Weekly Business News from Myanmar

Myanmar ranked as one of the top 20 improvers in Doing Business 2020 by the World Bank
Myanmar has been ranked as one of the top 20 improvers in Doing Business 2020 by the World Bank, based on the number of reforms and the degree by which the country’s ease of doing business score has improved, state media reported. Myanmar implemented five initiatives that enhanced its business environment. The city of Yangon imposed stronger construction quality controls by introducing stricter qualification requirements for architects and engineers, and invested in its water and sanitation infrastructure.
US companies are keen to expand their investment after seeing positive results in Myanmar
As Myanmar’s government is making efforts to revive the economy through foreign investment, US companies say they are keen to expand their involvement, according to a leading trade body. The US-Asean Business Council in Yangon met on Monday and included representatives of 12 US companies and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). The US delegation, led by US Ambassador Scot Marciel, included representatives from Amazon, Google, Coca-Cola, Chevron, Chubb, Diageo, Ford, Jhpiego, MasterCard, Visa, Abbott and BowerGroupAsia. Ford and Coca-Cola already have taken a significant market share in Myanmar. Chevron has been investing in the energy sector for many years.
JFE MERANTI Myanmar Co., Ltd (JMM) invested USD $ 85 million in the steel industry to boost construction industry in Myanmar
JFE MERANTI Myanmar Co., Ltd (JMM) invested $85 million in steel industry, and said it will start selling locally produced coated steel products under ALZU in the market in December. The product is one of JMM’s 55 percent Aluminum-Zinc alloy-coated and color-coated steel products, available with high quality AZ70 and AZ100 coatings. The plant is in the Thilawa Special Economic Zone, and will produce various products for industrial, commercial, residential and healthcare buildings. The company will produce steel products for domestic and foreign markets. “Myanmar’s economy is evolving rapidly and has huge growth potential, but the country needs good infrastructure and building materials to support it,” said Dr. Sebastian Lagendorf, CEO of JFE Meranti Myanmar Co., Ltd.
The 9th JCC meeting for the Comprehensive Development in the Dawei Special Economic Zone (DSEZ) and its related project areas was held in Nay Pyi Taw
9th Myanmar-Thailand Joint Coordinating Committee (JCC) Meeting for the Comprehensive Development in the Dawei Special Economic Zone (DSEZ) and its related project areas took place in Nay Pyi Taw on Thursday. Both sides discussed on the mutual benefits of the people of the two countries relating to the implementation of Dawei Special Economic Zone. Myanmar's current initiatives to move the remaining initial phase projects forward were also discussed at the meeting. It is learnt that Dawei SEZ Full Phase Development will be initiative in parallel with the initial phase, and further discussions will be made with existing Joint Task Force. Myanmar and Thailand recognized the progress of two-lane roads construction and appreciate for the collaboration on the effort of the Ministry of Construction and Neighbouring Countries Economic Development Agency (NEDA) of Thailand.
Traders at the Myanmar – China border encouraged to use kyat and renminbi as the main means of commerce and exchange
Traders at the Myanmar-China border were encouraged to use the kyat and renminbi as the main means of commerce and exchange at a financial workshop organised by the Industrial and Commercial Bank of China Limited (ICBC) and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), last week. “As Myanmar’s main border trade partners include China, it is more efficient and economical to use the Chinese or Myanmar currency to trade instead of a third currency such as the dollar. This will also help eliminate currency exchange risks and facilitate business between buyer and seller,” said U Ye Min Aung, vice chair of the UMFCCI. This comes on the back of a recent Private Sector Development Committee meeting led by Vice President U Mint Swe, during which businesses were encouraged to use their trade partner’s currency as the main means of exchange.
Myanmar Investment Commission (MIC) announced the updated on injections of foreign capital
U Thant Sin Lwin has been appointed as Secretary of the Myanmar Investment Commission (MIC), according to notification 55/2019. U Thant Sin Lwin replaced U Aung Naing Oo as Director General of the Directorate of Investment and Company Administration (DICA) in March. U Aung Naing Oo is now Permanent Secretary of the Ministry of Investment and Foreign Economic Relations. DICA is responsible for undertaking administrative activities of the Commission. All other members of the MIC are unchanged and U Thaung Tun remains the chair of MIC. The MIC also announced updates on injections of foreign capital. According to the announcement, all companies which have received MIC or state and regional investment committee endorsements to bring in foreign capital should do so within the approved timeframes.
Thilawa Special Economic Zone (SEZ) is working to attract and grow the number of foreign investors
An open day for the media this week helped showcase the Thilawa Special Economic Zone that is working to attract foreign investors to Myanmar, offering an alternative to the increasingly costly Asian destinations such as China. Speaking to the media at a presentation at Thilawa SEZ, Yoichi Matsui, Chief Advisor to Thilawa SEZ Management Committee from the Japan International Cooperation Agency (JICA) said the number of expansion projects and capital increases in the four years after the first company went into operation in 2015 “shows investors’ confidence in Thilawa SEZ and Myanmar workers.” Speaking at the event on 26 September, Mr Matsui said a total of 113 projects have been approved in less than five years. The total approved investment amounts to US$1,847 million, as of 26 September 2019, according to the chief advisor.
Singapore investments reached over USD $ 7.5 billion which topped in transport and communications sector
Singapore is invested over US$7.5 billion in transport and communications sector, over US$4 billion in housing development sector and over US$3.3 billion in oil and natural gas sector, according to the 7th Joint Committee of Myanmar–Singapore Ministerial Meeting. Myanmar allowed 312 investments from Singapore from 1988-89 FY till now and total investment is more than US$22 billion, which is about 27 per cent of total foreign investment. Singapore invested US$43.88 million in the farming sector, over US$100 million in livestock and fishery sector, over US$49 million in the mining sector, US$2.531 billion in production sector, US$1.208 billion in the energy sector, US$3.357 billion in oil and natural gas sector, US$1.663 billion in hotel and tourism sector, US$4.050 billion in housing development sector, US$200 million in industrial sector and US$1.371 billion in other services sector, according to the Directorate of Investment and Companies Administration (DICA).
Fraser and Neave (F & N), Singapore listed beverage firm re-entered Myanmar beer market
Singapore-listed beverage firm Fraser and Neave (F&N) has launched its Myanmar subsidiary Emerald Brewery with an investment of US$70 million. Operations at the brewery will be located in Hlegu Township, Yangon and it will produce Chang Lager Beer. Through Emerald Brewery, F&N will invest in local manufacturing, employ local people, engage local suppliers and distributors and support community investment programmes. F&N’s has received its capital investment to build a modern brewery which will provide an annual beer production capacity of 500,000 hectolitres, to expand logistics including sales and distribution operations, in addition to drive marketing and people capabilities.
Innovating Israeli Agriculture: Opportunities for Myanmar was held in Yangon with the aim to extend the agro-technologies between two countries and to promote the livelihoods of farmers in Myanmar
Along with the enhancement of relationships between Israeli technologies & companies and Myanmar private sector, seminar on “Innovating Israeli Agriculture: Opportunities for Myanmar” took place at UMFCCI in Yangon on Wednesday. It was jointly organized by the Embassy of Israel in Myanmar and Myanmar Paddy Producers Association (MPPA) aiming to extend the agro-technologies between the two countries and to promote the livelihoods of farmers in Myanmar. Ambassador, Embassy of Israel in Myanmar, H.E. Mr. Ronen Gilor said “As you know, I believe that we have for a long gain period of time and very we good relationships in agriculture between the state of Israel and the Republic of the Union of Myanmar. And when we have the opportunities to booting here expert from Israel you know to make a good seminar regarding the new innovation of Israeli Agriculture technologies. So we are part of to do it.”