Singapore Bullion Market Association

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Myanmar’s Gold Market

Like many Asian countries, gold is a popular investment and used as a store of wealth in Myanmar, particularly as a slowdown in other areas of the economy, including the property market, are pushing local investors to invest in gold. The gold market in Myanmar is very liquid, but it is illegal to export Myanmar gold.

The supply chain in Myanmar comprises wholesalers, providers, jewellers, retailers, miners and refiners, including four major refiners and 25 small refiners, with wholesale markets located in Yangon and Mandalay. Three associations support the supply chain: Myanmar Gold Development Public Company, Myanmar Gold Entrepreneurs Association, and Yangon Gems & Jewellery Entrepreneurs Association.

However, the infrastructure for gold trading is still not developed. Many activities, including settlement procedures, are currently not regulated. Refining levels are also below international standards (the quality gold is typically 99%, not “Four Nine”). As standardisation is not strict, the purity of gold varies depending on source.

The distribution of gold demand is as follows – store of wealth: 55%; jewellery: 40%; industrial: 5%.

The wholesale market in Yangon, located at 42 Shwe Bhone Thar Street, managed by the Myanmar Gold Entrepreneurs Association.

All market players (floor traders) are members of the Myanmar Gold Entrepreneurs Association. The association has about 300 members, who pay a membership fee of 500,000 kyat (US$382) per year. All trades are done by open outcry on the floor. There is no booth, and a pit only on the floor. Traders use mobile phones to contact external parties and as there is no proper clearing system, trades are not recorded. As such, a lot of the traders work on the basis of trust. Settlement takes place physically in another location by COD.

Myanmar has an independent gold market, so gold prices are not necessarily determined by international prices. However, trading prices closely reflect international market prices, and it appears that traders refer to international spot prices at the time of opening as a benchmark, converting it to local units and currency. Besides, international news broadcast on TV gives local players an idea of the international market, which influences trading decisions. During our visit to the Myanmar Gold Entrepreneurs Association, there was a power failure, but surprisingly, trading continued under such conditions.

Gold Bar Retail Market

Retail gold bars are traded in Myanmar using local scales: Kattha (Ticals) = 16.3293 g, Petha = 1.02058 g, Yway lay = 136.078 mg, and the local currency (kyat). Transactions may not be entirely transparent, and prices may differ among shops and in different regions. Three brands are prominent in the market, namely, Academy, Aung Thamradi and Ba Than.

gold bars

Investment in Mining

The Myanmar government encourages foreign and local investors to invest in the mining sector, subject to 5% royalty upfront and a production sharing of about 30% of net output. Investors can enter a mining sector with a foreign direct investment or through a joint investment with a local company. Besides this, the Myanmar government also encourages the establishment of refinery plants as well as smelters with the latest technology. Investment information details are at the Ministry of Mines website (http://www.mining.gov.mm/).

The size of the gold mining market is anybody’s guess. There are currently 5 to 6 blocks of large-scale mining rights granted to a few big companies at Waphyutaung Area, Yamethin Township, Mandalay Region. Collectively, they could be around 5-10 tonnes of output annually. There are about 472 small-scale mining companies registered with the Mining Ministry.

Myanmar Gold Development

Myanmar Gold Development (MGD), the commercial arm of the Myanmar Gold Entrepreneurs Association (MGEA), was set up on 27 June 2012, with an authorised capital of 1 trillion kyat (US$1.1 billion). Shares will be sold for 100,000 kyat each and investors who buy at least 250 shares are eligible to sit on its board of directors. MGD currently has 12 shareholders.

Myanmar Gold Development (MGD), the commercial arm of the Myanmar Gold Entrepreneurs Association (MGEA), was set up on 27 June 2012, with an authorised capital of 1 trillion kyat (US$1.1 billion).

MGD was set up to prepare for new foreign direct investment by bringing together small and medium-sized enterprises into a public company, Chairman U Khin Maung Han said at its launch in 2012. He said that MGD would also increase public investment opportunities, boost the economy and increase the number of opportunities for the mining industry to work with foreign companies to improve its capabilities.

MGD has been active in trying to build a modern gold trading mechanism for the Myanmar gold market that would service the gold mining sector and help the central government to account for local gold production with a proper export channel.

In 2017, after a long period of overseas market visits and consultation, MGEA advised the government to create a central trading platform. Known as the Myanmar Gold Market Centre (MGMC), the platform aims to improve the quality of gold products and bring pricing in line with international standards.

While the MGEA will restrict trading to local investors initially, it has publicly announced an interest in bringing in foreign investors at a later stage.

Physical gold transactions in Mandalay and Yangon are currently not tightly regulated and are self-regulated by the two respective associations, with no strict standard on locally produced gold. Advancements are set to be made in various areas to raise the level and standards of trade. The intention is to put official trademarks on gold bars, and MGEA is pressing the government to regulate taxes on gold, all of which will aid the development of the initiative of creating a vibrant domestic gold market.

The numerous hurdles to the development of the gold market mostly mirror those faced by the Yangon Stock Exchange, such as raising accounting standards, following international best practices, recruiting experienced technical staff and local traders, as well as recruiting enough market participants, but these are steps in the right direction.

Note: The current infrastructure and supply chain for gold are for domestic trading only as the import and export of gold are currently prohibited under the laws of Myanmar

Wholesale Market Specification

Trading hours 11:00 – 16:30
Minimum trade unit: 1 bar = 10 Kattha (Ticals) = 163.293 g
Normal trade size: 1 to 5 bars
Volume of a day trade is about 1 tonne.
US$1 = 1,186 kyat (22 July 2016)
International 1 oz = US$1,327
Myanmar 1 oz = US$1,322

Economic Data (2014)

Population: 51 million
GDP: 8.5%
GDP/P: US$$1,228
CPI: 5.9%
Exports: US$11 billion
Imports: US$16 billion
Foreign reserves: US$5 billion

Source: FOCUSECONOMICS

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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

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Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

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Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

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Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

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Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

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Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

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Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

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Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

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Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

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Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

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Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

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Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

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Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

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Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.