Weekly Business News from Myanmar

Japanese companies will upgrade telecommunications infrastructure in Myanmar with the low-interest loan from the Japanese government
Trading house Sojitz Corp and three other Japanese companies will upgrade telecommunications infrastructure in Myanmar in a 7-billion-yen project financed by a low-interest loan from the Japanese government, nippon.com reported. The companies received an order for the project from Myanma Posts & Telecommunications, the country's largest telecom operator, according to a statement released Wednesday.
Singaporean investors see Myanmar as “potential gold mine” despite its low ranking in ease of doing business
Myanmar is a “potential gold mine” and the “last frontier for” investors despite its low ranking in ease of doing business, said a Singaporean investor at a business to business matchmaking event in early November. MyanmarBizConnect Group, a local business matchmaking group, the Singapore’s Association of Small and Medium Enterprises (ASME) and Malaysia’s RHB Bank held the ASME Myanmar Mission Investor Insights event at a hotel in Yangon on November 7. The event was attended by local and foreign businesspeople and officials including former economic adviser to the President U Aung Tun Thet, Deputy Director General of the Directorate of Investment and Company Administration Daw Tin Aye Han, and President of the Singapore Association of Myanmar Leong Lee Seng.
Yangon City Development Committee (YCDC) will remove fiber cables of unregistered installation companies
Unregistered fibre lines which have been installed without permission on lampposts in Yangon Region will be removed, said U Lin Khaing, head of the Engineering Department (Roads and Bridges) of the Yangon City Development Committee (YCDC). According to the YCDC, only 23 companies have been approved and registered to install the fibre lines in Yangon Region. Some fibre lines installation companies are also providing the service without registering with the YCDC, U Lin Khaing added. “Except 23 companies, some companies are still installing fibre lines without permission. So, we need to control them. After finishing an inspection of the wire lines, we have made an official announcement in the newspapers. When we went on an inspection tour on Phay Road, we asked registered companies to come along with us. Then, we conducted an inspection with those companies. And, when we found unregistered lines, we cut them down and took legal action against the unregistered companies,” said U Lin Khaing.
Myanmar imported capital goods import value reached about USD $ 720 million over a month this fiscal year
Myanmar has imported capital goods worth about US$720 million over a month of this fiscal year, exceeding over US$90 million compared to the same period of last fiscal year, according to the Ministry of Commerce. From October 1 to November 8 in the current 2019-2020 fiscal year, import value of capital goods reached US$718.796 million while last year’s value amounted to US$628.171 million. So, this year’s amount exceeded US$90.625 million. From 1988 to July 2019, a total of 50 countries made 1,779 rounds of investment worth overUS$81.249billion in 12 economic sectors. The largest investor is Singapore, followed by China and Thailand. Most investments went to the oil and gas sector accounting for 27.59 percent. The electricity sector accounted for 26.07 percent and production sector 13.94 percent.
The Regional and States Investment Commissions have authority to approve limits can be raised
The investment commissions of regions and states can apply to raise the maximum investments they can approve if required, says a senior official. Permanent Secretary of the Ministry of Investment and Foreign Economic Relations U Aung Naing Oo said, if the investments are for development, the regional and state investment commissions can ask to have the limit raised. At present, regional and state investment commissions have the authority to approve investments of up to US$5 million and K6 billion. Larger sums will require the approval of the Myanmar Investment Commission (MIC). “Limitations on the approval of investment funds are not inflexible. Business investments of up to US$5 million or K6 billion can be approved locally at the region and state level. If the investments are higher, it needs MIC approval. However, MIC is willing to raise those amounts if the investments are intended for development,” U Aung Naing Oo said at the Kachin Investment Forum last week.
Myanmar Government is promising market for Vietnamese businesses
Myanmar is a promising market for Vietnamese businesses, according to a workshop in Ho Chi Minh City on November 19, Vietnamplus reported. According to Vo Thi Ngoc Diep, Vietnamese Commercial Counsellor in Myanmar, Vietnam is now one of the 10 biggest trade partners of Myanmar. In 2018, two-way trade reached 860 million USD, of which Vietnam exported over 700 million USD worth of goods to the market.
Myanmar – Thailand Business Matching and Networking Expo was held in Yangon
Myanmar–Thailand Business Matching and Networking Expo was held on Wednesday in Yangon. It was organized by the Myanmar–Thai Chamber of Commerce and Industry Incorporates (MTCCI) at its head office. Minister Counselor for the Office of Commercial Affairs of Royal Thai Embassy, Chairman of MTCCI, Founder of Myanmar Franchise License and Assistant Director of UbonRatchathani Science Park attended the Expo opening ceremony and delivered remarks. Assistant Director, UbonRatchathani Science Park, AnirutSuebsing said “Today, I bring just some entrepreneurs of Thailand to join and matching with entrepreneurs in Myanmar… Today is like the showcases showing products. It’s about 20 companies here and we separated four or five sectors like food, beverage, technology, supplementary care products and medicine.” Over 100 businesspersons from Myanmar and Thai companies attended the event. The event included the seminar “Today, Why Myanmar” focusing on trade and investment rules and regulations in Myanmar for Thai investors.
Myanmar Tourism Bank will provide tourism association members uncollateralized SME loans beginning this month
Myanma Tourism Bank has announced that it will begin providing Union of Myanmar Travel Association members uncollateralised SMEs loans beginning this month. MTB announced the SMEs loans for UMTA members, who are primarily travel and tour companies, at an event in a hotel in Yangon yesterday. “We will release the loans within two week to a month if the applicants have provided the necessary documents for their application,” said MTB Deputy Managing Director Andrew Khant. While the loans are being initially offered to UMTA members, MTB will later on open them up to other tourism-sector businesses, Khant said.
Foreign investments from 50 countries reached over USD $ 81 billion from 1988 – 89 to 2018 – 2019 fiscal year
A total of 50 countries made investments worth over US$81 billion from 1988-89 FY to 2018-19 FY and most of the foreign investments are in oil and natural gas sector and electricity sector, according to Myanmar Investment Commission (MIC). The foreign investments in sectors are as per following: US$22.420 billion in oil and natural gas sector (about 27.38 per cent), US$21.178 billion in electricity sector (about 25.87 per cent), US$11.528 billion in production sector (about 14.08 per cent), US$10.908 billion in transportation and communications sector (about 13.30 per cent), US$5.467 billion in real estate sector (about 6.68 per cent), US$3.118 billion in hotel and tourism sector (about 3.81 per cent), US$2.904 billion in mining sector (about 3.55 per cent), US$766.327 million in livestock and fisheries sector (about 0.94 per cent), US$414.12 million in farming sector (about 0.51 per cent), US$320 million in industrial estate sector (about 0.39 per cent), US$37.767 million in construction sector (about 0.05 per cent) and US$2.808 billion in other sector (about 3.43 per cent).
Ministry of Electricity and Energy is planning to start granting licenses to operate village gas stations aiming to boost small and medium enterprises for local villagers
The Ministry of Electricity and Energy is prepared to start granting licenses to operate village gas stations. The move is aimed to boost small and medium enterprises and the agricultural sector and to create jobs and income for local villagers. Applicants must be residents of the village where they plan to open the gas station and each license holder is allowed to operate one station. A village gas station is required to have at least 2,000 square feet with 40 feet of front space. The proposed space must be at least 300 feet from the village proper and its perimeter must be fenced using non-flammable materials. Moreover, the station must be at least two miles from larger gas stations opened under licenses from the Ministry and located a safe distance from heritage sites.