Weekly Business News from Myanmar

Military MP called for privatization of unprofitable garment factories in Sagaing Region
A military MP has called for privatization of garment factories in Sagaing Region that have been making losses of over Ks30 billion under successive governments. According to the report for 2017-2018 financial year, No. 3 Garment Factory (Sagaing), No.3 Garment Factory Branch (Sagaing), No.6 Garment Factory (Salingyi) and No.6 Garment Factory Branch (Monywa) under the No.3 Heavy Industries are making losses yearly. “The losses those factories have made are worth Ks36,801.46 million. This is a tremendous loss. I here raised my question as to how the region government will do— hand over those factories to the private sector or privatize them,” said Military MP Major Soe Win Myint. In the 2016-2017 FY, No.3 Garment Factory (Sagaing) spent Ks2,497.67 million and earned Ks480.88 million, making a loss of Ks2,016.786 million.
Mother Finance Co., Ltd and NearMe Digital Services collaborate to expand fintech reach in Myanmar
Mother Finance Co Ltd and NearMe Digital Services on February 28 signed a collaboration agreement to provide credit to NearMe's agent and partner network. Mother Finance, a licensed non-bank financial institution which provides small loans to customers via a mobile app, will be providing unsecured SME loans to NearMe. NearMe currently has over 50,000 partner stores nationwide. The maximum amount that can be borrowed is K500 lakh, said Daw Theta Aye, CEO of Mother Finance. U Linn Htike Aung, managing director of NearMe, said "SMEs contribute a lot to the economy and this is an excellent way to help them grow quickly by making use of the latest digital technology." NearMe is a mobile application which enables users to make a variety of payments and purchases such as taxes and public utilities as well as flight tickets, bus tickets and over 70 other products.
The Beneficial Ownership Disclosure Press Conference held in Yangon to raise awareness the transparency of the mining process and to implement the international standard economic industry in Myanmar
The Beneficial Ownership Disclosure Press Conference held in Yangon to raise awareness the transparency of the mining process and to implement the international standard economic industry in Myanmar
Myanmar logistics firm, Ever Flow River Group Public Co (EFR) receive approval to list on Yangon Stock Exchange (YSX) in March
Ever Flow River Group Public Co (EFR) has received approval to list on the Yangon Stock Exchange (YSX) on March 20, according to an announcement by the local bourse on February 28. The listing, which will result in the sixth company on the YSX, is in accordance with Section 41(c) of the Securities Exchange Law and Section 7 and 8 of the Securities Listing Business Regulations. The share price will be announced on March 19. EFR provides logistics services including shipping, air freight, warehousing, containerisation and distribution. It was founded in 1998 by chair U Kyaw Lwin Oo. The company plans to invest in and develop the country’s logistics infrastructure under the National Logistics Master Plan and recently restructured to sharpen its focus on logistics.
Siam Commercial Bank is waiting for on new Myanmar licence to upgrade the existing representative office to a branch
Siam Commercial Bank plans to open its first branch in Myanmar this year if the Central Bank of Myanmar (CBM) grants a bank subsidiary licence, says a SCB senior official. If approved, SCB will upgrade the existing representative office to a branch, said first executive vice-president Kamalkant Agarwal. The bank needs time to develop infrastructure in Myanmar before deciding on a new branch opening, he said, though the country has high growth potential. According to CBM regulations, those holding foreign bank subsidiary licences are allowed to operate wholesale and retail banking business and have up to 10 branches or off-site ATMs. They are required to have minimum paid-in capital of US$100 million. To become eligible to upgrade their business, foreign bank subsidiaries must operate in Myanmar for at least three years.
Thailand approved a preferential loan worth 777 million THB under 30 year contract for infrastructure development in Myawaddy city in Myanmar
The Thai Cabinet has approved a preferential loan worth 777 million THB (over 25.76 million USD) under a 30-year contract for Myanmar for infrastructure development in Myawaddy city, vietnamplus reported. Government deputy spokeswoman Ratchada Thanadirek said the Cabinet meeting on December 24 endorsed a proposal for the Neighbouring Countries Economic Development Cooperation Agency (NEDA) to provide financial assistance for Myanmar to fund the third phase of the Greater Mekong Sub-region development project for Myawaddy.
Yangon’s New City development project initiates ‘Swiss challenge’
The Yangon government has launched a “Swiss challenge” tender for Yangon New City’s first-stage infrastructure projects, following Chinese President Xi Jinping’s visit to Myanmar. Yangon Mayor U Maung Maung Soe and Song Hailiang, president of state-owned China Communications Construction Co (CCCC) signed a Letter of Intent for the New Urban Development of Yangon City on January 18, during the Chinese leader’s visit. The YCDC has submitted the Pre-Project Documents for six Stage 1 infrastructure workstreams for approval to the Union Government level. After an approval is received, YCDC will launch the Swiss challenge tender, said NYDC CEO Serge Pun in an announcement.
Hong Kong based company will generate and sell power to consumers locally after building power plants in Kyaukphyu
A Hong Kong-based company, which is among the top investors in the electricity sector in Myanmar in the current financial year, will generate and sell power to consumers locally after building power plant in Kyaukpyu, said U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA). “This company is a Hong Kong-based company operating with 100-per cent foreign direct investment, and it is supplying electricity in Myanmar,” said U Thant Sin Lwin. Hong Kong-listed CNTIC Vpower KY3 Limited Company will invest US$140.47 million for the generation of 150MW of electricity from LNG. It will supply and sell electricity on an IPP (BOT) basis in Kyaukphyu Township of Rakhine State. The project will generate 658.8 million kilowatt-hours of power which would be supplied and sold to consumers locally, he added.
In collaboration with Indian Government, Myanmar government plans to open Technical High School (THS) in Monyawa Township, Sagaing Region
MONYWA-In collaboration with the Indian Government and the Ministry of Planning, Finance and Industry, plans are underway to open a Technical High School (THS) at the building of No.6 Garment Factory(Branch) near Ywatone village in Monywa Township, Sagaing Region. The school is one of the Garment factories (branch) in Sarlingyi Township under former N0.3 Heavy Industries. A building of No.6 Garment Factory (Branch) is to be turned into the Technical High School. The Indian government sent machines, equipments and learning devices to Myanmar since May, 2019. Moreover, the government had sent the teachers who will serve at the school to India by dividing three batches.
Myanmar Investment Commission (MIC) approved four foreign investment permits which amounted to over USD $ 310 million with 10,102 job opportunities
Myanmar Investment Commission (MIC) approved four foreign investment permits and 17 endorsement process in this week, which amounted to over US$ 310 million with 10,102 job opportunities, state media reported. The announcement came at the MIC’s meeting 1/2020 yesterday at the office of Directorate of Investment and Company Administration in Yangon. The period from October 1 to 10 January of this 2019-2020 financial year has allowed foreign investment amounted to US $ 1,546.94 mln and Myanmar citizen Investment amounted to Kyat 716,451.284 mln including US $ 128.400 mln.