Weekly Business News from Myanmar

Pyin Oo Lwin property market demands have been rising since April 2018 and are expected to rise till the end of the year
Demand for property in Pyin Oo Lwin, formerly known as Maymyo, in Mandalay, has been on the rise of late. Property sales in the former colonial hill station has picked up since April, according to real estate agent Daw Khin Saw Myint. “Prices have fallen compared to before and we are seeing more buyer interest in Pyin Oo Lwin. We think sales could continue until the end of the year,” she said. According to Daw Khin Saw Myint, properties previously worth K150 million have fallen by as much as 20 percent. Meanwhile, road conditions have improved and the population of Pyin Oo Lwin has also improved. “Now, the Padaythar New City in Pyin Oo Lwin is becoming more popular and lively. Even the designs of the houses are looking more attractive. People are interested in 40ftx60ft and 60ftx80ft properties near the market and highway terminal which are worth around K120 million,” she said. Daw Khin Than from Kaung Hein Sat Real Estate Agency in Pyin Oo Lwin said if tax rates and stamp duties for real estate are reduced from the current level, sales transactions could continue to increase.
With the support of CIESF, Japan, Union of Myanmar Federation of Chambers of Commerce and Industry organized the Business Model Competition in order to discover new potential businesses in Myanmar
Business Model: Applications Called For Competition The Republic of the Union of Myanmar Federation of Chambers of Commerce & Industry (UMFCCI) is organizing a Business Model Competition with the support of CIESF, Japan. It aims to nurture a new young generation of Myanmar corporate entrepreneur and at the same time to discover new potential businesses in Myanmar. The Competition is opened to all who are under the age of 32, and the contestants are to participate as a team, with 2 to 3 members per team. Orientation on the competition will be provided to all interested contestants on 11 and 18 August at UMFCCI Training Institute in the afternoon to familiarize them with the competition. Lectures and training by both local and overseas resource persons on the subjects will also be provided to the participants to enhance their skill and knowledge. Application Deadline is 6th September.
Internal Revenue Department (IRD) invited qualified service providers to submit Expression of Interest (EOI) to build ICT system, which will enable taxpayers to use mobile banking
Taxpayers may soon be able to pay their dues to the government via mobile banking, said U Min Htut, director general of the Internal Revenue Department (IRD). The IRD is now inviting qualified service providers including the banks and mobile money service operators to submit Expressions of Interest (EOI) to develop an information and communications technology (ICT) system which will enable taxpayers to use mobile banking to pay their monthly commercial and special goods taxes as well as quarterly income taxes. By making it more convenient for taxpayers to make payments, the government hopes to collect more taxes and maximise revenues at a time when public spending is expected to rise in the coming fiscal year.
Yangon Regional Government and South Korea based company, Myanmar Wooree Company signed a MOU for Yangon Region Economic Development project to improve businesses in the commercial city of Yangon
The Yangon Region government and South Korea-based Myanmar Wooree Company signed a Memorandum of Understanding for Yangon Region Economic Development Project at Yangon Region government office on 11 August. Yangon Region Chief Minister U Phyo Min Thein in an address said, “this event aims to the commercial development of Yangon Region. Signing an MoU between Yangon Region government and Myanmar Wooree Company is also the first step for the regional government to improve businesses in the commercial city of Yangon, in cooperation with economic development partner South Korea, under the guidance of the Ministry of Commerce. The industrial development project area is located on the west bank of the Yangon River. It is also situated near the construction project area of the Yangon-Dala Bridge, which is a friendship bridge between Myanmar and South Korea. The construction of the bridge is slated to be completed in 2020-2021fiscal year. “This bridge will bring a number of benefits to the industrial zone area implemented by Wooree Company and economic development for Yangon Region”, said Yangon Region Chief Minister. In addition to this, Yangon Port is being planned to be expanded to the mouth of Yangon River, he maintained.
Ten out of 32 state-owned economic organisations, including News and Periodicals Enterprise set to lose over K1 billion, will make losses this fiscal year, according to the Ministry of Planning and Finance. According to the estimated budget for 2018-2019
Ten out of 32 state-owned economic organisations, including News and Periodicals Enterprise set to lose over K1 billion, will make losses this fiscal year, according to the Ministry of Planning and Finance. According to the estimated budget for 2018-2019 FY and trade data, there are 26 state-owned businesses operating with union budget. Among them, 16 will be making profits this year. Meanwhile, there are six state-owned enterprises running outside the union budget, and five are set to make profits. The 26 state-owned enterprises running with the union budget are under the control six ministries. News and Periodicals Enterprise under the Information Ministry is due to make a loss of K1,157 million. Of the five economic organisations under the Ministry of Transport and Communications, Inland Water Transport is set to lose K9,000 million, Road Transport K1,396 million, Myanma Railways K97,923 million and Myanmar Postal Service K4,110 million. Only Myanmar Post and Telecommunications will earn over K98,144 million in profit.
Regional conflict stands in the way of Foreign Direct Investment (FDI) in Kachin State, which led to Chinese investors having second thoughts on investment
Foreign investment in Kachin State currently happens in spite of, not because of, the government. IN an article “Kachin fighting scaring off investors: official” published by The Myanmar Times on June 21, U Tun Kyaw Kyaw, assistant director of the state’s Directorate of Investment and Company Administration (DICA), said that Chinese investors who had expressed interest in construction, mining, livestock, agriculture, electricity and tourism have had second thoughts as the fighting intensified in the region. Given the instability of many areas in the state, he said it was difficult for investors to come. Most instructive were these comments, because they showed a lack of understanding of what it takes to attract foreign direct investment to Kachin State. The current state of belligerence has much less to do with lack of foreign investor interest than he might think.
Enforced rules, regulations and policy instructions for foreigners to trade on Yangon Stock Exchange (YSX) will be issued by late August 2018
Policy and regulations allowing foreigners to trade on the Yangon Stock Exchange (YSX) will be released by late August, according to U Htay Chun, member of the Securities and Exchange Commission of Myanmar (SECM). “We are working towards announcing the required regulations and policy instructions by the end of this month. Meanwhile, the YSX-listed companies and securities companies are still making preparations. Once the instructions are released, listed firms which are ready will be able to sell shares to foreigners,” U Htay Chun told The Myanmar Times yesterday. Though the Myanmar Companies Law was passed in December last year, there have been delays in enforcing the rules, regulations and procedural instructions for foreigners to participate in stock trading on the YSX. “To be able to sell shares to foreigners because of the Myanmar Companies Law is a good opportunity for our firm. But so far, we have not received the rules on how to commence trading with foreigners yet. We need the announcements to be made quickly for more liquidity in the capital market,” U Serge Pun, chair of YSX-listed First Myanmar Investment Co (FMI), said during the company’s AGM on July 29.
Products from illegal Chinese plantations in Myanmar account for more than Myanmar exports to China from Muse 105 miles wholesale markets
There are illegal Chinese plantations in Myanmar and at present, produce from their plantations is more than the export from Muse 105 miles wholesale markets according to Chairman of Muse 105 miles fruit wholesale market Sai Bo Myint. On August 9th, a China-Myanmar meeting on upgrading the quality of fruits and vegetables was held at the Wantain fruits and vegetables center in Shweli in China. He answered the questions of media that current Chinese illegal plantations’ produce is more than the export of Muse 105 miles wholesale markets.
Officials from ASEM SMEs Eco-Innovation Centre inspected the factories in Shwe Pyi Thar and Hlaing Thar Yar Industrial zones in order to explore the issues and find out solutions which are tailored to local needs and local markets
The officials from ASEM SMEs Eco-Innovation Centre inspected the factories in Shwe Pyi Thar and Hlaing Thar Yar Industrial Zones on Friday to meet the goals of ASEM Eco-Innovation Capacity Building Program 2018. The inspection is the first step of the ASEM Eco-Innovation Capacity Building Program 2018 and the primary purpose is to find out the area which is customized for the Myanmar business - to explore the issues and find out solution which is tailored to local needs and local markets Senior Researcher, ASEM SMEs Eco-Innovation Center, Younji Kang said “Today, we asked the Ministry of Industry in Myanmar to give us some opportunity to look over the current status of the Myanmar's factories. We want to find out which part of it we can help them to implement some eco-innovation or eco-friendly products and how to make it, we want to find it out. So, that's why we are here today.” The senior researcher also added that ASEIC is trying their best to look for how can they help Myanmar companies to follow up with the global standard or global market especially in eco-innovation sector.
Myanmar authorities stressed on providing better tourism services before looking into the requirements for the development of community-based tourism industry in the Danu Self- Administered Zone at a village in Pindaya Township
“Hopefully, tourist arrivals will be higher in the coming open season, as visa relaxation for South Korea, Japan and China has already been made,” said Vice President U Henry Van Thio during his tour of Danu Self-Administered Zone on 5 August. The Vice President also stressed necessary preparations for providing better tourism services before looking into the requirements for the development of community-based tourism industry in the Danu Self-Administered Zone at a village in Pindaya Township. In his capacity as the Chair of the Central Committee for the Development of the National Tourism Industry (CCDNTI), the Vice President inspected the Shwe Oo Min Cave, preparations for community-based tourism, a green tea factory, a coffee farm and a coffee mill in Pindaya and Ywangan townships of the zone in Shan State in the east of the country, At an elephant camp in Kalaw township, southern Shan State, he heard a report on the salient points of the camp, the future prospects of the tourism industry, the upgrading of the camp’s entrance road, the electrification of the camp and plans for hosting greater number of vacationers in the coming open season, presented by an official of Myanma Timber Enterprise (MTE). In response, he stressed the need to exert efforts for greater success of the camp that has become popular within a short period after its inauguration and for turning the facility into an all-season destination.