Japan and Singapore establish most rep offices for foreign banks

Published on Friday, 09 November 2012 17:15

Japan and Singapore have established most of the representative offices for foreign banks in Myanmar where a total of 22 offices have already been set up.    
"Right now most of the offices established in the country are from Japan and Singapore. There are also offices from countries such as China, Cambodia, Vietnam, and Brunei," said Deputy Managing Director Win Thaw for Central Bank.    
Currently Japan has already set up 4 offices, Singapore 4, Malaysia 2, Thailand 2, Cambodia 1, and Bangladesh 1 in Myanmar.    
The Central Bank is likely to issue a directive concerning setting up financial joint ventures in the country after the new foreign investment law has been enacted by the government.
According to its policy, the government would allow foreign banks to open their branches in 2014, while . currently the government only allows local private banks to set up joint-ventures with foreign banks to gain experience in world-class financial services, staff management, and technology.
However, foreign banks are eyeing the country to set up their branches. "Eighty per cent of foreign banks are not interested in setting up joint-ventures,” . said a representative from a Singapore-based foreign bank, “Most of them are interested in setting up branches.”
An official from a Japanese representative office said that it has no plan to set up a joint-venture in the country except providing technical support in management, services and technology.