Weekly Business News from Myanmar

Five foreign insurance companies have been granted Myanmar licences after two year delay in opening up the Myanmar market
Five foreign companies have been granted provisional licences to issue life insurance policies through subsidiaries following more than two years of delay in opening up the Myanmar market. British Prudential, Japanese Dai-ichi Life, Hong Kong AIA, US Chubb and Canadian Manulife have been authorised to establish wholly-owned life insurance subsidiaries. The Ministry of Planning and Finance on April 5 published the list of foreign insurers as "preferred applicants" to operate as a life insurance company through a 100pc wholly-owned subsidiary. The announcement was originally scheduled for release on March 29. A day after The Myanmar Times on January 1 broke news that Samsung Life Insurance had closed its Myanmar office, the government announced they would grant up to three licences to foreign companies to offer life insurance as wholly-owned foreign insurers. Foreign investors have expressed frustration with multiple delays in the long promised liberalisation of Myanmar’s almost entirely closed insurance market.
Myanmar’s export to European countries up to 47 percent in 2018 when compared the same period of last year which is marked highest point since 2008
Myanmar’s export to European countries in 2018 hit €2.2 billion, an increase of 47 percent or €734 million over the previous year, and marking its highest point since 2008, according the European Union. Myanmar exported textiles, crops, footwear, hats, pearls and precious stones to the EU. In return, the EU and exported machineries worth €592 million to Myanmar. Myanmar exported over half of all their finished textiles to the EU, and expects to increase that to 60 percent in 2019. Despite the EU’s decision to restart tariffs on Myanmar rice imports by revoking GSP benefits it granted for Myanmar, Myanmar has exported $1.5 billion of agricultural products to its overseas buyers between October 1, 2018, and March 15, 2019, an increase of $100 million compared to previous period last year.
Myanmar’s economic growth is expected to raise 6.8 percent in 2019 -2020 fiscal year due to the higher foreign direct investment (FDI)
Myanmar’s economic growth is expected to raise in 2019 and 2020 due to higher foreign direct investment (FDI) and positive response to the government’s economic and policy reforms. According to the Asian Development Outlook 2019 launched in Yangon on Wednesday. The Asian Development Outlook utilizes data from related government bodies’ statistics and estimation on own key fundamentals. It was conducted by the Asian Development Bank (ADB) and the survey particularly looked at sector of share of GDP growth, agriculture industry, service in the supply side and government’s investment, private investment and consumption in the demand side. Principal Country Specialist, ADB Myanmar Resident Mission, Yumiko Tamura said “We maintain a very positive outlook for Myanmar’s economic growth of the next 2 years... The main drivers of such economic growth would be stronger domestic and international investment as well as growth in service sector. We assume good weather conditions will actually support agriculture performance”
DICA launched the One Stop Service Centre in Yangon with the aim to improve Myanmar’s overall raking in the World Bank’s Ease of Doing Business Index
Myanmar’s overall ranking in the World Bank’s 2019 Ease of Doing Business Index stands at 171 out of 189 countries. In order to improve this ranking, the Directorate of Investment and Company Administration (DICA) launched a One Stop Service Center at Sein Le May Avenue, Kabar Aye Bagoda Road, Yakin Township in Yangon on March 24. This one stop center was first announced in May 2018. The center will provide a convenient place for investors to go for all the requirement of getting started. The office will help investors complete the procedures such as getting export/import license, taxes, visas and work permits. The service center includes the YCDC, the Directorate of Industrial Supervision and Inspection, the Department of Labour, the Internal Revenue Department, the Environmental Conservation Department, and the Food and Drug Administration altogether in one place.
U Aung Naing Oo has been named the new Director General of the Office of the Union Investment and Foreign Economic Relations under Minister U Thaung Tun
A key architect of the government’s economic reform is to be transferred to assist newly minted minister U Thaung Tun. U Aung Naing Oo, director general of the Directorate of Investment and Company Administration (DICA) has been named the new director general of the Office of the Union Investment and Foreign Economic Relations under Minister U Thaung Tun, the Global New Light of Myanmar announced on March 29. U Aung Naing Oo is also to be de facto permanent secretary of that ministry as the position is currently vacant, The Myanmar Times understands. He told The Myanmar Times that he will remain involved in investment policy-related activities in his new appointment. U Thant Zin Lwin, current DICA deputy director general, who has been in the position since 2016, will take the position of DICA chief, U Aung Naing Oo added. However, U Aung Naing Oo will remain director general at DICA until U Thant Zin Lwin’s official appointment is announced. U Thant Zin Lwin is also expected to take up the position of secretary of the Myanmar Investment Commission (MIC).
Fisheries Department has invited the Expression of Interest (EOI) to lease and engage in three businesses of Fisheries Department under BOT system
The Fisheries Department has invited EOI (expression of interest) applications to lease and engage in three businesses on a long-term basis on the department's owned 530-acre land under BOT system. The department, under the Ministry of Agriculture, Livestock and Irrigation, is planning to lease out three businesses on a long-term basis. Therefore, local and foreign entrepreneurs and companies are invited to submit EOI. The three businesses to be leased out are Hlapadar livestock farm on 201.78 acres of land in Hlapadar Village, Hmawby Township, Yangon Region, the shipyard on 27.97 acres of land in Gyaungwai Village, Kyinmyindine Township, Yangon Region, and Wadaw livestock farm on 300 acres of land in Maubin Township, Ayeyawady Region.
Joint venture between Malaysia’s TEXCHEM and Myanmar Sustainable Aquaculture Program (MYSAP), crab hatchery to be piloted in Labutta district, Ayeyarwaddy Region in April in order to make crab production sustainable
Myanmar Sustainable Aquaculture Program (MYSAP) and Malaysia’s TEXCHEM, a crab breeding firm, will run a pilot program for crab breeding in Labutta District, Ayeyarwaddy Region in April this year. People currently sell wild caught crabs, which can quickly deplete the number of crabs. Therefore, the two parties will start testing their crab breeding methods in order to make crab production sustainable. “The company has experience in researching crab production, and that is why we partnered with them. They will help us breed crabs and will provide technological know-how to local aquaculture farmers so that they can breed crabs,” said U Soe Tun, consultant of MYSAP. MYSAP is an aquaculture development project (2017-2021) implemented by Ministry of Agriculture, Livestock and Irrigation and German’s GIZ.
In partnership with Capital Construction Ltd, Malaysia’s Sunway Construction Group Bhd entered Myanmar to implement the major infrastructure and construction projects in Myanmar
Malaysia’s Sunway Construction Group Bhd has ventured into Myanmar, partnering with Capital Construction Ltd to develop major infrastructure and construction projects there, the News Straits Times has reported. SunCon, through subsidiary Sunway Builders (Myanmar) Co Ltd, signed a memorandum of understanding with CCL on the prospect.
Mandalay Myotha Industrial Development Public Company (MMID) has divided their shares with the aim to boost the share prices value and to be listed on the Yangon Stock Exchange (YSX)
Investors in the Myotha Industrial Park Project, which is under implementation in Myingyan township, Mandalay Region, have profited from their shares in the project, U Tun Tun Aung, managing director of Mandalay-Myotha Industrial Development Public Company (MMID) told the media on March 29, just before the company’s fifth shareholders meeting. MMID has up to 1600 shareholders, of which 160 are local farmers. “We sold shares at K10,000 per share before. In last year’s meeting, we decided to divide each share into 10 shares so an investor who bought one share for K10,000 in the past could own 10 shares at K1,000. Over the last few years, we have paid dividends of up to 55 percent of the share value. Today, the price of per MMID over-the-counter (OTC) share is between K1300 and K1500,” U Tun Tun Aung said. MMID shares first started trading OTC on April 3, 2003. MMID paid out 10pc of its profits in dividends during the first annual shareholder meeting, 12.5pc in second annual meeting and issued bonus shares in the third annual meeting, he said.
Yangon Metropolitan Development Public Co., Ltd (YMD) invited both local and foreign investors to submit the Expression of Investors (EOIs) for housing projects in Yangon
Yangon Metropolitan Development Public Co., Ltd has invited a submission to Express of Interests from both local and foreign investors who might be interested in investing in the second phase of Pyidawthit Housing project in Pazundaung Township in Yangon. The second phase of the project will include a shopping mall, condominium and office tower interested investors must submit the EOIs by April 2. The project is being implemented by Yangon Metropolitan Development Public Company Limited-YMD founded by Yangon Regional Government and Myanmar Developer Association. At the first phase of the project on over 4 acres of land, a 12-story residential building will be built in two years, once finished the shopping mall, office tower and parking lots will be built.