Weekly Business News from Myanmar

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  International standard rubber laboratory in Hlegu can issue quality certificates to rubber quality

  The international standard rubber laboratory, constructed in Hlegu can issue certificates for rubber quality, said U Khaing Myint, the secretary of Myanmar Rubber Planters and Producers Association (MRPPA). “The issuing of the certificates for rubber quality will take five more months because we have to obey the ISO process. We could not do what we want, although our Ministry set up the lab. Our international standard rubber lab will run under the supervision of the International Rubber Association (IRA) and the ISO 17025,” he said. The price of rubber exported from Myanmar is lower than that of the international market because our product doesn’t meet international standard. The rubber growers need to produce the rubber in such a way as to meet the international standard to get the global market price, he added.
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  Kachin State starts selling applications for 286 manageable-scale jade mining blocks

  Applications for 286 artisanal and manageable-scale jade mining blocks in Phakant, Kachin State are available at One-Stop Service centre in the office complex of the state starting from 24 August, said U Nyan Lin Aung, head of township Department of General Administration, who also acts as chair of township mining block monitoring and proposal assessment team. In Phakant, a total of 376 mining blocks for artisans were first called for applications, and 332 applications were sold. However, only 141 were submitted then. Kachin State government granted permission only for 87 blocks following the existing rules and regulations. Dashi La Seng, regional Minister for Natural Resources and Environmental Conservation said that it is the second time that the state granted artisanal and manageable-scale mining blocks which were remained from the first-time invitation.
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  Japan and Myanmar agreed to reopen borders for expatriates in early of September

  Japan and Myanmar agreed Monday to reopen borders for expatriates as soon as early September, relaxing travel restrictions that were imposed to stem the spread of the coronavirus pandemic, The Japan Times reported. Foreign Minister Toshimitsu Motegi reached the agreement with Myanmar leader Aung San Suu Kyi at their meeting in Naypyidaw, according to the Japanese ministry.
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  A multinational power management company, Eaton will partner with Myanmar Power Spectrum Co., Ltd to extend its distribution network in Myanmar

  Eaton, a multinational power management company, will work with Myanma Power Spectrum Co. Ltd. (MPS), a leading trading and engineering company to extend its distribution network in the country. MPS was appointed as an authorized distributor for its Circuit Protection and Control (CPC) products in Myanmar. It includes Eaton’s range of circuit breakers, distribution boards, switches, motor starters and variable frequency drives to help meet the power needs of Myanmar’s growing economy. “Electricity demand in Myanmar has been rising rapidly, reinforcing the need for reliable and efficient power management solutions. Regardless of ongoing uncertainties brought on by the coronavirus pandemic, access to a safe and stable electricity supply remains a top priority, especially as organizations and businesses pursue digitalization while prioritizing safe power usage and compliance in their daily operations,” said Gary Ang, Country Manager for Indochina, Eaton.
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  The manufacturing sector attracted 169 foreign projects worth USD $ 875 million in the current 2019 – 2020 financial year

  Majority of foreign enterprises eye the manufacturing sector for investments in the current financial year 2019-2020, pulling in US$875 million from 169 projects, the Directorate of Investment and Company Administration (DICA) stated. Of 219 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 31 July of the current financial year, 169 enterprises pumped FDI into the manufacturing sector. Other service sector stood at the second by attracting 16 businesses, while power sector got the third spot with eight projects.
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  Livestock and fisheries sector attracted five foreign and local investment projects in the current financial year

  Myanmar’s Directorate of Investment and Company Administration says the country’s livestock and fisheries sectors have attracted four foreign investment projects and one domestic business so far in the current financial year 2019-2020, according to the Global New Light of Myanmar. According to the report, those businesses brought in around US$30 million, including the expansion of investments by the existing joint ventures. The ventures include broiler chicken farming, production, processing and marketing of all kinds of poultry feed, broiler hatchery, production of shrimp, freezing, and cold storage.
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  Myanmar and Japan are discussing the implementation of the National Logistics Master Plan to support the development of Myanmar’s logistics sector

  Myanmar and Japan discussed the final implementation of the National Logistics Master Plan, aided by the Japan International Cooperation Agency (JICA) to support the development of Myanmar’s logistics sector, according to the Ministry of Transport and Communications. A coordination meeting on the final discussion of the National Logistics Master Plan’s report was held at the Transport and Communications Ministry’s office in Nay Pyi Taw on August 17th. Deputy Minister for Transport and Communications delivered a speech at the meeting. Later, the Senior Representative from JICA in Myanmar embassy explained about the important of logistics system which supports socio-economic development. The master plan had been drafted by relevant organizations from JICA Study Team. The National Logistics Master Plan was drafted in July, 2016 with the JICA’s assistance. It was also led by the Ministry of Transport and Communications.
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  The value of imported CMP businesses raw materials plummet USD $ 1.87 billion over the past ten months of the 2019 – 2020 financial year

  Imports of raw materials by CMP businesses have been valued at US$1.87 billion over the past ten months beginning in October in the 2019-2020 financial years, which plunged from $2 billion registered in the corresponding period of last financial year, according to the Ministry of Commerce. Myanmar’s manufacturing sector is mostly concentrated in garment and textiles produced on the cutting, making, and packing basis, and it contributes to the country’s GDP to a certain extent. At present, some CMP garment factories have shut down on the reason for the lack of raw materials due to the coronavirus negative impacts, leaving thousands of workers unemployed. The pandemic badly batters the labour-intensive enterprises, said an official of the Directorate of Investment and Company Administration (DICA). To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have jointly imported raw materials through border trade channels and airlines.
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  Import deadline of extension for black bean is needed the response of Indian

  Although Myanmar’s bean body has asked for deadline extension for import quota of 400,000 tonnes set by India, there is still no response, said U Min Ko Oo, secretary of Myanmar Pulses, Beans and Sesame Seeds Merchants Association (MPBSSMA). “India has not released an official letter regarding deadline extension. Yet, Indian traders are predicting that there might be a one-time extension of the deadline. We have to wait and see that they will extend or not by the end of August,” he said. India rapidly changed the import period of black bean to three months by August-end 2020 from the earlier set deadline of March 2021, as per their official notice on 22 May. With the changes in Indian policy on bean importation, Myanmar still falls short of the target, and it is not possible to export all the entire quota. The growers have already sold out the beans, and they are in the hands of traders. They have stockpiled around 200,000-250,000 tonnes of black beans, the association stated.
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  Government’s subsidy is requisite for small scale rubber farmers to survive in the industry

  Government’s subsidy is a requisite for small-scale rubber farmers to survive in the industry, said U Khaing Myint, secretary of Myanmar Rubber Planters and Producers Association (MRPPA). Those small-scale rubber farmers account for 92 per cent of rubber plantation in Myanmar. “We need the government’s subsidy for the small-scale rubber farmers to survive in the crisis. They constitute 92 per cent of rubber plantation. They need contribution and technical assistance to maintain quality.