Weekly Business News from Myanmar

Mining entrepreneurs will receive the regional government’s permission to operate small-scale gold mining blocks in Homaline Township, Sagaing Region, within a month
Plans are underway to allot some small-scale gold mining blocks in Homalin Township, Sagaing Region, with permission from the region government, and mining entrepreneurs are willing to receive permission as quickly as possible. As per the mining bylaw, about four acres of small-scale gold mines will be allotted. Currently, they are running without a licence. If permits are issued, there will not be illegal gold mines. The plan for permission is said to be implemented within one month. I think we will receive permission in one month," said Kyaw Thura, chairman of Homalin Township Mining Entrepreneurs Association. Small-scale gold mines have been allowed to operate under the permission and control of the region government with effect from August 6 this year. One mining block is about four acres.
Japanese, Thai and South Korean investors eye investment opportunities in retail and wholesale markets in Myanmar
Wholesalers and retailers from Japan, Thailand and South Korea met with the Ministry of Commerce (MOC) to discuss investments in the Myanmar retail sector, said U Yan Naing Tun, director general of the Department of Trade under MOC. Among the companies was Japanese retailer Aeon Co, which invested in the Myanmar retail sector under a joint venture – Aeon Orange Company - with local partner Creation Myanmar Group of Companies (CMGC) in August 2016. Aeon Orange Co acquired 14 supermarkets operated by Hypermart Asia Co, an affiliate of CMGC. It opened its first store in North Okkalapa, Yangon, in September during the same year. The Myanmar Times understands that Aeon is eyeing opportunities to further expand its presence in Myanmar. “Interest from Japanese, Thai and South Korean investors has spiked since the MOC allowed foreigners to wholly-own wholesale and retail business in Myanmar,” said U Yang Naing Tun.
With the support of the Asia Foundation, Kayah State Government organized the Budget Transparency Forum in order to provide information on Kayah State’s financial situation
On August 17, the Kayah State Government, with the support of The Asia Foundation, organised a Budget Transparency Forum aimed at equipping civil society organisations and the community with the knowledge of Kayah’s state planning, revenues and spending process. A total of 62 participants including Kayah Chief Minister U L PhaungSho, Speaker of the State Parliament U Hla Htwe attended the forum, which provided information on the state of Kayah’s financial situation. The forum comes at a time when state and region governments in Myanmar are taking steps to strengthen democratic governance and their relationship with citizens after decades of secrecy surrounding budget data and a lack of public access to financial information. For example, for the 2017-18 financial year, Kayin, Bago and Tanintharyi State and Region Governments have launched Citizen’s Budgets, which are simplified versions of their subnational government budget.
Ministry of Commerce plans to submit the outcome of the meeting on pulses industry development to the Union Government to update the current conditions and requirements of Myanmar’s pulses market
Suggestions regarding Myanmar’s pulses, beans and sesame seeds production and export development will be submitted to the Union Government, said U Toe Aung Myint, permanent secretary of the Ministry of Commerce. He mentioned that at the workshop for development of the pulses industry, organized by Myanmar Pulses, Beans and Sesame Seeds Merchants Association and Yangon Region Chambers of Commerce and Industry (Bayintnaung commodity depot), at the Union of Myanmar Federation of Chambers of Commerce and Industry office on 18 August. “We will report the outcome of the meeting to the Union Government, submitting the requirements faced by the pulses industry”, said U Toe Aung Myint. The workshop aims to realize the current condition of Myanmar’s pulses market, especially mung beans and pigeon peas to all stakeholders in the supply chain, including pulse growers, merchants and related organizations. Future plan for pulse production and selecting more profitable crops for farmers as substitution for mung beans and pigeon peas were also discussed, according to Myanmar Pulses, Beans and Sesame Seeds Merchants Association.
Pyidaungsu Hluttaw approved to accept a €30 million interest free loan from Italy to provide electricity in Chin State and other rural areas in Myanmar
Pyidaungsu Hluttaw has approved a €30 million interest-free loan from Italy which will be used to provide electricity to villages in Chin State and other rural areas in Myanmar. Under its agreement with Italy, Myanmar will begin repaying the loan over a period of 10 years starting 2036. The repayment amount will be €3 million per year, said Dr Aung Thu, Union Minister of the Ministry of Agriculture, Livestock, and Irrigation (MOALI), which will be managing the electrification project. The private sector will be allowed to participate in the electrification project by distributing power generated by small-scale solar and hydropower systems. The loan will cover 60 percent of the electricity costs, while investors and the public will be expected to split the remaining 40pc. Electricity prices currently range from K350 to K500 per unit. Users will also need to fork out 10pc of the cost for installing solar panels at their homes. The project is part of the National Electrification Project with the aim of achieving national electrification by 2030. The World Bank has already provided US$400 million in assistance towards that goal. So far though, only 40pc of the estimated 64,000 rural villages enjoy access to electricity.
Myanmar authorities wary of Chinese loans to complete the Kyaukphyu SEZ despite deciding to start on a smaller scale and to expand based strictly on demand
YANGON — Myanmar will endeavor to take on no loans from China to complete the Kyaukphyu Special Economic Zone (SEZ) but would offer the developer no sovereign guarantees to mitigate risk if it does, said the project’s new chairman, seeking to allay fears of a debt trap. Sean Turnell, an economic adviser to State Counselor Daw Aung San Suu Kyi, has called the expense of the $7.5-billion project “crazy” and “absurd” and warned of a repeat of Sri Lanka’s experience. The government of Sri Lanka borrowed heavily from China to build the $1-billion Hambantota port but was unable to repay the loans. As a result, it gave China a 99-year lease to the facility in exchange for debt relief. Turnell told a seminar in Singapore in May that Myanmar would have to borrow between $2 billion and $3 billion from the Export-Import Bank of China to make its own port project happen. In an interview with Reuters on Monday, the head of the US Overseas Private Investment Corporation, Ray Washburne, also warned that China’s Belt and Road Initiative was creating a debt trap for many poor nations.
Ministry of Commerce suspended the issuance of re-export licenses for sugar and fuel oil appreciation on 17 August 2018
Ministry of Commerce had started suspending the issuance of re-export licenses for sugar and fuel oil after the greenback appreciation on August 17. Yan Naing Tun, Director-General of Trade Department at the Commerce Ministry said: “The ministry has suspended the issuance of new re-export licenses as there is widespread criticism that the unstable currency exchange rate is linked to the re-export of sugar and diesel. But the licensed re-export process will run as usual.” Since August, 2015, Myanmar has introduced the issuance of re-export licenses. The ministry has allowed re-exports of sugar, betel nut, sesame and cotton. An official from Myanmar Fuel Oil Importers and Distributors Association said: “I think the move aims to control the huge outflow of foreign currency. The authorities need to thoroughly scrutinize whether the currency depreciation against US dollar is linked to this matter at all”.
Ministry of Electricity and Energy defends controversial tender process to provide helicopter transport services in Myanmar’s offshore oil fields which was carried out in line with the international procedures
An official from the Ministry of Electricity and Energy has said the tender process for providing helicopter transport services in Myanmar's offshore oil fields was carried out in line with the international procedures. "We have carried out the tender process in accord with the international procedures for choosing a company to provide helicopter transport services in offshore oil blocks. In this process, we also had to seek recognition from the Civil Aviation Department as technological assessment was necessary. Only after technology sector, we have to consider cost effectiveness. We have announced a tender winning company for the three operating oil companies," said Than Kyaw, director (management) of the Ministry of Electricity and Energy. Officials from tender winner Malaysia-based Weststar Co held a press conference at Park Royal Hotel in Yangon on August 16 voicing out that despite the company winning a tender to provide helicopter transport services in offshore oil blocks of the Ministry of Electricity and Energy, France-based Heli Union Company is still continuing their services instead of handing the reins over.
Myawaddy border trade has declined to USD $ 4.861 million when compared to the same period of last fiscal year due to the fierce heavy rains
As the heavy rain pours rampant in the region, Jaing (Kawkareik) Pontoon bridge in Myawaddy was flooded and completely inaccessible for 20 days. As a result, trade amount compare with previous year amount has declined to US $ 4.861 million according to the data released by Ministry of Commerce. The Myawaddy border trade camp is the second largest camp among other border trade camps. On average, the trade camp is deals in more than US $ 1 million per day. After July 20, trucks had to wait for the water to recede which caused cessation cargo transports from arriving to their destination. According to the data collected by Ministry of Commerce, the volume of import/export till July 13 has surplus US $ 24.168 million compare with last year. After constructing temporary pontoon bridge in Jaing (Kawkareik) , vehicles are now able to resume their normal operations starting from August 9. As a result, there is regular flow of commodities.
Myanmar government invites closed tender applications for various projects in Kayinchaung Economic Zone in Rakhine State
The Government is inviting closed tender applications for various projects in the Kanyinchaung Economic Zone in Rakhine State, western Myanmar. The projects in Lot One (1) include two security guard buildings, one 4-stall restroom. Lot Two (2) includes a 1.1 mile long pre-stressed concrete panel and post fence, and 190 concrete lamp posts with the length of 9 meters. Interested bidders can submit applications to Kanyinchaung Economic Development Company formed by Family Aye Chan Company and Golden Key Company by August 25, or call 09-262977160 and 09795834325 for additional information. A memorandum of understanding (MoU) was signed with Rakhine State Government in May for development of the zone.