Weekly Business News from Myanmar

Myanmar Investment Commission (MIC) announced the updated on injections of foreign capital
U Thant Sin Lwin has been appointed as Secretary of the Myanmar Investment Commission (MIC), according to notification 55/2019. U Thant Sin Lwin replaced U Aung Naing Oo as Director General of the Directorate of Investment and Company Administration (DICA) in March. U Aung Naing Oo is now Permanent Secretary of the Ministry of Investment and Foreign Economic Relations. DICA is responsible for undertaking administrative activities of the Commission. All other members of the MIC are unchanged and U Thaung Tun remains the chair of MIC. The MIC also announced updates on injections of foreign capital. According to the announcement, all companies which have received MIC or state and regional investment committee endorsements to bring in foreign capital should do so within the approved timeframes.
Thilawa Special Economic Zone (SEZ) is working to attract and grow the number of foreign investors
An open day for the media this week helped showcase the Thilawa Special Economic Zone that is working to attract foreign investors to Myanmar, offering an alternative to the increasingly costly Asian destinations such as China. Speaking to the media at a presentation at Thilawa SEZ, Yoichi Matsui, Chief Advisor to Thilawa SEZ Management Committee from the Japan International Cooperation Agency (JICA) said the number of expansion projects and capital increases in the four years after the first company went into operation in 2015 “shows investors’ confidence in Thilawa SEZ and Myanmar workers.” Speaking at the event on 26 September, Mr Matsui said a total of 113 projects have been approved in less than five years. The total approved investment amounts to US$1,847 million, as of 26 September 2019, according to the chief advisor.
Singapore investments reached over USD $ 7.5 billion which topped in transport and communications sector
Singapore is invested over US$7.5 billion in transport and communications sector, over US$4 billion in housing development sector and over US$3.3 billion in oil and natural gas sector, according to the 7th Joint Committee of Myanmar–Singapore Ministerial Meeting. Myanmar allowed 312 investments from Singapore from 1988-89 FY till now and total investment is more than US$22 billion, which is about 27 per cent of total foreign investment. Singapore invested US$43.88 million in the farming sector, over US$100 million in livestock and fishery sector, over US$49 million in the mining sector, US$2.531 billion in production sector, US$1.208 billion in the energy sector, US$3.357 billion in oil and natural gas sector, US$1.663 billion in hotel and tourism sector, US$4.050 billion in housing development sector, US$200 million in industrial sector and US$1.371 billion in other services sector, according to the Directorate of Investment and Companies Administration (DICA).
Fraser and Neave (F & N), Singapore listed beverage firm re-entered Myanmar beer market
Singapore-listed beverage firm Fraser and Neave (F&N) has launched its Myanmar subsidiary Emerald Brewery with an investment of US$70 million. Operations at the brewery will be located in Hlegu Township, Yangon and it will produce Chang Lager Beer. Through Emerald Brewery, F&N will invest in local manufacturing, employ local people, engage local suppliers and distributors and support community investment programmes. F&N’s has received its capital investment to build a modern brewery which will provide an annual beer production capacity of 500,000 hectolitres, to expand logistics including sales and distribution operations, in addition to drive marketing and people capabilities.
Innovating Israeli Agriculture: Opportunities for Myanmar was held in Yangon with the aim to extend the agro-technologies between two countries and to promote the livelihoods of farmers in Myanmar
Along with the enhancement of relationships between Israeli technologies & companies and Myanmar private sector, seminar on “Innovating Israeli Agriculture: Opportunities for Myanmar” took place at UMFCCI in Yangon on Wednesday. It was jointly organized by the Embassy of Israel in Myanmar and Myanmar Paddy Producers Association (MPPA) aiming to extend the agro-technologies between the two countries and to promote the livelihoods of farmers in Myanmar. Ambassador, Embassy of Israel in Myanmar, H.E. Mr. Ronen Gilor said “As you know, I believe that we have for a long gain period of time and very we good relationships in agriculture between the state of Israel and the Republic of the Union of Myanmar. And when we have the opportunities to booting here expert from Israel you know to make a good seminar regarding the new innovation of Israeli Agriculture technologies. So we are part of to do it.”
The World Tourism Day 2019 was held in Nay Pyi Taw aiming to ensure a better future for all people by creating various jobs opportunities
World Tourism Day 2019 was organized at the Myanmar International Convention Center II in Nay Pyi Taw yesterday, under the theme of ‘Tourism and Job: A Better Future for All’ State Counsellor Daw Aung San Suu Kyi and Vice President U Henry Van Thio attended the ceremony, together with Union Ministers Dr Pe Myint, Thura U Aung Ko, U Thant Sin Maung, U Thein Swe, U Soe Win and U Ohn Maung; the Chairman of Nay Pyi Taw Council, States/Region Chief Ministers and ministers, departmental heads, members of the National Tourism Development Central Committee, ambassadors, UN agencies, international development partners, representatives from the Myanmar Tourism Federation and associated groups, award-winners in the contests to commemorate the World Tourism Day, and invited guests. State Counsellor Daw Aung San Suu Kyi looked around the displays of tourist attractions in the states and regions, the implementing community based tourism programmes, tourism business firms, attractions to tourism investments and bicycles to be donated by the Flymya Tech Co, Ltd. to the 52 villages where community-based tourism is being implemented. The ceremony was opened with the song entitled ‘Welcome with Golden Hands’ performed by artistes from the Fine Arts Department of the Ministry of Religious Affairs and Culture. Vice President U Henry Van Thio, chairman of the National Tourism Development Central Committee gave an opening speech at the event.
Press conference on Industrial and Infrastructure Event will be held in October at UMFCCI building in Yangon
A press conference on Industrial and Infrastructure Event to be organized in coming October was held at UMFCCI in Yangon on Tuesday. The Industrial and Infrastructure event for Myanmar will be held from 9th to 11th October at Myanmar Expo. Infoma Markets organize the event with the support of UMFCCI, Myanmar Industry Association (MIA), Myanmar Federation of Mining Association (MFMA), Myanmar Construction Entrepreneurs Federation (MCEF), Myanmar Construction Entrepreneurs Federation (MCEF), Renewable Energy Association of Myanmar REAM) and Federation of Myanmar Engineering Societies (Fed,MES). The event will feature Industrial Machinery, subcontracting and Sourcing, Building and Construction, Mining and Power and Renewable Energy. And it will gather the key renewable energy industry players to meet with professionals, trade visitors, government representatives, buyers and leaders and many others.
Myanmar’s economy expected to pick up 6.8 percent in the next year after Myanmar opened up to more foreign investment
Myanmar’s economy is forecast to expand to 6.4 percent in the current fiscal year and pick up to 6.8 percent in the next, according to a report on the economy in Southeast Asia released by the Institute of Chartered Accountants in England and Wales (ICAEW) on Tuesday. The report said that the forecast for Myanmar’s economy is positive as the country’s markets opes up to foreign investment, with the infrastructure, manufacturing and wholesale and retail services sectors expected to be the greatest beneficiaries. After a 14 percent drop in foreign direct investment to US$5.7 billion in 2018, currently foreign direct investment inflows are improving. According to the Myanmar Investment Commission, foreign direct investment inflows rose sharply with the bulk of investments channelled into transportation, communication, and manufacturing.
The trade volume between Myanmar and Thai can be reached up to 10 billion per year if infrastructure improved
The volume of trade between Myanmar and Thailand can reach up to $10 billion per year if the infrastructure is improved, said Mr. Thanawut Naigowit, Minister Counsellor of Commercial Affairs of the Royal Thai Embassy in Yangon, at the Thai-Myanmar Business Matching Logistic 2019 event held at Pullman Hotel in Yangon on September 11. Around 80 percent of trade from the two countries is done through border trade posts, and there are cases in which fresh fish, meat, and fruit ended up spoiling as a result of slow transportation through the area. “We’ve brought in 14 Thai logistics companies to this conference, which is the first time a logistics conference was ever held in Myanmar. This event is aimed at improving logistics in Myanmar,” he said.
Myanmar Oil and Gas Enterprise (MOGE) owes more than USD $ 1.6 billion from China due to the high domestics demand to implement projects including and oil and gas pipeline
Myanmar owes China more than US$1.6 billion which it borrowed on high interest to implement projects including an oil and gas pipeline, according to a Myanmar Alliance for Transparency and Accountability (MATA) statement released based on an Extractive Industries Transparency Initiative report. It has so far repaid more in interest than the amount borrowed for projects including $243.6 million for the Yadanar-Yangon gas pipeline, $559.9 million for the Southeast Asia Natural Gas Pipeline and Shwe Offshore Natural Gas Development Project and S$ 851 million for the Southeast Asia Crude Oil Project. Based on the data, Myanmar Oil and Gas Enterprise (MOGE) borrowed a total of $1.6 billion for construction of the pipeline infrastructure mainly to sell oil and gas produced in Myanmar to China, the report said.