Weekly Business News from Myanmar

The Extractive Industries Transparency Initiative (EITI) urged Myanmar to improve civil society participation and transparency in state firms
Myanmar needs to improve civil society participation and transparency in state firms despite good progress in data disclosure over the next 18 months, the Extractive Industries Transparency Initiative (EITI) said this week. The EITI board, convening in Addis Ababa, Ethiopia, commended the “meaningful progress” Myanmar has secured in “introducing policy reforms, improving transparency in extractives data, stimulating robust public debate and creating a platform for dialogue among stakeholders.” It urged the country to improve public disclosures, particularly related to licence allocation, gemstone production data and state-owned enterprises (SOEs).
The delegation of the European Union to Myanmar and Asia Myanmar Shining Star Investment Co., Ltd (AMSS) signed an office space lease agreement in Yangon
The signing ceremony of an office space lease agreement between the Delegation of the European Union to Myanmar and Asia Myanmar Shining Star Investment Co., Ltd. (AMSS) was held in Wyndham Grand Yangon Hotel, Inya Conference Room on October 9, 2019. The signing was witnessed by the Ambassador of the European Union to Myanmar, H.E Mr. Kristian Schmidt, AMSS Board of Director U Khin Maung Phyu, and a number of other officials and company representatives EU Delegation will occupy the total of 1,895 square meters in 5A Kantharyar Office Building to host EU and Spanish Embassy staff members in individual offices as well as in shared offices and open space in different combinations. The building met all the stringent safety, security, and quality requirements of the EU and represents an ideal choice for tenants looking for a high quality working environment with ancillary amenities.
The Commercial Gas production will commence at the A6 block Shwe Yee Htun – 2 discovery, offshore Myanmar in 2023
Commercial gas production will commence at the A6 block Shwe Yee Htun-2 discovery, offshore Myanmar, in 2023, U Zaw Aung, a retired director general of the Oil and Gas Planning Department under the Ministry of Electricity and Energy (MOEE), told The Myanmar Times. “The State aims to produce gas commercially in year 2023. It will take four or five years to get back our capital and a few more years after that before we turn a profit,” he said. The development comes after the MOEE on September 22 said gas could be produced at Shwe Yee Htun-2 well. Further drilling has shown that gas can be extracted at water depths of 2,325 meters at the well at block A6, which is located about 100 kilometers away from Pathein in Ayeyarwady Region. MPRL E & P Company will undertake production activities at the first-ever commercial offshore oil and gas production project once it is approved, said U Moe Myint, the company’s chief executive.
The volume of mineral export reached more than USD $ 1.4 billion at the end of 2018 – 2019 fiscal years
Mineral export volume reached more than US$ 1.4 billion at the end of 2018-2019 financial years, down US$ 700 million, compared with the same period of last year, according to the official statistics released by the Ministry of Commerce. Mineral export volume reached more than US$ 1.465 billion from October 1 to September 30 of the 2018-2019 FY and US$ 2.167 billion in the previous year. In comparison with the two fiscal years, mineral volume decreased US$ 702.014 million in export in 2018-2019 FY.
Real estate developer expected to boost local property market in 2019 – 2020 fiscal years as a result of a reduction in tax rates on previously undeclared income
Real estate developers in Myanmar are expecting a boost in the number of property transactions in fiscal 2019-20, which they hope will help jumpstart the local property market. One reason demand will rise is as a result of a reduction in tax rates on previously undeclared income, which is expected to encourage those who have not declared all their income in the past to do so. This should bring liquidity back into the formal economy, leading to opportunities for investors to channel their money into real estate at a time when supply in Yangon and other major cities in Myanmar has spiked with more completed units now on the market. It will also encourage existing home owners who had purchased properties under different names in the past to officially correct or update any ownership details for future tax purposes.
Myanmar Government fixed minimum price for rice amid weak market
PATHEIN, Irrawaddy Region—The Myanmar government has fixed the minimum price for rice at 500,000 kyats for 100 baskets of paddy (US$327.30 for about 2.09 tons) in a bid to establish a fair market and fair prices for paddy farmers. The government’s Leading Committee for the Protection and Promotion of the Rights and Interests of Farmers, led by Vice President Henry Van Thio, met last month to discuss setting the floor price for paddy grains. Paddy rice refers to unprocessed rice harvested from a field, rather than hulled rice. The government has agreed to pay any farmer the floor price, but only for paddy that meets quality standards: the grains, once processed, must have a moisture content of 14 percent and can’t have any dust, sand or gravel, according to an announcement released by the committee on Tuesday. According to the statement, if the market rate is higher than the floor price, rice is to be bought according to the market rate, but if the market rate is lower than the floor price, it is to be bought at floor price.
Myanmar’s foreign trade exceeded USD $ 34.9 billion for 2019 fiscal year
Myanmar’s foreign trade totaled $34.9 billion for 2019 Fiscal Year. This exceeded the estimates by about by $3.9 billion. However, the total volume of foreign trade was still $900 million lower than 2018 Fiscal Year ending on March 31, 2018. “Our export volume increased by $470 million and trade deficit has dropped to $1.1 billion from $6 billion,” said U Khin Maung Lwin, Deputy Permanent Secretary of the Ministry of Commerce. This is because of higher exports and lower imports. “We managed to reduce some of the imports while increasing export. The sectors that benefited from increased exports were garments, gas, and seafood,” he added. Myanmar earned a total of $16.9 billion from exports. Agriculture accounted for $3.2 billion, fishery exports totaled $731 million from, extractive materials amounted to $1.4 billion, and another $10 billion was generated from industrial finished products.
Ananda Development Public Co., Ltd, Thai property developer, is looking for the suitable partners to expand on urban projects in Myanmar
Thai property developer Ananda Development Public Co Ltd wants to expand into Myanmar and is now looking for suitable partners in the country, its officials told Myanmar journalists in Bangkok on October 9. The company will focus on urban projects in Myanmar and is now exploring the various avenues through which it can invest in the country. Chanond Ruangkritya, chief executive of Ananda Development, said the company’s strategy of raising living standards through the development of urban and high-quality housing projects that are linked to key transport systems would be an attractive value proposition for potential partners and investors in Myanmar. Ananda Development also wants to draw more Myanmar investors to the Thai property market. “Bangkok is one of the most attractive cities in Asia for foreign investors and one of the reasons is its successful urban living system, which can be achieved only if it has efficient transportation for residents to live and to work,” Chanond said.
Yangon Regional Government started providing land compensation process for the New Yangon City Project
The Yangon regional government has started providing substitute land to original landowners as compensation for land acquired for the New Yangon City Project on October 8. According to the previous agreement, landowners will retain 80 percent of the original land located within the project area with the remaining 20pc being compensated in Kyeemyindaing township. Phase 1 of that project covered 18,390 acres of farmlands and the government returned 1514 acres of developed land to 187 farmers within Kyeemyindaing township. “Resettlement procedure took many months as it needs step by step cooperation of various departments,” said New Yangon Development Company’s CEO Serge Pun. The lot drawing for the compensation land in Kyeemyindaing township began in early September. Temporary land transfer orders and land permits have been issued on October 8.
Singapore listed Yoma Strategic Holdings will form a strategic partnership with Ayala Corporation (AC) Energy for the large utility scale renewable energy projects in Myanmar
SINGAPORE - Myanmar-focused Yoma Strategic Holdings said on Monday (Oct 14) it will form a strategic partnership with AC Energy, the energy platform of Philippine conglomerate Ayala Corporation. The two companies are looking to establish a 50:50 joint venture (JV) to scale up Yoma Micro Power (S) Pte Ltd (YMP) and to explore developing around 200 megawatts of additional renewable energy projects within Myanmar, which will include participating in large utility-scale renewable projects. As part of this transaction, Yoma Strategic and AC Energy have signed a binding term sheet for the new JV to invest at least US$30 million (S$41.2 million) into YMP. YMP builds micro power plants and mini grids that provide electricity to off-grid rural communities and telecommunications towers in Myanmar. It is rolling out 250 micro power plants by the end of 2019 and is expected to scale up to more than 2,000 sites by 2023.