ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Japanese company’s Daiwa Securities Group set up USD $ 30 million venture capital fund in Myanmar to invest in local startups

  Tokyo-headquartered investment bank Daiwa Securities Group has seeded a US$30 million venture capital fund in Myanmar to invest in local start-ups. Daiwa subsidiaries Daiwa PI Partners Co and Daiwa Corporate Investment Co have established the Daiwa Myanmar Growth Fund, with Japanese life insurer Taiyo Life Insurance Co as a partner. It will mature in 12 years with an investment period of five years. The fund will provide growth-capital to private firms by taking minority stakes of 10-30pc, focusing on consumer goods as well as services, telecommunications, infrastructure and logistics industries. It will also seek to “secure a meaningful influence on the corporate governance” of those companies by taking seats on company boards.
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  The rubber export earnings increased by over USD $ 61 million during the over nine months of this fiscal year

  During over nine months of this fiscal year, Myanmar earned over 220 million US dollars from the exports of over 0.17 million tons of rubber, according to an official of the Commerce Ministry. From October 1 to July 5 of 2018-2019 fiscal year, the rubber export earnings hit 225.189 million US dollars. Last year, the export earnings from exports of 135,982 tons of rubber reached 163.777 million USD. This year, the rubber export earnings increased by over 61.412 million USD and the rubber export volume, by over 40,582 tons.
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  Joint venture with Ever Investment, China Lesso Group Holding Ltd entered to build an integrated commercial and logistics complex project in Yangon

  Hong Kong-listed China Lesso Group Holdings Ltd, a building materials supplier, has entered into a joint venture with Ever Investment to build an integrated commercial and logistics complex in Yangon worth US$87 million. China Lesso’s Yangon-based subsidiary, Lesso Mall Investment and local partner Ever Investment formed a joint venture called Lesso Home Development for the project, with Lesso Mall holding a 60 percent stake and Ever Investment holding the remainder stake. Lesso Home Development has been authorized by the Myanmar Investment Commission (MIC) to carry out construction, selling, leasing and management of offices, commercial, wholesale and retail business in Yangon Region.
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  The foreign companies from Japan, South Korea, Thailand and China expressed their interest to make investments in the Myanmar electricity sector

  Companies from Japan, South Korea, Thailand and China are inquiring to make investments in the Myanmar electricity sector, according to U Thant Sin Lwin, Acting Director General of the Directorate of Investment and Company Administration. “We have received many inquiries for possible investments in electricity. Some Japanese companies want to make investments in the power sector under joint ventures. Japanese and Korean companies want to provide power in Yangon. Meanwhile the Chinese companies want to know the necessary procedures to build hydropower plants,” he said. These companies came to Myanmar in May and met with the investment body to discuss the power sector. Likewise, U Zaw Min Win, President of UMFCCI, also said that some of the Japanese companies are planning to make investments in power projects that will produce around 1,000 megawatts.
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  Chief Minister of Yangon Region Government promised the local businessmen to find the international markets for agricultural and livestock products

  U Phyo Min Thein, the Chief Minister of Yangon, has promised local businessmen that he will help find international markets for livestock and agricultural products. At a monthly meeting between local businessmen and the Vice President of Myanmar, the Chief Minister said: “Only the agricultural sector and livestock sectors can boost the country’s GDP. We are currently issuing Good Agricultural Practices (GAP) as a first step to make are agricultural and livestock products acceptable on the international market.” The present government has already upgraded 4,000 acres of land in Yangon, spending some K8 billion in the process. The minister continued to say that the government will work with private businessmen to find reliable international markets for local products. At the current time, Myanmar is in talks with the governments of Yunnan and Beijing.
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  Myanmar tourism authorities are looking for to capitalize on recent tourism rebound and stimulate more investments in the tourism sector

  Myanmar is looking to capitalise on a recent tourism rebound and stimulate more investment in the sector, following efforts to improve access to credit for smaller operators. On May 6 the first branch of the Myanma Tourism Bank (MTB) opened in Yangon. This is the country’s first bank dedicated to supporting the tourism and hospitality sector. Backed by the Myanmar Tourism Federation, the bank has an initial capitalisation of MMK22bn ($14.5m), with funding provided by the lender’s 26 shareholders, all of which are from the local tourism industry. The MTB is focused on providing low-cost, long-term loans to the sector, particularly to the small- to medium-scale segment, and will offer most of the services provided by commercial banks.
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  French spirits giant, Pernod Ricard completed a deal to take 34 percent stake in Seagram MM Holding which will produce and distribute whisky in Myanmar

  French spirits giant Pernod Ricard has completed a deal to take a 34 per cent stake in Seagram MM Holdings, a joint venture between mainboard-listed Yoma Strategic, the Win Brothers and Delta Capital Myanmar which will produce and distribute whisky in Myanmar, The Business Times reported. Seagram MM Holdings is the holding company of Seagram Myanmar Company, a subsidiary housing Seagram’s whisky brands Seagram High Class and Seagram Imperial Blue.
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  The export of natural gas value in nine months of this fiscal year decreased by over 32 million when compared to the same period of last fiscal year

  Over US$2.7 billion was earned from export of natural gas in more than nine months of the current fiscal year falling by over US$32 million compared to the same period of last year, according to the Ministry of Commerce. "We earned US$2.77 billion from export of 197,992,537 cubic feet of gas from October 1 to July 5 in the current 2018-2019 fiscal year," said a ministry official. In the same period of the previous fiscal year, over US$2.802 billion was earned from export of 349,695,495 cubic feet of gas. In comparison with last year, this year saw a fall of 151,702,958 cubic feet of gas worth US$32.593 million.
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  Chin State Government prioritized the faster implementation of power projects in order to get more development to Chin State

  The Chin State government wants to prioritise a number of hydropower projects in order that more development can come to the state, which is the poorest in the Union. The state, bordering Bangladesh and India in western Myanmar and traversed by a number of mountain ranges with fast-flowing rivers, has seen much interest from foreign investors in building hydropower plants. According to the state government, more than 30 such projects have been proposed or are undergoing feasibility studies. Companies from China, France and Norway have expressed interest in such projects. Among them, a Chinese company signed five MOUs with the state government in early July to carry out studies in Hakha, the state capital, as well as Matupi, Htantlang and Paletwa townships to build 30MW hydropower plants while a Norwegian company has so far invested US$50 million in three medium-scale hydropower projects of under 30MW to be built in Kanpetlet.
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  Myanmar businesses are showcasing their products at THAIFEX – World of Food Asia 2019 expo in Bangkok

  At the recently held THAIFEX - World of Food Asia 2019 expo in Bangkok, Myanmar pavilions showcasing produce from the country drew quite a bit of interest. A total of 11 Myanmar food firms and one Myanmar hosted buyer participated in the fair this year. Visitors were drawn to Khaing Kabar Company, which sells chemical-free gum sterculia, commonly used in the production of drugs, cosmetics, car mirrors, smartphone cases, and food such as bird's nests and Korean aloe vera. Khaing Kabar chief executive officer U La Pyae said the company exports to China, which buys between 400 tonnes and 500 tonnes, and Japan. “We have started negotiating with South Korea,” he said, adding that Hong Kong could be another potential export destination, with most buyers of the extract coming from the beverage and cosmetic industries.