Weekly Business News from Myanmar

Tanintharyi Region government drafted a mater development plan with help from Japan
The Tanintharyi Region government has drafted a master development plan with the help of Japan, said Tanintharyi Region Chief Minister Dr Le Le Maw on September 8. The master plan will prioritize the marine, education and mining sectors. “I have requested that Japanese people draw the master plan twice. Now they are drafting the master plan for the development of Tanintharyi Region. The master plan mainly focuses on the Myeik region. The region has invaluable fish resources and mining. I don’t want to hear the news about instability in the Myeik region. It is not an easy task. I don’t want the cancellation of the project due to terrorism. So we are responsible for it. I would like to urge all of you to make cooperation carefully.”
Myanmar expects a combination of market reforms and rebound in foreign investment to underpin stronger economic growth in 2018
A combination of market reform and a rebound in for¬eign investment is expect¬ed to underpin stronger growth in Myanmar’s economy this year and into 2018. The process of opening up the economy to pri¬vate sector and overseas involvement took a key step forward in mid-June, with the Ministry of Com¬merce announcing fur¬ther liberalisation of trade and import regulations. Under the new rules issued in mid-June, for¬eign companies are now permitted to trade and import fertilisers, seeds, pesticides, hospital equip¬ment and construction materials, in accordance with the Myanmar Har¬monised System com¬modity code. Trade of these products was for¬merly limited to domestic firms, or those working in partnership with overseas companies.
Myanmar can become a middle income country by 2030, due to its potential to attract a booming foreign direct investment
Myanmar can become a middle-income country by 2030 and triple its per capita income, says Indian economist Prabir De. In a book "Myanmar's Integration with the World” co-authored with Ajitava Raychaudhuri, that was released during the first India-Myanmar dialogue, De says Myanmar can become one of the fastest growing economies and grow at 7-8 percent per annum. "With Myanmar enjoying preferential quotas due to its Least Developed Country status and with the sanctions gone, the country has the chance to attract a booming foreign direct investment," De said in his chapter in the book. The book was launched by Indian Ambassdor Vikram Misri and Parami Energy CEO Ken Tun. De listed the disadvantages faced by Myanmar as it seeks foreign direct investments - small population size, missing institutions, narrow trade basket, inadequate trade capacity, lack of skilled human resources and insufficient infrastructure.
To demonstrate the growing hydrocarbon engagement between Myanmar and India, the first consignment of 30 MT of high speed diesel was sent from India
Symbolizing the growing hydrocarbon engagement between India and Myanmar, the first consignment of 30 MT of High Speed Diesel was sent today from India to Myanmar by land route, according to a statement. Numaligarh Refinery Ltd. (NRL), which has been supplying HSD to Bangladesh, dispatched the first diesel consignment through NH 37 across the Moreh Custom Check Point on the Indian side and Tamu Custom Check Point on the Myanmar side. Supply of diesel to Myanmar is another step in realizing the vision of Prime Minister Shri Narendra Modi to enhance hydrocarbon synergy with neighboring countries as well as promoting India’s Act East Policy. NRL has entered into an agreement with Parami Energy Group of Companies for the supply of diesel and collaboration in the retail petroleum sector of Myanmar. NRL refinery, situated at 420 km from the India-Myanmar border, is ideally suited to supply diesel to Northern Myanmar where connectivity is a challenge, particularly in the rainy season.
China- Myanmar combined cycle gas power plant will be completed as scheduled in the first quarter of 2018
A combined-cycle gas power plant in Thaketa Township will begin operations as scheduled in the first quarter of 2018, according to a statement released by General Electric (GE) earlier this month. The plant will be powered by GE's renowned F-class gas turbines, producing 106 megawatts of energy when complete in 2018. A joint venture between China and Myanmar, the plant is currently being constructed by China’s SEPCOIII Electric Power Construction Corp. SEPCOIII will use GE’s 6F.03 gas turbines for the combined-cycle system. A combined-cycle power plant uses both a gas and a steam turbine together to produce up to 50 percent more electricity from the same fuel than a traditional simple-cycle plant. The waste heat from the gas turbine is routed to the nearby steam turbine, which generates extra power.
Survey on manufacturing activity in Myanmar shows contraction for third month in a row
A survey of manufacturing sector activity in Myanmar has showed a contraction in August for the third consecutive month, although the pace of decline remained slight, the Nikkei Asian Review reported on September 1. The Nikkei Myanmar Manufacturing Purchasing Managers' Index, or PMI, rose slightly to 49.3 in August from 49.1 in July, the NAR reported. The index is based on a monthly survey compiled for Nikkei by IHS Markit, with a reading above 50 indicating economic expansion.
VisionFund receives US$4 million loan for a two year term from Japan ASEAN Women Empowerment Fund (JAWEF) to provide microfinance in Myanmar
VisionFund Myanmar says it is pleased to announce the receipt of a US$4 million loan for a two-year term from the Japan ASEAN Women Empowerment Fund (JAWEF), the first fund investing with female micro-entrepreneurs in the Southeast Asia frontier and emerging markets, and from the Microfinance Initiative for Asia (MIFA) Debt Fund, the first microfinance initiative of its size to exclusively target Asian microfinance institutions. According to a press release announcing the receipt dated September 8, both funds are managed by a leading global Impact Investment Manager, BlueOrchard Finance Ltd. VisionFund Myanmar currently has the largest geographical reach in providing microfinance services in the country and the loan will be used to extend services to rural and urban communities.
Bell Pottinger will rebrand its Asian offices, including its Myanmar office, as Klareco Communications after separating from its parent in the UK
The Asian offices of public relations (PR) firm Bell Pottinger, including its Myanmar office, will be rebranded as Klareco Communications after separating from its parent in the UK, said Ang Shih-Huei, Bell Potinger Asia’s CEO, in a September 8 statement to clients. Bell Potinger’s UK business is expected to go into administration this week, after it was expelled from the UK PR trade body on September 4 on accusations of stirring up racial hatred under a contract in South Africa. The firm will be expelled for at least five years. It was the first time that the Public Relations and Communications Association (PRCA) had ejected a PR firm as prominent as Bell Pottinger.
Chinese investors expressed an interest in investing and developing the area cross Yangon River, which overlaps prospective South Korea-led SEZ
CHINESE investors have expressed an interest in investing and developing the area across Yangon River and to construct an international airport, a port and housing projects, according to a local Chinese business association. The proposed locality and projects overlap with the prospective South Korea-led special economic zone. Members of the Yangon-headquartered Myanmar Chinese Chamber of Commerce (MCCC) plan to leverage the upcoming business convention as a platform to attract investments for infrastructure projects from international Chinese businesses. The 14th World Chinese Entrepreneurs Convention (WCEC), an annual business meeting for the Chinese businessmen and the Chinese business diaspora, is going to be held in Myanmar. The event will take place in Yangon from September 15 to 18.
Myanmar’s bargaining power over China’s investment plan is relatively weak, due to lack of infrastructure and funding
As Hong Kong’s second Belt and Road Summit started today in the city The Myanmar Times asked two experts from The Economist Intelligence Unit and Lau China Institute at King's College, London for their input regarding the dynamics of the Belt and Road Initiative (BRI) and China in relation to Myanmar and ASEAN. Much of the focus on China’s grand scheme in Myanmar has surrounded the development of the proposed Kyaukphyu Special Economic Zone (SEZ) and deep-sea port in Rakhine State. However, the BRI has a much broader implication on Myanmar both economically and politically. Back in 2014, Professor Kerry Brown, professor of Chinese Studies and director of the Lau China Institute at King's College, London, wrote that China can no longer reign supreme in many ASEAN member states, despite its economic muscle.