Weekly Business News from Myanmar

The implementation of a National Statistics Policy which will give priority to local industrial production, trading, wholesale and retail and investment will be finalized this year
The implementation plan for a national statistics policy which gives priority to the private sector in areas such as local industrial production, trading, wholesale and retail will be finalised this year, says U San Myint, director general of Central Statistical Organisation. After the government approves the action plan, which is being drawn with assistance from the World Bank, 10 working groups will be formed to ensure it is properly implemented in the coming budget year, U San Myint said. The statistics will be updated once every five years until 2030. Statistics from the private sector that will be collected will cover areas such as production, local and foreign trade, wholesale and retail, and investments. The purpose of the data collection is compile accurate statistics that reflect the country’s economy. “To begin with, we will conduct surveys of micro-, small-, and medium-sized enterprises with the help of experts from Denmark this month,” U San Myint said.
A new 2020 Myanmar report by the global research and consultancy firm Oxford Business Group (OBG) will shine a spotlight on the ongoing liberalization of the financial services sector
A new report by the global research and consultancy firm Oxford Business Group (OBG) will map out Myanmar’s ongoing efforts to open up its economy to the outside world, and the legislative and regulatory reforms that are being implemented to accommodate the nation’s plans. The Report: Myanmar 2020 will shine a spotlight on the ongoing liberalisation of the financial services sector, including opportunities that are fast becoming available to foreign insurance players following the implementation of the new legislation that paves the way for joint ventures. The life segment, which now allows 100% foreign ownership to a limited number of firms, will be a specific focus. Elsewhere, the impact of recent moves to allow foreign banks to engage in wholesale banking services and trade finance for the first time will be explored, alongside efforts to ease access to credit, such as allowing lenders to offer higher interest rates for borrowers unable to meet strict collateral requirements.
The French Development Agency (AFD) will provide financial support to Myanmar with a loan € 35.7 million (Ks 60.2 billion) to upgrade five hydropower plants throughout Myanmar
Myanmar is set to receive a €35.7 million (K60.2 billion) loan from the French Development Agency (AFD) to upgrade to five hydropower plants, President U Win Myint said in a message to the Assembly of the Union (Pyidaungsu Hluttaw). The term of the loan is for 13 years, with a seven-year grace period, at an interest rate of 0.68 percent, said Deputy Minister of Planning and Finance U Maung Maung Win. The funds are expected to be used between this year and 2024 for heavy maintenance work and upgrades to the Ye Nwe, Mone Chaung, Zaung Tu, Kinda, and Thaphan Seik hydropower plants. After the upgrades, the plants are expected to be able to run at full capacity, raising power generation from 565 million kilowatt hours to 646 million kilowatt hours. Due to the lack of heavy maintenance in the past, the plants had experienced some breakdowns Deputy Minister of Electricity and Energy U Tun Naing told the hluttaw.
The 9th coordination meeting of the Private Sector Development Committee (PSDC) was held in Nay Pyi Taw for raising ease of doing business ranking
Vice President U Myint Swe who is also the Chairman of the Private Sector Development Committee attended and addressed the 9th coordination meeting of the Private Sector Development Committee (PSDC) held in the meeting room of the Ministry of Commerce yesterday morning. Present at the meeting were committee Deputy Chairman Union Minister Dr. Than Myint, members Union Ministers Dr. Aung Thu, U Win Khaing, and U Ohn Maung, Union Attorney General U Tun Tun Oo, Deputy Ministers U Maung Maung Win and U Aung Htoo, Central Bank of Myanmar Deputy Governor U Soe Thein, chairmen and vice chairmen Deputy Governor U Soe Thein, chairmen and vice chairmen of five work committees, officials from Group on increasing Ease of Doing Business Ranking, Permanent Secretaries, Directors-General, President of Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and departmental officials.
Myanmar received over USD $ 2 billion in foreign direct investment (FDI) in five months from October 1 to April 5, 2019
Myanmar received over $2 billion in foreign direct investment (FDI) from October 1, 2018, to April 5, 2019, according to Directorate of Investment and Companies Administration (DICA). During this six month period, DICA approved 147 new foreign investments worth $1.38 billion. However, existing investments also received new cash flows. When combining that two amounts together is makes for a total of approximately $1.9 billion. However, there is additional cash invested through special economic zones (SEZ) — SEZs are separately administered from the Union government, under Myanmar Special Economic Zone Law — which add more to the total. "Existing companies in special economic zones (SEZ) expanded their investments by $121 million, which puts the country’s total at over $2.03 billion," said U Than Sin Lwin, acting Director General of Directorate of Investments and Company Administration. Myanmar as a whole approved 22 proposals last week. Myanmar Investment Commission (MIC) approved 2 investments, Yangon Region Investment Committee approved 15 investments, Bago Region Investment Committee approved 3 investments, Ayeyarwaddy Region Investment Committee approved 1 proposal, and Karen State Investment Committee approved 1 proposal.
Myanmar High Society Co (MHS) seeks the opportunities to expand in the global arena with professional software and innovation solutions developed by local technicians
Though most ICT companies in Myanmar focus on the domestic market only, the woman-led Myanmar High Society Co (MHS) seeks to further expand in the global arena with professional software and innovation solutions developed by local technicians, according to Cho Zin Wint, the firm’s founder and chief executive. In an exclusive interview with The Nation, she said MHS has been serving around 40 clients, of which 90 per cent are overseas companies. She foresees many more foreign clients in the months to come. “Our core business is software outsourcing. In the past few months, we have witnessed a surging demand for our products from potential clients in the United States, Japan and Singapore,” she said. “This year, we plan to tap further into the huge potential of the Japanese market. Our first priority is to ensure our products meet the needs of our corporate clients, both local and international. Otherwise, it will be hard to compete overseas.”
With the support of the DaNa Facility, a UK aid, the Customs Department under Ministry of Planning and Finance will set the development Custom Bonded Warehouse programme to provide boost to Myanmar industries
The Customs Department, Ministry of Planning and Finance, and the DaNa Facility, a UK aid funded programme, yesterday launched the Developing Custom Bonded Warehouse programme to introduce customs officers and relevant stakeholders to the potential of a bonded warehouse system in supporting the local industry. Bonded warehouses are specifically designed to support industry, particularly those which import high value and/or high import duty goods. Through bonded warehouses, these sectors will have the ability to defer their import duties and taxes until they themselves find customers willing to buy the goods or identify export markets. This implies that they can improve productivity and better manage their cash flows. The system allows for exported finished goods to be more competitively priced in regional and global markets as export pricing does not include embedded duty and tax charges. Examples are found in the garment exporting countries, where shorter lead-time is a competitive factor.
U.S trade mission which included 12 big companies visited Myanmar to learn the trade and investment laws and business opportunities in Myanmar
A U.S Trade Mission which includes 12 big companies visits Myanmar to seek investment opportunities. On Tuesday, a business meeting between the Republic of the Union of Myanmar Federation of Chambers of Commerce & Industry (UMFCCI) and U.S Trade Mission took place, in order to understand about the business climate in Myanmar. U.S Trade Mission discussed about the matters related to the trade and investment laws in Myanmar and business opportunities. As Myanmar is reforming its economy and also Myanmar’s frontier market offers significant first mover advantages, U.S firms are willing to enter.
NETs Group signed a Memorandum of Understanding (MOU) with Myanmar’s National Payment Network to establish a Payment Technology Exchange & Development Programme in Myanmar
The NETS Group has announced that it has signed a Memorandum of Understanding (MOU) with Myanmar’s national payment network to establish a Payment Technology Exchange & Development Programme Finextra reported. The first project under the Programme will see NETS sharing its technical and operational knowledge around the Singapore Quick Response (SGQR) Central Repository platform with MPU with a view to implementing a similar platform in Myanmar.
The 26th regular meeting of private sector development committee was held in Yangon to make more efforts for the growth of private sector
There are 84% of private sector involvement in trade volume of 2018-2019 fiscal year until the 12th of April, said Vice President at the 26th regular meeting of private sector development committee in Yangon on Saturday. Trade volume has reached 18.692 billion during the budget period of 2018 to 12th of April 2019. As of the same period, 0.321 billion exceed in trade. Out of them, trade volume of private sector was 15.662 billion. Chairman of the Committee Vice President U Myint Swe highlighted the efforts to be made for the growth of private sector.