Weekly Business News from Myanmar

Grab, a leading ride-hailing services provider in Southeast Asia, retains its leadership in Myanmar market
Grab, a leading ride-hailing service provider in Southeast Asia, is making plans to continue as the market leader in Myanmar with its new offerings for passengers and driver-partners, according to Alvin Loh, the firm’s acting country manager for Myanmar. Loh said in an interview that more and more passengers are enjoying ride-hailing services operated by Grab’s growing base of drivers in Yangon, and the firm will continue to expand its services to more cities. “Currently, we are focused on adding drivers and passengers to the platform, creating the best possible user experience and building new services,” he said. “Our journey in Myanmar has been meaningful for us. We have grown so quickly in such a short period of time. All of this would not have been possible without the support of our passengers and the commitment of our driver-partners.” According to Loh, the firm has enjoyed significant growth in Myanmar since it started app-based taxi services in Yangon in March 2017.
Existing companies are able to re-register online without any charges starting from 1 August 2018 when amended Myanmar Company Act comes into effect
According to the amended Myanmar Company Act, all companies must re-register at Directorate of Investment and Company Administration online or at the DICA’s office starting on August 1st. There will be no charge for those re-registering, according to DICA. Companies will be able to re-register online starting from August 1st when the amended Myanmar Company Act comes into effect and DICA then will establish a system called Myanmar Companies Online (MyCO) where everyone can have access to the information of companies. “Once online registration comes online, all the companies and enterprises can register free of charge. Their company certificate must be changed to the new one,” U Aung Naing Oo, Director General of DICA, told the press at DICA’s office in Yangon.
Myanmar launched two reports on its extractive industries to strengthen the implementation of the Extractive Industries Transparency Initiative (EITI) process in Myanmar
IN an effort to improve transparency and good governance in extractive industries such as mining, gems and jade, oil and gas, Myanmar on Thursday launched two reports on its extractive industries. “These reports were prepared to strengthen the implementation of the Extractive Industries Transparency Initiative (EITI) in Myanmar. We are eager to make all our extractive sectors responsible and transparent so the nation can generate more income for the good of the people,” said KyawThet, deputy director general at the Department of Mining and government representative of Myanmar EITI Multi-stakeholder Group (MSG). He believes Myanmar would yield a good result in the validation process which will start from July 1. “For our country, it is a very important process to become a compliant country for EITI. We are now preparing to develop the Open Data Policy which was described in EITI Standard 2016,” he said. “Since we began our efforts to join this initiative a few years ago, we have set our heart on having good governance in every single company that is doing business in all the extractive industries here. For developed nations like the United States and the United Kingdom, their institutions are strong enough and well-established so they do not need to be involved in the initiative. But on the contrary, we need to be active in this regard.”
53 local and international companies express their interest in building a 47.5 kilometre elevated four-lane ring road in Yangon
A total of 53 local and international companies/ consortiums are interested in the 47.5-kilometre elevated ring road in Yangon, the Ministry of Construction announced on July 4. On May 18 last year, the Ministry of Construction (MOC) invited local and foreign investors to submit Expressions of Interest (EOI) for the construction of an elevated four-lane ring road under a Public-Private Partnership (PPP) in Yangon. The ministry, together with the Yangon regional government, is planning to build a 47.5-kilometre four-lane elevated ring road, which is expected to connect downtown Yangon, Yangon Port, Yangon International Airport, Mingalardon Industrial Park and Yangon-Mandalay highway. Local and international companies have already submitted EOIs, covering areas such as designing, engineering, financing, construction, operations and maintenance before the end of June.
Myanmar recognizes Hong Kong’s distinctive role as the Belt and Road initiative’s “superconnector” (U Thaung Tun, Chairman of Myanmar Investment Commission)
Myanmar recognises Hong Kong’s “distinctive role” as the Belt and Road Initiative’s “superconnector”, a cabinet minister said last week during an official visit to the city, while businesses urged Nay Pyi Taw to draw up its own priorities in the Initiative and proactively reach out to investors. Newly appointed chair of the Myanmar Investment Commission (MIC) U Thaung Tun, who is also a cabinet minister, led a delegation including U Aung Naing Oo from the Directorate of Investment and Company Administration (DICA) and Daw Nilar Kyaw from the Yangon government as well as business leaders to take part in the third Belt and Road Summit organised by the Hong Kong Trade Development Council (HKTDC) last week. Myanmar recognises Hong Kong’s distinctive role as the superconnector in the BRI. - U Thaung Tun, cabinet minister and Myanmar Investment Commission chair “Myanmar has always attached and continues to attach great importance to Hong Kong. We are aware that Hong Kong is one of the best places in the world to do business.
Myanmar is prioritizing import substitutions in order to reduce the trade deficit while boosting exports (U Than Aung, Deputy Director of Directorate of Investment and Company Administration)
In order to reduce the trade deficit, Myanmar is putting a priority on import substitutions, the Deputy Director of Directorate of Investment and Company Administration, U Than Aung Kyaw, said at Korea-Myanmar Investment Forum held at Latte on June 20. Import substitutions industrialization is a trade and economic policy which advocates replacing foreign imports with domestic production. This type of policy is intended to reduce a countries foreign dependency through the local production of industrialized products, or in Myanmar’s case, reduce the trade deficit while boosting exports. “We are trying to boost exports by producing value added products. If we can produce import substitution products locally, imports will decease itself,” he said. He also explained that reducing the amount of imports will help level out the trade deficit, but perhaps more importantly, it will also create more job opportunities for local workers.
Legal experts and authorities announced that a locally registered company, Kyaw KS Development Trading Company, needs MIC approval to extract 5 million cubic metres of sand mining over five years in Tanintharyi Region
Legal experts and authorities have confirmed with The Myanmar Times that the sand mining activities proposed by Kyaw KS Development Trading Co require approval from the Myanmar Investment Commission (MIC). Prior to starting any activities, an Environmental Impact Assessment (EIA) is also necessary by law. Official documents signed by township administrators in Tanintharyi seen by The Myanmar Times revealed that Kyaw KS, a local company registered in Yangon Region, is seeking township approval to extract 5 million cubic metres of sand over five years in Tanintharyi Region in partnership with Singapore-based Delta Gold. The documents made no mention of EIAs or MIC approval, only that a ground survey was conducted, arguing “no objections” were raised and the project will have “no environmental damage”. The claims made in the documents are at odds with the views of experts and environmental specialists, who have warned that the activities will be highly detrimental to a nearby pearl farm and harm the biodiversity and livelihoods of local fishing communities. The Myanmar Centre for Responsible Business (MCRB), WWF Myanmar and Fauna & Flora International have all raised serious objections regarding the project.
First Myanmar Investment Group (FMI) will keep investing in four key sectors- financial services, healthcare, real estate, and tourism after posting record high revenue in 2018 fiscal year
FIRST Myanmar Investment Group (FMI), one of the five companies listed on the Yangon Stock Exchange, says it will keep investing in four key sectors - financial services, healthcare, real estate and tourism - after posting record-high revenue for fiscal year 2018. The company booked more than 200 billion kyats in sales for the financial year that ended on March 31. TunTun, executive director and chief financial officer of FMI, said the revenue increases at two of the group’s subsidiaries, Yoma Bank and Pun Hlaing Siloam Hospital (PHSH), were key contributors to the record revenue growth enjoyed by the group. Revenue jumped 27.5 per cent at Yoma Bank and PHSH piled on a 28.2 per cent gain for the financial year. “Our financial services have grown due to increased interest income from loans, overdrafts, and hire-purchase products, which was largely driven by Yoma Bank’s growing loan book. Likewise, an increase in patient volumes mainly drove our revenue growth in healthcare sector,” TunTun said at a press conference.
Australian Ambassador to Myanmar exuded praise on the economic policies created by the NLD government
Australian Ambassador Nicholas Coppel reaffirmed Australia’s continuing engagement with Myanmar at a talk organised by the Parami Institute of Liberal Arts and Sciences on Saturday, expressing the need for greater international support to foster freer and more stable conditions in the nation. Mr Coppel also exuded high praise of the economic policies created by the NLD government. “Myanmar is one of the least known and understood countries in Southeast Asia. The gap in understanding and knowledge can only be bridged by greater engagement,” he said. “Myanmar has its own problems in terms of internal conflict and it will take a long time to overcome these. Our approach is one very much supporting the processes, and the government and Myanmar people to find solutions to their own issues.” The ambassador said the current status of Australia’s trade relationship with Myanmar as weak, but praised the current government for the steps it has taken towards fostering an economic environment which facilitates greater trade.
Business leaders warned the government not to backtrack on the retail and wholesale reform and not to impose further restrictions on foreign investments
AMID news that the commerce ministry might backtrack on the retail and wholesale sector reform and impose further restrictions on foreign investments, business leaders warn that any such retraction will be “extremely disappointing” and seriously derail efforts to attract foreign investments for the country. The ministry insisted that they currently have no plans for additional restrictions and that a review put in place for the reform is only intended to clarify the regulation. Information from one of the major chambers in the country reveals that the government is considering backtracking the liberalisation for the retail and wholesale sector by limiting the scope of foreign investors and/or joint-ventures (JVs) by imposing restrictions additional to those laid out in the Directive 25/2018 -- namely the substantial capital requirement and restriction on retail size. The Directive 25/2018, released by the Ministry of Commerce (MOC) on May 9, authorises 100 percent foreign-owned companies as well as JVs between international and domestic investors to carry out retail and wholesale businesses.