Weekly Business News from Myanmar

Myanmar Agriculture products export reached over USD $ 1.28 billion in first 5 months from February to October of 2018- 2019 fiscal year
Myanmar's export of agricultural products reached over 1.28 billion U.S. dollars as of Feb. 22 in present fiscal year 2018-2019 which started in October, according to the Commerce Ministry on Wednesday. The figures showed an increase of 81.9 million U.S. dollars while compared with the same period in last fiscal year 2017-2018 when it showed 1.2 billion U.S. dollars. The country exports rice as the major agricultural product, pulses, corn, rubber, fruits and vegetables and others. Meanwhile, Myanmar President U Win Myint called for doubled efforts to increase agricultural products to boost the agricultural export in the international markets, on the occasion of Myanmar's Peasants Day on March 2.
Government are striving to support technical system and equipment to local coffee industries to improve the coffee quality for wider market
High quality coffee beans from Myanmar have been exporting since 2016, and now the market reached to over 20 countries including Japan, US and Hong Kong. A ton of Arabica coffee beans fetches a minimum of 6,000 US$ to maximum of more than 8,000 US$ depending on the quality, the local industry leader said. There are about 35000 acres coffee plantation in Myanmar and it mainly cultivated in southern and northern Shan State and Mandalay Region. About 12000 matrix tones of coffee beans are producing yearly. The local coffee industries are giving a hand to support coffee famers across the country in order to produce high quality products. Coffee Farmer, Ahlalkaing Village (Ywar Ngan Township), Nyunt Hlaing said “I have been cultivating organic coffee beans for 10 years on 10 acres land. There is no problem for coffee cultivation since it is our customary. We have been conducted trainings on how to grow good quality coffee beans. So we came to know more about our cultivation process.”
State Counsellor has promised that her government will make the final decision on the Myintsone dam and other projects from wider perspective
Amid increasing pressure from China to resume the controversial Myitsone Dam project, the State Counselor has promised that her government will make a final decision on the dam based upon political, economic and environmental considerations, and vowed to make public the details of the decision. When asked her opinion of the Myitsone Dam project at a meeting with local residents in Pyay, Bago Region on Thursday, State Counselor Daw Aung San Suu Kyi said, “I would like you to think [about the project] from a wider perspective.” She said, “We should not think based on one perspective. If we think from only one perspective, we could make the wrong [decision].” The State Counselor said the final decision would have to be politically, socially, economically and environmentally sound and sustainable. Daw Aung San Suu Kyi did not offer her own stance on whether the dam project should be scrapped, nor did she say when a decision would be made.
Myanmar should enhance the production of domestic products to grow local economy and raise their quality to international standards
Myanmar should enhance domestic production and develop its local markets, says Martin Tlapa, Deputy Minister for Foreign Affairs of the Czech Republic, during a talk entitled "Economic Transition: The Czech Experience and its Relevance for Myanmar" last week. In sharing appropriate approaches with Myanmar, Mr Tlapa said Myanmar should enhance the production of domestic products and raise their quality to international standards. At the same time Myanmar must also boost foreign trade and work to ensure its people are experienced and knowledgeable. All this will require investments in technology, the help of partners, the support of the government and strong systems, Mr Tlapa said. “The country’s economic development will require constant monitoring, management and funding. Large amounts of foreign investments will be needed to develop Myanmar’s infrastructure,” he said.
MoneyGram and Myanmar Citizens Bank (MCB) made an agreement to provide money transfer send services at every MCB bank in Myanmar
MoneyGram and Myanmar Citizens Bank (MCB), have announced an agreement to provide money transfer send services at every MCB bank location in Myanmar. According to a statement, consumers can send money from 42 branches to any MoneyGram location in more than 200 countries and territories worldwide. In celebration of the new agreement, MoneyGram is offering a price promotion of 23,990 MMK to those who complete money transfer send services from Myanmar, and a chance to win a MoneyGram power bank. The current offer is valid until May 31st, 2019.
Singapore oil company, Puma energy prohibited legal action on its trademark infringement to the former's in the local market
Singapore oil company Puma Energy is officially prohibiting the use of its trademark, name and logo in Myanmar after a local petrol station began branding itself as Puma Power and displaying a logo that is almost identical to the former’s in the local market. The notice was published by Puma Energy’s lawyer on the company’s social media page in Myanmar and via state-owned media on March 11. In Myanmar, Puma Energy is registered under the moniker Puma Energy Asia Sun (PEAS). PEAS is a joint ventured controlled by Puma Energy in partnership with local firm Asia Sun. The joint venture operates the country’s largest petroleum products storage facility at the Thilawa Port in Yangon. The US$92 million facility has the capacity to store up to 91,000 cubic meters of bitumen, diesel, gasoline and Jet A-1 fuel. The company officially registered its trademark and logo in Myanmar in 2013.
Tanintharyi landholders will be sued to remove villagers from disputed land under the recently amended land law, the Vacant, Fallow, Virgin (VFV) Land Management Law
Local government officials and companies are already using the recently amended land law to remove villagers from disputed land, according to lawyers in southern Myanmar. The Vacant, Fallow, Virgin (VFV) Land Management Law, amended on September 2018, set a March 11 deadline for anyone occupying or using “vacant, fallow, or virgin” land to apply for an official permit to use the land for 30 years or face eviction and up to two years in jail. But lawyers say lawsuits against villagers were launched before the cut-off date, and they fear many more cases will follow. Amendments to the VFV law, observers warn, could criminalise large numbers of smallholders in ethnic borderlands. It could also threaten the rights of people displaced by conflict who have problems accessing their land or local government offices.
More investment supports needed for expansion in food processing industry to increase higher value added food products (U Aye Win, Chair of the Myanmar Food Processors and Exporters Association)
The Myanmar processed food industry needs more investment support in order to develop further, U Aye Win, chair of the Myanmar Food Processors and Exporters Association, told The Myanmar Times. Currently, Myanmar processes basic raw commodities such as rice, beans, maize and other agricultural products. Excess products are exported. However, the country also imports value-added processed foods such as canned or dairy products. In that light, Myanmar should increase its focus on manufacturing higher value food products, which will require funds from both local and foreign investors, U Aye Win said. Importantly, as the region moves closer towards implementing the ASEAN Economic Community, which envisions a single market and production base for Southeast Asia, micro, small and medium enterprises (MSME) in the Myanmar food industry will need investor support to compete, said U Zarni Maung Maung, managing director of REPASSA Myanmar.
Tanintharyi villagers kept up fight against Thai operated tin mine in rural Dawei Township for breaching its environmental commitments despite Union Government is planning to extend their contract for another five years
A poor community cites decades of land dispossession and environmental degradation in their opposition to a Thai-operated tin mine in rural Dawei Township. ON THE BANKS of a narrow stream in rural Tanintharyi Region, a faded blue sign points the way to Myaung Phyo village. Walking into the village, Frontier could see dying coconut trees lining the main street – a symptom, locals said, of groundwater contamination. Myaung Phyo is located 43 kilometres from Dawei, the capital of Tanintharyi Region, in Myitta sub-township. Close by is the Heinda tin mine, one of Myanmar’s oldest. Local residents say that Myaung Phyo has borne the brunt of the extensive environmental damage caused by the mine. The dispute between the community and the mine operators goes back several decades. In 1983, about 500 village residents were relocated to make way for the mine. The only compensation they received were plots of land smaller than those they were forced to vacate, according to a report by the Dawei Pro Bono Lawyers Network.
Domestic airlines need to merge or partnerships with foreign airlines in their operations to sustain themselves in the longer-term
There is a need for domestic airlines to merge or form partnerships with foreign airlines in order to sustain themselves in the longer-term. Stakeholders believe that the way forward for domestic airlines, which continue to be loss-making due to lower number of passengers and higher costs, would be to either merge their operations or form partnerships with foreign airlines. There has been a proliferation of domestic airlines ever since the country granted more licenses in 2011, with competition becoming more intense. At the same time, forming partnerships with foreign airlines have not been easy. Ticket prices remain high despite the larger number of domestic airlines and the more intense competition, putting off air travelers. Tour operators noted that domestic air tickets were far higher when compared to other countries, making it an obstacle for tourism.