CNI News
12 August 2023

United Overseas Bank, one of Singapore's major banks, would carry out operations with Myanmar banks on a limited basis from 1st September on, that Nikkei Asia News Agency reported.

UOB is used most to transfer money received from Myanmar trade and other businesses and salaries of Myanmar migrant workers in Singapore.

Although UOB suspends operations with Myanmar banks, other banks in Singapore could be connected and used and only when all the banks in Singapore took action like UOB, there could be difficulties, said U Htay Aung Kyi, a banking expert to CNI News.

A bank transfer

" I have deposited my money at UOB. The bank can't seize my money. But they have the rights not to transit my money. UOB doesn't allow me to transit, but DBS allows me to transit. If that's so, I'll change and deposit my money at DBS. There will be no problem if there's one or two banks that we can transit. If all the banks in Singapore suspend operations with Myanmar banks, we can find it difficult. Another thing is prospect. Singapore is third biggest financial hub in the world after London and New York. Will the Singaporean government take accountability for the case relating to UOB? Singapore has a lot of overseas banks. Among them, which bank are you working with most? There's a problem with that bank. But if you can work with other banks, it's no problem. Just change. Changing from a bank to another is no difficulty at all in a foreign country like Singapore." he said.

All deposits and withdrawals through banks in Myanmar will be limited by UOB and transferring money can be performed between the UOBs only. Moreover, Visa card and
Master card will be controlled that the bank reported last week, according to Nikkei Asia news agency.

Because money transfers to private banks in Myanmar through UOB are limited, it could impact on money transfers of Myanmar migrant workers, said businessmen.

However, because there are other banks and financial service agents that can be used alternatively, there might be a little difficulty only reportedly. When international community imposes economic sanctions on Myanmar, restrictions on private businesses should not be done with the government's bank accounts, said U Thet Zaw, an economic analyst to CNI News.

" It is their policy to close the government accounts, but they shouldn't restrict the private sector. But other banks still can be used. There are about 15 overseas banks in Singapore. We have to change and use. For example, like oil, if Petronas left, another oil company would come. Just like that." he said.  

Foreign currency accounts opened at the UOB branch in Hong Kong to make the trading activities fast and easy will be controlled and UOB is a bank that senior officials of the State Administration Council and wealthy entrepreneurs are mainly using, according to Niikkei Asia.