Weekly Business News from Myanmar

Government authorities will introduce more control on new licenses for the jade mining sector in the future
The authorities are expected to limit the issue of new licenses for jade mining in the future, said U Aung Nyunt Thein, managing director of Myanmar Gems Enterprise, which is under the remit of the Ministry of Natural Resources and Environmental Conservation. The granting of new licenses will be conducted in phases. “For example, for every 100 blocks available, we will issue licenses for 20 initially. If these are managed well, we will consider granting the next 10. We will focus on a mining plan under which the amount of jade and gems extracted is transparent and traceable,” U Aung Nyunt Thein said at the American Center in Yangon on May 29. The government is taking a more controlled approach after unbridled mining activities took place in the past, particularly at Hpakant and Lone Khin in Kachin State, resulting in excessive extraction of jade, much of which went unrecorded due to poor management and control.
SC Auto (Myanmar) Factory was opened in Yangon Industrial Zone where will produce the SC Neustar’ brand, first bus made in Myanmar to European standards
U Thaung Tun, Union Minister of the Ministry of Investment and Foreign Economic Relations and Chairman of the Myanmar Investment Commission (MIC), attended the opening ceremony of the SC Auto (Myanmar)Factory in the Yangon Industrial Zone of Mingalardon Township this morning. The official opening of SC auto was attended by over 370 representatives of local and oversea motorcar manufacturers and suppliers. The SC Auto (Myanmar) Factory is a 100 percent foreign-owned company based in Singapore, which produces the ‘SC Neustar’ brand of buses/coaches in accordance with the MIC’s permit. Union Minister U Thaung Tun, Chief Minister of Yangon Region Government U Phyo Min Thein and the Singapore Ambassador to Myanmar Ms. Vanessa Chan delivered the opening remarks. Ms. Rachel Lee, Managing Director of SC Auto (Myanmar) Company Limited provided a background briefing on the SC Auto investment in Myanmar. In his address, The Union Minister emphasized that the MIC encourages a responsible business environment – and welcomes investment from firms like SC Auto.
China Railway Eryuan Engineering Co (CREEC) was submitted an initial technical report on Muse-Mandalay railway project to the government
A technical report that is a part of a feasibility study being conducted on the Muse-Mandalay railway as part of the China-Myanmar Economic Corridor has been submitted to the government, according to Myanma Railways and the Ministry of Transport and Communications. China Railway Eryuan Engineering Co (CREEC) submitted the report, which is based on a ground survey along Muse-Mandalay highway road and which includes results from a soil analysis test as well as suggested routes, said U Htaung Shan Khan, general manager of Administration and Planning for Myanma Railways. China-backed CREEC conducted ground survey works in the last week of December, 2018. The technical report was carried out during the first four months of the year. Officials of CREEC and Myanma Railways inspected the ground along proposed routes for the Muse-Mandalay railway project. They also held public meetings with the authorities, residents and township’s elders of Kyaukme, Lashio and Muse, where the railway might pass through.
Government’s emergency power plans impossible without the price rises in order to meet the high demand in the next hot few years
YANGON — Electricity prices need to rise before the government can move forward with plans to meet demand for next hot season, a senior Ministry of Electricity and Energy official says. With many areas of the country suffering from crippling power cuts, the ministry earlier this month announced a range of potential solutions to meet demand in the next few years, including liquefied natural gas barges, imports from China and Laos, and solar photovoltaic projects. U Han Zaw, deputy director general of the Department of Electric Power Planning, said the ministry was under pressure from the government to come up with solutions to the power shortages, which have forced the ministry to introduce scheduled outages since late April and prompted significant public criticism. “It is our responsibility to find ways to prevent blackouts like these in the future,” Han Zaw told Frontier in an exclusive interview.
Magwe Region received total K 1.5 billion in investments between last October and April this year
Magwe Region received K1.5 billion (US$966,000) in investments between last October and April this year, says Regional Minister for Planning and Development U Zaw Min. The investments, all from local businesses, created 134 local jobs between October 2018 and April 2019. In the 2017-2018 fiscal year, the region received six domestic investments totalling K1.57 billion and one foreign investment of US$800,000, creating 277 jobs in the process. For the period from April to September 2018, foreign investments totalled US$2.39 million while domestic investments totalled K2.8 billion. “Last year, Magwe ranked fifth among regions and states in terms of investments received,” said U Zaw Min.
Myanmar Responsible Business and Human Rights Forum was convened in Yangon in order to improve rights for business, space and sustainable development local businesses to international standards
Actions to improve rights for business, peace and sustainable development, as well as to build better business landscape by applying international standards are in full swing in Myanmar. Myanmar Responsible business and human rights forum convenes in Yangon on Thursday. The forum will provide a space for dialogue between governments, business, academia, civil society and international organizations on trends, challenges and good practices to further support rights-respecting businesses. International experts highlighted on the human rights violations, actions that the local businesses need to address to meet the international standard and government actions to promote the responsible business in the country.
Myanmar authorities are planning to improve the quality of its indoor network coverage as part of preparing for the fifth generation of wireless technology (5G)
WITH MORE people moving to major cities for better opportunities, Myanmar is planning to improve the quality of its indoor network coverage as part of preparing for the fifth generation of wireless technology (5G), officials say. Soe Naing, deputy director-general of the Posts and Telecommunications Department, told the recent Myanmar Indoor Coverage Digitalisation Summit 2019 that the country would focus on improving the indoor experience of users, given that more than 70 per cent of the traffic occurs indoors, especially in urban areas. “As Myanmar has a hot climate and a long rainy season, people usually spend their time mostly in indoor areas,” he said. “The quality of the indoor network greatly affects the user experience. In the future 5G era, we will need more and more indoor sites, especially in highly intensive areas such as shopping malls and residential buildings.”
Exploration drilling will commence in 2019 and 2020 for oil and gas companies that won tenders in 2014 and 2015
Exploration drilling will commence this year and next for oil and gas companies that won tenders in 2014 and 2015, based on the contracts signed with the with Myanmar Oil and Gas Enterprise under the Ministry of Electricity and Energy (MOEE), ministry officials said. This is the next phase after seismic surveys and testing operations were carried out over the past five years under the terms of the Production Sharing Contracts (PSCs) between the companies and the government. It includes both onshore and offshore drilling. Around 20 oil and gas companies, including Thailand’s PTTEP, Italy’s ENI, South Korea’s Daewoo and Australia’s Woodside Energy have commenced drilling and other geological and seismic activities in Myanmar so far this year. “The companies have reached the drilling phase under the contract. Should they decide that it is not commercially viable to move on to production after drilling has been conducted, they can choose not to continue with the contract,” said U Min Min Oo, assistant secretary of the MOEE. In the past, some firms gave up their blocks after the study period, claiming there were no prospects. “By drilling, the companies can decide if there are sufficient reserves or not. If they believe the prospects are good, they will spend the money to continue drilling,” he said.
The Responsible Business Fund provides financial support to 504 Small and Medium-sized Enterprises in seven sectors in order to develop SMEs in Myanmar
To help develop Small and Medium-sized Enterprises in Myanmar, the Responsible Business Fund is providing financial assistance to 504 SMEs in seven sectors. The fund has been providing monetary assistance, particularly to innovation-related projects in seven sectors, for the development of the practice of doing business in a responsible manner. Additionally, the RBF is aiming to encourage tough competition in conducting business. The seven sectors receiving assistance are concerned with energy wastage, water resource utilization, disposal and recycling of waste, healthcare and security, food safety, supervision and monitoring technologies, and empirical and theoretical technologies. The RBF is funding 50-80 per cent of the total cost of the projects in the seven sectors, said U Thar Lin Htet, Grant Manager, RBF.
The government promises to assist Myanmar’s coffee industry growth
For many people around the world, the day does not truly begin until the coffee is brewed. If there is no coffee, this may be a rather ominous sign that the day may not go well. Coffee is such an integral part of modern society that an entire industry supports it, from the farmers who grow the coffee – those dear, sweet individuals who support the rest of us and allow us to continue enjoying life and accomplishing our work – to those who sell, trade, ship, roast and package the coffee. Without all of these splendid people and the hard work they do, one could speculate – perhaps with some degree of correctness – that the world would simply cease to function. Myanmar is a growing player in the coffee industry, and the government is thus taking steps to help improve conditions for coffee farmers and entrepreneurs. According to U Hla Kyaw, the Deputy Minister for the Ministry of Agriculture, Livestock and Irrigation, his ministry has promised to apply innovative ideas to improve the quality of coffee strains, and to provide assistance for the entire chain of production. This announcement came at the Myanmar Coffee Forum 2019, which was held in Mandalay.