Weekly Business News from Myanmar

Myanmar Gold Entrepreneurs Association warned its member not to conduct gold trading based on oral contracts amid raising gold prices
The Myanmar Gold Entrepreneurs Association has reminded its members not to conduct gold trading based on oral contracts amid raising gold prices, which has seen an upward trend since June. “Executing oral contracts causes a lot of price volatility in the local. Therefore, we instruct our members to pay at the time of the transaction based on the current prices,” said U Kyaw Win, President of the association. The instruction for the gold traders came out after extreme price fluctuations occurred recently in a single day of trading. There is one big issue that Myanmar faces with its gold trade; the lack of a formal exchange system for the industry. Myanmar has been trying to establishing a new exchange called the Myanmar Gold Center Market (MGCM) since 2013, and expected to open the exchange in early 2016, and then again in 2019. However, it hasn’t managed to open the center so far.
The launching ceremony of the establishment of the industrial complex for economic cooperation between Myanmar and South Korea was held the business forum in Yangon to discuss a partnership for the development and prosperity
A launching ceremony of the joint industrial complex between Myanmar and the Republic of Korea was held yesterday afternoon together with a forum to discuss a partnership for development and prosperity. ROK President Moon Jae-in and Vice President U Myint Swe attended the two events held at the Lotte Hotel in Yangon. Korea Internaitonal Trade Association’s Chairman & CEO Mr Kim Young Ju and UMFCCI’s Chairman U Zaw Min Win extended greetings to the attendees. Documentary videos about the amazing Han River of ROK, New Southern Policy, future cooperation goals and the special economic zone were screened. Korea Land & Housing Corporation’s President Byeon Chang Heum explained about the establishment of the industrial complex for economic cooperation between the two countries. Vice President U Myint Swe expressed his thanks to be given the opportunity to speak at the launching ceremony of the industrial complex for economic cooperation between Myanmar and ROK and the business forum of the two countries.
Myanmar and South Korea inked the series of agreements on economic and infrastructure development and investments in Myanmar
Myanmar and South Korea inked a series of agreements on economic and infrastructure development during South Korean President Moon Jae’s visit to Nay Pyi Taw on Tuesday. These include bilateral agreements for the construction of the Dala Bridge, or Korea-Myanmar Friendship Bridge, as well as the Korea-Myanmar Industrial Complex (KMIC) in Yangon. The president said South Korean investors would be encouraged to invest in the KMIC. On Wednesday, the president also attended a ceremony in Yangon to mark the beginning of the KMIC project. Located near Nyaun Hna Pin Village of Hlegu Township, the project will be developed by the Korean Land and Housing Cooperation (LH) and Ministry of Construction across 555 acres of land. Valued at US$100 million, the project is expected to be completed in 2024. The two governments also inked a memorandum of understanding (MoU) to conduct feasibility studies for the construction of the Dala Satellite City Project.
The 6th edition of ProPak Myanmar 2019 is held in Yangon in order to promote expansion in food, drink, and manufactures industry in Myanmar
The sixth edition of ProPak Myanmar is held for manufacturers and those involved in processing, packaging, filling, quality assurance, testing and measurement sectors, and their related fields of automation, transportation, storage, refrigeration, ingredients, labeling and pollution control. This year’s event will move to a new venue, the Myanmar Expo (ME), located in Thaketa Township. It is a modern and easily accessible venue that will serve the growing food industry and those manufacturers looking for success through technology and innovation. This is a great opportunity to network and exchange information with industry professionals from around the world. ProPak is the premiere processing & packaging event for Myanmar, and will feature 18 countries with 180 brands, 125 companies and international pavilions from Indonesia, Taiwan, and Thailand. Leading international companies will showcase new products, machines, technologies and solutions to fulfill manufacturing needs.
Yangon Regional Tourism Committee approved USD $ 238 million in hotel and tourism investments sector between May and August 2019
Yangon’s Regional Tourism Committee recently announced that investments totalling US$238 million and K119.63 billion were approved for the region’s hotels and tourism sector between May and August. In the same period, the committee approved investments for 33 new hotels and eight guest houses, approved 18 new hotels, 400 new travel agencies, and 200 tour guides. The surge in activity comes on the heels of new regulations calling for the formation of regional and state tourism committees headed by chief ministers of states and regions. The committees are empowered to approve investments in the hotels and tourism sector in their respective regions and states.
Myanmar Young Entrepreneur Association launched a new portal which is called MYEA Member Portal in order to create a world class entrepreneurial ecosystem in Myanmar
Myanmar Young Entrepreneurs Association has launched a new portal called MYEA Member Portal, which aims to connect young Myanmar entrepreneurs with the help they need to be successful. Dr. Aung Thuya, President of MYEA, attended the launching event and said: “Members will get priceless benefits such as new business connections and networks, mentorship training, entrepreneurial training, as well as inspiration for their businesses.” He also invited other entrepreneurs to join the association and sign up the MYEA Facebook Workplace, and MYEA Member Portal www.myea.org.mm to build continuous connection. MYEA was formed to create a world class entrepreneurial ecosystem in Myanmar that facilitates startups and innovative and creative entrepreneurs.
The value of stocks traded on the Yangon Stock Exchange (YSX) in August 2019 reached the highest level of USD $ 1.9 billion
The value of stocks traded on the Yangon Stock Exchange (YSX) hit the highest level of US$1.9 billion this year in August, according to the monthly report of the YSX. A total of 322,176 shares were traded on the exchange during the month. At present, shares of five listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co. Ltd. — are being traded on the stock exchange. In January, 89,576 shares worth K526 million were traded on the exchange, and the trade value slid to K409 million and K396 million in February and March, respectively, as share prices dipped.
The authority will issue the official invitation tender to build the two-lane Dawei – Kanchanaburi road project soon
An invitation to tender for the project to build the two-lane Dawei-Kanchanaburi road will be issued soon, says an official for the Dawei Special Economic Zone Management Committee. “As the road project is a major component of the special economic zone (SEZ), we hope to start work on its construction as soon as possible,” said Dawei Special Economic Zone Management Committee Secretary U Tint Tun Naing. An eight-month study on the possible impacts of the road project has already been carried out and its results made public. The project will be implemented as soon as possible after an agreement for a loan is signed with Thailand, U Tint Tun Naing said. He said that the project involves the upgrading of an existing dirt road and that the Pyidaungsu Hluttaw (Assembly of the Union) has approved the acceptance of the loan for the project which Thailand has agreed to provide, adding that the agreement for the loan is expected to be signed soon.
Ministry of Planning and Finance signed the loan agreements with Export – Import Bank of Korea for the establishment of e-Government Integrated Data Center – eGIDC
The Ministry of Planning and Finance signed loan agreements with Export-Import Bank of Korea yesterday morning. Under the Economic Development Cooperation Fund (EDCF), the bank loaned US$93.779 million for the establishment of e-Government Integrated Data Center-eGIDC that will be supervised by the Department of Information Technology and Cyber Security under the Ministry of Transport and Communications, and $61.816 million for infrastructural development outside Korea-Myanmar Industrial Complex (KMIC) which will be implemented by the Department of Urban and Housing Development, Ministry of Construction. Daw Si Si Pyone, the Director-General of Treasury Department under the MoPF, and Mr Um Sung Yong, Director General of Export-Import Bank of Korea, signed the agreements. The two packages of loan were received with 0.01 per cent annual interest rate under the $ 1 billion loan programme of EDCF, plus 0.1 per cent for service charge to be paid only when the loans were settled. The 40-year loans could enjoy 15 years grace period before starting a settlement in 25 years.
Chinese investors proposed a Myanmar – China Industrial Zone to be implemented in Myanmar
Chinese investors have proposed a Myanmar-China industrial zone to be implemented in Myanmar, according to U Zaw Min Win, President of the Union of Myanmar Federation of the Chamber of Commerce and Industry (UMFCCI), at the monthly regular meeting between the Vice President of Myanmar and local business leaders. “They have completed such zones in other countries. Therefore, we are ready to welcome responsible businesses,” he added. Chines investors have made investments in the garment sector in Myanmar, a labor intensive process.