United Overseas Bank Group (UOB) has signed two loan agreements with clients to help support the development of the automotive and tourism industries in Myanmar.
The deals were signed on the occasion of official opening of the Singaporean bank’s branch in Yangon.
UOB’s loan agreement with Cycle & Carriage Automobile Myanmar Company will fund the building of two automobile showrooms and a servicing workshop in Yangon. These will cater to the rising demand for private transport, UOB said.
Following the country’s relaxation of automotive import regulations in 2012, Myanmar’s automotive industry has experienced strong growth, where the number of vehicles has increased by 86 percent in two years, and is expected to grow 7.8 percent per annum through 2019.
UOB will also provide loans System-Bilt Myanmar to build a 200-room extension for an international hotel, the Summit Parkview located in Central Yangon.
According to Myanmar’s Ministry of Hotels and Tourism, international visitor arrivals in Myanmar are expected to rise to 7.5 million in 2020 from 3.5 million in 2014 as the country attracts increased global attention.
Summit Parkview is the second hotel that UOB has financed in the last two months. In May, UOB helped Rangoon Excelsior Company Limited, a French-Myanmar joint venture, to refurbish a hotel in Yangon to meet the increasing number of tourists drawn to Myanmar’s rich cultural heritage.
Wee Ee Cheong, UOB Group Deputy Chairman and Chief Executive Officer, said, “[Our clients’] investments are directed towards meeting Myanmar’s growing urbanisation and industrialisation needs and sustainable economic growth. UOB is keen to support sectors that can help create far-reaching and long-term benefits for the country, including investments in infrastructure, manufacturing and tourism.
