Weekly Business News from Myanmar

The 3rd Myanmar Youth Technoenprenurship Development Program 2020 organized in Yangon in order to promote and support Myanmar young entrepreneurs in technological sector
The opening ceremony of final selection event and awards ceremony of Myanmar Youth Technopreneurship Development Program 2020 was held at MICT park, Yangon on Saturday. Annually organized by Myanmar Computer Federation (MCF) and Myanmar Posts and Telecommunications (MPT), the MYTDP 2020 program is aimed to solve the challenges on socio-business by the use of technology as well as to promote and support Myanmar young entrepreneurs in technological sector. Secretary General, Myanmar Comouter Federation, Thaung Su Nyein said “For the last 2 years, 6 teams were turned out as the winners. Among them, 4 teams are now standing as the companies. Some are success tenders and applying their projects by using the experiences of training and competition. For this year 3rd edition, we hope a lot on youth participants and we believe they can penetrate with the momentum into the commercial market.”
UMFCCI seeks Myanmar government’s help to handle impact of virus outbreak affecting world trade
The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) is requesting the government step in to help deal with the economic fallout caused by the COVID-19 virus outbreak affecting world trade. A meeting to layout what the government can do to ease the situation was organised by the UMFCCI on February 27. The meeting was attended by 150 people representing businesses, trade bodies and international business organisations such as Euro Cham Myanmar, India-Myanmar Chamber of Commerce, Thai Chamber of Commerce, German Chamber of Commerce, China Enterprises Chamber of Commerce, Korea Chamber of Commerce in Myanmar, Chinese Textile and Garment Association in Myanmar, and Korea Garment Association Myanmar. During the meeting, the Myanmar Tourism Federation highlighted the fact that most of the tourists visiting Myanmar are from China, and their numbers have declined significantly due to the virus outbreak. The has resulted in a large decline in business for tourism-related businesses.
New industrial Zone law designed to encourage factories and workshops to relocate to strategic industrial zone due soon
A new industrial zone law designed to encourage factories and workshops to relocate to strategic industrial zones is due soon, U Soe Win, Union Minister of Planning, Finance and Industry told a monthly meeting between the vice president and local business leaders. “We have arranged all prerequisites including complete infrastructure to ensure relocation of outside factories and workshops to industrial zones and plans to locate SMEs in vacant lands in the industrial zones,” the minister said. The new law will assist the emergence of new industrial zones in accordance with the national development framework. Myanmar is focusing on human resource and infrastructure development to ensure a good environment for investment and business, he added. Currently, there are some 60 industrial zones in the country, 29 of which are in Yangon. The Yangon Regional Government is working to upgrade industrial zones as the current lack of infrastructure has resulted in low activities within the zones.
The trade activities returned to normal in Muse 105 mile trade zone
Trade activities are returned to nearly normal in Muse 105-mile trade zone as buyers from China came to buy fruits at the trade zone in recent days, sources said. The trade activities in Muse 105-mile trade zone were nearly stopped after the COVID-19 virus outbreak in China. “Now over 200 truckloads of watermelons and muskmelons are entered in the market daily since February 22. We exported about 700 truckloads of watermelons to China daily before the COVID-19 virus,” said Yee Yee Khaing from a fruit wholesale shop. Although many trucks carrying watermelons came to the trade zone, no buyer is interested to buy seedless watermelons in the market. “Seedless watermelons are not sold and I think the importers cannot send them to provinces in China, which eat the seedless watermelons. The price of seedless watermelons is high and traders don’t want to risk their money on them,” said Sai Onn, a fruit trader.
The new power projects on the track for completion on time with the aim of fulfilling the projected increase in demand nationwide for electricity during the hot season
To provide electricity before height of the dry season arrives in March, new power plants need to be completed on time, says Deputy Minister of Electricity and Energy U Khin Maung Win. Seven new power plants that are expected to generate more than 1,000 megawatts of additional electricity are being built in Magwe, Shwetaung, Kyunchaung, Ahlone, Kyaukphyu, Thanlyin, and Thaketa, with the aim of fulfilling the projected increase in demand nationwide for electricity during the hot season. Of the projects, five are being implemented under a tender called by the Ministry of Electricity and Energy last June.
Myanmar government and CITIC plan to build Kyauk Phyu deep seaport which worth USD $ 1.3 billion
China’s CITIC consortium and the Myanmar government plan to build Kyauk Phyu Deep Sea Port with CITIC providing 70 percent of the funding needed and the remaining 30 percent to come from the government. The two sides are in talks to invest $1.3 billion in the first phase of the project, according to recent remarks by Deputy Commerce Minister U Aung Htoo to the Pyithu Hluttaw. CITIC and local consortium Myanmar Kyauk Phyu Special Economic Zone will invest $30 million in the industrial zone that forms part of the megaproject. CITIC will hold 51 percent of the project and Myanmar Kyauk Phyu 49 percent. The economic zone will comprise a deep sea port on 607 acres, a 2,446-acre industrial zone and a 1,235-acre high-end housing project.
Kachin State approved Chinese backed business park project in the border town of Kanpiketi
YANGON—The Kachin State parliament approved a proposal on Thursday to implement a Chinese-backed business park project in the border town of Kanpiketi, a part of Beijing’s grand infrastructure plans for its Belt and Road Initiative (BRI). Proposed in 2018, the Kanpiketi Business Park will cover nearly 70 acres in the border town in northern Kachin State’s Special Region 1. The area is controlled by the New Democratic Army-Kachin (NDAK) militia, which is allied with the Myanmar military. At an estimated cost of US$22.4 million, the project will be developed by Myanmar Heng Ya Investment Development Company Ltd, a joint venture of Myanmar’s Kampaiti Development Company Ltd and China’s Yunnan Tengying Trading Company Ltd. According to the Directorate of Investment and Company Administration (DICA), the sons of NDAK militia founder Zahkung Ting Ying are directors at Kampaiti Development. In 2009, the NDAK was converted into a Border Guard Force (BGF), a government-sponsored militia, and still has significant influence in Special Region 1.
The policies, standards needed for Myanmar steel production as demand rises from foreign investors
Myanmar’s steel consumption is expected to grow in the next five years as government spending on infrastructure ramps up and foreign direct investments rise. At current levels, Myanmar uses just about 3 million tonnes of steel, but this is expected rise by more than 60 percent to exceed 5 million tonnes by 2025, according to U Sit Taing Aung, chair of the Myanmar Steel Association. In comparison, Singapore currently consumes nearly 5million tonnes of steel, while Thailand users about 11 million tonnes. Consequently, the authorities are raising efforts to produce more steel domestically to reduce costs. This is because Myanmar imports 90pc of its steel requirements. During a recent interview with The Myanmar Times U Sit Taing Aung shed light on the country’s progress towards developing a domestic steel production industry:
The feasibility studies conducted in four areas to set up metal industries zone
Feasibility studies are being undertaken in four regions and states as part of efforts to implement an iron and steel industrial zone, said U Sit Taing Aung, chairman of the Myanmar Steel Association (MSA). Studies for the implementation of the iron and steel industrial zone project are under way in Ayeyawady and Taninthayi regions and Rakhine and Mon states. The project is slated to commence three to five year after the studies are completed, he said. At present, Myanmar’s steel demand is estimated at about 2.5 million tons, 92 per cent of which is imported. The demand is likely to grow to 5.4 million tons per year by 2030, according to the MSA. Myanmar imported steel worth US$1.7 billion from foreign countries in the previous FY, MSA data showed. “If Myanmar can fulfill the requirements of local steel consumption and focus on import substitution, the steel industry will strategically contribute to national interest. Steel consumption is included in calculations of economic growth,” said U Sit Taing Aung.
Myanmar’s external trade increased USD $ 2.27 billion between 1 October and 21 February in the 2019 – 2020 financial year when compared to the same period of last financial year
Myanmar’s external trade between 1 October and 21 February in the 2019-2020 financial year was registered at US$15.3 billion, an increase of $2.27 billion compared with the corresponding period of the 2018-2019FY, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $13.05 billion, according to data released by the ministry. Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government, said an official from the ministry. In the current fiscal, both maritime and border trade recorded an increase compared with the year-ago period, with exports estimated at over $7 billion and imports valued at $8 billion. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.