Weekly Business News from Myanmar

Miner urges the government authorities to resume gold permit to continue the mining
In the Moehti Moemi mining district in Yamethin, Mandalay, out of the 600 viss of gold extracted by local share-partner companies, more than 500 viss were used to cover the operational cost, U Tun Aung Soe, executive director of National Prosperity Company (NPC) told The Myanmar Times. Local businesses partnered up with the NPC, which was mining gold in Moehti Moemi area, in 2011-17. Over the period of six years, 607 viss of pure gold was extracted, and to receive the permit to continue mining, a news conference was held at the start of this month. In order to crush around 1,500 tonnes of gold daily from the gold extracted by the local companies, some of it was used to cover the operational cost, U Tun Aung Soe explained. “The local companies say that the big company gets 607 viss of gold, but in order for their operations to run, other aspects such as road, electricity, security, and accounting have to be managed and taken care of. Factories have to be built. In order for all this to happen, 501 viss were used to cover the cost. We have explained to them about this with statistics. The remaining 106 viss will be given to the government,” he said.
Mr. Michael Jensen, Managing Director of Carlsberg Myanmar, expressed his frustration on the unfair taxes and incredibly bothersome bureaucratic procedures and illegal trading of beer across the Thai and China border
Michael Jensen, managing director of Carlsberg Myanmar, didn’t bother to hide his frustration at the environment in which his brewery has been forced to do business in the country. “We are faced with a tax regime that is completely unfair, incredibly bothersome bureaucratic procedures and illegal trading of beer across the Thai and China borders,” Mr Jensen told The Myanmar Times. All those issues have not only been bad for business. They are forcing the brewer to reconsider its growth plans and put all additional investments on hold. Carlsberg Myanmar, which is controlled by local tycoon U Thein Tun, who also publishes the Myanmar Times, first opened its US$100 million brewery in Bago Region, Yangon, in 2015. It now brews Carlsberg, Yoma and Turborg beers.
The new companies law will transform the business landscape in Myanmar to attract more investments in priority sectors including agriculture, infrastructure and manufacturing
NAY PYI TAW — The new companies law will “transform” the business landscape in Myanmar when it comes into effect on August 1, Vice President U Myint Swe has told foreign business leaders. Speaking at the opening of the Myanmar-EU Economic Forum in Nay Pyi Taw this morning, Myint Swe said the Myanmar Companies Law was one of several important reforms undertaken by the current government, including the introduction of a new investment law in 2016. He said the government was hoping to attract more investment in priority sectors, including agriculture, infrastructure and manufacturing. “Myanmar’s new investment law offers investors a more transparent, more liberalised and more protected investment environment,” he said. “The new companies law also ensures the transformation of the corporate landscape.”
The new minister for planning and finance said that “we can do a lot in two years before the next election”
YANGON — New Minister for Planning and Finance U Soe Win said the ministry can do “a lot” in the two years before the next election, after taking his oath of office in parliament yesterday. The former Deloitte managing partner replaces U Kyaw Win, who resigned in May amid corruption allegations. Soe Win’s appointment has raised hopes that he will provide leadership on much-needed economic reforms, where his predecessor is widely seen to have failed. “We should not underestimate the challenges,” Soe Win told reporters outside parliament. “I will consult with my team and [implement reforms] gradually.” The new minister said he would focus on improving coordination between government ministries and would only take counsel from State Counsellor Daw Aung San Suu Kyi “where needed”. “The state counsellor wants us to make decisions and work independently,” he said, adding: “What I want to say to the people is, keep cool and we are going to try our best.”
Advans and Yoma Bank signed three financial agreements for microfinance funding to provide micro-loans to over 2,000 new families in Mandalay and Sagaing Regions
Over the course of March 2018, Advans Myanmar and Yoma Bank closed three financial transactions. The deals included two cross-currency swaps for USD 700,000 and a back-to-back term loan of MMK 1,000,000,000. Both the swaps and the back-to-back term loan allowed Advans to fully hedge the exchange rate risk on their overseas borrowings and provide them with local currency funding to grow the micro-finance business. The new funds are estimated to provide micro-loans to over 2,000 new families in the Mandalay and Sagaing Regions. Jana Chmelnizki Kadian, the Managing Director of Advans Myanmar said, “We are glad that after only one year of operation we are able to expand our relationship Yoma Bank as our first local lender. The Yoma team has been remarkably professional, and has shown full support for Advans Myanmar’s mission of providing easily accessible, fair and sustainable financial services to underbanked clients in Myanmar - in order to strengthen local businesses, create and sustain jobs and improve clients’ living standards.”
Exclusive interview with Mr. Sultan Marenov, CEO and MD of Hayman Capital Co.,Ltd, which provides micro finance services for local small and medium enterprises
Hayman Capital based in Singapore is providing micro finance services for local small and medium enterprises, and they have been doing business in Myanmar for a few years now. Myanmar Business Today (MBT) talked to Mr. Sultan Marenov, the CEO and MD of Hayman Capital Co., Ltd, about the future plans of company, and the loan policies of the government. MBT: First of all, we’d like to know why Hayman Capital chose Myanmar for its operations. SM: One of the main reasons of choosing Myanmar is because the country has been inviting new investments. For some kind of services like ours are given full percent ownership to foreign companies. This is very attractive for foreign investments. Second, there are great opportunities to expand the businesses and people need this kind of service for their activities. If we can meet their needs, it will in turn help us as well as them. That is why we chose Myanmar that offers great opportunities as well as others. Moreover, people want to invest in Myanmar, but don’t have enough knowledge of local consumers. At Hayman Capital, we have international connections, and have studied the market and its needs. We have the advantage of experience. In next five years, we believe Myanmar will have more improvements and economic developments.
Myanmar Investment Commission (MIC) approved US$ 97 million foreign investment since 1 April 2018: the government has a target of US$ 3 billion foreign investment by October
One company among 18 investments greenlighted by the authorities last month will produce and sell automotives, U Than Aung Kyaw, deputy director general of the Directorate of Investment and Company Administration (DICA), said. The Myanmar Investment Commission (MIC) permitted eight foreign investments and 10 domestic investments on May 29. Among them, MIC-approved businesses include one automotive manufacturing and one plastic manufacturing and the rest are permitted by state and regional investment commissions. “Eight foreign investments approved on May 29 will invest a total of US$33 million and 10 Myanmar-citizen investments will result in over K22 billion,” he said at a press conference held at DICA’s office in Yangon. With MIC’s approval, Shwe Daehan Motors will invest in vehicle sector in Shwepyitha township, Yangon Region.
More recently, in 2016, it diversified into the education market by acquiring the rights from the UK’s Pearson Education to open English language centres for adults in Myanmar. It opened its English language centre in Yangon last February 2017, spanning
Myanmar Strategic Holdings (MSH), which is listed on the London Stock Exchange, has acquired a Yangon-based security firm for US$2.2 million. MSH’s subsidiary Myanmar Strategic Services exchanged contracts for the acquisition of the entire issued share capital of domestic safety and security services provider Exera by paying $2 million in cash and the remaining $0.2 million through an issue of 7,408 new ordinary shares at a price of $27 per share, according to an announcement from MSH. Exera is a safety and security services provider operating exclusively in Myanmar. Through its 1,000 guards, Exera provides guarding, protective services, transportation, training and risk consulting to a wide range of international and local clients across the country, including World Food Programme, United Nations High Commissioner for Refugees, UNICEF and the EU. The company generated unaudited revenues of approximately $4 million for the year ended March 31, 2018. ‘While mobile payment systems will flourish over time, cash will continue to play a key role in the development of Myanmar’s economy.’ Geoffrey Hamilton, Exera Myanmar
The Posts and Telecommunications Department (PTD) has published the draft telecommunication tariff directive 2018 to provide more guidance to licensees on PTD’s requirements on tariffs setting and promotion activities with consumers
The draft Telecommunication Tariff Directive 2018, published by the transport ministry’s telecommunications department, is currently in public consultation process until June 30. The Posts and Telecommunications Department (PTD) published the directive for telecom services, which, upon implementation, will provide more guidance to licensees on PTD’s requirements of tariffs setting and promotion activities with consumers. According to law firm VDB Loi, the directive is intended for telecom services provided to individual and small and medium-sized enterprise (SME) end users, which also includes consumer protection measures. It does not apply to wholesale services or individualised services to large enterprises. Licensees have a general transition period of 90 days to implement this directive once it comes into effect.
Yangon regional government will remove squatters located in Yangon’s industrial zones to upgrade the infrastructure in those areas
The government will remove squatters located in Yangon’s industrial zones in order to upgrade the infrastructure in those areas, Daw Nilar Kyaw, the regional electricity, industry, transport and communications minister said on May 31 at the regional parliament. Many regional lawmakers discussed the issue of upgrading the industrial zones in parliament. Yangon MP U Zaw Win Maung from Hlaing Thar Yar township tabled the question once more in the legislature. “I want to know how the government is leading the development of industrial zones and how the progress is, and what kind of sectors are supported by the Supervisory Committee for Industrial Sones,” MP U Win Maung remarked. In Yangon Region, there are 29 industrial zones and their development is beleaguered by lack of reliable and secure access to water and electricity, as well as abysmal road conditions. The authorities need to enforce regulations and laws effectively.