Weekly Business News from Myanmar

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  Index Creative Village Plc prioritises Myanmar in its overseas expansion despite the reluctance of many foreign companies to invest large in Myanmar in fear of policy uncertainty

  DESPITE THE reluctance of many foreign companies to invest large amount of money in Myanmar in fear of policy uncertainty, Index Creative Village Plc is expanding its business in the country, according to Kreingkrai Mek Kanjanapokin, founder and Group CEO of the company. "We are focused 100 per cent on Myanmar because it is the most important market for us. I have spent a lot of time studying the Myanmar market, more than any other we are doing business in," he said at a press conference yesterday. According to Kreingkrai, the company usually holds nearly 30 events in Myanmar every year. It plans to organise three major trade fairs in the country in the second half of the year - Myanmar FoodBev, Myanmar Retail Sourcing Expo2019 and Myanmar Build & Decor. He said the company enjoyed a 5 per cent revenue growth to US$2.8 million in Myanmar last year. Globally, it posted a 10 per cent rise in revenue. “This year, we are targeting $3.4 million in revenue from Myanmar, given the brighter outlook for the event business in the country," he said.
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  China Railway Eryuan Engineering Corporation (CREEC) started a partial survey for a major road and railway project (Muse-Mandalay-Kyaukphyu railway line)

  China Railway Eryuan Engineering Corporation (CREEC) has started a partial survey for the Muse-Mandalay-Kyaukphyu railway line, part of the China –Myanmar Economic Corridor (CMEC) and the larger Belt and Road Initiative (BRI). Myanmar signed a memorandum of understanding (MOU) for the project, expected to be one of the largest road and railway projects in the country, last October. The project calls for the building of a high-speed railway line from Kunming, China, to Muse on the Myanmar-China border and from there to Mandalay and terminating in Kyaukphyu in Rakhine. The survey project Muse to Mandalay the 430km line is expected to support trains travelling at up to 160kmh and will feature seven cargo stations and five passenger stations. China is said to view the project to connect the Kyaukphyu Special Economic Zone and deepwater port in Myanmar as something that will benefit both countries under the larger CMEC umbrella,.
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  JFE Meranti Myanmar (JMM) signed a contract with Myanmar Antaco Company Limited (Antaco) for installation of JMM’s world class steel coating facility in Thilawa SEZ

  JFE Meranti Myanmar (JMM) signed a contract with Myanmar Antaco Company Limited (Antaco) for the installation of Mechanical & Electrical Equipment on the two main process lines at the new JMM steel coating facility at Thilawa SEZ. Antaco will immediately proceed with Mechanical & Electrical Equipment installation on the JMM Metal Coating Line (MCL) & Continuous Paint Line (CPL). The agreement between these two companies is another significant step forward in the development of JMM’s world class coated steel facility at the Thilawa SEZ. At the contract signing ceremony, the Chief Executive Officer and Managing Director of JMM, Dr. Sebastian Langendorf, stated, “We are delighted to have appointed Antaco as the equipment installation contractor for the JMM coated steel project at Thilawa SEZ. Antaco has a well-deserved reputation within the region for high quality work and delivering excellent outcomes to its international partners.”
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  Foreign Insurance companies expected to be granted operating licences within months after years of waiting to enter the Myanmar market

  After years of waiting, foreign insurers have been given the go-ahead to enter the domestic market, to the chagrin of their Myanmar competitors. AFTER WAITING years to enter the Myanmar market, foreign insurance companies have been told they can expect to be granted operating licences within months. The licences will be issued under an industry liberalisation plan that was delayed for more than a year – a hold-up that the regulator, the Insurance Business Regulatory Board, has defended as being necessary to strengthen the transparency of the process. The licensing decision was announced by the Ministry of Planning and Finance in early January. It said up to three foreign life insurance companies would be allowed to operate as 100 percent wholly owned subsidiaries and the rest would be required to establish joint ventures with domestic insurers to offer life and other forms of cover. The ministry’s Financial Regulatory Department has since issued a request for proposals (RFP) for those interested in one of the three foreign life insurance licences, and for expressions of interest (EOI) for life and non-life joint ventures.
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  Yoma Bank signed MMK 2.2 billion funding agreement with Mahar Bawga Finance Company Limited (MBF) in order to support MBF’s operations in Myanmar

  Yoma Bank and Mahar Bawga Finance Company Limited (MBF) signed a MMK 2.2 billion funding agreement in support of MBF's operations in Myanmar on 1st February. With the funding provided by Yoma Bank, MBF aims to reach an additional five thousand new customers. The partnership aims to address the growing demand of consumers, who are in need of unsecured loans for personal or business development. MBF started their business operations in 2014 with a mission to facilitate loans for the businesses and individuals. Currently, MBF is offering financial solutions to more than fourteen thousand clients in Yangon with an aggregate loan book of MMK 4.59 billion. Yoma Bank is one of Myanmar’s largest banks with over 3,000 employees and 80 branches throughout the country. Yoma Bank takes the lead in bringing the unbanked population into the formal financial system in partnerships with Micro Finance Institutions and Non-Bank Financial Institutions, which are the drivers of economic growth and the development of Myanmar. This is the Bank’s first semi collateralized funding agreement supporting NBFIs. Yoma Bank believes this partnership will share benefits not only to the two parties involved, but also to consumers by improving the level of their borrowing behavior and financial literacy.
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  Government eyes to be attracted more than USD$ 200 billion in investment over the 20 years under the Myanmar Investment Promotion Plan (MIPP)

  The government reiterated its target of attracting more than US$200 billion in investment over the next 20 years, said State Counsellor Daw Aung San Suu Kyi. The effort will be carried out according to the Myanmar Investment Promotion Plan (MIPP), the state counsellor said at the Invest Myanmar Summit 2019 in Nay Pyi Taw on Monday. “Under the MIPP, the investment target will be more than US$200 billion for local business sectors. We will transform Myanmar from a low-income country to middle-income country,” Daw Aung San Suu Kyi said. While overall foreign investment in Asia-Pacific declined slightly last year, the region received the most foreign investment in 2017 and Myanmar saw 45pc growth in foreign investment that year, she said.
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  PTT Exploration and Production Public Company Limited (PTTEP) set its 5 years investment plan (2019-2023) to accommodate value-added creation from the legacy assets through exploration and production activities and to support investment opportunities in p

  PTT Exploration and Production Public Company Limited (PTTEP) announces its 5-year investment plan (2019-2023), to accommodate value-added creation from the legacy assets through exploration and production (E&P) activities and to support investment opportunities in prolific areas in order to sustain the company’s long term growth. Phongsthorn Thavisin, PTTEP Chief Executive Officer, announced that the company has set aside a total expenditure of USD 3,256 million for PTTEP and its subsidiaries in 2019, of which USD 1,840 million is Capital Expenditure (CAPEX) and USD 1,416 million is Operating Expenditure (OPEX). The company also targets the average petroleum sales volume at 318,000 barrels of oil equivalent per day (BOED).
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  Myanmar conducted the survey for construction tasks for two lane road connecting Dawei SEZ and border area of Thailand and will start the construction soon

  YANGON-Myanmar will be constructing a road that connects Dawei Special Economic Zone (SEZ) and the border area with Thailand, says Dr Than Myint, Commerce Minister and Chairman of the Task Force on SEZ construction. “Myanmar is now discussing about construction of road to Dawei SEZ with Thailand. We have conducted the survey for construction. Construction tasks for road will be start soon,” said Dr Than Myint. A tripartite discussion with Myanmar, Thailand and Japan will be held in Myanmar regarding the Dawei Special Economic Zone.
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  Myanmar business group suggested the government should focus on improving policy implementation and further liberalisation is necessary for economic growth

  Myanmar’s largest business lobby group suggested that the government should focus on improving policy implementation and that further liberalisation is necessary for attracting investments. U Wai Phyo, vice president of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), said that the country needs to open up for foreign investors and at the same time support domestic players in the wake of increasing competition. He was speaking at a press conference during Invest Myanmar Summit 2019, the first official investment conference organised by the National League for Democracy-led government. The summit was intended to bolster support for Myanmar’s economy and it provided a platform for 10 states and regions to showcase their investment opportunities.
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  Government announced the launch of an online “Project Bank” which will change the way infrastructure programmes are planned, determined and funded

  The government has announced the launch of an online “project bank” which will change the way infrastructure programmes are planned, determined and funded. Speaking at the Invest Myanmar Summit in the capital city, deputy finance minister U Set Aung said the project bank will contain priority infrastructure initiatives which have been screened and approved by Nay Pyi Taw. The centralised and publicly-accessible database will enable the government to coordinate ministries and departments and prioritise proposals which are in line with the Myanmar Sustainable Development Plan (MSDP). In other words, the project bank provides a mechanism to implement MSDP’s 251 strategic action plans. The online database should include technical specifications, type of project contracts and other essential details for investors to readily access the information and make informed decisions about, according to Jacobus du Plessis, an energy and infrastructure expert from law firm DFDL.