Five partnerships announced across telecommunications, hospitality, consumer and business services sectors
MR No.: 009a/13
Singapore, Thursday, 4 April 2013
Singapore and Myanmar have strengthened economic cooperation with the opening of International Enterprise (IE) Singapore’s Overseas Centre in Yangon. An indication of the growing business interests between both countries, Singapore companies signed three Agreements and two Memoranda of Understanding (MOUs) with private sector counterparts in Myanmar, kicking off partnerships across a diverse range of sectors, namely telecommunications, hospitality, consumer, and business services.
Officiated by President Tony Tan Keng Yam, the opening of IE Singapore’s latest Overseas Centre in Yangon marks its 37
thglobal office. It is also IE Singapore’s seventh Overseas Centre in Southeast Asia, a region expected to chart GDP growth of above 5.5% this
year
1.
Said Mr Teo Eng Cheong, Chief Executive Officer (CEO) of IE Singapore, “Many Singapore companies in Myanmar today have their sights set on opportunities across a range of sectors. Having a presence on the ground, with the right insights and connections, will convert this interest into concrete projects in key sectors. We will also encourage companies to work together and provide a complete value chain of solutions. This will give them a crucial edge in this increasingly competitive market.”
IE Singapore’s Yangon Overseas Centre will facilitate trade and investment between Singapore and Myanmar in key sectors including infrastructure, industrial and urban development, transport and logistics, manufacturing and trading. It will also support Myanmar companies looking to use Singapore as a base to expand in Asia and beyond.
The office opening took place today at the Singapore-Myanmar Business Forum in Yangon. Also present at the Forum were Mr Khaw Boon Wan, Singapore Minister for National Development; Mr Teo Ser Luck, Singapore Minister of State for Trade and Industry; Mr Kyaw Lwin, Myanmar Union Minister for Construction; Mr Htay Aung, Myanmar Union Minister for Hotels and Tourism; Mr Robert Chua, Singapore Ambassador to Myanmar; Mr Tin Oo Lwin, Myanmar Ambassador to Singapore; Mr Teo Eng Cheong, CEO of IE Singapore; Mr Tony Chew, Chairman of the Singapore Business Federation (SBF) and Mr Win Aung, President of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). (Please refer to
Annex 1 and
2 for speeches by Mr Teo Eng Cheong and Minister Khaw Boon Wan respectively.)
The Forum was organised by IE Singapore with the support of SBF and UMFCCI. Over 200 members of the Singapore and Myanmar business communities were present.
Growing economic ties between Singapore and Myanmar
The three Agreements and two MOUs will see Singapore companies partner the Myanmar private sector and contribute to the country’s growth via investments and knowledge transfer. (Please refer to
Annex 3 for more information on the signings)
The industrialisation in Myanmar will give rise to a demand for companies providing supporting business services. An example is Singapore Telecommunications Limited, which signed an agreement with Straits Trading (Al Noor Group) one of the largest importers of mobile phones in Myanmar. Under the agreement, Straits Trading will distribute SingTel’s satellite phones, Broadband Global Area Network (BGAN), and satellite broadcasting bandwidth services in Myanmar. This partnership was a result of an Infocomm Technology (ICT) mission led by IE Singapore in October 2012. Another example is Singapore lighting solutions provider, Krislite Pte Ltd, which has been supplying lighting products to Myanmar since 1994. The company is set to supply lighting luminaires for the 2014 ASEAN Summit in Myanmar.
Amara Hospitality Capital, a subsidiary of Amara Holdings, the latest Singapore company to enter the fast-growing hospitality industry, will be developing a hotel in Yangon. Currently, Singapore is the biggest investor in Yangon’s hospitality industry with three of the largest international hotels – Parkroyal Hotel, Sedona Hotel, and Traders Hotel.
To ride on the potential of Myanmar’s 60-million strong consumer market, Ya Kun International will be opening in Myanmar, ahead of other international coffee chains. Yakun aims to open ten outlets across Yangon within 24 months, two of which will be located in top shopping malls in Yangon – the flagship Parksons Department Store at FMI Centre and Junction Square Shopping Mall.
Business chambers SBF and UMFCCI, also signed an MOU to develop an Executive Programme on Myanmar for the International Business Fellowship (IBF) platform in 2013. The IBF is a programme by IE Singapore to support Singapore-based companies in the training of company executives to acquire business knowledge and build networks in selected overseas markets, including Myanmar.
Singapore is currently Myanmar’s third largest trading
partner
2. Bilateral trade reached S$1.8 billion in 2012, up from S$1.6 billion in
2011
3. Singapore is currently the sixth largest source of foreign direct investments (FDI) for Myan
mar
4 , with cumulative FDI of S$4.4 billion as of end-20
11
5.
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1 Source: IMF, January 2013.
2 Myanmar Ministry of Commerce, as of 31 Dec 2011.
4 Directorate of Investment and Company Administration, as of 2012.
5 Department of Statistics Singapore
Note to Editor
Please use ‘IE Singapore’ or ‘IE’ if an acronym for ‘International Enterprise Singapore’ is required. In addition, unless otherwise stated, the use of statistics cited in our media releases, website or Statlink, should be attributed to IE Singapore.
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About International Enterprise Singapore
International Enterprise (IE) Singapore is the government agency driving Singapore’s external economy. For the past 30 years, we have been spearheading the overseas growth of Singapore-based companies and promoting international trade. Our vision is a thriving business hub in Singapore with Globally Competitive Companies (GCCs) and leading international traders.
IE Singapore attracts global commodities traders to establish their home base in Singapore. Today, Singapore is a thriving trading hub for the energy, agri-commodities and metals & minerals trading clusters.
Through our Global Company Partnership, we work with Singapore-based companies to customise total solutions in capability building, market access and financing for their internationalisation.
Our global network of overseas centres in over 35 locations provides the necessary connections in many developed and emerging markets.
WELCOME REMARKS BY MR TEO ENG CHEONG,
CHIEF EXECUTIVE OFFICER, INTERNATIONAL ENTERPRISE SINGAPORE,
AT SINGAPORE-MYANMAR BUSINESS FORUM
4 APRIL 2013
SEDONA HOTEL YANGON
His Excellency U Kyaw Lwin, Union Minister for Construction, Republic of the Union of Myanmar;
His Excellency U Htay Aun, Union Minister for Hotels and Tourism, Republic of the Union of Myanmar;
Mr Khaw Boon Wan, Singapore Minister for National Development;
Mr Teo Ser Luck, Singapore Minister of State for Trade and Industry;
Mr Robert Chua, Singapore Ambassador to Myanmar;
His Excellency U Tin Oo Lwin, Myanmar Ambassador to Singapore;
Mr Tony Chew, Chairman of the Singapore Business Federation;
U Win Aung, President of the Union of Myanmar Federation of Chambers of Commerce and Industry, or UMFCCI;
Distinguished Guests,
Ladies and Gentlemen,
Mingalabar! Welcome to the Singapore-Myanmar Business Forum.
Today, we are honoured to have so many government officials and businessmen from Myanmar and Singapore here with us to exchange ideas and information with one another. In addition, we will also witness the official opening of IE Singapore’s Yangon Overseas Office as well as the signing of five partnerships between Singapore and Myanmar companies.
IE Singapore drives trade and overseas investments
For the benefit of our Myanmar guests, allow me to give a brief background of International Enterprise Singapore, or IE Singapore. We are the government agency driving Singapore’s external economy under the Ministry of Trade and Industry. We were established 30 years ago in 1983 by our current President, Dr Tony Tan, who was then the Minister for Trade and Industry. Our mandate is to promote international trade and the overseas growth of Singapore-based companies.
The external economy of Singapore, comprising international trade and outward overseas investments by Singapore-based companies, is very important for us as we have a small domestic market. The external economy allows the Singapore-based companies to address market opportunities beyond our shores, and also contribute to the growth of the countries in this region. Today, we are the world’s 14th largest trading country with external trade three times our GDP. Our total stock of Direct Investments Abroad has also exceeded the size of our GDP.
To drive the external economy, IE Singapore attracts global traders to manage their trading operations from Singapore. Today, we are home to more than 300 global trading companies. We also foster partnership between foreign and Singapore companies through our global network of Overseas Centres. Today is a significant occasion for us, with the official opening of our 37th Overseas Centre, here in Yangon. We certainly hope that this is the start to many mutually beneficial partnerships between our companies.
Myanmar’s emergence as Southeast Asia’s last frontier
Myanmar is located at the heart of mainland Southeast Asia, China and India, which together, make up 40% of the world’s population. Besides their large domestic populations, these regions are also undergoing rapid industrialisation and urbanisation, leading to growing middle income groups. These regions look set to drive global economic growth for many more years ahead.
Myanmar itself has generated great excitement. The country has made great strides on many fronts, and has become much more attractive to trade and foreign investments in recent years. Coupled with its strategic location, Myanmar is well-placed to ride the wave of economic growth in this region.
Partners in business and trade
As Myanmar industrialises and urbanises, there will be many opportunities for Singapore and Myanmar companies to work together. IE Singapore has supported more than a dozen business missions across various sectors in the past year and continues to facilitate up to five business delegations a week on average. I am glad that today, we will see the fruits of some of these activities.
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For instance, Ya Kun is a 60 year-old Singapore company that offers traditional Singapore toast bread and coffee. Ya Kun is now working with its Myanmar partner, Avitar Group, to cater to the Myanmar public. It hopes to build over 10 outlets across Yangon in the next two years.
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In telecommunications, SingTel Satellite, together with the Al Noor Group, will collaborate to distribute Singtel’s satellite phones, its Broadband Global Area Network and provide satellite broadcasting bandwidth services in Myanmar.
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The opening of IE Singapore’s Overseas Centre in Yangon underscores the interest Singapore companies have in Myanmar. Through our Overseas Centre, we will have eyes and ears on the ground, to understand the business needs of the local community. With this, we hope to bring about meaningful partnerships that contribute to Myanmar’s growth. We also welcome our Myanmar friends to leverage on Singapore companies for their network in the region and beyond.
In closing, I would like to express my appreciation to UMFCCI and the Singapore Business Federation for their strong support in making this business forum possible. I look forward to working with them even more closely in Myanmar. Thank you very much.
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SPEECH BY MR KHAW BOON WAN,
MINISTER FOR NATIONAL DEVELOPMENT
SINGAPORE-MYANMAR BUSINESS FORUM
4 APRIL 2013
SEDONA HOTEL, YANGON, MYANMAR
“A Strong Long Term Relationship”
His Excellency U Kyaw Lwin, Union Minister for Construction, Republic of the Union of Myanmar;
His Excellency U Htay Aung, Union Minister for Hotels and Tourism, Myanmar;
Distinguished Guests,
Ladies and Gentlemen,
Last June, I visited Myanmar with ESM Goh Chok Tong. We had very good meetings here, focusing on potential areas of cooperation between the two countries. There were good follow-up activities and some collaborative efforts since then. I am glad to be back again to Myanmar.
Strong Bilateral Ties
Our bilateral relations dated back to 1966, when we established diplomatic ties. Since then, there have been frequent interactions between our two countries. Collaboration has been particularly extensive in technical cooperation. More than 9,000 Myanmar officials have participated in training courses under the Singapore Cooperation Programme (SCP) and the Initiative for ASEAN Integration (IAI).
When President Thein Sein visited Singapore in January last year, we further strengthened our bilateral cooperation when we signed a Memorandum of Understanding (MOU) to establish the Singapore-Myanmar Technical Cooperation Programme (SMTCP). This is an enhanced technical assistance package to support Myanmar in economic development, human resource development and public administration. Over the past year, more than 350 Myanmar officials have participated in over 20 courses and study visits on topics ranging from public housing, urban planning, legal services, to ASEAN-related issues.
Singapore will continue to support Myanmar's economic development in meaningful ways. As announced by President Tony Tan a few days ago, Singapore will set up a Vocational Training Institute in Yangon to help Myanmar build up a pool of skilled workers. This is important to help attract foreign investments to Myanmar. This project will be a tangible contribution to Myanmar’s industrial development.
We hope that these initiatives will be useful, as you embark on your political and economic transformation.
Singapore’s Development Experience
We think that we have relevant development experiences to share. In the 1970s, when we embarked on industrialisation, we had to rapidly equip our workers with relevant skills, create legal and financial institutions, and upgrade our physical infrastructure to meet the needs of the investors. I see Yangon, Mandalay and many other cities in Myanmar going through this phase of development in the next few years.
In the case of Singapore, given our limited land area, a lot of careful planning went into creating a liveable city environment that could support a fast-growing economy. Human population grew but we had to ensure no homelessness. Car population grew but we had to ensure no traffic jam. Factory population grew but we had to ensure no pollution. Water consumption grew but we had to ensure no water shortage.
As we addressed our many challenges which came with development, we built strong institutions and nurtured domestic capabilities. Along the way, our companies developed good experience in industrial development, urban solutions and master planning. Quite naturally, many have successfully exported their expertise overseas. For instance, in Vietnam, Sembcorp has tied up with local partners to develop five Vietnam-Singapore Industrial Parks in different parts of Vietnam, creating quality urban environments and many jobs in Vietnam.
We worked hard to develop our transport and logistics sectors. As a result, Changi Airport is consistently ranked amongst the world’s best airports. We are also one of the world's busiest seaports and transhipment hubs. This has created opportunities for the Changi Airport International and PSA International to market their expertise to airports and seaports in other countries from Brazil, China, India, Panama to Russia.
Singapore is far from perfect and its development a continuous struggle. We too face many challenges and have to constantly re-invent ourselves in order to prosper in a very competitive world. We are mindful that growth requires careful and constant minding. As a much bigger country with more than 60 million people, Myanmar has tremendous potential and shares many of the same priorities for sustainable and long-term development. Our vast differences, however, offer many complementary opportunities for our two countries to learn from each other and grow our partnership.
Enhancing Economic Relations
Our close ties extend beyond government relations. Singapore is one of your largest trading partners. The presence of Singapore companies is long visible in Yangon. For example, Keppel Land began operations with this very hotel in 1993. OCBC set up its first branch office here in the 1930s.
As you embark on your reforms, we see rising interest amongst more Singapore companies to do business here. The strong turnout today from the business communities is testament to this.
The potential for fruitful partnerships exists in many sectors including infrastructure, industrial and urban development, logistics, manufacturing and trading. We encourage Singapore companies to suss out these opportunities and turn them to profitable ventures. And to do so in a way which can bring long-term benefits to Myanmar and the local communities. Singapore enjoys a good reputation in many parts of the world. Singapore stands for something in the eyes of the foreigners: honesty, integrity, credibility and social responsibility. Our companies and our citizens stand proud wherever they operate. Please help to fly the Singapore Flag high and protect our good branding.
As businessmen, you have to make profit and there is nothing wrong about that. But let’s do so in a way which strengthens the Singapore Brand. Along the way, let’s help Myanmar achieve sustained economic growth and contribute to a good living environment for the locals. The signing of the Memoranda of Understanding which we will witness later is an example of meaningful partnerships which will bring critical infrastructure investments, jobs creation and knowledge transfer to Myanmar.
In return, we also encourage Myanmar companies to leverage the knowledge and experience of our Singapore companies to connect to the global economy. We have an extensive network of 18 Free Trade Agreements and an established business infrastructure which provide access and connectivity to international partners. Tap into this network and infrastructure, you will find that it will considerably speed up your growth and success story.
Platform to Boost Economic Partnership
At this inaugural Singapore-Myanmar Business Forum, we all have the privilege to witness the opening of IE Singapore’s Yangon Overseas Centre. This Centre signifies the Singapore Government’s intent to deepen our economic and trade relationships with Myanmar. Through the IE Singapore Yangon Overseas Centre, we hope to promote Singapore investments into Myanmar. It will also serve as a conduit for Myanmar companies looking to expand beyond Singapore, and in Asia.
On this auspicious occasion, let me congratulate IE Singapore and to also thank the Government of the Republic of the Union of Myanmar for your strong support. I would also like to wish all the business leaders present here, very fruitful interactions and meaningful opportunities. Thank you.
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Information on partnerships signed at the Singapore-Myanmar Business Forum
1.
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Sector: Telecommunications
About:
Agreement between Singapore Telecommunications Limited and Al Noor International to distribute Singtel’s satellite phones (Inmarsat), SingTel Broadband Global Area Network (BGAN) and satellite broadcasting bandwidth services in Myanmar. Al Noor International is one of the largest importer of mobile phones in Myanmar.
Signatories:
Jonathan Tan Poon Chin, Director of Singtel Satellite, Singapore Telecommunications Limite
Sheikh Babu Nooruddin, Managing Director, Al Noor International
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2.
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Sector: Services
About:
Agreement between Krislite Pte Ltd and Lighting Specialist Co. Ltd. to supply lighting luminaires for the ASEAN Summit 2014 in Myanmar. Krislite has been supplying lighting products to the country since 1994.
Signatories:
Jimmy Teo Cheng Ser, Group Managing Director, Krislite Pte Ltd
Kyaw Moe Naing, Lighting Specialist Co. Ltd.
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3.
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Sector: Consumer
About:
Agreement between Ya Kun International Pte Ltd and Myanma Food for Thought Pte Ltd to set up 10 Ya Kun outlets in Yangon within 24 months.
Signatories:
Marc Leoi, CEO, Ya Kun International Pte Ltd
Gerald Lee, Executive Director, Myanma Food for Thought Pte Ltd
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4.
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Sector: Hospitality
About:
MOU between Amara Hospitality Capital Pte Ltd, Youth Force Hotel and Youth Force Construction Ltd to develop a hotel in Yangon, Myanmar.
Signatories:
Paul Cheng, Director, Strategic Development and Marketing, Amara Hospitality Capital
U Tin Tun Aung, Managing Director, Youth Force Construction
Daw Myo Myo Phyo, Director, Youth Force Hotel
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5.
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Sector: N.A.
About:
MOU between SBF and UMFCCI to work together towards developing and organising an Executive Programme on Myanmar for the International Business Fellowship (IBF) platform in 2103. This Programme, which involves a week-long market immersion itinerary in Yangon, aims to confer Singapore participants with the vital business know-how and insights on the dynamics of doing business in Myanmar.
Signatories:
Mr Tony Chew, Chairman, Singapore Business Federation
Mr Win Aung, President, Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI)
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Ref;iesingapore.gov.sg
