Weekly Business News from Myanmar

Myanmar lawmakers complained about loopholes in the conditions of Korean loans which will be used to implement the Korean based industrial complex infrastructure project in Hlegu township
YANGON—Myanmar lawmakers have criticized loopholes in the president’s message regarding infrastructure loans from the EXIM Bank of Korea which would be a major element to the implementation of the Korean-backed industrial complex project in Hlegu Township, Yangon Region. On Tuesday, nine lawmakers discussed the president’s message given in the Union Parliament regarding the decision to take $61.8 million in loans from the EXIM Bank of Korea for the Korea-Myanmar Industrial Complex (KMIC) infrastructure project. According to lawmakers, the loans will be used for three infrastructure projects which would support the KMIC project: the upgrading of highway roads; building a new power plant for electricity; and constructing a new channel for a water supply. The infrastructure projects will start this year and are expected to be finished in 2021.
A 145 megawatts natural gas-fired power plant will be implemented in Kyaukse of Mandalay Region, which has more natural gas-fired power plants compared to other states and regions
A 145-megawatts natural gas-fired power plant will be built in Kyaukse of Mandalay Region, according to the Ministry of Electricity and Energy. The gas-fired power plant will be implemented within Baelin 230 kV substation by Powergen Kyaukse Company Limited. 18MW gas engines for the power plant, purchased from Wartsila Company, arrived to Ahlone international port in Yangon on September 1, and inspections were carried out by Dr Tun Naing, deputy electricity and energy minister. The ministry issued a Letter of Acceptance (LoA) to the company for the construction of the power plant during the first week of May 2018. Currently, Powergen Kyaukse Company Limited has already cleared the land for the project and started performing civil works to install the gas engines. If the plant is completed, Mandalay Region will be able to consume more electricity, according to the ministry. The Wartsila order has been issued by SEPCOIII Electric Power Construction Co. Ltd. (SEPCOIII), the China-based EPC contractor for the project and one of the major international power construction companies.
Construction of Butheedaung sub-power stations through the national grid are 80 % complete in Maungdaw district
Sub-power stations are being constructed in Maungdaw District through the national power grid and construction of the sub-power stations are now at 80 percent completion. “The construction of support pillars are nearly complete. Construction of the sub-power station is 80 percent completed. The project period dictates that we must complete in end of October. The building of the sub-power station in Maungdaw will be completed in December,” said Hein Moe Htet, electrical engineer of Maungdaw District. Power can be transmitted to Butheedaung in Maungdaw district in October, Maungdaw in December through power grid. In Maungdaw Township, there 15 surrounding villages which are 10 miles distant from Maungdaw. There are 14 surrounding villages which are 10 miles from Butheedaung Township.
Myanmar authorities will allow foreign insurance companies to offer insurance services in 2018- 2019 fiscal year
Myanmar will allow foreign insurance companies to offer insurance services as of the upcoming fiscal year, said Zaw Naing, Secretary of Insurance Businesses Supervisory Board. “This is a roadmap for the development of local insurance sector. The Union government has already given the nod for it. We will allow foreign insurance companies to sell life insurance and miscellaneous insurance services in the country. It will start in 2018-2019 FY,” he added. Currently, the Insurance Businesses Supervisory Board is carrying out step-by-step scrutiny of foreign insurance companies. Dr Sandar Oo, Managing Director of Myanmar Insurance said: “Buying insurance services in local insurance companies are relatively low. People will have more choices when foreign insurance companies enter the local insurance market.”
Air Mandalay temporarily suspended their operations from 4 September 2018 due to the increasingly challenging market for the aviation sector
YANGON — In another setback for Myanmar’s troubled aviation sector, Air Mandalay has temporarily suspended operations effective from September 4, the carrier said in a statement. Air Mandalay, which began operations in Myanmar 24 years ago, said it may resume services in the future subject to restructuring and an improvement in market conditions. The announcement comes after FMI Air ceased operations in July amid higher fuel prices and a slump in the tourism industry that has also forced other domestic carriers in the highly competitive domestic market to halt services. “It is increasingly challenging to operate in Myanmar’s aviation sector,” Air Mandalay spokesperson Daw May Thandar Win said. “Air Mandalay is presently working closely with the government to resolve a number of issues affecting the airline and the aviation industry. The first priority for the airline is to look after the welfare of its employees and their job security,” she said.
Myanmar expects foreign direct investment (FDI) to hit USD $ 5.8 million in 2018- 2019 fiscal year, which is the same as the previous 2017- 2018 fiscal year that ended on 31 March 2018
Myanmar is expected to draw foreign direct investments (FDI) totaling US$5.8 billion in the upcoming 2018-19 fiscal year beginning on October 1, said U Than Aung Kyaw, deputy director general of the Directorate of Investment and Company Administration (DICA). That’s unchanged from the previous 2017-18 year ended March 31, during which Myanmar received $5.7 billion in FDI for 222 projects. In comparison, the country received $6.6 billion for 135 investments in 2016-17. DICA’s estimates also come amid a trend of falling capital flows into Myanmar. Between April and August this year, FDI totaled $1.4 billion versus the $3billion forecast by DICA for the April-September six-month interim period between 2017-18 and 2018-19. But U Than Aung Kyaw said investments from Asian countries including Singapore, Japan, South Korea and Thailand have not faltered. “In addition, with the New Companies Law will enforced in the coming fiscal year, we expect to see increasing FDI in sectors that are opening up, such as education and retail,” he said.
Next Code Pte Ltd is working to set a digital healthcare platform to reshape the national healthcare industry in Myanmar
THOUGH MOST of the healthcare service providers in Myanmar are yet to become familiar with the latest technical solutions, Next Code Pte Ltd, a technology start-up that focuses on creating a digital healthcare platform, has big hopes of shaping the digital future of the nation’s healthcare industry. ThihaZaw, founder and chief executive of Next Code, said in an exclusive interview that the company is currently working to bring all private hospitals, clinics, dentists, healthcare services and beauty-care in Myanmar under an umbrella of its application and hospital management system. “Firstly, we will start with dentists in Yangon. Then we will expand our reach to general practitioners, clinics, hospitals and all healthcare services in major cities throughout the country,” he said. To date, the company has gathered 50 dental clinics in its application, which was launched on August 1. ThihaZaw expects to cover all dentists and a large percentage of clinics in Yangon within two months of the launch of their application.
Government called for the crack-down on illegal selling of farmland for residential purposes, which has reduced the amount of land available for agriculture
Government called for the crack-down on illegal selling of farmland for residential purposes, which has reduced the amount of land available for agriculture
Yangon new city development project is needed to attract more foreign investment to Yangon (U Phyo Min Thein, Chief Minister of Yangon Regional Government)
Yangon must be developed further to free up space for new industrial zones and residences, which, in turn, will draw more foreign investors to the city, said U Phyo Min Thein, the region’s chief minister, during an August 24 press conference detailing his government’s plans for the coming quarters. The chief minister this year announced several new projects for Yangon, including the US$5 billion new Yangon City project, which will include five townships and10 sq km of industrial estate on the west bank of Yangon River, the Yangon Amata Smart & Eco City and up to 11 new industrial zones in 11 townships. Instead, the government has drawn flak from members of the public, who have questioned its ability to supervise and manage new projects given the long list of problems the existing city still faces, such as poor water distribution and power shortages. Many are also concerned that the new projects could cannibalise funds and resources that could be put to better use in the old city. But U Phyo Min Thein said the new projects will help accommodate the rising number of migrant workers from other states and regions. It will also help alleviate chronic traffic congestion and problems with squatters, which are big problems in the existing city of Yangon.
Local and foreign tourist will be permitted to visit pearl farms in Tanintharyi region starting from October 2018 with the aim to develop the tourism sector
With the aims of developing the tourism sector, earning foreign income and creating job opportunities for local people, local and foreign tourist will be permitted to visit farms owned by four private companies and a state-owned farm in Taninthayi Region starting from October according to Myanmar Pearl Enterprise. A state-own pearl farm and 11 private pearl farms are located on 15 islands in Myeik and Kawthoung districts, Taninthayi Region. State-own farm on Pearl Island and private farms on Jalan Island, Golden Island, Nga Lone La Phe Island and Done Palae Island will be opened for visitors. Only one island namely Palae Island is in Myeik District and the other four islands are in Kawthoung District. “Tourist vessels are not allowed to enter into the pearl farming area. Tourist vessels will have to anchor outside the restricted area and relevant farms will pick up the tourists using their small fiber boats. If the time of visit coincides with inserting of pearl nucleus into the oyster and extracting of the pearl from the oyster, tourist can observe the operation from a designated area. Rules and regulations for tourist industry on this matter will be announced soon,” said U Myo Lwin, Deputy General Manager of Myanmar Pearl Enterprise.