Weekly Business News from Myanmar

Myanmar Government fixed minimum price for rice amid weak market
PATHEIN, Irrawaddy Region—The Myanmar government has fixed the minimum price for rice at 500,000 kyats for 100 baskets of paddy (US$327.30 for about 2.09 tons) in a bid to establish a fair market and fair prices for paddy farmers. The government’s Leading Committee for the Protection and Promotion of the Rights and Interests of Farmers, led by Vice President Henry Van Thio, met last month to discuss setting the floor price for paddy grains. Paddy rice refers to unprocessed rice harvested from a field, rather than hulled rice. The government has agreed to pay any farmer the floor price, but only for paddy that meets quality standards: the grains, once processed, must have a moisture content of 14 percent and can’t have any dust, sand or gravel, according to an announcement released by the committee on Tuesday. According to the statement, if the market rate is higher than the floor price, rice is to be bought according to the market rate, but if the market rate is lower than the floor price, it is to be bought at floor price.
Myanmar’s foreign trade exceeded USD $ 34.9 billion for 2019 fiscal year
Myanmar’s foreign trade totaled $34.9 billion for 2019 Fiscal Year. This exceeded the estimates by about by $3.9 billion. However, the total volume of foreign trade was still $900 million lower than 2018 Fiscal Year ending on March 31, 2018. “Our export volume increased by $470 million and trade deficit has dropped to $1.1 billion from $6 billion,” said U Khin Maung Lwin, Deputy Permanent Secretary of the Ministry of Commerce. This is because of higher exports and lower imports. “We managed to reduce some of the imports while increasing export. The sectors that benefited from increased exports were garments, gas, and seafood,” he added. Myanmar earned a total of $16.9 billion from exports. Agriculture accounted for $3.2 billion, fishery exports totaled $731 million from, extractive materials amounted to $1.4 billion, and another $10 billion was generated from industrial finished products.
Ananda Development Public Co., Ltd, Thai property developer, is looking for the suitable partners to expand on urban projects in Myanmar
Thai property developer Ananda Development Public Co Ltd wants to expand into Myanmar and is now looking for suitable partners in the country, its officials told Myanmar journalists in Bangkok on October 9. The company will focus on urban projects in Myanmar and is now exploring the various avenues through which it can invest in the country. Chanond Ruangkritya, chief executive of Ananda Development, said the company’s strategy of raising living standards through the development of urban and high-quality housing projects that are linked to key transport systems would be an attractive value proposition for potential partners and investors in Myanmar. Ananda Development also wants to draw more Myanmar investors to the Thai property market. “Bangkok is one of the most attractive cities in Asia for foreign investors and one of the reasons is its successful urban living system, which can be achieved only if it has efficient transportation for residents to live and to work,” Chanond said.
Yangon Regional Government started providing land compensation process for the New Yangon City Project
The Yangon regional government has started providing substitute land to original landowners as compensation for land acquired for the New Yangon City Project on October 8. According to the previous agreement, landowners will retain 80 percent of the original land located within the project area with the remaining 20pc being compensated in Kyeemyindaing township. Phase 1 of that project covered 18,390 acres of farmlands and the government returned 1514 acres of developed land to 187 farmers within Kyeemyindaing township. “Resettlement procedure took many months as it needs step by step cooperation of various departments,” said New Yangon Development Company’s CEO Serge Pun. The lot drawing for the compensation land in Kyeemyindaing township began in early September. Temporary land transfer orders and land permits have been issued on October 8.
Singapore listed Yoma Strategic Holdings will form a strategic partnership with Ayala Corporation (AC) Energy for the large utility scale renewable energy projects in Myanmar
SINGAPORE - Myanmar-focused Yoma Strategic Holdings said on Monday (Oct 14) it will form a strategic partnership with AC Energy, the energy platform of Philippine conglomerate Ayala Corporation. The two companies are looking to establish a 50:50 joint venture (JV) to scale up Yoma Micro Power (S) Pte Ltd (YMP) and to explore developing around 200 megawatts of additional renewable energy projects within Myanmar, which will include participating in large utility-scale renewable projects. As part of this transaction, Yoma Strategic and AC Energy have signed a binding term sheet for the new JV to invest at least US$30 million (S$41.2 million) into YMP. YMP builds micro power plants and mini grids that provide electricity to off-grid rural communities and telecommunications towers in Myanmar. It is rolling out 250 micro power plants by the end of 2019 and is expected to scale up to more than 2,000 sites by 2023.
Myanmar authorities gave more tourists’ visa on arrival access with USD $ 50 per each at Yangon, Mandalay and Nay Pyi Taw international airport in move to open up more travelers from around the world
Tourists from Australia, Germany, Italy, Spain, Switzerland and Russia have been given visa-on-arrival access for US$50 each at Yangon, Mandalay and Nay Pyi Taw international airports. Starting from October 1, passport holders from the six countries will no longer require pre-arranged approval, the authorities said. “We hope the new regulations to ease access to Myanmar will lead to more travelers from around the world,” said Daw May Myat Mon Win, chair of the Myanmar Tourism Marketing Association. Last year, tourists from Japan, South Korea, Hong Kong and Macau were granted visa-free entry into Myanmar, while Indian and Chinese nationals were also given visas-on-arrival in a move to draw more visitors from Asia. As a result, Asian tourists to Myanmar have risen this year. In the eight months from January to August for example, Japanese tourist arrivals increased by 24 percent compared to the same period last year, said Daw May Myat Mon Win.
The plans are underway to establish the separate plot projects for special zones related to textile and garment zones in Yangon and Mandalay regions
Separate land areas are being planned to establish special zones related to textile and garment in Yangon and Mandalay regions, according to the ministry of industry. The ministry is cooperating with the private sector to implement pilot projects for industry complexes and clusters, a high-ranking official from the ministry. Union Minister for Industry Khin Maung Cho said plans were underway to adopt a national level textile policy with the help of Germany's GIZ with the aim of developing Myanmar's textile industry, boosting investment by inviting foreign trade partners, getting necessary infrastructure, boosting export market and reducing import.
Myanmar Oil and Gas Producers and Operators expressed serious concerns over the Myanmar’s draft oil and gas bill could be undermine the next crucial bidding round
Uncertainty and confusion over Myanmar’s proposed oil and gas law risk alienating existing investors and could undermine the next crucial bidding round, according to companies and experts in the sector. Time is running out for the Ministry of Electricity and Energy to launch the round by the end of the year, having initially planned to start the process in the first half of 2019. The government published the revised text of the draft oil and gas law for public consultation in August with the aim of reforming the legal framework and replacing the 1957 petroleum resources act. But the association representing oil and gas investors has highlighted its objections to parliament in a letter, of which The Myanmar Times has seen extracts. Gas produced offshore in Myanmar is delivered to the domestic market and exported to Thailand and China, forming a major source of government revenues. In 2017-18, natural gas exports accounted for US$3.1 billion, or around 50 percent of total export revenues.
Myanmar – Thailand border trade between 1 October and 30 September in the 2018 – 2019 fiscal years exceeded USD $4.1 billion which increased USD $ 2.4 billion when compared to the same period of last fiscal year
Myanmar-Thailand bilateral trade between 1 October and 30 September in the 2018-2019 financial year exceeded US$4.1 billion, an increase of $2.4 billion from the 2017-2018FY, according to the Ministry of Commerce. In the 2018-2019 fiscal, exports were registered at $2.96 billion and imports were valued at $1.14 billion. In the previous FY, bilateral trade totaled $1.71 billion, with exports pegged at $460 million and imports recorded at $1.25 billion. Myanmar delivers goods to Thailand through the sea route as well as seven border gates. The border trade camps opened between the two nations are Tachilek, Myawady, Kawthoung, Myeik, Htikhee, Mawtaung, and Maesai.
Myanmar and China authorities signed a MOU for technology exchange, market analysis and fruit trade at Nanning City in China
The Myanmar Fruit, Flowers and Vegetable Producers Association and China’s Fruits and Vegetables Association signed a Memorandum of Understanding (MoU) for technology exchange, market analysis, and fruit trade at Nanning City in China on September 22, according to U Kyaw Thu, General Secretary of the association. The separate contracts will be signed between the two countries for different kinds of fruits. “Myanmar will export mangos, avocado, pineapple, Konjac, watermelon, and muskmelon. In return, China will export apple and oranges to Myanmar, he said. The MoU also covers logistics on trade routes by sea air, and overland routes. U Kyaw Thu said the MoU will enable Myanmar fruits to capture higher prices.