Weekly Business News from Myanmar

New road- rail freight transportation route delivers international cargo from South East Asia to Europe
A new road-rail freight transportation route has opened, delivering international cargo from Southeast Asia to Europe via southwest China's Chongqing Municipality. On Thursday, over 10,000 items of clothing, produced in Vietnam and transported to Chongqing via truck, were loaded onto a train bounded for Duisburg, Germany. "This was the first time Chongqing has integrated road freight with Europe-bound railway services. We hope it will become a competitive cargo trade route between Southeast Asia and Europe," said Qiao Zhiyu, general manager of Chongqing-ASEAN Highway Logistics Company. The road-rail route takes just 20 days, some 20 days less than shipping freight, Qiao said.
Myanmar Investment Commission (MIC) is considering 15 foreign investment worth US$ 400 million and local investment worth Ks 1.434 trillion
Myanmar Investment Commission (MIC) is left to allow up to 15 foreign investments worth of US$400 million, said Deputy Director General San Myint from the Directorate of Investment and Companies Administration (DICA). The MIC is also left to allow local investments worth of Ks 1.434 trillion, he said. Moreover respective investment commissions found in regions and states are also allowed in respective regions and states, he continued. Although foreign investments are not made at Kachin, Kayah, Chin and Rakhine states and Magway region in 2017-18 fsy, local businessmen are making business in those states and region.
The International Federation for Human Rights (FIDH) warns of "potential land conflict epidemic" arising from the growing influx of investments and subsequent demand for land
THE country may soon face a land conflict epidemic as a result of the growing influx of investments and the subsequent demand for land, unless the laws and policies that adequately address land-rights issues are urgently adopted and implemented, warned the Paris-headquartered International Federation for Human Rights (FIDH) in a report released on September 27. The report Land of Sorrow: Human rights violations at Myanmar's Myotha Industrial Park documents the harmful consequences suffered by rural communities in Mandalay Region as a result of the large-scale industrial park project developed by the domestic company Mandalay Myotha Industrial Development (MMID) in Ngazun township. Myotha Industrial Park project, which started in 2013 January, comprises 10,000 acres of land owned by more than 1,000 households from 14 villages.
The Rakhine State government plans to host an investment forum targeting international investors next year to promote Rakhine State’s economic development
THE economy in the resource-rich Rakhine State is throttled by the crisis as well as the accompanying international backlash, dashing any hope of massive foreign investment in the near future. In the meantime, local communities in Kyaukphyu have demanded the stake ratio of the proposed Kyaukphyu port to be restructured so as to allow a higher ratio for Myanmar. Nay Pyi Taw is negotiating with the stakeholders on adjusting the ownership percentage between the two consortiums. Despite the fact that Rakhine is not in Myanmar’s heartland geographically, the state is crucial for the country’s economy. In addition to the renowned Ngapali beach, Rakhine State holds enormous economic potential because the state has oil, natural gas fields and maritime resources from the Bay of Bengal.
Myanmar Banks Association announced that the interest rate for all its deposit accounts will increase from 6 to 8 per cent
The Myanmar Banks Association says the interest rate for all its deposit accounts will increase from 6 to 8 per cent from tomorrow, Sunday. The interest rates for other deposits remain unchanged. Private banks will calculate the interest rate for call deposits on a daily basis and add the interest rate to the total deposit every three months.
Developer Mandalay Myotha Industrial Development brushed off human rights concerns and accusations in relation to the Myotha Industrial Park in Mandalay
DEVELOPER Mandalay Myotha Industrial Development has brushed off human rights concerns and accusations in relation to the Myotha Industrial Park in Mandalay, while the International Federation for Human Rights argued that the process for the establishment of the park underscores the failure by the developer to conduct proper human rights due diligence. Tensions and confrontations between police officers and farmers have begun to simmer down, regarding the cultivation on land confiscated three years ago for the Mandalay Myotha Industrial Park project, according to a local abbot. “Why we are now calm and composed on this issue is because we’ve assumed that the new government would solve this by negotiating between the company and the farmers. “If the farmers clamour on this issue, the acts of the farmers will be excessive while the government and the company are calm without conducting anything,” said U Vilatha, an abbot, from Ma-au Yoo monastery in Thanbo village.
Two new taskforces were formed by Dawei SEZ Management Committee to monitor and facilitate Dawei SEZ’s development
TWO taskforces have been formed to review Dawei SEZ’s development: one will focus on problems encountered with the developer for the initial phase, the other on upgrading an existing two-lane road connecting Htee Khee to an ASEAN-standard highway. The initial meeting between the two taskforces – held in Nay Pyi Taw from September 20 to 21 – aimed at assigning which department and personnel should be involved in which taskforce, said U Myint San, vice chair of Dawei SEZ Management Committee on September 26. The 8th Joint Coordinating Committee (JCC) meeting, which had its first occurrence under the NLD-led government, was held in Thailand on June 29-30. It decided to seek parliamentary approval before asking Thailand for a soft loan to fund the two-lane project and forming the two taskforces, within September. Commerce minister U Than Myint and Arkhom Termpittayapaisith, Thailand’s transport minister, are co-chairing the JCC.
Myanmar and Israel celebrated strong economic relations by re-ratifying the trade agreement between the two countries on the reciprocal promotion and protection of investment
The Israeli Embassy has announced the re-ratification of the trade agreement be¬tween the two countries, the Reciprocal Promotion and Protection of Invest¬ments. First ratified on Octo¬ber 2014, the agreement marks 3 years of success¬ful trade, bilateral, and diplomatic relations. The agreement encourages businesspeople and companies from both countries to engage in bilateral investments, ex¬pand trade volume, and contribute to each na¬tion’s development. “We hope that the agreement will help bring together businesses from both countries and boost economic cooperation between Israel and Myan¬mar companies,” Daniel Zohar Zonshine, the Is¬raeli ambassador to My¬anmar, said.
Singapore microfinance company Hayman Capital provided loans worth over K21 billion to assist over 40,000 Myanmar SMEs
Singaporean microfinance company Hayman Capital has provided loans worth over K21 billion to Myanmar small businesses and vendors. The loans will be divided into two categories: individual loan and group loan. The loan repayment period is set between 6-18 months, according to Sultan Marenov, Managing Director and CEO of Hayman Capital. “As of the end of August, we have provided K21.5 billion to approximately 40,000 small businesses and vendors. In May, we loaned to approximately 30,000 borrowers and have added nearly 10,000 borrowers in the last 5 months,” Sultan Marenov, said.
To promote business development in the Yangon Region, a three year project focusing on the improvement of industrial zones will be implemented (Yangon Region Chief Minister, U Phyo Min Thein)
THE development of Cocokyun township covering the islands in the northeastern Indian Ocean, as well as the flight and maritime access between the islands and the mainland, are included in Yangon Region’s plan, according to Chief Minister U Phyo Min Thein. Yangon Region will implement a three-year project which will focus mainly on the improvement of industrial zones via tackling utilities and services, ranging from supply of power and water to waste management. The priorities will focus on establishing new industrial zones and strengthening existing ones. In order for businesses to develop in Yangon Region, a three-year project will be drawn up, he announced.