Weekly Business News from Myanmar

Myanmar’s investment target could be met in the current financial year
Although US$2.4 billion is still required to meet Myanmar’s investment target for the current fiscal year, nearly US$1.3 billion in new investment under scrutiny and more to come in the remaining period may meet the target, said Than Sin Lwin, Director-General of the Directorate of Investment and Company Administration. He made the remark during a press conference on the activities of the Ministry of Investment and Foreign Economic Relations in the fourth year of the government’s term. The amount of investment target for the current 2019-2020 fiscal year is US$5.8 billion. So far, US$3.4 billion in investment has been approved.
Myanmar parliament approved a proposal USD $ 700 million IMF loans for COVID – 19 spending on economic recovery
Myanmar’s Union Parliament on Tuesday approved a proposal to seek US$700 million (about 982 billion kyats) in loans from the International Monetary Fund (IMF) to plug budget deficits resulting from increased spending on economic recovery, social security and health sector improvements due to the COVID-19 pandemic. Myanmar expects budget deficits to widen this fiscal year (FY2019-20) and next due to the extra spending needed to mitigate the impact of COVID-19 on the economy. U Maung Maung Win, deputy Union minister for planning, finance and industry, said the government needs to increase stimulus spending to revive the economy, as well as spending to upgrade the health sector and provide cash and food for low-income households and others, even as its income declines due to a relaxation of commercial taxes and license fees, and declines in foreign direct investment (FDI), export earnings (including from natural gas), remittances and income from the tourism sector due to COVID-19.
Rakhine parliament urged government to upgrade Thandwe airport in the next financial year
Thandwe airport in southern Rakhine should be upgraded to include customs facilities in the next financial year to accommodate flights from abroad, a Rakhine lawmaker said. “International flights cannot land at the airport directly and this is a factor which contributes to the limited number of tourists in Ngapali,” said Amyotha Hluttaw lawmaker Daw Htu May (Arakan National Party, Rakhine-11) on May 25 in parliament, referring to the tourist hotspot of Ngapali beach in Thandwe township. The airport has been in operation since the 1950s but only serves domestic flights. Daw Htu May said upgrading Thandwe airport not only boost foreign tourists but also other local businesses, citing the example of Rakhine exporting fisheries via the Yangon International Airport.
Myanmar tourism businesses prepared to reopen and waiting for government guidelines to ensure a safe reopening their business
Myanmar tour companies are preparing to organise tours again, which had been suspended since February as part of the government’s efforts to prevent the spread of COVID-19, an official of a local travel association said. Daw Aye Thida Moe, vice chair of the Union of Myanmar Travel Association, said tour companies are awaiting government guidelines to ensure a safe reopening of their businesses. “Companies are following the guidelines of the Health Ministry,” she said. They will focus on the domestic tourism market at first, and improve some destinations. She said they will come up with a marketing scheme to fit the new reality. "Travel agencies will contact travel agents abroad to inform them about the reopening of the local tourism market,” said Daw Tha Toe Thuzar Aung, managing director of Authentic Myanmar Tourism.
Myanmar – Chinese developer of a major LNG power plant for Ayeyarwaddy Region have issued a tender with one-week deadline for companies enter the prequalification stage
The Myanmar-Chinese developers of a major liquefied natural gas (LNG) power plant for Ayeyarwady Region have issued a tender with a one-week deadline for companies to enter the prequalification stage. The proposed 1390MW LNG power plant is to be built in Shwethaungyan township’s Mee Lin Gyaing area, a greenfield site about 250 kilometres from Yangon. The scheme will include a 500kV transmission line to Hlaing Tharyar, on the outskirts of the commercial capital, but the first phase will only require a line to Pathein, where it will link up with the national grid. If approved, it will be among the largest energy investments costing about US$2.5 billion, according to state media. The tender notice was issued by the state newspaper on May 22, with a deadline of May 28.
The Central Bank of Myanmar (CBM) instructed banks to install security alarm system at their nationwide branches
The Central Bank of Myanmar (CBM) instructed banks nationwide to install an alarm bell system at their branches similar to those used internationally to beef up security. Arrangements are being made to inform the banks to install security alarm systems like those in other countries, said U Soe Min, vice governor of CBM. “We have also instructed banks to tighten the working hours of security guards such as their night shifts or day shifts and to have the guards serve overtime with the permission of head office," the vice governor said in response to the question raised by U Toe Win, MP of Tarmwe constituency, Yangon, at Pyithu Hluttaw session held on May 25, on whether there was a plan for the safety of customers in the event of a bank robbery.
Most of the foreign enterprises have invested in the manufacturing sector in the seven months of the current financial year
Most foreign enterprises primarily invested in the manufacturing sector in the seven months of the current financial year 2019-2020, the Directorate of Investment and Company Administration (DICA) stated. According to state media, of 162 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and April-end of current fiscal, 126 enterprises pumped FDI into the manufacturing sector.
The Internal Revenue Department (IRD) expands list of e-payments platforms for taxpayers
Taxpayers will now be able to pay taxes digitally without having to physically visit the local tax office, the Internal Revenue Department (IRD), which is under the Ministry of Planning, Finance, and Industry announced May 25. The e-payment services will be made available by local banks. Starting May 25, taxpayers will be able to pay tax using Ayeyarwady Bank's (AYA Bank) online banking platforms as well as the AYA Pay mobile application. Currently, taxpayers are able to pay their taxes using CB Bank's internet and mobile banking services as well as on the IRD's website using their corporate debitcards provided by the Myanmar Payment Union. The IRD is now working on enabling e-payments of tax using the online payment platforms available at other local banks. A list of approved banks will be announced in due course.
Ministry of Commerce issued foreign liquor import guideline in Myanmar to relax Myanmar’s decades – old ban on alcohol imports
The Ministry of Commerce on May 25 issued regulations designed to relax Myanmar’s decades-old ban on alcohol imports. The ministry’s “Guidelines for the Importation of Foreign Liquor” allows foreign spirits with the cost, insurance and freight value of US$8 or above to be brought in from Yangon ports and the Yangon International Airport. “Before, alcohol and beer and cigarettes were not allowed to be imported. It is now permissible to import liquor,” said U Ko Ko Naing, deputy director of the Ministry of Commerce. Imports of spirits have been tightly restricted in Myanmar since 1962. The current ban was introduced by the military government in 1995. U Thein Sein’s government permitted the import of wines in late 2015, but only hotels and duty-free outlets have been allowed to import spirits and beer until now.
Real Estate sector fetched over K 27.8 billion in three months in 2019 – 2020 financial year
Over 730 units of apartment were sold at a property expo which earned over K27.8 billion in three months in 2020, according to the report of the iMyanmarHouse.com. A leading Myanmar real estate website has successfully hosted two expos and 26 private property expos in three months from January to March. At these expos, more than 730 units of real estate were sold for K27.8 billion (over US$19 million). Out of two, one took place in Singapore while the remaining one was hosted at Pullman Hotel in Yangon in cooperation with AGD bank. The 26 private properties expo were held at hotels and other project location places. “The year 2020 is one of the good years for iMyanmarHouse.com. The sale of the property has increased over 60 per cent in three months in 2020 compared to 2019. After three months in 2020, the coronavirus started to break out in Myanmar and the real estate expos had to be suspended. However, iMyanmarHouse.com is still providing its service through online. iMyanmarHouse.com wants to stand as a good platform in any situation in Myanmar’s real estate sector,” said Managing Director U Nay Min Thu of iMyanmarHouse.com.