Weekly Business News from Myanmar

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  Department of Power Transmission and System Control (DPTSC)’s tender committee invited sealed bids for the extension of the 230 kV Thaketa Substation and construction of three new substations

  The tender committee for the Department of Power Transmission and System Control (DPTSC) invites sealed bids for the extension of the 230kV Thaketa Substation, and the construction of three new substations. The submission deadline is 6 September 2018. The Republic of Myanmar has received financing from the Asian Development Bank (ADB) toward the cost of the Power Transmission Improvement Project. Part of this financing will be used for payments under the contract named above. The following information highlights the detailed requirements for potential bidders. 1. Bidding is open to contractors from eligible source countries of ADB. 2. The Department of Power Transmission and System Control (DPTSC) (the employer) invites sealed bids from eligible bidders for the extension of the 230kV Thaketa Substation, and the construction of three new substations at Kyaikasan, South Oakkalapa, and West University Substations (the Facilities). The Facilities are all located within Yangon region. 3. International Competitive Bidding will be conducted in accordance with ADB’s Single-Stage: One-Envelope bidding procedure, and is open to all bidders from eligible countries as described in the bidding document.
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  According to Myanmar Companies Law 2017, there are three main steps for foreigners to participate in the Yangon Stock Exchange

  According to Myanmar Companies Law 2017, foreigners are allowed to invest up to 35% of stocks in local companies. There are three main steps needed in order to implement the foreigner participation scheme, said U Thet Htun Oo, executive senior manager of YSX. “First, Securities Exchange Commission will release regulations and guidelines for foreigner participation in Yangon Stock Exchange (YSX) stocks, in accordance with the new companies law, which will come out soon. Second, YSX and Securities Companies will draw up procedures and systems how to control daily foreigners abiding the rules and regulations. These procedures are being developed. Third, all YSX-listed companies are needed to register again at the DICA office and extraordinary meetings are conducted to get approval of foreigners in their respective companies. Those three steps are still under process”, he maintained. Those stages are likely to be finished in two months, he continued.
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  Industry bodies from Myanmar and Taiwan signed two MOU in order to boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing

  SEEKING to build on the rapid growth in trade between Taipei and Myanmar, industry bodies from the two sides have signed two memoranda of understanding at the recent Taiwan-Myanmar Industrial Collaboration Summit. MyoThet, vice president of the Union of Myanmar Federation of Commerce and Industry (UMFCCI), said the agreements would help boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing. The agreements were signed at the event with the Chinese National Federation of Industries. “Taipei is very well-known for their advanced technology in agro-based food products. By using the latest technology, they manage to produce a wide range of value-added products. So, we are happy to cooperate with them,” Myo Thet.
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  Industry bodies from Myanmar and Taiwan signed two MOU in order to boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing

  SEEKING to build on the rapid growth in trade between Taipei and Myanmar, industry bodies from the two sides have signed two memoranda of understanding at the recent Taiwan-Myanmar Industrial Collaboration Summit. MyoThet, vice president of the Union of Myanmar Federation of Commerce and Industry (UMFCCI), said the agreements would help boost bilateral economic ties, reflecting Taiwan’s pledge to support Myanmar with capacity building and technical assistance in core sectors including textile and food processing. The agreements were signed at the event with the Chinese National Federation of Industries. “Taipei is very well-known for their advanced technology in agro-based food products. By using the latest technology, they manage to produce a wide range of value-added products. So, we are happy to cooperate with them,” Myo Thet.
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  Myawady border trade volume earned USD $ 261 million during 1 April - 20 July 2018, which is an increase from USD $ 243 million during the same period of last year

  Myanmar has earned US$261 million from Myawady border trade center with Thailand until July 20 of this fiscal year even though trucks loaded with consumer goods from Thailand are struggled to cross Gyaing suspension bridge amidst heavy rain, according to Ministry of Commerce. Myawady border trade center, which is the biggest trade center among border trade centers with neighbouring Thailand, earned US$243 million in the same period of last fiscal year from April 1 to July 20. The border trade volume declined after floods occurred in Kayin State from second week of July. It declined more in last week of July as trucks waited for water to recede, said a government employee from a border trade center. A truck driver said, “I have been waited for more than ten days and I am worried about the increase of basic commodities prices. Some are carrying goods, which are easily to be decayed, using smaller cars.”
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  Myanmar Centre for Responsible Business (MCRB) presents the legal framework for responsible business in Myanmar and how a “creating shared value” approach can benefit both business and local communities at Mon’s legislature

  Yangon-Based Myanmar Centre for Responsible Business made a presentation about responsible business in Mawlamyine’s regional parliament. On July 13, Aung Kyaw Soe and Hlaing Min Oo from the MCRB presented at the “Project Planning and Project Management in Financial Workshop” held at the Mon State Hluttaw Hall in Mawlamyine organised by National Enlightenment Institute (NEI). Around 90 participants attended, including Daw Tin Ei, Speaker of Mon State Hluttaw, and members of the regional parliament, officials, business executives and civil society organisations from the region. MCRB’s presentations focused on what a responsible business is, the legal framework for responsible business in Myanmar, and how a “creating shared value” approach can benefit both the business and local communities in Mon State. They stressed the need for a clear and consistent legal framework to support responsible business and the importance of transparency, particularly around permitting. Their presentations covered the Myanmar Investment Commission process and Environmental Impact Assessment (EIA) and other relevant permitting processes.
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  Myanmar Licensed Contractor Association (MLCA) submitted draft Apartment Law to parliament in order to generate more demand and create a market for apartments in Myanmar

  The Myanmar Licensed Contractor Association (MLCA) has drafted a proposed Apartment Law to address a regulatory gap in the property sector. Its aim is to generate more demand and create a market for apartments in Myanmar. The MLCA’s Apartment Law seeks to regulate apartment buildings developed on land areas of less than 20,000 sq ft. At the moment, only buildings developed on land spanning 20,000 sq ft and above are defined as condominiums and therefore regulated by the 2016 Condominium Law. “The draft Apartment Law is now under discussion and in the process of being submitted to the Pyithu Hluttaw. If it is passed, it will be beneficial both to residents and contractors,” said U Zaw Win, a patron of the MLCA. The Apartment Law, which was drafted with the help of former government officials and professional lawyers, provides recourse for apartment owners in the event of contract disagreements with buyers.
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  Electricity generation and distribution could lose about K630 billion in the 2018-2019 fiscal year (Dr. Tun Naing, Deputy Minister for Electricity and Energy)

  The electricity supply sector is forecast to lose about K630billion in the coming 2018-19 fiscal year, said Dr Tun Naing, deputy minister for Electricity and Energy, told Pyidaungsu Hluttaw yesterday. “Power generation and distribution is expected to lose about K629.9 billion in the fiscal year of 2018-19,” Dr Tun Naing said during his presentation. In 2017-18, the electricity sector chalked up losses of K507.9 billion, which is about K100 billion less than expected, he said. The National Electricity Project (NEP) is being implemented and therefore, power consumption of each household has increased dramatically, he said. When the new government took power on March 31, 2016, only 34 percent of households were able to use electricity supplied from the national grid. That has increased to 40pc as of June, he said.
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  Bilateral border trade between Myanmar and Thailand exceeds over US$400 million in this fiscal year

  BILATERAL border trade between Myanmar and Thailand this financial year totalled US$415.9 million, with exports worth $123 million and imports worth $292.9 million, according to the official statistics issued by the Ministry of Commerce. The current trade figures increased by over $57 million against the same period last year, when border trade between the two nations was $358 million. The country exports agricultural, forest and animal products, minerals, manufactured goods and other miscellaneous products to neighboring Thailand. Its import covers medicines, cosmetics, food and beverages, stationery, footwear, clothing, machinery and other commodities. Myanmar delivers goods to Thailand through its sea routes as well as cross-border gates. Seven border trade camps are opened between the two states, including Tachilek, Myawady,
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  Yangon Region Government held a press briefing on the recent shut down of the factories and airlines in Myanmar

  The Yangon Region Government held a press briefing on the recent shut down of the factories and airlines in Myanmar. Rumors have been spreading that 14 factories in Hlaingthaya Indistrial Zone have ceased their operations. It arouses concerns among the local basic laborers and foreign investors as well. Officials from the Yangon Region Government have conducted surveys and studied the recent conditions, nature of operation and management of the factories running in Hlaingthaya Industrial Zone. According to the report, only 4 out of the 14 rumored factories ceased their operations and shut down due to poor management, low quality production, low profit and many other reasons. The remaining factories are in operation, and some have moved to the new locations.