Weekly Business News from Myanmar

In a joint operation between Petronas Carigali Myanmar Inc, Myanmar’s United National Oil and Gas Trading Co.,Ltd and Petroleum Brunei Myanmar (PBMA), drilling of an exploratory oil well started in Myanaung, Hninthda District, Ayeyarwady Region on 4th Nov
Drilling of an exploratory well – Shwesitaw Well No 1 in IOR 7 Block in Myanaung, Hinthada District, Ayeyarwady, has started on November 4. Based on 3D seismic survey data, oil and gas prospects were found in the block which Shwesitaw Well No 1 will explore. The target depth of the well is 2450 metres. The exploration of the block is joint operation by Petronas Carigali Myanmar Inc, the local arm of Malaysia’s national oil and gas company; Myanmar’s United National Oil and Gas Trading Co Ltd; and Petroleum Brunei Myanmar (PBMA) after a contract for oil and gas exploration and development in IOR-7 Vlock was signed in September 16, 2014.
In cooperation with Green Power Myanmar Co.,Ltd, Ministry of Industry will manufacture electric buses and set up charging stations in Myanmar by adopting the technology of Csepel Holding Limited of Hungary
“We need to use alternative fuels, as the fossil fuels we are burning today will be exhausted soon”, said Union Minister for Industry U Khin Maung Cho at the signing of an agreement to manufacture electric buses and erect charging stations in Myanmar. At the signing ceremony, held at the Research and Development Bureau in Yedhashe, the Union Minister said the country is promoting the use of renewable energy, while reducing the consumption of fossil fuels. Electricity may be the best tool in alleviating the consequences of burning fossil fuels. So, the global production and use of electric cars is on the rise, as fossil fuel-burning cars are being replaced by hybrid and electric cars. Myanmar also needs the assembling of electric cars to protect the natural environment and reduce carbon emissions.
Myanmar government authorities are taking measures to stop paddy export via illegal routes (U Yan Naing Tun, Permanent Secretary of Ministry of Commerce)
The Ministry of Commerce has not issued official permission for export of paddy, and measures are being taken to stop paddy export via illegal routes, said permanent secretary Yan Naing Tun. "Relevant organizations have complained to us that there are cases of exporting paddies. Our ministry has not allowed it officially. So they must have been exported through illegal routes. Now we are making coordinated efforts to inform respective states and regions about illegal paddy export and urge them to stop it," said Yan Naing Tun. The permanent secretary's remark came after a reporter asked him if the ministry knew about reports that Chinese citizens are entering the country to buy and take paddy to their country. "We cannot show evidence that Chinese citizens are entering our country to buy paddies. But what I learn is that paddies are being illegally exported. As a complaint comes to us, we are cooperating with state and region governments to stop this," he said.
Since February 2018, Microfinance Institutions (MFIs) in Myanmar have lent more than K 3.9 trillion to three million small-scale borrowers, but some are now deeper in debt
Microfinance institutions (MFIs) in Myanmar have lent more than K3.9 trillion to three million small-scale borrowers since the business of microfinance emerged in the country up until February this year, according to Financial Regulatory Department under the Ministry of Planning and Finance. But while the additional lifeline has brought financial relief to borrowers, many have also ended up further in debt. This is because MFIs tend to be crowded within a single area, so it is not uncommon for three institutions to have lent to the same borrower, said U Myint Swe, managing director at MIFIDA (Microfinance Delta International). Because of the easy access to funds, “many individual borrowers tend to borrow beyond their capacity to repay the loans, he said. “In my neighbourhood, there are around 12 microfinance companies. A person takes loan from six or seven companies. There are many people who are in deeply indebted to these institutions and I haven’t seen anyone who has recovered from it,” said Ma Thet, who took out a microfinance loan in Pyay, Bago Region.
Ministry of Natural Resources and Environmental Conservation (MNREC) invited the expression of interest (EOI) from foreign and local investors in order to study the feasibility of cement plant project in Chin State
The Ministry of Natural Resources and Environmental Conservation (MNREC) is inviting expressions of interest (EOI) from foreign and local investors to conduct detailed feasibility studies and measurement of limestone deposits before considering the setting up of a cement plant in Chin State. The proposed site for the project, covering some 4300 hectares, is located in Hakha Township, Chin State. A ministry spokesperson said it is inviting the expressions of interest in order to study the feasibility of the project in Chin State. “This project could have benefits both Chin State and the country. I believe this project will support the development of the state and its people,” Mang Hen Dal, the regional minister of agriculture, livestock and mines, said.
In partnership with Myanmar Golden Rock International Co (MGR), Eaton Corporation Plc entered Myanmar in September 2018 to optimize power solutions
EATON CORPORATION PLC, a multinational power management company with 2017 sales of US$20.4 billion globally, expanded into the Myanmar market last month by signing a partnership agreement with Myanmar Golden Rock International Co (MGR), according to Kidsada Santisak, the firm’s country manager for Indochina West. “At Eaton, we have a global marketing intelligence team to collect information on markets around the world. Interestingly, we have found out that only 30 per cent of Myanmar people have access to electricity the reliability of which is not that good. That is why we decided to enter Myanmar to better optimise power,” he said in an exclusive interview. Kidsada has noticed Myanmar’s growing demand for power and energy solutions as the country races towards electrifying 100 per cent of its households by 2030, the primary goal set out in the Myanmar National Electrification Plan.
U Yan Naing Tun, Permanent Secretary of Ministry of Commerce highlighted the need for quality exports to compete in the global market
The permanent secretary of the Commerce Ministry has stressed the need to ensure good quality to be able to compete in the global market while efforts are being exerted to ensure a firm export market. Permanent Secretary Yan Naing Tun was speaking to the media during a press briefing on trade affairs held at the ministry in Nay Pyi Taw on Thursday. "We have a meeting with China in December to boost the export sector. We are trying to get a firm market. But we have to try and compete against international market in terms of quality. It is important for our products to be better in quality. In this context, it is also necessary to reduce production cost," said the permanent secretary.
Experts said that it’s a good time to enter the property market while availability of home loans are increasing, the introduction of the Condominium law 2016 and market stability
Property-market watchers say the increasing availability of home loans, the introduction of the Condominium Law 2016, and stable market makes this a good time for those looking homes to start considering taking the plunge. At present, management bodies that will enforce condominium rules and regulations are starting to emerge and as soon as they are formalised, big housing projects can be legally registered. “After registration, a project will be able to sell 40 percent of the apartments to foreigners according to the Condominium Law 2016. This will support the development of the property market and attract foreign investors, said U Kyaw Sithu, the owner of a construction company.
Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) called on the European Union (EU) to deliberate trade sanctions on Myanmar
The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) called on the European Union (EU) to deliberate on its intended trade sanctions on the country, expecting a balanced assessment with the issue after meeting with representatives from all sectors, according to a press release of the UMFCCI Tuesday. An EU monitoring team, in its mission to observe and assess facts if it should withdraw its Generalized Scheme of Preference (GSP) previously offered to Myanmar, met with business circle, led by the UMFCCI, in Yangon Monday.
Myanmar Rattan and Bamboo Entrepreneurs Association (MRBEA) will implement integrated bamboo industrial zone in six years, 2019- 2024
Myanmar Rattan and Bamboo Entrepreneurs Association (MRBEA) will implement an Integrated Bamboo Industrial Zone in six years 2019-2024. The association proposed the plans to U Ohn Win, Union Minister of the Ministry of Resource and Environmental Conservation at the meeting between them and Forest Farm Family Company, which has established a private forest, officials from the association and the Minister held the meeting at Forestry Department’s office in Yangon on October 24. The zone will be implemented in Bago Region and will focus on bamboo products and the complete supply chain from growing bamboo. From bamboo shoots, bamboo sculptures, bamboo furniture, bamboo tiles, tooth picks and so forth will all be part of the industry. Commenting on the proposal, the minister said that his ministry is also trying to increase the number of bamboo plantations and advised that they will be able to acquire a loan from the government in case more funds are need when establishing the zone.