Weekly Business News from Myanmar

Myanmar authorities warned that undeveloped land in industrial zones in Yangon Region could be confiscated
Myanmar authorities have warned that undeveloped land plots in industrial zones in Yangon region could be confiscated, saying that unless concrete reasons are provided, the industrial business would be revoked, Xinhua reported. According to the Yangon City Development Committee Wednesday, there are 29 industrial zones in Yangon region and about 60 percent of the plots are being utilized, while the rest remain undeveloped with only warehouses and fencing built.
Myanmar’s economy forecast to growth by 6.4 percent in 2018 – 2019 before picking up to 6.8 percent in 2019 – 2020
Myanmar's economy is forecast to expand to 6.4% in 2018-19, before picking up to 6.8% in 2019-20, as the market opens up to foreign investment, according to the Institute of Chartered Accountants in England and Wales’s (ICAEW) latest Economic Update: South-East Asia report. However, the ongoing Rakhine crisis is a key risk to the economy, with tourism and trade with the European Union (EU) potentially experiencing slowdowns. Overall economic growth across the region in H1 2019 slowed to 4% on the year compared to 4.5% in H2 2018. This is the result of spillovers from the US-China trade war, slower Chinese domestic demand and a downturn in the global electronics cycle. Slower export momentum weighed heavily on the growth of trade dependent economies such as Singapore, Thailand and the Philippines. Meanwhile, Malaysia and Vietnam have outperformed the region, reflecting a more modest deceleration in export growth and resilient domestic demand.
Ministry of Commerce launched three year Myanmar Services Trade Enhancement Project in Nay Pyi Taw
Ministry of Commerce launched Myanmar Services Trade Enhancement project on Tuesday. Officials from the World Trade Organization Enhanced Integrated Framework, Ministry of Commerce, UNCTAD, World Bank, EU and partner organizations as well as representatives from UMFCCI attended the launching ceremony in Nay Pyi Taw. According to the Deputy Minister for Commerce, Myanmar trading industry sees great improvement but still needs more efforts not only in trading industry but also in logistics and services for the trading. To fulfill the needs, Myanmar services Trade Enhancement Project (M-STEP) has been launched for three years from June 2019 to June 2022. Officials also said Myanmar will receive about 2.1 million USD for implementing this project from the enhanced integrated framework by the World Trade Organization.
There are prospects to unlock the potential of Myanmar, China, India and ASEAN as market after Korea – Myanmar Industrial Complex (KMIC) is setting up to be among the best industrial complexes in Myanmar
The Korea-Myanmar Industrial Complex (KMIC) is set to be among the best industrial complexes in Myanmar and will help unlock the potential of Myanmar, China, India, and ASEAN as markets, Kim Gunwoo, general manager of the Korea Land and Housing Corporation (Myanmar), said in an interview with The Myanmar Times. Korea Land and Housing Corporation (Myanmar) is overseeing the construction of the industrial complex north of Yangon. Earlier this month, during an official visit to Myanmar, South Korea’s President Moon Jae-in attended the opening ceremony for the complex. KMIC is one of two large projects being undertaken by the South Korean government in Myanmar, the other being the Dala Korea- Myanmar Friendship Bridge also in Yangon. KMIC is being built on a 224 hectare site about 10 kilometres north of Yangon, near Nyaung Na Pin Village in Hlegu Township, Yangon. The complex is being built as a 60-40 joint venture by government-owned Korea Land and Housing Corp and Myanmar’s Ministry of Construction.
International Rubber Conference and annual meeting will be held in Nay Pyi Taw with the aim to extend extra visions for all rubber planters and producers in Myanmar
Under the theme of “way forward for the nature rubber industry and way forward for the competitiveness and sustainability, the 2-day International Rubber Research and Development Board’s Annual Meeting and International Rubber Conference” are set to be held in Nay Pyi Taw. The International Rubber Research and Development Board (IRRDP) have been organizing Annual Meeting and International Rubber Conference by rotating among the member countries under the different themes. This year, Myanmar will host as the very first time under the arrangement of Myanmar Rubber Planters and Producers Association (MRPPA) with the aim of extending extra visions for all Myanmar’s Rubber Planters and Producers as being one of the member countries. At the coming conference, professionals from the 20 member countries will read out the 60 International Research Papers including 9 from Myanmar concerning rubber species, rubber plantations, rubber productions and many more various sectors.
Government officials from Myanmar and Singapore signed a bilateral agreement on the promotion and protection of investments in Yangon
Myanmar and Singapore signed a bilateral agreement on the promotion and protection of investments on Tuesday in Yangon. Myanmar representatives led by Union Minister for Investment and Foreign Economic Relation U Thaung Tun and Singapore representatives by Minister for Trade and Industry Chan Chun Sing signed the agreement on behalf of their countries. The bilateral agreement is expected to set the foundation for more regular and stable investments by Singapore. U Min Zaw Oo, the Director of Directorate of Investment and Company Administration (DICA) said the agreement took more than four years to finalise. “Now that we have inked this agreement, we believe Myanmar will attract more investments from Singapore and this will give other countries more confidence to invest with us as well,” he said.
Ministry of Commerce (MOC) announced that Ministry will be banned for the trade companies who are failing to register
The Ministry of Commerce announced that it will not allow wholesale and retail companies to import fertilizers, pesticides, seeds, medical equipment, construction equipment, and agriculture equipment if they failed to register. The Minister started allowing local, foreign, and joint-venture companies to import and sell these types of wholesale and retail products since mid May. However, the ministry also said that the companies must register as a wholesale and retail importer within 90 days after it made the change. Some of the companies have failed to register within the 90 day period, which ended in mid August. The ministry warned that it will take action in accordance with existing laws and regulations.
Myanmar’ Trade deficit reached over USD $ 1.2 billion two weeks before the end of the fiscal year
Myanmar's trade deficit was set to be US$500 million this fiscal year, but it has reached over US$1,200 million two weeks before the end of the fiscal year, according to sources from the ministry of commerce. From October 1 to September 13 in the current 2018-2019 fiscal year, export value amounted to US$15.976 billion while import value totalled over US$17.218 billion, causing a trade deficit of US$1,241 million. During the first-day session of the ninth regular parliamentary meeting, Union Minister for Planning and Finance Soe Win said efforts would be made to have over US$31 billion in foreign trade and promised to reduce to USD 500 million in trade deficit. Seventeen days before the end of this financial year, however, the trade deficit has reached more than US$1.2 billion. But this year's deficit fell by over US$1.930 billion compared to the previous fiscal year.
Yangon Region Government made their efforts to open the new compressed natural gas (CNG) fuelling stations in Yangon Region
A submission for the government to acquire land for a new compressed natural gas (CNG) fuelling station in Yangon Region will be submitted in the coming budget year, said Yangon Region Minister for Agriculture, Livestock, Forestry and Energy U Han Tun during the sitting of the Regional Hluttaw (assembly) on Thursday. The submission will also be sent to the Ministry of Electricity and Energy, U Han Tun said in response to a question from Mayangone township MP U Yan Shin on whether there is plan to build more CNG filling stations in the region for the convenience of users of CNG-powered vehicles. Currently, there are 41 CNG stations in the Yangon Region.
Trading on Yangon Stock Exchange (YSX) reached K 1.92 billion in August 2019 which is marked a new high in month-on-month trading for the year
Trading on the Yangon Stock Exchange (YSX) reached K1.92 billion in August 2019, marking a new high in month-on-month trading for the year, according to market data released by the exchange. January saw trades worth K520 million, but volume went slightly down in February landing at K400 million. The volume of trade in March was the lowest with trade totaling only K390 million, but picked back up in April with K500 million. Things really took off in May with K1.4 billion worth of trades, K1.3 billion in June and K1.2 million in July. However, trade in August was K740 million higher than the amount of trade in July. Out of the five listed companies at Yangon Stock Exchange, shares of First Myanmar Investment (FMI) and Myanmar Thilawa SEZ Holding (MTSH) were traded most. 97,891 shares of FMI valued over K794 million in total were traded at YSX during that period, while over 20,000 shares worth over K790 million were traded.