Weekly Business News from Myanmar

Myanmar Fisheries Federation (MFF) urged government force oil and gas companies to focus on environmental conversation while conducting explorations
Myanmar Fishery Federation (MFF) has urged the government force oil and gas companies to focus on environmental conservation while conducting explorations, said U Win Kyaing, General Secretary of MFF, at the meeting held on March. “Before allowing companies to extract oil and gas, the government should consult with stakeholders. It should conduct research on how much oil and gas projects have affected Myanmar’s fishery resources, and before any new projects are started in a particular area, additional research on local fishery resources and how it might be affected by a new project. There is currently no research on this. A brief explanation just before a project starts is not enough. The MFF and oil and gas companies are sometimes not in good terms because we try to push this issue a lot,’’ he added. He suggested employing third party company to conduct impartial research and analyses. He also said that most of the oil and gas companies would inform some of local people and Myanmar Fishery Federation just before the extraction instead of explaining everything from exploration to finding the reserves.
Ministry of Hotels and Tourism launched its new tourism website with the aim to attract more tourists to the country
The Ministry of Hotels and Tourism launched its new website on Wednesday. Union Minister U Ohn Maung stressed that due to implementation of Look East Policy, 37% of Chinese tourists increased compared to the previous year while 9% of tourists from Thailand. He pointed out that although there is increase of tourists arrival from Asian region, the decrease has been seen for European tourists. The Union Minister stressed the needs to promote the image of the country through the website. Assistant Secretary, Ministry of Construction, Yan Naung said “We can see variety of data and information on this website. The visitors from international community can see vividly about the country, its national people, famous destinations and cultural zones with the description of the sites. It provides useful facts not only for the visitors but also for the researchers.”
Government asked a supplementary budget of K2.3 trillion for 2018-2019 fiscal years to cover forex losses
Due to a decline in foreign earnings and reserves, President U Win Myint urged businesses to deal more in Myanmar kyat and less in foreign currencies at the Finance Commission’s meeting held in the Presidential Palace on April 9. The meeting was held to approve additional budgets requested by the union government and region or state governments for the fiscal year of 2018-19 and approve this year’s Union Budget Bill before the government makes a final submission to Pyidaungsu Hluttaw. U Win Myint said requests for additional public funds are to settle deficits caused mainly by foreign exchange losses as well as payments for land compensation, wages for civil servants, travel allowances and tax revenue shortfalls. In the first six months of this financial year, the country’s export earnings totaled US$8 billion, which is up by more than US$650 million from the same period last year despite lower exports of rice, beans and pulses.
Government has appointed U Aung Naing Oo as the Permanent Secretary for Ministry of Investment and Foreign Economic Relations
The government has appointed U Aung Naing Oo as permanent secretary of the recently-created Ministry of Investment and Foreign Economic Relations, the official gazette announced. As the top civil servant leading the ministry, he will support and advise the cabinet minister, career diplomat U Thaung Tun, on how to drum up foreign investments and build on reform initiatives. Observers hope the new body will be the reflected voice of business in government, challenging line ministries on red tape while ensuring that related draft regulations are consulted on. U Aung Naing Oo was transferred to be director general of the Office of the Union Investment and Foreign Economic Relations on March 29. He is to hold both positions concurrently, The Myanmar Times understands. The civil servant is widely praised by the business community for drafting new laws and consulting stakeholders in an open and effective manner as director general of the Directorate of Investment and Company Administration (DICA).
Myanmar and Thailand Central Banks approved the Krungthai and Shwe remittance project developed by Everex which will facilitate the cross-border payment
This week, the Myanmar and Thai central banks approved the Krungthai and Shwe remittance project developed by Everex. The endorsement was made official at a meeting in Chiang Rai, Thailand, where financial institutions in the region demonstrated new solutions that enable cross-border payments. Governors from the central banks believe that the introduction of a cross-border payment solution will improve financial inclusion in both countries. Kyaw Maung, the governor of the Myanmar central bank, said that the two nations have the same culture, which creates togetherness as the cross-border remittance solution developed by Krungthai and Shwe bank will.
Government’s five years of tax exemptions offer lured more foreign investment into Bago Region
The government’s tax exemption program launched in February 2017, offered investors five years of tax exemptions, and was able to bring foreign investments into Bago Region, according to regional Directorate of Investment and Company Administration. From 1989 to November 2018, the region saw $1.818 billion in foreign direct investments from 85 foreign companies, while citizen investments were K946 billion by 39 companies from 1994 to November 2018. “Bago City receives most of the investments in the region. This is because of the Hantharwaddy Airport project. While Yangon offers a three-year tax exemption, Bago Region offers a five-year of tax exemption, which was decided by the union government. The tax exemption is the key drive for increased investments in Bago Region. Investments will increase year by year,” said U Nyunt Shwe, Regional Minister for Planning and Finance.
Government issued 32 developer licenses to construction companies for better prospects improvement
Local businesses are now seeing a light at the end of the tunnel for the property and construction sectors, where demand has been low in recent years. A total of 32 property developers and construction companies were issued with developer licenses from the government last week, three months after a building management committee was formed to facilitate the enforcement of the 2016 Condominium Law. This comes after 20 licenses were issued a month after the committee was formed, said U Myo Myint, general secretary of the Myanmar Construction Entrepreneurs Association and a member of the building management committee. The committee was formed to help clarify areas in the Condominium Law that are still vague on issues related to foreign property ownership. Among its duties are to act as a liaison between the government and foreign investors in the property sector.
New Education life insurance was launched in Myanmar with the aim to become parents who can manage their finance in the long term and have savings to secure the children’s future education
A new education life insurance aimed at embedding savings culture for the future education of the children in case of the death or injury of the parent or a caretaker has been launched. State-owned Myanma Insurance and 11 private insurers introduced the first education life insurance within the local insurance market on April 9. The product was a joint effort between local insurers and the Japan International Cooperation Agency (JICA). ‘’We all strive to become parents who can manage their finance in the long term and have savings to secure the children’s future education,” said Daw Sandar Oo, managing director of Myanma Insurance and chair of Myanmar Insurance Association.
Europe based, PEB Steel Group companies, opened its first steel plant in Myanmar
PEB Steel held the opening ceremony at Pullman Hotel on March 30 for its first factory in Myanmar. PEB Group of companies, based in Europe, started its Asia operations in 1994, and was one of the first company to bring the Pre-Engineered Steel Buildings technology to the East Asia region. They specialize in the design, fabrication, and erection of pre-engineered steel buildings (P.E.B.), steel structures for factories, warehouses, showrooms, commercial and trade centers, supermarkets, sports stadiums, exhibition halls, and aircraft hangars, etc. PEB Steel’s $25 million investment in Thilawa SEZ has been operational since early 2018, producing steel products and building materials and is expected to produce 3,000 tons of steel per month.
Golden Myanmar Airlines Public Company Limited received the permission to operate an aviation fuel business which are importation, storage, distribution, transportation and into plane fueling of jet fuel
YANGON — Golden Myanmar Airlines has received Myanmar Investment Commission approval to operate an aviation fuel business, in the first sign of competition for the state-backed monopoly that airlines say has undermined their viability. However, the new venture does not appear to have received permission to operate at Yangon International Airport, the country’s busiest airport and the base for most domestic airlines. Golden Myanmar Airlines Public Company Limited received permission for the “importation, storage, distribution, transportation and into plane fueling of jet fuel” at an MIC meeting on April 5, according to the Directorate of Investment and Company Administration. MIC stated that the wholly Myanmar-owned venture would be located at Tachileik, Kawthaung, Nyaung Oo, Heho, Sittwe and Myitkyina airports, as well Mandalay International Airport. It will also have a jetty terminal at Thilawa in Yangon Region.