Weekly Business News from Myanmar

The five companies’ stock trading shares listed on the Yangon Stock Exchange (YSX) reached five month high of K 1.4 billion
Stock trading of 275,325 shares by five companies listed on the Yangon Stock Exchange (YSX) in May reached a five-month high of K1.4 billion, according to YSX monthly report, state media reported. The figure doubled over last month’s record of K506 million with 102,682 shares; while trading value in January was registered at K526 million with 89,576 shares and trading values slid to K409 million and K396 million in February and March respectively as the share price decreased.
Myanmar will sign the new ASEAN Framework Agreement on Services (AFAS) which is structured to substantially eliminate restrictions to trade services among ASEAN member states
During the May 23 session, Pyidaungsu Hluttaw, Myanmar highest legislature, approved a request from the President of Myanmar to sign an ASEAN Framework Agreement on Services (AFAS). The services agreement is structured to substantially eliminate restrictions to trade services among ASEAN Member States, with the goal to improve the efficiency and competitiveness of ASEAN services suppliers. Some members of ASEAN - such as Myanmar, Philippines and Vietnam - still not signed the AFAS. Myanmar though now has plans to sign the agreement at the 35th meeting of ASEAN, which will be held in November this year. “By signing the agreement, more investments from ASEAN countries will come into our country creating more jobs and market opportunities, this will create more foreign currency inflow. We will also need an amendment in legal affairs,” said Dr. Aung Htoo, Deputy Minister of the Ministry of Commerce.
The 3rd Myanmar-EU Economic Forum was held in Nay Pyi Taw to provide the best opportunities for EU investors to enter in Myanmar
The Third Myanmar-EU Economic Forum was held at Kempinski Hotel in Nay Pyi Taw yesterday. In his speech, the Vice President said holding this economic forum for the third time was a firm indication of Myanmar and EU’s strengthened cooperation. He thanked the EuroCham and UMFCCI for organizing the forum and said it would provide the best opportunities for EU investors to enter the country. The Vice President said Myanmar was located in a strategic geographic location between China and India and had the potential to be a bridge between Southeast Asia and South Asia. He said foreign investments had mainly flowed into oil and natural gas, electric power, media and communications, industrial production and real estate. He said these sectors had potential for market expansion but also highlighted there were many other sectors that could benefit both investors and the local people of a region.
The Social Welfare Board launched the pilot project for workplace injury insurance pilot scheme in Yangon and Mandalay Region
The Social Welfare Board is conducting a workplace injury insurance pilot scheme in Hlaing Tharyar township, Yangon and Pyigyitagun township, Mandalay. The aim of the project, which started June 1, is to help employees who are at risk of occupational injuries apply for and enjoy insurance coverage. “The project will be carried out for a period of six months. We will expand it to other townships depending on the outcome. Our aim is to reduce the procedures and redtape for employees who require coverage. In the past, there were 56 steps involved in applying for coverage, but under the project we’ve reduced it to just 31,” said U Maung Maung Aye, director general of the Social Welfare Board. He added that once a new IT system has been implemented, the number of steps will be further reduced.
Yangon Regional Investment Committee (YRIC) permitted eight foreign and three domestic projects which is expected to create over 5,600 job opportunities
The Yangon Region Investment Committee gave the green light to eight foreign and three domestic projects with an estimated capital of US$15.8 million and K6.2 billion, respectively, at a meeting held yesterday. The projects are expected to create 5,630 jobs, according to a press release issued by the YRIC. Since its establishment, the YRIC has approved a total of 204 domestic and foreign projects in the sectors of manufacturing, hotel services, and other services from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, British Virgin Islands, and Seychelles. During the 2017-2018 (August-March) fiscal year, the YRIC permitted 39 foreign and 9 domestic projects to invest in Yangon Region, with a capital of $56.6 million and K23 billion, creating 22,481 jobs.
Myanmar will implement the first Standard Operating Procedures (SOP) to get easier investments for both local and foreign investors
Myanmar will implement its first Standard Operating Procedures (SOP) by collaborating between six government agencies concerned with investments. The collaborations are to ensure investments will be easier for both local and foreign investors, according to U Aung Naing Oo, Permanent Secretary of the Ministry of Investments and Foreign Economic Relations. “The union cabinet has instructed us to draft Standard Operating Procedures to make the governmental agencies procedures more business friendly for investors,” he added. The six government agencies, which will collaborate on the SOP are General Administration Department under Union Government Office, Land Management and Statistics Department under the Ministry of Agriculture, Livestock and Irrigation, Environmental Conservation Department Ministry of Resource and Environmental Conservation, Food and Drug Administration under the Ministry of Health and Sports, Internal Revenue Department under the Ministry of Planning and Finance, and Yangon City Development Committee.
Japanese’ metal parts and equipment makers, Nissin Electric Company intend to move its new plant to Myanmar and schedule to start in March 2020
Metal parts and equipment maker Nissin Electric Co of Japan will build a plant in Myanmar, relocating some production processes from its factories in Thailand and Vietnam to cut labour costs in its contract manufacturing business. The company said last week that it will form a joint venture with Hosoda Holdings Co, a Japanese trader acting as Nissin’s sales agent for the Myanmar market, in the Thilawa Special Economic Zone on the outskirts of Yangon in June, with plant operations scheduled to start in March 2020. The local arm, tentatively named Nissin Electric Myanmar Co, plans to make electrical equipment and take on contract manufacturing of such machines and parts, it said in a statement.
Yangon Region Government invited investments in projects within the Yangon Project Bank
The Yangon Region government yesterday invited investments in projects included in the Yangon Project Bank, a pool of 80 priority projects located in the region. These include new city development, housing, redevelopment, industrial, port, fishery, agriculture, transportation and public space projects, which will be implemented under public-private partnership (PPP) agreements. Phase 1 of the New Yangon City development is estimated to involve investments totalling US$8 billion. Meanwhile, Phase 1 of the Yangon Urban Mass Rapid Transit, the Yangon Central Railway Station Comprehensive Development, Eco Green City Project and Phase 1 of the Inner Ring Road, part of the Yangon Elevated Expressway, are estimated to involve US$1 billion, US$2.2 billion, US$1 billion and U$ 873 million, respectively.
Thilawa Multipurpose International Terminal was opened at Plot No.25 and 26 in Thilawa
Opening ceremony for Thilawa Multipurpose international Terminal at Plot No. 25 and 26 in Thilawa, was held Thilawa Multipurpose International Terminal Co., Ltd hall yesterday morning. Union Minister for Transport and Communications, U Thant Sin Maung and Union Minister for Planning and Finance, U Soe Win and officials look around the current status of terminal construction. Than the Union Minster U Thant Sin Maung delivered key note speech at the ceremony. He said that the ceremony is an Indication of friendship between Myanmar and japan. Kamigumi company building the terminal is a successful organization engineering Terminal related work. As they successfully accomplish this kind of mission in South East Asian Countries , he is confident they will be able to do the same here in Myanmar. Then, Japanese Ambassador Mr. Ichiro Maruyama and Mr. Yasuhiro Shinahara delivered welcome speech.
Japanese Government has been assisting comprehensive supports for infrastructure development of Myanmar through ODA loan to contribute for economic growth of Myanmar
Japanese Government has been assisting for infrastructure development of Myanmar through ODA Loan. Japan provided 8 billion US Dollars ODA loan assistance to Myanmar to spend during five years period. This ODA loan program started in 2016 by the pledge of the Japanese Prime Minister during the visit of State Counsellor Daw Aung San Suu Kyi in Japan so as to contribute for economic growth of Myanmar. Ambassador, Embassy of Japan in Yangon (Myanmar), H.E. Ichiro Maruyama said “We are now providing various sectors for the infrastructure development in Myanmar. Transportation plays very important role for development of the country's economy, so we are carrying out for development of the transportation sector. We assist the main projects like Yangon-Mandalay railway improvement project and it is targeted to complete in 2025 by using 2.5 billion USD. We will also assist for the implementation of Yangon circular railway upgrading project and jetty construction in Mandalay to promote Inland water transport. We are now building Thaketa Bridge in Yangon.”