Weekly Business News from Myanmar

Myanmar government invited investments for the new economic zone in Mon State and industrial park in the west of Yangon
Daw Aung San Suu Kyi, at Myanmar-Japan Investment Dialogue on Economic Recovery After COVID-19 and New Investment Opportunities, held on July 29, has invited investments for a new industrial park in the west of Yangon and a new economic zone in Mon State. “Quality job creation remains at the heart of Myanmar Sustainable Development Plan and building on the success of Thilawa, we shall be announcing two major jobs creation initiatives: a brand-new industrial park in the west of Yangon and a new economic zone in Mon State,” Daw Aung San Suu Kyi said. “Further details will be provided in the new course. At this initial stage, I wish to confirm that the development of these important new initiatives will be conducted via a swiss challenge tender process which will be open, transparent, and competitive.”
The Bago Region Investment Committee endorsed three foreign enterprises to increase capital creating 1,000 new jobs
The Bago Region Investment Committee, at a videoconference held on 29 July, has endorsed three foreign projects and approved five foreign enterprises to increase capital, according to the Directorate of Investment and Company Administration (DICA). The investments of those projects including the expansion of capital by the existing enterprises are estimated at US$8.119 million and K680 million. The projects will create about 1,000 jobs. The investments in the Bago region primarily flow into the manufacturing business.
The retailers warned on the rice price more than the set price in local market
If retailers are found to hike the rice price more than the set price, they will be struck off from the list to resell the reserved rice, according to Myanmar Rice Federation (MRF). At present, over 50 retailers have been submitted to purchase the reserved rice from the State. More than 1,000 bags from the reserved rice have been sold to them. Those reserved rice are planned to be sold at K22,800 per 108-pound bag to the registered retail shops, with the maximum 200 bags per batch. The shops must resell the rice to the consumers not exceeding K1,000-1,100 per pyi (2.3 kg) depending on the regions. Moreover, there is a separate plan to sell the rice at the labour-intensive factories for the workers. MRF stated that the respective Consumer Affairs Department of the regions and states will monitor the sales to ensure systematic management.
United States (US) interested to increase economic cooperation with Myanmar during the post COVID – 19
Officials from US-ASEAN Business Council said during the video conference held on July 28 that the United States is interested to increase investment and economic cooperation in Myanmar, especially in agriculture, tourism, energy, and digital economy, during the post-COVID-19 times. U Thaung Tun, Union Minister of the Ministry of Investment and Foreign Economic Relations, held a video conference with Mr. Alexander C. Feldman, President and CEO of US-ASEAN Business Council and Mr. Michael W. Michalak, Senior Vice President, and Regional Managing Director along with 30 representatives from US leading companies such as Chevron, ExxonMobil, Chubb, Coca-Cola, Visa, and Scoular.
Government granted an approval to three Japanese trading companies and Eden Group to build gas power plant at Thilawa
Myanmar's government has given written approval to three Japanese trading companies and local conglomerate Eden Group to build a liquefied natural gas power plant at Thilawa in Yangon Region, according to news releases from Nikkei Asian Review and the Ministry of Electricity and Energy. It will be a government-to-government project and a notice to proceed ceremony took place on July 24. According to Nikkei Asian Review, the project valued at from US$1.5 billion to 2 billion will generate 1,250 megawatts of electricity. It is one of the largest projects in Southeast Asia. The three Japanese trading companies are Marubeni, Sumitomo Corp., and Mitsui & Co.
Myanmar’s mineral exports reached USD $ 1.43 billion between 1 October and 17 July in the 2019 – 2020 fiscal years
Myanmar’s mineral exports have shown a marked increase this financial year, touching US$1.43 billion between 1 October and 17 July, an increase of $183.9 million compared with the year-ago period, according to the data from the Ministry of Commerce. In the corresponding period of the previous financial year, mineral exports were pegged at just $1.25 billion. Both private and public sector mineral exports have recorded an increase in the current fiscal, with private sector exports valued at $952.3 million and public sector exports estimated at $484.19 million. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, according to the Ministry of Natural Resources and Environmental Conservation. Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016, but after a period of two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry.
Myanmar’s exports of cattle, animal products down by USD $ 254.3 million in the first ninth months of current fiscal year
Myanmar’s exports of animal products between 1 October and 17 July in the current fiscal year 2019-2020 touched a low of US$64.7 million, a sharp drop of $254.3 million compared with the corresponding period of the 2018-2019FY when livestock trading was suspended by China. In the previous fiscal, animal products exports were registered at $319 million. Animal products exports are solely driven by the private sector this year. At present, live cattle exports to China has been on the decline due to the suspension of a trade by China since the pre-Chinese New Year period, said cattle exporters. Normally, a large cow is valued at over K1.6-2.3 million, but last year, the suspension of trade led to Chinese traders resorting to price manipulation and offering a lower price of below K1 million.
Myanmar government pushes the implementation of Tamu border trade zone at Myanmar – India border
Dr. Than Myint, Union Minister of the Ministry of Commerce, said that the government will form another task force in addition to the existing central committee and two working committees to push the implementation of Tamu Border Tade Zone at Myanmar-India border. The city Tamu located near the Myanmar-India border has good potential for bilateral trade. Therefore, the union government of Myanmar, in collaboration with the government of the Sagaing Region, is trying to build a border trade zone to improve trade with India.
More than USD $ 720 million earned from fishery product exports over the past nine and half months of 2019 – 2020 fiscal year
More than US$720 million has been earned from export of fishery products over the past nine and a half months exceeding US$106 million compared to the same period of last year, according to data from the Ministry of Commerce. US$722.751 million was earned from fishery export from October 1 to July 10 in the current 2019-2020 financial year. In the same period of last fiscal year, US$616.275 million was earned, so this year saw an additional US$106.476 million. Deputy Commerce Minister Aung Htoo said fishery export value would hit US$1 billion yearly if domestic farming capacity could improve. In the fourth year of the current government’s term, over US$730 million was earned from export of fishery products such as fish and prawn.
The largest Hong Kong SAR investments exceed USD $ 1.34 billion in third quarter of the current 2019 – 2020 fiscal year
Hong Kong SAR has emerged as the largest investor in Myanmar with 41 Hong Kong-based firms pumping in US$1.34 billion in real estate development, electricity, and garment businesses at the end of the third quarter of current financial year, according to the Directorate of Investment and Company Administration (DICA). Hong Kong SAR topped the list of investors in the past nine months, followed by Singapore, which invested an estimated $1 billion in 13 projects. Investments also flowed into the country from China, France, Germany, Indonesia, India, Japan, Malaysia, Macau, the Republic of Korea, Thailand, the UK, Sri Lanka, the Netherlands, Viet Nam, Samoa, Seychelles, Estonia.