Weekly Business News from Myanmar

The feasibility study needed before any investment into the tourism infrastructure of Sal Eain Tan beach
A feasibility study will be made before any investment into the tourism infrastructure of Sal Eain Tan beach two hours south of Yangon. The beach, in Kungyankon Township, and located near the now dilapidated Letkokkon beach resort built by the military government in the 1990s, has become a popular weekend getaway for Yangonites in recent years. Karen Ethnic Affairs Minister Daw Naw Panthinzar Myo said in a June 25 reply to a query from MP U Aung Min Min that the Yangon regional government will study the potential for tourism investment in Sal Eain Tan before making a decision. She added that public-private partnerships would be set up should the regional government see potential to grow the beach as a tourism destination.
The foreign developer, Gold Coast KTMG Myanmar proposed the development of new city project which is worth USD $ 38 billion in the suburbs of Sittwe, Rakhine State
Foreign developer Gold Coast KTMG Myanmar has proposed a US$38 billion “new city” project in the suburbs of Sittwe, Rakhine State’s capital. Sittwe is near eight townships in northern Rakhine currently affected by armed clashes. A KTMG delegation met with U San Kyaw Hla, the speaker of the Rakhine State parliament, and a group of Arakanese lawmakers and military representatives on Tuesday. According to the speaker, the KTMG representatives laid out their proposal for a development project on 7,000 acres of land. He said KTMG initially selected a project location near Kyae Taw and Shwe Min Gan villages across the Sakro Keya creek from Sittwe. U San Kyaw Hla said the officials they were told the company expects the project to cost about $38 billion. He said the project still needed to be cleared by the Union government, in line with foreign investment procedures.
Ministry of Agriculture, Livestock and Irrigation is striving to upgrade the laboratories and obtaining ISO certificates with the aim to improve the quality of fishery products
Doctor Khin Zaw, Permanent Secretary of the Ministry of Agriculture, Livestock and Irrigation, says that the government is trying to improve the quality of fishery products by building diagnostic laboratories and obtaining ISO certificates. At a meeting with the Myanmar Fishery Federation, he stated: “Business owners in the industry need to comply with the health standards. We need active participation from the private sector. For our part, we are trying to upgrade the laboratories for better and more accurate diagnosis.” He urged private business owners to report any outbreaks as soon as they are discovered so that they do not become catastrophes. He also warned that neglecting an outbreak, assuming that it is not serious, could actually cause serious damage to the entire industry. “Myanmar is now seeing new diseases that come from other countries, such as African swine flu,” said Dr. Ye Win Tun, Director General of the Department of Livestock and Veterinary. “We need public and private collaboration and preparation so that we can respond swiftly if there is an outbreak of disease.”
The 28th regular meeting of Private Sector Development Committee with local entrepreneurs was held in Yangon
The 28th Regular Meeting of Private Sector Development Committee with entrepreneurs was held at UMFCCI in Yangon on Saturday. Chairman of Committee, Vice President U Myint Swe attended the meeting and gave an opening speech. The Vice President pointed out that the committee has solved 349 points reported by the entrepreneurs through UMFCCI since the beginning of the Regular Meetings. Private Sector Development Committee was formed in 2016 to implement for the private sector development. Since then, the government has been striving with 5 working committee to be effectively implemented for the development of the private sector. The Vice President stressed that the cooperation between the government and business enterprises, entrepreneurs as well as SMEs is the best strategy to overcome the difficulties and challenges for the development of private sector.
Yangon Stock Exchange-listed First Myanmar Investment Public Company Ltd (FMI) continues to see potential for long term growth in finance, healthcare, real estate and tourism despite a drop in earnings in 2019 fiscal year
Despite a drop in earnings in FY2019, Yangon Stock Exchange-listed First Myanmar Investment Public Company Ltd (FMI), said it continues to see potential for long term growth in finance, healthcare, real estate and tourism, the main sectors in which its businesses are involved. While earnings dropped by almost 42 percent to K14.4 billion for the 12 months ended March 31, 2019 due to a spike in costs incurred to modernise and expand its businesses, FMI nevertheless raked in record revenues of K279.7 billion, which is up 36pc year-on-year. This was mainly contributed by Yoma Bank, which saw its revenue increase by 36.5pc to K254.5 billion due to a rise in interest income from a growing loan book. Yoma Bank’s agriculture financing program which covers loan facilities and hire-purchase products also saw a steady rise in income. Meanwhile, Pun Hlaing Siloam Hospitals enjoyed revenue growth of 32.6pc to K24.9 billion, on the back of stronger demand for its ancillary services and an increase in patient volume.
The access to financial services for small and medium enterprises (SME) improved in the first quarter of the 2018-2019 fiscal year while the banking sectors credit growth in slow
While the banking sectors credit growth is slow, access to financial services for Small and Medium Enterprises (SME) has improved through the first quarter of the 2018-2019 fiscal year. According to World Bank officials at the press conference on Myanmar Economic Monitor report held on June 18. In lending, banks have become stricter which has slowed lending activities in the 2018-2019 fiscal year. Growth in credit to the private sector dropped by 21 percent in the first quarter of the 2018-2019 fiscal year. However, despite overall slow credit growth, there are signs of progress in financial access for small and medium enterprises, year on year growth is at 80 percent in the first quarter of the 2018-2019 fiscal year.
Japanese firm, Japan’s JFE Engineering Corporation will help building an industrial zone for agricultural goods in Yangon
A Japanese company will develop an industrial zone in Yangon focusing on the production of value-added agricultural goods. Japan’s JFE Engineering Corporation and Myanmar’s Dagon International Co. signed a memorandum of understanding on development of the industrial zone on Tuesday. The US$150-million (227.55 billion-kyat) industrial zone will be established on 500 acres of land owned by Dagon International Co. in East Dagon Township, according to U Thurein Aung, the chief executive officer of the Myanmar company. “Though we are an agricultural country, we only export primary products, which are processed by foreign countries and exported back to us as value-added products. So, if we can invite those processing plants into our country, we will be able to make value-added goods from our agricultural produce and supply them to consumers,” he told The Irrawaddy.
The leaders of the American Chamber of Commerce in Myanmar (AMCHAM) and Myanmar Government discussed the ways to improve the ease of doing business in Myanmar in order to attract more US investments in Myanmar
Leaders of the American Chamber of Commerce in Myanmar (AMCHAM Myanmar) met with government officials yesterday to discuss ways to improve the ease of doing business in Myanmar, lower the cost of doing business and ultimately attract more US investment. Among the attendees of the forum were U Soe Thein, Deputy Governor, Central Bank of Myanmar, Dr. Ye Myint Swe, Deputy Union Minister, Ministry of Natural Resources and Environmental Conservation, U Aung Htoo, Deputy Minister, Ministry of Commerce and U Minn Minn, Director General, Ministry of Commerce. Discussions were guided by a Policy Recommendation Paper developed by Amcham Myanmar which outlines specific recommendations on business opportunities and ways to tackle immediate challenges to enable businesses to thrive.
US investors are interested in investing in various sectors of the Myanmar economy (Mr. Scot Marciel, Ambassador of the United State to Myanmar)
US ambassador to Myanmar Mr. Scot Marciel said that companies from US were interesed in investing in various sectors of the Myanmar economy. A summit meeting was held under the theme ‘Ease of Doing Business in Myanmar’ at Melia Hotel in Yangon on June 26 and government officials and leading businessmen from the US Chamber of Commerce and Industry (Myanmar) attended.
The first new facility of solar power plant of Myanmar stared its operation in MinBuu in Magwe Region
The very first solar power plant of Myanmar commissioned into service on Thursday. It is situated on MinBuu-Ann Motor Road, 16 miles west of MinBuu in Magwe Region. State Counsellor Daw Aung San Suu Kyi attended the opening ceremony together with Chief Minister Dr. Aung Moe Nyo, and gave a speech.