Weekly Business News from Myanmar

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  Increasing market demand and modernized cultivation techniques stimulate coffee exports

  Myanmar coffee traders have ex¬ported 535 tons of coffee beans this fiscal year, twice as much as the same period the year be¬fore, according to statis¬tics from the Ministry of Commerce. Last year, the nation exported 860 tons of cof¬fee generating $1.438 million. In the first five months of the 2017-2018 fiscal year, exports have generated $1.5 million, as the price of $3,000 to $7,000 per ton, based on quality. Increased demand from Japan and US markets has had significant im¬pacts on inflating trade volume, U Myint Soe, Deputy Secretary of Min¬istry of Commerce, said.
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  Courting investments by enacting laws can provide a safety net for the foreign investors and protect their interests regardless of a change in government

  Myanmar’s economy is inextricably linked to neighbouring China. The country exports more than half its agriculture produce across the border, making China one of its largest trade partners. Meanwhile, China is also the largest investor in Myanmar, with total approved investments totaling US$19.1 billion as at August 31. As a whole, foreign direct investments from China make up about a quarter of total FDI into Myanmar. Yet, total approved FDI from China has slowed over the past fiscal year. To discuss the situation, The Myanmar Times met with Yan Yu, Vice President of Yunnan Provincial General Chamber of Commerce (YPGCC) for an exclusive interview during his visit to Myanmar on September 18.
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  Myanmar Parliament will discuss whether to borrow a loan from Thailand to build a two lane road that will connect Dawei Special Economic Zone to Thailand.

  The Ministry of Commerce says borrowing from Thailand to build a two-lane road that will connect the Dawei Special Economic Zone to Thailand will be discussed in parliament. Thailand will offer a loan of 4.5 billion baht (US$136 million) for the construction of the road, and officials from both countries are now working on the project’s financial plan.
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  The 5th annual Construction, Power & Mining trade exhibition will take place at Myanmar Event Park (MEP) in Yangon in October 2017

  The 5th annual Con¬struction, Power & Mining Myanmar will be held on October 12-14 at MEP at Min¬dama, Yangon. The trade exhibition will focus on Building & Con¬struction, Electrical Pow¬er & Renewable Energy and Mining & Minerals Recovery. Myanmar is the fourth fastest-growing economy in ASEAN and despite nu¬merous domestic armed conflicts, an inviting des¬tination for business op¬portunities. Three of the most attractive sectors for investment are construc¬tion, energy, and mining.
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  Three new natural gas-fired power plants expect to generate more than 450 megawatts of electricity supply next year (U Khin Maung Lay, Deputy Managing Director of Ministry of Electricity and Energy)

  Three new natural gas-fired power plants with the capacity to generate more than 450 megawatts of power are expected to go live before the coming summer season. That should satisfy the energy demands of the country for 2018, said U Khin Maung Lay, deputy managing director of the Ministry of Electricity and Energy’s (MOEE) Electric Power Generation Enterprise. “The annual electricity demand nationwide is between 300MW and 400MW. We plan to run three new gas-fired power plants that can generate 450MW by the next summer. This will meet the country’s demands, particular those from Yangon,” he said at a press conference last week.
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  Financial sector needs to be liberalized to encourage start-ups and support SMEs in Myanmar

  Myanmar’s financial sector must progress towards becoming more inclusive of small and medium enterprises (SMEs), which form the backbone of the country’s economy, but face difficulties obtaining access to funds for expansion and growth. “We need to liberalise the financial sector to encourage start-ups and support SMEs. This involves integrating the full-range of financial services into the system, from microfinance and banking to insurance and capital markets, to reduce the risk of financial instability,” said by Daw Thet Thet Khine, Member of Parliament and Member of Banks and Monetary Affairs Development Committee during a recent forum hosted by the American Chamber of Commerce in Myanmar.
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  After India implemented some restrictions, Myanmar turns to marketable crops to penetrate international markets

  Myanmar’s commerce ministry has announced plans to grow crops that can penetrate international markets. Myanmar’s main agricultural exports at the moment are paddy, beans and pulses. Mung beans are a main export to India. However, bean exports have declined recently after India implemented some restrictions. The ministry is discussing the new export plan with the Ministry of Agriculture, Livestock and Irrigation, along with entrepreneurs.
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  To promote trade and investment ties, Hong Kong leader visited Myanmar for the first time and set out Roadmap

  In the first ever visit by a Hong Kong leader to the country, Chief Executive Carrie Lam met with Myanmar officials and Hong Kong investors in Yangon and Nay Pyi Taw on September 15-17 to promote trade and investment ties. On September 16, the chief executive sat down with The Myanmar Times in Yangon’s Kandawgyi Palace Hotel to speak about the next chapter of Myanmar-Hong Kong economic partnerships and investment relations following the conclusion of a free trade agreement. Mrs Lam told the media that the Hong Kong government’s prioritisation of its ties with ASEAN is a strategy to develop its economy and capitalise on the Belt and Road Initiative.
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  Marketplaces are being constructed as centers for trade in four major cities of Chin state during the 2017-2018 fiscal year

  Plans to build marketplaces as centers for trade in four major cities in Chin State during the 2017-2018 fiscal year are underway, Chin State minister for Electricity, Development, Tourism and Transportation Salai Isaac Khen told The Myanmar Times. By March 2018, markets will be built in Hakha, Paletwa, Mindat and Khai Kam. The market in Mindat is now 20 percent complete, Salai Isaac Khen said. The projects are included in the FY2017-18 Budget, but private shop owners have also donated cash for their construction.
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  Forum on Economy took place in Yangon to promote cooperate in investment and border trade between Myanmar and Yunnan Province of China

  Forum on economy and cooperation between Myanmar and Yunnan Province of China was brought in Yangon on Monday. It is the 6th time, initiated by the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Yunnan Provincial General Chamber of Commerce (YPGCC). It aims to promote investment and border trade between the two countries as the forum emphasized on electricity, agriculture, and automobile and so on.