Weekly Business News from Myanmar

The Smart Business Group held 5-days trade show in Myitkyina Township, Kachin State
A five-day trade show was opened on 17 October in the City Hall of Myitkyina Township in Kachin State by the Smart Business Group. Chief Justice of Kachin State High Court U Tu Jar, State Transport, Communications and Electricity Minister U Win Nyunt, State Development Affairs Minister U Naw Li, also known as U Zat Khaung Kam Ree, and the event organizing committee chairman formally cut a ribbon to open the ceremony. Then, they visited the booths. The trade show was held for the second time in Myitkyina Township. “We convene trade shows mostly in Yangon, Mandalay, and other regions. But, we’ve found people here are interested in trade shows, and so, we convened one for the first time here in Myitkyina last April. The companies are also happy to exhibit their products at the trade show here. So, we are holding the trade show for the second time here in Myitkyina. We are showcasing products which are more suitable for this region. It took us at least one-and-a-half months’ preparation for holding this show,” said Daw Shwe Zin Win, a member of the event organizing committee from the Smart Business Group.
The Preparation for Myanmar Entry into the ASEAN Window: Exchanging e-Form Ds was held in Yangon
Myanmar is ready to link into the ASEAN Single Window from National Single Window in coming November along with the trade expedition. The presentation program “Preparation for Myanmar Entry into the ASEAN Window: Exchanging e-Form Ds” took place at UMFCCI in Yangon, Thursday. The program jointly organized by Myanmar Customs Department and Department of Trade in partnership with USAID is for Myanmar’s National Single Window- Routing Platform in both export and import sectors. Through the ASEAN Single Window trade facilitation system, the platform will facilitate the electronic exchange of Form-D instead of manual system. Director, MACCS Division (Ministry of Planning & Finance), Win Thant said “By going to the electronic system from manual system, we will have quicker and more accurate excel session. And we can make easy access to the interactive information, and the whole trading process will be cheaper and effective within the member countries.”
Local Trade Centre in Mon State aiming to promote rubber products for starters is expected to open by the end of this year in Mawlamyine
A local trade centre in Mon State is expected to open before the end of this year, U Phone Myint, a member of the Mon State Chamber of Commerce & Industry, told Myanmar Times. The center, which will be located in Mawlamyine, aims to promote rubber products for starters when it opens later this year, he said. “We aim to reduce to the red tape and procedures involved in the trading of rubber between buyers and farmers. This will benefit the farmers,” he said. This move is in line with the National Export Strategy to promote trade of prioritise products, including rubber, and fuel sustainable development in the Myanmar agriculture sector.
Myanmar Agricultural Development Bank will provide loans for eight crops with strong demand from both local and foreign markets
The Myanmar Agricultural Development Bank will provide loans for eight types of crops with strong demand for winter crops from both local and foreign markets. The bank is already providing loans for 14 types of crops, and the additional eight types of kitchen crops will include four types of beans and four others including onions and garlics. Different types of crops include crops for consumption by humans (kitchen crops), crops for clothing, and crops for feeding animals. Crops can be anything from fruit that is grown on trees and used in commercial food sources to cotton that is grown in fields and used in the production of clothing materials. The bank will start providing the loans between October and December 2019, and borrowers must pay back the loans by September 15, 2020.
The volume of foreign investment from 19 countries in Thilawa SEZ reached more than USD $ 1.86 billion till September 2019
Foreign investment volume from 19 countries in Thilawa Special Economic Zone (SEZ) reached more than US$ 1.86 billion till 2019 September with Japan topping more than 36 %, said the source from the Department of Investment and Company Administration (DICA). A total of 113 businesses from 19 countries that made foreign investments in Thilaway SEZ were US$ 1.862 billion. The investment volume of Japan was about US$ 674.488 million, accounting for 36.21 % and its investment businesses were 37. The investment volume of Singapore was US$ 650 million, accounting for more than 34 % and its investment businesses were 27.
The Extractive Industries Transparency Initiative (EITI) urged Myanmar to improve civil society participation and transparency in state firms
Myanmar needs to improve civil society participation and transparency in state firms despite good progress in data disclosure over the next 18 months, the Extractive Industries Transparency Initiative (EITI) said this week. The EITI board, convening in Addis Ababa, Ethiopia, commended the “meaningful progress” Myanmar has secured in “introducing policy reforms, improving transparency in extractives data, stimulating robust public debate and creating a platform for dialogue among stakeholders.” It urged the country to improve public disclosures, particularly related to licence allocation, gemstone production data and state-owned enterprises (SOEs).
The delegation of the European Union to Myanmar and Asia Myanmar Shining Star Investment Co., Ltd (AMSS) signed an office space lease agreement in Yangon
The signing ceremony of an office space lease agreement between the Delegation of the European Union to Myanmar and Asia Myanmar Shining Star Investment Co., Ltd. (AMSS) was held in Wyndham Grand Yangon Hotel, Inya Conference Room on October 9, 2019. The signing was witnessed by the Ambassador of the European Union to Myanmar, H.E Mr. Kristian Schmidt, AMSS Board of Director U Khin Maung Phyu, and a number of other officials and company representatives EU Delegation will occupy the total of 1,895 square meters in 5A Kantharyar Office Building to host EU and Spanish Embassy staff members in individual offices as well as in shared offices and open space in different combinations. The building met all the stringent safety, security, and quality requirements of the EU and represents an ideal choice for tenants looking for a high quality working environment with ancillary amenities.
The Commercial Gas production will commence at the A6 block Shwe Yee Htun – 2 discovery, offshore Myanmar in 2023
Commercial gas production will commence at the A6 block Shwe Yee Htun-2 discovery, offshore Myanmar, in 2023, U Zaw Aung, a retired director general of the Oil and Gas Planning Department under the Ministry of Electricity and Energy (MOEE), told The Myanmar Times. “The State aims to produce gas commercially in year 2023. It will take four or five years to get back our capital and a few more years after that before we turn a profit,” he said. The development comes after the MOEE on September 22 said gas could be produced at Shwe Yee Htun-2 well. Further drilling has shown that gas can be extracted at water depths of 2,325 meters at the well at block A6, which is located about 100 kilometers away from Pathein in Ayeyarwady Region. MPRL E & P Company will undertake production activities at the first-ever commercial offshore oil and gas production project once it is approved, said U Moe Myint, the company’s chief executive.
The volume of mineral export reached more than USD $ 1.4 billion at the end of 2018 – 2019 fiscal years
Mineral export volume reached more than US$ 1.4 billion at the end of 2018-2019 financial years, down US$ 700 million, compared with the same period of last year, according to the official statistics released by the Ministry of Commerce. Mineral export volume reached more than US$ 1.465 billion from October 1 to September 30 of the 2018-2019 FY and US$ 2.167 billion in the previous year. In comparison with the two fiscal years, mineral volume decreased US$ 702.014 million in export in 2018-2019 FY.
Real estate developer expected to boost local property market in 2019 – 2020 fiscal years as a result of a reduction in tax rates on previously undeclared income
Real estate developers in Myanmar are expecting a boost in the number of property transactions in fiscal 2019-20, which they hope will help jumpstart the local property market. One reason demand will rise is as a result of a reduction in tax rates on previously undeclared income, which is expected to encourage those who have not declared all their income in the past to do so. This should bring liquidity back into the formal economy, leading to opportunities for investors to channel their money into real estate at a time when supply in Yangon and other major cities in Myanmar has spiked with more completed units now on the market. It will also encourage existing home owners who had purchased properties under different names in the past to officially correct or update any ownership details for future tax purposes.