Weekly Business News from Myanmar

• 

  United Kingdom will provide technological assistance to implement renewable-energy projects in Myanmar

  The United Kingdom will assist Myanmar in implementing renewable-energy projects. a senior UK official said. Douglas Barnes, director of the UK’s Department for International Trade, made the comment during a knowledge-sharing workshop for policies and regulations covering renewable-energy use and reducing carbon emissions organised by his agency in Nay Pyi Taw on Monday. “After the workshop, the governments of the UK and Myanmar will have continuous discussions. From that relationship, policies and regulations will be drafted,” Mr Barnes said. “When those policies are in place, Myanmar will need technologies and we will provide these technologies. UK businesses will also be invited to invest in the sector in Myanmar,” he added.
• 

  Gas pipeline at the Zawtika project, offshore of Myanmar will be replaced to reliably supply gas to Myanmar (Mr. Piya Sukhumpanumet, General Manager of PTTEP Myanmar Asset)

  The replacement of a gas pipeline at the Zawtika project, offshore of Myanmar, will be conducted to reliably supply gas to Myanmar, said Mr. Piya Sukhumpanumet, general manager of PTTEP Myanmar Asset. Mr Piya was speaking to journalists during a media tour to Zawtika, located in block M-9 of the Moattama Gulf, Tanintharyi Region on November 6. Myanma Oil and Gas Enterprise (MOGE) holds a 20pc stake in block M-9, while the remaining 80pc is held by Thai oil company Petroleum Authority of Thailand Exploration and Production International (PTTEP). .The latter is the operator of the project. The daily gas production at M-9 Zawtika is 345 million cubic feet, of which about one third, or 100 million cubic ft is allocated for domestic consumption. The remaining gas produced – around 240 million cubic ft – is exported to Thailand on a daily basis, said Mr. Sayan Charoensook, Zawtika field manager.
• 

  Foreign Direct Investment registered actual amount is $ 2.14 billion while Myanmar Investment Commission's approved amount is $ 1.76 billion in past mini budget period from April to September

  The actual amount of Foreign Direct Investment during the past mini-budget period from April to September is worth US$2.145 billion, while the amount approved by the Myanmar Investment Commission (MIC) was registered at $1.765 billion, according to the MIC. The approved enterprises, however, might not bring in the entire submitted capital immediately, which means some investments will arrive during three or four events. Otherwise, only small amounts of approved investments might flow this year, and large capital can be delivered in the upcoming years, said U Aung Naing Oo, the secretary of MIC. Every three months MIC releases the actual amounts of foreign investment arriving in the country.
• 

  Myanmar government eyes e-commerce which can create jobs, trade and promote Myanmar’s economic growth

  Government officials, donors and partners have met to consider the United Nations Conference on Trade and Development (UNCTAD)'s appraisal of how e-commerce can boost Myanmar's economy and the next steps forward. The power of e-commerce to create jobs and increase trade in Myanmar was in the spotlight on 30 October, as government officials, development partners, donors and the private sector met in the southeast Asian nation’s capital Nay Pyi Taw to discuss ways to support online business, according to a press release. "The Ministry of Commerce is committed to making e-commerce a powerful engine for economic growth, inclusive trade and job creation in Myanmar,” Deputy Minister of Commerce U Aung Htoo said. The event marked the national presentation of UNCTAD’s Rapid eTrade Readiness Assessment of Myanmar. The assessment, first published in April, was carried out by UNCTAD with funding provided by the Government of Sweden.
• 

  According to the newly released World Bank’s 2019 report, Myanmar ranks 171 out of 190 economies, as it is still weak in enforcing contracts and protecting minority investors

  Myanmar has done undertaken two reforms to improve access to power supply and the ease of starting a local business, according to the latest report from the World Bank. However, pace of reform on most regulations affecting the private sector remain stagnant. In the newly-released World Bank’s 2019 Doing Business rankings, Myanmar ranks 171th out of 190 economies in the overall ease of doing business, unchanged from last year’s position. It is the third consecutive year where the country fails to advance its ranking, remaining as the worst place in ASEAN to conduct business. Economies are ranked on their ease of doing business, from 1-190, based on the average of each economy’s ease of doing business scores for the 10 topics, which capture several important dimensions of the regulatory environment as it applies to local firms. The analysis provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. Myanmar scores an average of 44.72, which is the lowest in ASEAN, compared to the second lowest-scored Laos with 51.26 and the regional average for East Asia and the Pacific with 63.41.
• 

  International Cooperation Review Group of the Financial Action Task Force will review Myanmar over money laundering concerns

  YANGON — An assessment of Myanmar’s efforts to tackle money laundering and terrorist financing has found significant weaknesses, including a failure to recognise the “serious” money laundering risks that the country faces. The Asia/Pacific Group on Money Laundering released the Mutual Evaluation Report on October 22, three months after it was adopted at the APG annual meeting in July. The “poor results” on the evaluation mean Myanmar will automatically be reviewed by the International Co-operation Review Group of the Financial Action Task Force, and may be placed on a black or grey list following that review. Myanmar was removed from the FATF’s list of high-risk and monitored jurisdictions in 2016 following some limited reforms.
• 

  In December 2018, Myanmar Port Authority will invite international tenders to select a private port operator for the Kaladan multi-modal transit transport project

  International tender will be invited to select a private port operator for the Kaladan multi-modal transit transport project in December, according to Myanma Port Authority. A MoU on the appointment of a Port Operator for the Operation and Maintenance of Sittwe Port, Pletwa Inland Water Terminal and Associated Facilities was signed at Hilton Hotel in Nay Pyi Taw on October 22. For the appointment of a private port operator, international tender will be invited and an Indian company or a Myanmar-India joint-venture company will be selected. The MoU was signed by Win Khant, permanent secretary of the Ministry of Transport and Communications and Foreign Secretary of India Vijay Gokhale.
• 

  Myanmar government is developing four economic corridors to increase investment in Myanmar

  Myanmar is developing four economic corridors including northeast-southwest economic corridor connecting between Kyaukphyu and Muse by crossing Mandalay and east-west economic corridor connecting between Myanmar, India, China and Thailand, according to a project to elevate investment in Myanmar. The National Comprehensive Development Plan 2011-2030 (NCDP) stated regional development framework with many ways to approach and expressed four economic corridors as top priorities. The four economic corridors are Yangon-Myawady economic corridor connecting between bordering area with Thailand and Thilawa special economic zone, North-South economic corridor connecting between Yangon and Myitkyina by crossing Mandalay, northeast-southwest economic corridor connecting between Kyaukphyu and Muse by crossing Mandalay and east-west economic corridor connecting between Myanmar, India, China and Thailand.
• 

  International interest in Myanmar’s startups has been on the rise as investors scour the market for potential returns

  Interest in Myanmar’s startups has been on the rise as investors scour the market for potential returns. Yesterday, Germany’s development finance institution DEG and agRIF, an impact focused fund which provides funding to financial intermediaries targeting smallholder farmers and the rural population, announced a joint investment of US$6 million in Rent 2 Own (Myanmar) Ltd (R2O). agRIF is managed by Incofin Investment Management, a global impact asset manager. Daiwa PI Partners, an investment arm of a major Japanese securities firm group, is also taking a stake in the venture by fully purchasing shares from one existing shareholder. R2O, which provides rural populations with easy access to motorcycles by offering flexible and affordable contracts, first launched in January 2016. Since then, R2O has served 70,000 clients through its network of 34 branches covering an area of Central Myanmar that ranges from the Ayerwaddy delta to the mountains of Shan State, the startup said.
• 

  Myanmar’s economy remains upbeat despite international pressures on the government from ongoing conflicts in Rakhine State (ASEAN+3 Macroeconomic Research Office)

  DESPITE international pressures on the government driven by ongoing conflicts in Rakhine State, Myanmar’s economy is projected to post 7.1 per cent growth this year and 7.4 per cent next year, according to Hoe Ee Khor, chief economist of Asean+3 Macroeconomic Research Office (AMRO). At AMRO’s first-ever press conference in Myanmar earlier this month, Hoe said the growth would be driven by expanding public spending and exports as well as a pick-up in agriculture and manufacturing activities. He considers garment and tourism as the most promising sectors in the long run. “We see the conflicts in Rakhine State as ‘pretty localised’, although it may have some impacts on the business sentiment,” he said. Yet, he did not underestimate potential impacts of the international pressures on the government. If the European Union decides to withdraw its trade preference, then it will be a big blow for Myanmar’s economy, as garment is currently the main driver of Myanmar’s growth, he said.