Weekly Business News from Myanmar

The Arakan Army (AA)/United League of Arakan (ULA) welcomed all foreign investors including Chinese investment in large-scale infrastructure projects under the Belt and Road Initiative (BRI)
The Arakan Army (AA)/United League of Arakan (ULA), has said it welcomes foreign investors, including Chinese investment in large-scale infrastructure projects under the Belt and Road Initiative (BRI), in western Myanmar’s underdeveloped Rakhine state, where it is fighting the national military for greater autonomy and self-determination, RFA reported. The group’s political wing, the United League of Arakan (ULA), said in a statement dated July 18 that it approved of governments and institutions that want to establish mutually beneficial projects such as the China-based deep sea port and Kyaukphyu Special Economic Zone under the BRI.
Central Bank of Myanmar (CBM) extend the use of the WeChat Pay pilot phase for a second three month period
The pilot phase for the use of the WeChat Pay service in Myanmar has been extended for a second three-month period, Central Bank of Myanmar (CBM) director general Daw Myint Myint Kyi said. The pilot phase began in February when the CBM approved the request of Paypb Co Ltd for the use of the WeChat Pay service by Chinese tourists in several locations. Daw Myint Myint Kyi told The Myanmar Times the central bank needed more time to study how the payments worked and allowed the extension. She said the CBM also allowed the second transaction because it wanted to ensure that money spent by foreigners would pass officially through local banks as Chinese tourists have been using WeChat Pay and Alipay mostly for paying hotel rooms, buying souvenirs and meals in restaurants around Mandalay even before the central bank gave permission.
Myanmar Government is under negotiating with the concessionaires the conditions precedent (CPs) for Dawei SEZ initial phase to begin
The Myanmar government is currently negotiating the conditions precedent (CPs) with the concessionaires for the initial phase of construction work on the Dawei Special Economic Zone (SEZ), a US$8-billion (about 12.16 trillion kyats) project that includes a deep seaport. The strategic project in southern Myanmar’s Tanintharyi Region is set to be Southeast Asia’s largest industrial complex. According to the concession agreement, both sides need to fulfill all the CPs, or obligations. After they have negotiated the CPs, the government will issue a “notice to proceed”, after which the concessionaires must begin the initial phase of construction. The Dawei SEZ Management Committee (Dawei SEZ MC) in Naypyitaw told The Irrawaddy, “The last CPs … concern land-lease agreements. We are finalizing them and will send them very soon.” Under the initial agreement for the long-delayed Dawei SEZ project, Italian-Thai Development PCL (ITD) was granted a 75-year concession to develop and attract investment to the project in 2008. Under that agreement, the project was scheduled for completion in 2015
Japan International Cooperation Agency (JICA) and Ministry of Agriculture, Livestock and Irrigation will jointly implement to carry out project, 5,000 acres of modern farmland project in Shwebo district under the Agriculture Income Improvement project (AI
The Ministry of Agriculture, Livestock and Irrigation and Japan International Cooperation Agency (JICA) are jointly carrying out the Agriculture Income Improvement project (AIIP) to boost agriculture incomes of residents in Shwebo District, Sagaing Region. The 5,000 acres of farmland in Shwebo District are being used in the AIIP from the 2018-19 to 2024-25, according to Township Irrigation and Water Utilization Management Department (IWUMD). The 575 acres of land owned by 147 farmers near Latechin Village in Shwebo Township have been operating the modern farmland project since January 2019, and they are using irrigation water since 10 July, said U Tayzar Tun, Head of Township IWUMD.
The 6th Myanmar FoodBev and the 4th Myanmar Retail Sourcing Expo will be held in Yangon in order to create a networking platform for international and local players
The 6th Myanmar FoodBev and the 4th Myanmar Retail Sourcing Expo will be held from the 15th to the 17th of August at the Tatmadaw hall in Yangon, officials said a press conference on Wednesday. This year’s expo highlights the importance of linking global manufacturers and retail technology with the local business hoping to open doors for new business opportunity, to strengthen the competitive advantage for the existing businesses as well as to create a networking platform for international and local players. General Manager, ICVeX Company Limited, Chinkit Viphavakit said “Basically, we provided networking platform exhibition showcase and also activities. During the show, you can see varieties of products from locals and also international”. “So, it will be opportunity for local Myanmar business present and who like to be distributers and dealer and restaurant owners who would like to see the new products and apply to their business and also retail stores who looking for the new technology they can come to show and we also provide the seminars and activity attract to the general people."
The locals from the microfinance industry gathered with the senior microfinance professionals and stakeholders from Asian regions in Yangon to engage in professional exchange and network with the player from all sectors of the industry
Senior microfinance professionals and stakeholders from Asia region together with locals from Myanmar microfinance industry gathered in Yangon, Tuesday. Under the theme of “Managing Sustainability & Impact in a Rapidly Evolving Microfinance Sector”, Microfinance Success Asia 2019 will bring opportunities not only for the stakeholders to tackle issues but also for the participants to engage in professional exchanges and to network with players from all sectors of the industry. According to the industry players, over 180 microfinance institutions (MFIs) have been providing services to over 3.4 million of population in the country. MFIs added over 350 Billion worth of investment circulate in the industry at present. Representatives from the Microfinance association highlighted on the challenges and ask for the stable and effective policies for the industry.
Myanmar government will give the go-ahead to joint venture between local and foreign insurance companies in next month
Myanmar’s Ministry of Planning and Finance is set to give the go-ahead to joint ventures between local and foreign insurance companies next month. The country’s insurance business regulatory board, which is overseen by the Ministry of Planning and Finance, is currently scrutinizing companies that have submitted requests for proposals (RFP), U Zaw Naing, the board’s secretary, told The Irrawaddy. “I can’t disclose the names of the [foreign] companies for the time being. We have interviewed those companies and it is likely that [we will give them permission] next month,” he said. Nine foreign companies have expressed interest, but only six of them submitted RFPs for joint ventures, he said. Partnering with foreign insurance firms that have opened representative offices in Myanmar, local companies such as IKBZ, AYA Myanmar Insurance and Grand Guardian Insurance will provide general insurance services and GGI, Capital Life Insurance and CB Insurance will provide life insurance service.
The Insights from Customer Survey showed insurance market has the great potential to grow K 1.75 trillion in the next 12 months and K 4 trillion in 10 years
A survey on insurance showed that the Myanmar insurance industry has potential to grow to K1.75 trillion in the next 12 months and grow to a K4 trillion market in 10 years. IKBZ Insurance Co Ltd, one of the largest insurers in the country, unveiled on Tuesday findings on the insurance market, Insights from Customer Survey, which showed that the insurance market has the potential to grow to K1.75 trillion in the next 12 months and have a market size of K4 trillion in 10 years. Myanmar has the lowest insurance penetration rate in the region, with only two million of its 54.36 million population having any sort of insurance coverage. “Current market penetration is very low but we fully expect the industry to meet the regional average of 5 percent within next 10 years provided that there is sufficient access to insurance professionals and a proper suite of products,’’ IKBZ’s deputy managing director Anil Mancham said.
Chinese Company CITIC hired the Canadian Company Hatch to perform an Environmental and Social Impact Assessment (ESIA) on Kyaukphyu project
The Chinese company CITIC, which was selected to develop Kyaukpyu Deep Sea Port, has hired the Canadian company Hatch to perform an Environmental and Social Impact Assessment (ESIA) of the project. The agreement between the Myanmar Government and CITIC on this project was signed in November 2018; 70 percent of it is to be owned by CITIC, and the remaining 30 percent by the Myanmar Government. On May 15, Hatch reached the agreement with CITIC to serve as a consultant, and to create the ESIA for the entire project.
Myanmar Extractive Industries Transparency Initiative (EITI) applied the forestry sector on the report for the first time this year
Myanmar’s forestry sector was included in the Myanmar Extractive Industries Transparency Initiative (MEITI) report for the first time this year. Myanmar is the second country to have its forestry sector included in the EITI. Guided by the belief that a country’s natural resources belong to its citizens, the EITI is the global standard for promoting open and accountable management of its resources. It requires the disclosure of information along the extractive industry value chain from the point of extraction, to how revenues make their way through the government, and how they benefit the public. In preparing the Myanmar forestry report, EITI compared data from the Forest Department, state-owned Myanmar Timber Enterprise (MTE), Internal Revenue Department, Treasury Department and Customs Department as well as data issued by timber companies.