Weekly Business News from Myanmar

ASEAN Korea Centre visited Myanmar to seek business opportunities and a win-win partnership between the two countries
Myanmar and Korea join forces to scale up their business ties in investment and trading. The 12 Korean companies especially from manufacturing sector, led by the Secretary General of the ASEAN-Korea Centre visit Myanmar for two days not only to seek business opportunity but also to improve win-win partnership between the two countries. According to the MIC, Korea stands sixth on the list of foreign investor countries with over 3.8 Billion US$ investment, especially in oil and gas and manufacturing industry. The Korean business delegation visited the Thilawa SEZ on Tuesday, and learned about the industry. The Secretary-General shared their impression, challenges but stressed Myanmar is the potential destination that they look for.
Singapore based Puma Energy Company is keen to invest in the construction of Myanmar's deep sea ports
YANGON- Singapore-based Puma Energy Company is keen to invest in construction of Myanmar deep sea ports, according to the press conference held in Union Business Centre on June 21st. “Myanmar deep seaport project is very big project. Puma Energy will see every possible opportunities in the country but we can't say anything exact now” said Wai Hlyan Min, Commercial Manager from Puma Energy Company. Among jetties that dot the coastal region, the Union government is now considering construction of an international standard jetty in Kyaukphyu. Myanmar is also in discussion with Japan and Thailand for upgrading the Dawei Jetty in Taninthayi Region to international standards.
National Infrastructure Holdings-led consortium will construct a 143MW gas power plant in Kyaukse Township, Mandalay region, which is scheduled to be ready by next February
The National Infrastructure Holding-led consortium (NIHC), comprising of three firms, will construct a 145MW gas power plant in Kyaukse township, Mandalay Region, according to consortium. The tender was launched by the Ministry of Electricity and Energy (MOEE) in March 2018 and NIHC consortium was awarded the tender last month, Director Daw Yi Yi Htwe from MCM Co, a member of that consortium, told The Myanmar Times. Within the consortium, NIHC, a Yangon-headquartered infrastructure conglomerate, owns the largest number of the shares, followed Myanmar Chemical & Machinery and then a Chinese firm, one MCM official said. The 145MW gas power plant will involve US$100-120 million investment over a span of five years, the official added.
All companies need to do re-registration starting from 1 August 2018 when the new Myanmar Companies Law comes into force
The President’s Office issued Notice 48/2018 last Thursday to announce that the new Myanmar Companies Law will go into force on August 1. The new legislation, enacted in early December last year and spearheaded by the Directorate of Investment and Company Administration (DICA), is a landmark reform which allows domestic businesses to grow by seeking foreign capital and expertise via joint-ventures. It allows foreign entities to take up to a 35-percent stake in domestic companies and opens up the Yangon Stock Exchange for non-Myanmar customers. Mariano Suarez, partner of Thanlwin Legal, told The Myanmar Times that, for starters, there are two issues all companies must be aware of: the re-registration and change of company documents, as well as the many new requirements and notifications rolling in. “A company secretary is more necessary than ever. Beyond this, it’s all about foreign ownership and customised share rights!” Mr Suarez commented.
New Yangon Development Company (NYDC) plans to hold a talk to seek reliable facts on the much criticized Yangon new city project
New Yangon Development Company (NYDC) has planned to hold a talk about NYDC Town Hall with the intention of seeking strong evidences for Yangon New City Project as China Communication Construction Company Limited (CCCC), a tender winning company, is facing many questions as to whether or not there is transparency, said Thein Wai (a) Serge Pun, the CEO of the NYDC. “We hear the public opinions on the new town plan through social networks and media ever since the NYDC started setting up the NYDC. Most of the people are attracted to this project. Some people supported the project but some were against it. Criticisms went to Yangon regional government and the NYDC. “So many questions arose—does the government need to do business? Can’t a ministry or a committee carry out this new town project? Will Yangon new city project become money-wasting project without seeking profits? Why doesn’t the government do better for Yangon? Is there transparency in tender option process? Is there transparency in the authorized permission of the Chinese company to set out to implement the first phase of the new town plan, a challenge of the NYDC?” Thein Wai (a) Serge Pun, the CEO of the NYDC said.
Mottama Holdings Limited has nine major projects in the pipeline, which is expected to be complete by 2022
Mottama Holdings Limited, a Yangon-based company owned by Myanmar-Chinese entrepreneur U Yang Ho, has nine major projects in the pipeline, valued at US$1 billion and expected to be all completed by 2022, according to the company’s announcement on June 15. Established in 1997, Mottama’s nine projects cover residential apartments, office towers, shopping malls and public recreational centres. There are four projects carried out with international partners: M Tower on Pyay Road, Min Residences on Mindhama Road, Mottama Centre and affordable housing project M Green Apartment in Yangon’s Mingaladon township. The remaining five projects are domestic partnerships: an aquarium inside Kandawgyi Park, Harbour Trade Tower on Strand Road, HL tower on Pyay Road, Bonnamy Tower on Kyaik Wine Pagoda Road and Mottama Business Tower on Mindhama Road.
Government announced new appointments for Myanmar Investment Commission (MIC): U Thaung Tun, Union Minister of the Ministry of the Office of the Union Government, is now the Chair of MIC, and Dr.Than Myint, Union Minister of Commerce, is the Vice Chair
The Union government on Saturday officially announced changes in the ranks of the Myanmar Investment Commission (MIC). According to notification (61/2018), U Thaung Tun, union minster of Ministry of the Office of the Union Government, formerly a member of the MIC, will now be the commission’s chair. Meanwhile, Dr Than Myint, Union Minister of Commerce, has been appointed vice chair. U Set Aung, who is deputy minister at the Ministry of Planning and Finance, has been appointed a new member of the MIC. Other members of the MIC include U Tun Tun Oo, Union Attorney General, Daw Nilar Kyaw, a minister of the Yangon Region Government, economist and advisor to the former government Dr. Aung Tun Thet, U Khin Maung Yee, permanent secretary of Ministry of Natural Resources and Environmental Conservation, U Toe Aung Myint, permanent secretary of the Ministry of Commerce, U Htein Lwin, permanent secretary of Ministry of Electricity and Energy, U Htay Chun, former deputy director general of the Directorate of Investment and Company Administration (DICA) and U Aye Lwin, Central Executive Committee Member of the Union of Myanmar Federation of Chambers of Commerce and Industry.
Internal Revenue Department (IRD) will place more focus on collecting taxes from the securities and brokerage firms which run operations in Thilawa Special Economic Zone this year
The Internal Revenue Department (IRD) will place more focus on collecting taxes from the securities and brokerage firms as well as companies which run operations in Thilawa Special Economic Zone this year, said U Tet Htut Aung, director of the Large Taxpayer Office under the IRD. The IRD also expects profitable State-owned enterprises to contribute to the government coffers during the period, he said. Nevertheless, the bulk of the IRD’s revenue will come from the oil and gas sector in 2018-19, said U Tet Htut Aung. This will include revenue from commercial, income and special commodities tax within the sector. The IRD is also expecting communications and insurance firms, domestic and international airlines as well as the banks to contribute to government’s coffers during the fiscal year.
Relaunching Myintsone Hydropower dam after a long suspension could build foreign investors' confidence in Myanmar
Myanmar President U Win Myint on Thursday started a visit to Thailand, where he will attend the 8th Ayeyawady-Chao Phyra Mekong Economic Cooperation Strategy (ACMECS) Summit. The summit is intended to promote regional economic integration by narrowing the development gaps among the five member countries - Cambodia, Laos, Myanmar, Thailand and Vietnam. In 2015 when the 6th ACMECS Summit was held in Myanmar, former president U Thein Sein invited foreign companies to invest in the emerging country. If Myanmar wants to make itself an attractive destination for investment, especially in the field of hydroelectric infrastructure, the country must pay more attention to maintaining policy continuity and consistency.
Ministry of Electricity and Energy is reviewing the fiscal terms in production sharing contracts with energy companies to make the country more internationally competitive
With an offshore oil and gas tender on the horizon, the Ministry of Electricity and Energy says it is reviewing the fiscal terms in its production sharing contracts to make the country more internationally competitive. THE GOVERNMENT is reviewing the structure of its contracts with energy companies amid warnings that the present fiscal terms are deterring investment, particularly in riskier or marginal projects. Myanmar’s high-taxing fiscal regime and low global energy prices are clearly having an impact on the sector, with energy companies having relinquished almost half of the offshore blocks awarded in a 2014 bidding round. The “government take” – the proportion of revenues from oil and gas projects that goes to the government – can be as high as 94 percent under present production sharing contracts, according to energy research and consultancy firm Wood Mackenzie. Despite this, investors bear all the risk; the government invests nothing in exploration or development.