments
public
administrative
reforms which
would pave the
way for ensuring
the good
governance and
clean government
Better service
delivery
Rule of Law
Training
Mind Set
reform
Bottom up
Initiatives
As part of efforts for the emergence of a good governance and clean government,
an Action Committee against Corruption is formed to fight against corruption and
bribery in government organizations on January 8, 2013.
Entering into Global
Market Access
Necessary Economic
Laws
Macroeconomic
Stability
Infrastructure
Technology Transfer
Credit Access
Standardization
Business Ethics
International Trading
Laws
Management
1. Ÿ The Central Bank of Myanmar(CBM) is separately entitled in accordance
with the Central Bank of Myanmar Law and has a responsibility to make a
Monetary authority to formulate and implement of the Country Monetary
Policy, laid down the rules and regulations to promote efficient payments
mechanisms and financial sectors stability through prudential measures to
manage Foreign Exchange reserve.
Ÿ CBM has issued Authorized Dealer License to 11 private banks, has allowed
Money Changer license to 19 private banks and granted the license to 24 –
Foreign Bank Representative offices. CBM granted the nine branches of
Foreign Correspondent Banks.
Ÿ April 1, 2012, announced the new currency exchange program at financial
sector reforms . It is “managed floating exchange rate” system, will be driven
by supply and demand market forces as opposed to the previous process of
having the monetary authority prescribe the reforms in banking area. At
present CBM issue the daily reference exchange rate, within plus (or) minus
0.8% in maximum and minimum margin, having played the interbank
market between the private banks and state owned banks.
2. Ÿ CBM has launched an electronic data transfer and reporting system
(EFT) among the financial institutions has commenced since 2007.
Ÿ CBM have introduced the Myanmar Payment Union for the
intention of National Payment Switch (NPS) and to reduce the
Payment in cash basis.
3. Ÿ Foreign Direct Investment Law and Rules was enacted recently in
all sectors of the economy with favorable incentives for Foreign
Investors and it is now seeking to establish a initial step of capital
market, which is preparing to establish the Country’s first stock
exchange in 2015. the new FDI Law is encouraged to our country
liberalization in the trade and to open up private sector investment
opportunities and developed in both domestic and external trade.
Framework on Economic and Social Reform
(FESR) : Policy Effectiveness
Fundamentals and
foundations
 Macroeconomic stability
 Robust growth
 Poverty-reduction and
inclusive development
Vision and National Goals
 Vision and Strategic
Thrusts
 Short-term goals
 Long-term goals
Priorities and sectoral
strategies
 Quick wins: Peoplecentred development
benefits by 2015
 Sectoral strategies
Framework
for
Economic
and Social
Reforms
Strategy and processes
o Public consultations
and feedback
o Growth with equity
o Coordination
mechanisms
o Monitoring and
evaluation
Quick wins for inclusive growth
• Macroeconomic stability and take-off
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Fiscal and Tax Reforms
Monetary and Financial Sector Reforms
Liberalization of Trade and Investment
Private Sector Development
Mobile Phones and Internet
Health and Education
Food Security / Agricultural growth
Governance & Transparency
Infrastructure
Effective and efficient Government
Long Term Vision and Policy Process
Stage 1: Five
Year Plan
(2011 - 2016)
E.g. includes
"quick win"
implementati
on
Stage 2: Five
Year Plan
(2017- 2021) Eg.
Strengthen
economic and
investment
base; key steps
to reduce
poverty and
inequality
Stage 3: Five
Year Plan
(2021 - 2025)
E.g.
strengthening
domestic and
international
connectivity
NCDP Vision
(2030):
Developed
Nation
Integrated
into the
Global
Community
13
Electricity
Water Supply
Agriculture development
Employment Creation
Tourism Development
Financial Services
Trade and Investment
Own
Budget
Foreign
Direct
Investment
Source
of
Finance
Aid
Loan
Grant
Trade and Investment as the engine of growth
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Business laws, rules and regulations for the company registration are being
amended and improve for the faster processes.
Some laws, rules and regulations are to be amended and some laws will be
enacted
Foreign Direct investment Law amended
Revised Foreign Investment Law and it will create more economic
opportunities and business friendly environment.
Special Economic Zone Law, Dawei SEZ Law
Necessary law such as Competition Law, Consumers Protection Law are also
under process.
(1). Central Bank of Myanmar Law. 11-7-2013. (2)Foreign Direct Investment
Law and Rules. 2-11-2012. (3)Myanmar National Investment Law. 29-7-2013.
(4)Foreign Exchange Management Laws. 10-8-2012. (5)Security Exchange
Law. 31-7-2013. (6)Myanmar Special Economic Zone Law. 23-1-2014.
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Myanmar has a long history of mining in gemstones, gold, silver, amber, antimony,
cinnabar and cooper sulphate which can be traced back to the regimes of the ancient
kings of Myanmar.
In 1989 Myanmar embarked on a policy of encouraging foreign investments inviting
foreign companies for prospecting and exploration in the mineral sector in
Myanmar.
The Myanmar Mines Law was promulgated on 6-11-94 to invite foreign investors
to invest in Myanmar and it governs prospecting, exploration and production of
metallic minerals, industrial minerals and stones.
Types of possible investments can be through production sharing or profit sharing
arrangements.
Myanmar’s Economy Today
• GDP in 2012 about USD 55 Billion
•Per Capita Income USD 856-900
•Agriculture sector 36 % of GDP, 70 % of the employment
•Very low investment and saving ratios ( Below 15% GDP)
•Traditional Primary Exports ( Gas, Minerals and Gems) over 70%
of total
•Most FDI in energy and mining only
•Current account positive until past 3 years as imports being
liberalized
•Very low fiscal revenues
•Social indicators ( health and education ) : expenditure is still
low,