Weekly Business News from Myanmar

The volume of foreign investment into Thilawa Special Economic Zone (SEZ) reached more than USD $ 362 million from 1 October to the middle of September in 2018 – 2019 fiscal years
Foreign invest volume reached more than US$ 362 million flowing into Thilawa Special Economic Zone from October 1 to the middle of September in 2018-2019 FY, said a source from Myanmar Investment Commission. International ports and logistic activities are needed in order to extensively operate the factories in Thilawa Special Economic Zone, said Win Aung, President of Myanmar Thilawa SEZ Holdings Public Co., Ltd (MTSH). Myanmar Thilawa SEZ Holdings Public Co., Ltd (MTSH) is a Multimodal Logistic Hub. With the international development assistance from Japan, Thilawa Multipurpose International Terminal began the services together with the ceremony of concluding construction of the jetty on December 14 in 2018.
Myanmar based private equity firms, Delta Capital will expand USD $ 30 million in local internet service provider Frontiir
Myanmar-based private equity fund manager Delta Capital will invest a further $30 million into local internet service provider Frontiir. Through Delta’s Myanmar Opportunities Fund II (MOF II), this time the investment is joined with two limited partners, IFU from Denmark and Norfund from Norway. Frontiir will expand coverage beyond Yangon and Mandalay with the latest round of funding. The expansion plans to reach over 20 cities and towns by 2022. This investment was led by British government-owned Commonwealth Development Corporation (CDC) after it announced in July its first direct equity investment in Myanmar. CDC is another limited partner of Delta Capital, and has contributed $15 million to MOF II.
The total trade using Individual Trading Cards (ITCs) through border gates reached over 55 billion kyats as of August 2018 – 2019 fiscal year
Total trade using Individual Trading Cards (ITCs) through border gates reached over 55 billion kyats (36.7 million U.S. dollars) as of August in present fiscal year 2018-2019, according to a Xinhua report. From Oct.1, 2018 to Aug. 31 this year, Myanmar's export using ITCs via border checkpoints amounted over 8.7 billion kyats (5.8 million U.S. dollars) while its import shared 46.4 billion kyats (30.9 million U.S. dollars).
IKBZ Insurance launched its new insurance company which is fully dedicated to life insurance products
IKBZ Insurance on Tuesday announced the launch of IKBZ Life, a new insurance company fully dedicated to life insurance products, in compliance with regulations by the Insurance Business Regulatory Board (IBRB). IKBZ Insurance is a general insurance company which obtained preliminary approval to operate a joint venture with Japanese insurance provider Mitsui Sumitomo Insurance on July 31. Final approval is expected on October 4 at the earliest. The JV will offer general insurance products while IKBZ Life will focus on products linked to life insurance including group health insurance, long term whole life insurance as well as an education savings plan. “By creating a separate legal entity we are not only complying with government requirements, we are also simplifying our offerings for potential customers. Clients interested in life insurance will have a dedicated company to support them, whereas customers looking to protect their assets will continue to be served by IKBZ Insurance,” said U Nyo Myint, vice chair of IKBZ Insurance.
Yangon Regional Government will take an action to crack down on illegal seafood imports from Thailand
The Yangon Regional Government will take action against those responsible for illegal seafood imports from Thailand. This will be done under a collaboration between the Fishery Department and the Food and Drugs Administration, according to U Hla Htay, Deputy Head of Fishery Department of Yangon. “Officials seized 180 tons of fish at the market in Mawlamyine on September 10. We examined the fish and found that they contain formalin and is unfit for human consumption. We will check on the fishery products by collaborating with the FDA,” he said at the meeting held at Myanmar Fishery Federation on September 10. At present, around 20 tons of white shrimp are supplied per day to Yangon’s markets, and officials have found out they also contained chemicals used for preserving fish, which are not suitable for human consumption.
Yangon Government authorities are planning to build a logistics hub and truck terminal at the outskirts of the city aiming to ease congestion
Yangon is planning to build a logistics hub and truck terminal in the outskirts of the city to ease traffic congestion and provide enough parking space for trucks, said Yangon Region Planning and Finance Minister U Myint Thaung at the regional parliament. He was responding to U Kyaw Min Han, MP from Latha township, who asked if there any plans to implement a project to improve efficiencies and productivity in the logistics industry. Currently, companies transport goods by 22-wheel, 12-wheel and 6-wheel trucks from factories directly to respective townships. However, others move the goods to a depot at Bayintnaung Highway bus terminal in Mayangone township before they are loaded onto trucks and ferried to their intended destinations. This has led to heavy traffic congestion near the terminal, which is no longer big enough to accommodate the rising number of trucks.
Business people from Myanmar and Indonesia are discussing on cooperation in foodstuff, textile and service industries sectors
Discussion is underway between Indonesian and Myanmar businesspeople to cooperate in foodstuff, textile and service industries, according to the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). A one-on-one business matching took place to facilitate cooperation between business people of each countries in trading fertilizers, weed killers, food and medicine packaging, cement, paper and pulp, textiles including batik, trade and services. According to trade data from the ministry of commerce, trade between the two countries amounted to US$523.147 million in the six-month interim budget period from April to September 2018. Myanmar exported goods worth US$62.822 million to Indonesia. Then, Myanmar imported goods worth US$460.325 million from Indonesia.
Myanmar Security Exchange Commission (MSEC) urged foreign traders to conduct trading on the Yangon Stock Exchange (YSX) in July 2020
The Myanmar Security Exchange Commission (MSEC) issued an order allowing foreigners to conduct trading on the Yangon Stock Exchange in July, but did not specify an exact date for start of the liberalizing of the stock market. U Htay Chun, Member of the Commission, indicated that they will start allowing foreign traders early next year to allow time for the commission to make the necessary arrangements. “We cannot start immediately. We need to prepare the exchange for taxation purposes, and to accept currency exchange rates which will make for a smooth experience,” he added. The MSEC will allow foreign investors to buy shares up to a maximum of 30 percent of the value of a local company, and 35 percent for foreign companies. The other exception is the stock cannot be associated with immovable properties such as land.
Authorities are planned to launch new tour programs at the Myeik Archipelago in Tanintharyi Region
MYEIK-Plans are underway to launch new tour programs at the Myeik Archipelago in Tanintharyi Region because tourism period will start soon, according to tourism agencies. Although authorities planned to begin tourism season in Myeik Archipelago in mid September, the plan would be implemented depending on the weather. “We already planned to launch the tourism season since the beginning of September 16th. However, we are going to implement the tour programs in accordance with the Department of Meteorology and Hydrology. The adventure trip, bird looking and underwater scenes will be included in new tour programs. Moreover, we, Myeik Archipelago, offer the frogmen. Mostly travelers went to Smart Island in Myeik Archipelago last season. Marcus Island is second attraction for the travelers who observed underwater scenes and fishing rafts. The tour program of Smart Island will be offering the waterfall programs and Salon village to the travelers,” said Manager Ye Thu from Bright Asia King Travel & Tour.
Myanmar’s garment sector is on track to meet a target which USD $ 10 billion in exports set under 10 year plan
An industry body says Myanmar’s garment sector is on track to meet a target of US$10 billion in exports set under a 10-year plan. The export target and a goal to create one million job opportunities in the sector had been laid out under the Myanmar Garment Industry Strategic Plan 2014-2024 by the Myanmar Garment Entrepreneurs Association. “Export volumes for the 2018-19 fiscal year up to August hit US$4.37 billion, compared with US$3.2 billion in the same period a year ago. This is an increase of US$1.17 billion in exports,” said Ministry of Commerce Deputy Secretary U Khing Maung Lwin. Garment exports have been rising yearly in Myanmar, especially since 2013, when the European Union granted goods from Myanmar preferential access to the EU market under the Everything But Arms tariff scheme.