Bangkok--5 Mar--Standard Chartered
- Able to help network of Wholesale Banking clients access opportunities in Myanmar with presence in all 10 ASEAN member countries
Standard Chartered, the bank that re-opened its representative office in Yangon in February this year, noted that Myanmar is taking initial steps towards reform and economic and infrastructure development. Standard Chartered Bank is ready to support private companies looking for cross-border business opportunities in Myanmar.
Ms. Lyn Kok, President and CEO at Standard Chartered Bank (Thai), said, “Since 2009, the trade value between Thailand and Myanmar has been increasing with an annual compound growth rate of 16%. Thailand is the largest foreign investor in Myanmar second only to China, with 23.3% of Myanmar’s FDI inflows. Recently, Myanmar has been active in reforming its economy and infrastructure. As such, there are a lot of opportunities opening up for interested Thai companies.
“Basically, Myanmar exports its natural resources. Similar to other developing countries, currently, Myanmar is importing a range of essential goods including consumer goods, intermediate materials, and capital goods like production machinery. Such a trading pattern implies that Myanmar has yet to be integrated into the production and distribution networks that have developed within ASEAN. Standard Chartered believes that financial institutions can play a key role in helping Myanmar re-integrate into the global business community by acting as a catalyst for trade, and providing technical assistance to support the country’s efforts in developing a strong and vibrant financial sector.
“The growth of local economies in South East Asia is driving trade and economic success across the region. We believe our presence in Myanmar will help our global network of Wholesale Banking clients to tap into these opportunities, and contribute to Myanmar’s efforts to grow in a sustainable manner,” concluded, Ms. Kok.
Standard Chartered has the broadest range of Wholesale Banking and Consumer Banking products and services in South East Asia, and through its network of 1,700 offices in 70 markets and its lengthy relationship with Myanmar, Standard Chartered will be able to assist its international clients to more readily access opportunities in the country.
In 2012, Myanmar’s GDP value was USD 60 billion, the seventh among ASEAN countries. The country’s growth averaged about 4.2% from 2002-2010. Standard Chartered expects Myanmar’s growth over the next few years to exceed its historical average. With a population of 60 million (the fifth largest in ASEAN) and a young workforce (the average age is 30), the government is likely to be keen to facilitate investments that will spur job creation in areas such as labour-intensive manufacturing and agriculture, which employs 70% of the population.
In terms of trading, Thailand is ranked as the single most important destination for exports from Myanmar. Up to 93% of Myanmar’s exports to Thailand comprise crude oil and natural gas. Meanwhile, Thailand is the second most important exporter to Myanmar (second only to China). The major product exported is petroleum (valued at USD 46.5 billion). Other exports include food and beverages, machinery, electrical appliances and vehicles.
Thailand is the largest foreign investor among ASEAN countries in Myanmar. However since 2009, FDI from China has been increasing exponentially. Last year, the total foreign investment in Myanmar was USD 41 billion, with FDI from China reaching a peak at a share of 34.5% followed by Thailand (23.3%), Hong Kong (15.5%), and Korea (7.2%). In 2011, the number of Thai visitors to Myanmar was 69,266 while the number of Burmese visitors to Thailand was 111,545.
The bank has had a history of over 150 years with Myanmar. Its history extends back to 1862 when the bank opened its first branch in Yangon (formerly known as Rangoon). That operation was nationalised in 1963. It also operated a representative office in Myanmar from 1995-2004.
For further information, please contact:
Pintip Iamnirath, Corporate Affairs
Tel: +66 27248022
Email:
[email protected]