Weekly Business News from Myanmar

Ministries of Commerce, Industry, Office of the State Counsellor, Auditor-General Office held the press conference on the second one year performance of the incumbent government
In continuation of the Union Ministries’ reviews on their second one-year performance, the Ministry of Commerce, Ministry of the State Counsellor’s Office, Ministry of Industry, and the Office of the Auditor General of the Union held a press conference in Nay Pyi Taw yesterday. Ministry of Commerce Deputy Minister U Aung Htoo said his ministry has shifted focus from controlling trade to supporting and promoting it and is employing indirect tactics to that end. He said their goal is to triple exports by Fiscal Year 2020-2021, and reported that in FY 2017-2018, Myanmar’s imports generated US$14.83 billion, an increase of US$3.80 billion in imports from US$11.13 billion in FY 2015-2016 The Ministry of Commerce has removed license requirements for 3,345 items of export and 4,818 items of import to promote more trade. They have also approved of joint ventures with foreign companies for agricultural machinery, and approved domestic trade among foreign and joint-venture companies for fertilizer, crop seeds, pesticides, medical apparatus, and construction equipment. The ministry also approved live export of oxen, cattle, goats and sheep, trade of gold, gold artifacts and jewellery, and wholesale and retail joint-ventures with foreign companies.
Internal Revenue Department (IRD) will implement Self Assessment System (SAS), moving away from the existing system of tax collection (U Myint Thaung, Yangon Regional Planning and Finance Minister)
The Internal Revenue Department (IRD) will practice a Self Assessment System (SAS), moving away from the existing system of tax collection, U Myint Thaung, Yangon regional Planning and Finance Minister, said in Parliament this week. “We will start implementing SAS so that taxpayers do not need to seal with staff from the tax offices. This will help to reduce corruption,” U Myint Thaung said. The government is taking measures to reduce corruption within the ranks of public service. In 2017-18, punishments were meted out against IRD employees who engaged in corrupt or illegal activity, including sacking and demotions. One was also sentenced to five years in jail. “Under the SAS, all taxpayers will be treated equally and we can eradicate cases where tax officers accept bribes from taxpayers to collect less tax or allow higher levels of tax relief,” he said.
Eco-tourism, and road improvements for better communications are underway to promote socio-economic development in Chin State
Vice President U Henry Van Thio inspected the development undertakings in Falam and Haka townships of Chin State on 19 May. The vice president was accompanied by Chin State Chief Minister U Salai Lian Lwal, Chin State Hluttaw Speaker U Zo Bwe, Deputy Ministers Rear Admiral Myint Nwe, Maj-Gen Than Htut and U Soe Aung, Chin State cabinet members and other officials. The vice president and his delegation visited the 200-bed hospital in Falam, where they met patients and provided them with cash assistance. After viewing the sites for hospital staff quarters and the nurses training school, the vice president said the upgrade of hospitals and the extension of nurses training schools were being done to ensure effective public healthcare. Hence, officials should work systematically to prevent financial wastage. Later, the vice president inspected the site near Talanzar Village in Falam Township, where the Laiva Dam will be built. At the briefing hall, the vice president and his delegation heard a report on the lower Dam Laiva project that will supply water to Falam, presented by an official from the Irrigation and Water Utilization Management Department. The vice president said special attention must be given to the project to prevent financial wastage and ensure maximum public benefits.
Ministry of Construction (MOC) invited both local and foreign companies to submit expression of interest (EOI) to participate in the construction of an elevated four lane ring road in Yangon
The Ministry of Construction (MOC) is inviting the private sector to submit Expressions of Interest (EOI) to participate in the construction of an elevated four-lane ring road in Yangon. The MOC on May 18 invited both local and international companies interested in designing, engineering, financing, constructing, operating and maintaining the proposed expressway under a Public Private Partnership (PPP) to submit EOIs before June 29. An official tender process is expected to take place later in the year, the MOC said. It also added that it may decide to split the project into sections involving multiple tenders. Each section will be developed under a PPP structure or by accepting funds from the IFC. The MOC, together with the Yangon regional government, is planning to build the approximately 47.5-kilometer four-lane elevated ring road to connect downtown Yangon, Yangon Port, Yangon International Airport, Mingalardon Industrial
Elite Petrochemical Company launched the first private sector-led LPG investment in Myanmar at Thilawa Special Economic Zone on 19 May 2018
Elite Petrochemical Co launched its Liquefied Petroleum Gas (LPG) Terminal and Port Facility at the Thilawa Special Economic Zone on Saturday. The terminal is the first private sector-led LPG investment open for business in the country. The terminal was developed under a Build, Operate and Transfer (BOT) agreement across 49 acres of land in Thilawa after receiving approval from the Myanmar Investment Commission and on recommendation from the government, said U Aung Thet Mann, executive chair of Elite Petrochemical, during the opening ceremony of the terminal. U Aung Thet Mann is son of former Pyithu Hluttaw chair U Thura Shwe Mann. The entire project will be developed in phases. Phase 1 includes construction of a 20,000-tonne jetty and storage facilities for up to 3,000 tonnes of LPG. Design of the terminal and storage facilities were drawn up with the help of China Harbour Company and China National Petroleum Company, respectively. In the second week of April, a 1,000-tonne LPG vessel docked for the first time at the port.
Star High Asia Pacific Company granted a five year green light to begin mega dredging project in Yangon River
YANGON- The Star High Asia Pacific Company had been given a five-year green light to begin mega dredging project in Yangon River, says Myanma Port Authority. While vessels requiring nine meters depth of water were allowed to pass through the Yangon River, most vessels had to wait for the rising tide as the water way gets gradually clogged up with silt. Around 300 vessels enters and departs in the Yangon River daily. Myanmar Port Authorities invited the competitive tender on dredging project to facilitate travel for those vessels.
World Bank urged the Myanmar government to address risks as the economy picks up amid global and domestic uncertainty
YANGON – As the economy picks up amid global and domestic uncertainty, the World Bank has urged the government to address emerging risks that could impact business sentiment and weaken future performance, according to its new Myanmar Economic Monitor (MEM). Real GDP growth increased to 6.4 percent in financial year 2017-18, from 5.9 percent the previous year, the World Bank said at the launch of the monitor on May 17 in Yangon. Inflation fell to 5.5 percent and fiscal and external balances improved, while the kyat appreciated slightly on strong exports and foreign direct investment flows. “The pick-up in growth and improvement in the macroeconomic situation are encouraging,” said Ms Ellen Goldstein, World Bank director for Myanmar, Cambodia, and Lao PDR. “The government is also finalizing its Myanmar Sustainable Development Plan, which we hope will serve as a platform to accelerate economic reforms, modernize the financial sector and make progress in resolving conflicts that jeopardize inclusive and sustained growth”
Myanmar Economic Monitor (MEM), a bi- annual report was launched in Yangon: the report take stock of recent economic developments, highlights economic prospects, and selected policy issues for the coming period in Myanmar
The official launching ceremony of the Myanmar Economic Monitor (MEM): GROWTH AMIDST UNCERTAINTY was held in Yangon on Thursday. It was co-hosted by the Union of Myanmar Federations of Chambers of Commerce and Industry (UMFCCI) and the World Bank Group for the first time. The Myanmar Economic Monitor (MEM) is a bi-annual report that takes stock of recent economic developments and highlights economic prospects and selected policy issues for the coming period in Myanmar. Also it draws on available data reported by the Government of Myanmar and additional information collected as part of the World Bank Group's regular economic monitoring and policy dialogue. According to the World Bank's Myanmar Economic Monitor, Myanmar's economy performed better in 2017/18 amidst growing global and domestic uncertainty, partially offsetting slower growth in 2016/2017. It is estimated that Myanmar had a broad-based increase in growth of national income as well as lower inflation and improved fiscal and external balances. Growth of Gross Domestic Product (GDP) is estimated to have increased to 6.4 percent in 2017/18 from 5.9 percent in 2016/17. This growth was driven by a recovery in agriculture and especially crop production, improved manufacturing performance, and strong services growth despite a slight slowdown likely due to tourism and banking sector uncertainties.
Kayin State Chief Minister accused residents of opposing a controversial quarry project while ABD suspended disbursements to a China contractor that planned to use the Mt. Lun Nya quarry for an ADB- funded highway project
YANGON – Kayin State Chief Minister Nang Khin Htwe Myint has accused residents of “maliciously” opposing a controversial quarry project and claimed consultation with those affected by such projects is unnecessary. During a fiery meeting with residents of Lun Nya village in Hpa-an Township on May 12 to discuss the nearby quarry, the chief minister also suggested they may be obstructing the project in order to get compensation. Her comments come as the Asian Development Bank confirmed it had suspended disbursements to a Chinese contractor that planned to use the Mt Lun Nya quarry for an ADB-funded highway project. A spokesperson told Frontier the ADB was “concerned” at recent developments regarding the quarry and was “actively monitoring the situation”. “The ADB has stringent safeguard policies and we are following up with the government to ensure that they are being fully adhered to,” the spokesperson said, adding that the payments to the contractor had been stopped “due to noncompliance with ADB safeguard and government environmental requirements”.
Yangon Regional Government will form one centralised supervisory committee for all the industrial zones instead of continuing with one committee for each zone
The Yangon Regional Government is taking steps to form a central supervisory committee to oversee the development of Yangon’s industrial zones, moving from the current supervisory structure of having one committee for each zone. The move comes on the back of a slew of new industrial projects announced by the government this year. “We will restructure the current industrial zone committee set up and focus on forming one centralised supervisory committee for all the industrial zones. The restructuring process will begin as a test project at South Dagon industrial zone,” said Daw Nilar Kyaw, Minister of Electricity, Industry and Transport and Communication in Yangon, in parliament Wednesday. Daw Nilar Kyaw was responding to questions raised on the structure of the committees by U Kyaw Kyaw Maung, MP from East Dagon Myothit Township. Developed in the 1990’s, the objective of having an industrial zone is to provide firms such as manufacturers with better access to infrastructure and electricity. There are currently 29 industrial zones in Yangon. However, there are no official regulations governing such zones. Each industrial zone is governed by its own supervisory committee so rules and standards differ across each zone.