Weekly Business News from Myanmar

Chinese investors have big plans to increase garment production at several industrial parks near the city of Pathein in western Ayeyarwady Region
The garment industry seems poised to boom in Ayeyarwady Region, with a company developing an industrial park near Pathein signing a contract with a Chinese firm that plans to build 50 garment factories within two years. The new factories would dramatically expand the town’s nascent manufacturing sector, which has for several years been attracting interest from local developers keen to set up industrial parks. The Ayeyarwady Development Public Co Ltd said it has signed the contract with Hong Kong-based China Textile City Network Co Ltd. It’s the first commercial agreement ADPC has signed since it began preliminary work six years ago on Pathein Industrial City, which covers nearly 3,000 acres (about 1,200 hectares) on a site next to the Pathein River in the regional capital. ADPC was established by Yangon-based conglomerate Ayeyar Hinthar in 2012 to develop the industrial park, which received Myanmar Investment Commission approval in late 2016.
South Korea’s largest insurance company, Samsung Life Insurance Company left Myanmar as business patience over the government’s delay in liberalizing the insurance market is in short supply
South Korea’s largest insurance company has left Myanmar as business patience over the government’s delay in liberalising the insurance market is in short supply. Samsung Life Insurance, a subsidiary of Samsung Group, ceased operating in Myanmar last August, a representative of the Myanmar Korean Chamber of Commerce and Industry (MKCCI) confirmed with The Myanmar Times. The Seoul-based multinational insurer, with a presence and joint ventures in Thailand, China, the US, Japan, the UK and Vietnam, opened its Yangon representative office in November 2013, according to the representative. The finance ministry committed to liberalising the insurance sector within the first quarter of 2017, but has hitherto failed to make any concrete moves. Foreign insurers from 14 countries who have set up 30 representative offices still cannot do business in Myanmar, except in Thilawa Special Economic Zone.
Parami Energy Group of Companies launched Liquefied Petroleum Gas (LPG) distribution service for home use in order to reduce electricity usage and reliance on firewood which is contributing to deforestation
Parami Energy Group of Companies launched a liquified petroleum gas (LPG) distribution service for home use on December 12. The company, which has been importing and selling LPG since 2017, will now directly sell LPG in cylinders of various sizes, U Pyae Wa Tun, CEO of the company, said. Currently, Parami Group of Companies will distribute LPG gas to 150,000 households and has built a facility where they will store the LPG cylinders. “In the market, LPG cylinders are distributed directly to the households by filling small cylinders of liquified gas from bigger ones. If the number of households are just a small amount, that is fine. But, if the number of households reaches millions, then we will need to use machines,” he added.
Ministry of Electricity and Energy signed a power purchase agreement (PPA) with Neo Energy Oasis Co., Ltd for the Upper Baluchaung hydropower project
The Ministry of Electricity and Energy has announced the signing of a power purchase agreement (PPA) for the Upper Baluchaung hydropower project with Neo Energy Oasis Co Ltd, the builder of the project. The PPA was signed between Electric Power Generation Enterprise (EPGE), a unit of the ministry and Neo Energy Oasis on December 28. Within three years of the signing of the PPA, the project will be able to feed power to the national grid, said Union Minister for Electricity and Energy U Win Khaing. The Upper Baluchaung project, which started in 2011, is being implemented under a build, operate and transfer (BOT) deal and is now 45.5 pc completed.
Yoma Land Company launched its very first plans for public sales of affordable housing projects in Myanmar which will focus to the development for middle class people
YOMA LAND CO, a realty brand under the Singapore-listed Yoma Strategic Holdings Ltd and Yangon-listed First Myanmar Investment Co (FMI), recently announced its plans for public sales of affordable residential units in its City Loft development, according to Serge Pun@U Thein Wai, executive chairman of Yoma Group. “It is our very first step to turn our focus to mass-market offerings with affordable housing projects in Myanmar. We will go step by step to further develop that kind of development for middle class people here,” he said at a recent press briefing. Targeting middle income families living in Myanmar’s commercial hub, the development will be built on a 55.6-rai (8.9-hectare) site at StarCity in Yangon’s Thanlyin Township. City Loft will be developed in phases, with units in the first phase to be handed over to buyers by April 2020, he added.
Myanmar government authorities will invite submissions of Express of Interest (EOI) for implementing economic zones in border areas in early of 2019
The Government of Myanmar will invite submissions of Express of Interest (EOI) for implementing economic zones in early 2019, in Kan Paite Tee in Kachin State, as well as Muse and Chin Shwe Haw in Shan State, all of which are located at the Myanmar-China border. The border economic zone in Muse will be implement as a priority project. Only local businessmen are eligible to submit an EOI, the first step of tender process. “We will invite EOI submissions in 2019. Examining the facts submitted by companies, we will work on a master plan, and conduct negotiations for the project. Then we will try to implement the project as soon as possible,” U Khin Maung Lwin, Deputy Permanent Secretary of the Ministry of Commerce, told Myanmar Business Today.
Myanmar-Korea Chamber of Commerce and Industry (MKCCI) launched in Myanmar aiming to support investments and businesses between two countries and to boost Myanmar economic growth
The Myanmar Korean Chamber of Commerce and Industry (MKCCI) launched on December 22 became the latest business group to formally open its doors in the country. The organisation aims to support investments and businesses from the two countries and to boost Myanmar’s economic growth, said Tong Soo Chung, MKCCI’s chair, during the launch. There are 13 founding members and 76 members from both countries, including well-known Korean firms such as KEB Hana Bank, Yulchon LLC, feed business Sunjin, chemicals company Jungho E&C, JBJ Entertainment and Korea university Kaist, among others. U Aung Naing Oo, Directorate of Investment and Company Administration (DICA)’s director general, emphasised that South Korea is Myanmar’s important economic partner, “bringing billions of dollars of investment to the country.”
Myanmar Licensed Constructors Association (MLCA) signed an agreement with Real Estate Associations to improve the quality of apartments which being constructed in Myanmar
Myanmar Licensed Constructors Association signed an agreement with Myanmar Engineering Society, Myanmar Real Estate Service Association and Myanmar Constructors Association to improve the quality of apartments being constructed in the country. According to the agreement, when a member association receives foreign experts, they must arrange a meeting with Myanmar Licensed Constructors Association as well as providing technological assistance and training. “Because of this, we will be able to meet foreign experts, when they visit Myanmar. We can work with other associations regarding construction. The construction sector will develop if we, the associations, work together in the construction process such as building high quality affordable housing,’’U Lah Zel, General Secretary of Myanmar Licensed Constructors Association, told Myanmar Business Today.
Ministry of Planning and Finance plans to launch an interactive and publicly accessible online “Project Bank” which will enhance transparency and competitiveness
The Ministry of Planning and Finance is preparing to launch an interactive and publicly accessible online “project bank” containing priority initiatives that have been screened and approved by the government for their positive impact on economic and social development. The initiative aims to overhaul the way in which ministries identify and tender projects, and will provide a new framework for public-private partnerships and enable the private sector to invest in state assets. Deputy Minister for Finance and Planning U Set Aung spoke to Frontier about the alignment of the project bank with the Myanmar Sustainable Development Plan (2018-2030), its likely impact on government procurement and how it dovetails with other state-led initiatives, such as the China-Myanmar Economic Corridor.
Yangon Investment Committee approved investments which cost over US$37 million and Ks3.493 billion in Yangon and create more than 2500 job opportunities in the region
Yangon region investment committee allowed over US$37 million and Ks3.493 billion worth of investments which can create more than 2,500 job opportunities in the region, according to the committee. The committee approved them during its meeting held at Yangon Region government office on December 24. The committee approved 14 foreign investments from five countries and two local investments in the region. It can create job opportunities for more than 14,000 people. The increase of foreign investment in industrial sector is over US$5 million. Foreign investment is reached to about US$466 million from October 1 till at the end of November in this fiscal year and transportation sector topped the list of foreign investment with US$171 million followed by production sector with US$100 million.