Weekly Business News from Myanmar

Parliament approved the new National Plan Law for 2019 – 2020 fiscal years which is expected to help Myanmar’s GDP growth to hit 7 percent
Parliament has approved the new National Plan law for fiscal 2019-20, which will be effective from October 1, 2019 to September 30, 2020. The National Plan is expected to help Myanmar’s GDP grow by 7 percent to K95.4 billion during the period compared to 6.8pc in fiscal 2018-19. Contributing to economic growth is the financial sector, which is estimated to grow by 11.3pc, and the industrial sector, which should expand by 9.9pc in the coming fiscal year. The services industry, together with telecommunications, construction, forestry, construction, electricity and trade are also expected to grow between 7pc and 13pc over the period. While still showing overall expansion, growth in the livestock and agriculture, power generation and mining sectors are forecast to take a backseat, according to the National Plan.
Myanmar earned USD $ 250 million from exporting 190,000 tons of rubber in 11 months of current fiscal year
Myanmar earned about US$250 million from exporting 190,000 tons of rubber in 11 months of the current fiscal year exceeding over US$60 million (over 41,000 tons) compared to the same period of last year, said an official from the ministry of commerce. "From October 1 to August 30 in the current 2018-2019 fiscal year, US$247.557 million was earned from the export of over 192,986 tons of rubber. In the same period of last year, 151,895 tons of rubber worth US$184.360 million, the official told The Daily Eleven. In the 11 months of this year, US$63.197 million more was earned from exporting 41,090 tons of rubber. Rubber is mostly grown in Mon and Kayin states in southern Myanmar. It is also grown in Yangon, Bago and Taninthayi regions.
Myanmar Investment Commission (MIC) approved eight projects in the livestock & fisheries, manufacturing, hotel, real estate, oil and gas and transport & telecommunication sectors which will create over 3,100 job opportunities
The Myanmar Investment Commission (MIC) meeting (15 / 2019) was convened at the meeting room of the MIC on the morning of14thSeptember, 2019 in Yangon. U ThaungTun, Chairman of the MIC, Dr. Than Myint, Vice Chairman and (10) members attended the meeting. The meeting approved eight projects in the Livestock & fisheries, manufacturing, hotel, real estate, oil and gas and transport & telecommunication sector. The amount of USD 36.745million and Kyat 163302.753 million have been approved for those projects which will create3159 job opportunities for Myanmar citizens. A total of 1806 foreign enterprises in 12 sectors from 50 countries were permitted, with the total pledge amount of US$ 81597.743 million from 1988 to the end of August2019. Among them, Singapore, People’s Republic of China and Thailand are the leading countries.
The value of border trade reached USD $ 9.5 billion from 1 October 2018 to 6 September 2019 of the fiscal year 2018 - 2019 which increased USD $ 1.03 billion when compared to the same period of last year
The value of border trade, this fiscal year, from 1 October, 2018 to 6 September, 2019 reached US$9.5 billion, recording an increase of $1.03 billion when compared to the same period last year, according to the statistical report of the Ministry of Commerce. The total border trade value included $6.62 billion in exports and $2.85 billion in imports. This time last year, border trade was valued at $8.43 billion. Myanmar is trading with her neighboring countries, including China, India, Bangladesh and Thailand. Sino-Myanmar border trade is carried out through the Muse, Lweje, Kanpiketee, Chin Shwe Haw and Kengtung gates, while Myanmar is conducting border trade with India via the Tamu and Reed gates. The country’s border trade gates with Bangladesh are Sittway and Maungtaw. Gates for Thailand are in Tachilek, Myawady, Kawthaung, Myeik, HteeKhee, Mawtaung and Maese.
Government’s plans are under way industry body to increase local steel production with Chinese technology
To reduce Myanmar’s dependence on imported steel, plans are being made to increase local production with Chinese technology say industry officials. “Local steel consumption relies heavily on imports rather than local production as only 10 percent of what the local market needs is produced locally while the 90 percent is imported,” said U Tin Myint, chief adviser to the Myanmar Steel Association (MSA). “We are doing research to produce more steel locally with help from the Chinese .We hope that we can produce enough to cover two million tons to four million tonnes of local requirements,” U Tin Myint told The Myanmar Times. He said that the manufacturing of steel locally is expected to start next year and ramp up by 2023 near coastal areas where raw materials for production are imported. “Naturally, steel requires large long-term investments so it is important to have a stable, predictable economic and political environment. Moreover, the government will also need to support the establishment of standards for the local market,” said U Sit Taing Aung, chair of the MSA.
The first Thai – Myanmar Business Matching Logistics 2019 was held in Yangon with the aim to discuss bilateral economic relations between the businesspersons of Myanmar and Thailand
Thai-Myanmar Business Matching Logistic 2019, organized by Thailand Embassy to Myanmar, was held at Pullman Yangon Centre Point Hotel in Yangon for the first time on September 11. The business matching included 14 logistic companies from Thailand. It was held with the aim of discussing bilateral economic relations between the businesspersons of Myanmar and Thailand. “We intend that our business matching is to make 14 renowned logistic companies in Thailand known to Myanmar public,” said the senior diplomat of Thai Embassy to Myanmar.
The Central Bank of Myanmar (CBM) will intervene to stablise the foreign exchange rate market in Myanmar
The Central Bank of Myanmar (CBM) is planning to take additional measures to further stabilise the foreign exchange market, vice governor U Soe Min said in Parliament on Monday. The new measures may include it intervening in the foreign exchange market, the Myanmar Times understands. The move comes on the back of a recent bout of volatility in the local exchange rate. After U Soe Thein, who is also vice governor of the CBM, raised concerns over runaway non-performing loans (NPLs) in Parliament in late August, the Myanmar kyat plunged more than 1 percent to K1487 per US dollar. The local exchange rate quickly rebounded after the CBM allayed fears that strict action would be taken against debtors. On Thursday, the exchange rate was K1532 per dollar, up 2.5pc from its August trough.
UMFCCI Centennial International Expo 2019 will be held on September 20 – 22 in Yangon to provide a platform for local products exposing those to the international market
This year marks the centennial anniversary of the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI). They will organize the UMFCCI Centennial International Expo 2019, which will feature both local and foreign products. The event will be held on September 20-22 at Fortune Plaza (Myanmar Expo) in Thaketa Township, Yangon. “This event will provide a platform for local products exposing them to the international market. Moreover, it is an attempt to contribute to the country’s economic growth,” said Dr. Maung Maung Lay, Vice President of UMFCCI. Businesses from Germany, Japan, the Netherlands, South Korea, China, Malaysia, Thailand, Vietnam, China (Taipei), and other local businesses will showcase their products. A variety of products will be present, including vehicles, electronics, construction materials, decoration products, garments, jewelry, food, auto parts, logistics, and information technology. “The expo will present investment and business opportunities for both local and foreign businessmen. We want our local enterprises to showcase their products at the expo as this expo is intended to boost the economy,” said U Myo Thant, Joint Secretary of the Central Committee for Expo. The expo will provide a platform for local and international business to connect, it will also include seminars such as Economic Development Initiatives in Myanmar. There will be over 200 shop booths for value-added and semi-finished products. Products will not only come from abroad but also from various states and regions across the country. The three-day event is expected to receive 30,000 to 50,000 visitors. (Myanmar Business Today: https://www.mmbiztoday.com/articles/umfcci-centennial-international-expo-2019-feature-local-and-foreign-products )
Union Government approved to upgrade a local airport to international airport status in Thandwe, Rakhine State
The government has approved the upgrade of a local airport in Thandwe, Rakhine State to international status, said U Kyaw Aye Thein, Rakhine State Planning and Finance Minister. The decision was made at the Union level after the Rakhine State Government submitted the request to upgrade, he said. The authorities were responding to private sector demand for the airport to be able to receive international flights from Europe. “Many investors and businessmen from Europe want to travel directly to Ngapali for meetings with the Ministry of Hotels and Tourism and other promotional events,” U Kyaw Aye Thein said. He added that with more direct international flights able to land in Thandwe, opportunities for Rakhine tourism would spike, supporting state efforts to draw more tourists to the state.
Myanmar – China border trade volume reached more that USD $ 5,450 million in the current fiscal year
The trade volume on Myanmar-China border has reached more than 5,450 million during the current fiscal year. From October 1 to the end of August in the previous FY, there were more than US$ 6,470 million. Especially, border trade volume decreased by more than 1,270 million in Muse and Lwejel border trade camps, according to the Ministry of Commerce. From October 1 to the end of August in 2017-2018 FY, border trade volume reached US$ 5,685.157 million in Muse border trade camp, US$ 219.073 million in Lwejel border trade camp, US$ 426.605 million in Chinshwehaw border trade camp and US$ 140.012 million in Kanpikete border trade camp. From October 1 to the end of August in 2018-2019 FY, border trade volume reached US$ 4,535.796 million in Muse border trade camp, US$ 183.925 million in Lwejel border trade camp, US$ 491.058 million in Chinshwehaw border trade camp and US$ 284.675 million in Kanpikete border trade camp.