Weekly Business News from Myanmar

The volume of foreign investment in real estate sector reached more than USD $ 400 million from 1988 – 1989 to 2018 – 2019 fiscal year
Foreign investment worth of more than US$ 5,400 million flowed in real estate sector from 1988-1989 fiscal year to August of 2018-2019 FY, according to the official statistics of Myanmar Investment Commission. From October 1 to the end of August in 2018-2019 FY, foreign investment volume reached US$ 183.533 million in the real estate sector. The official statistics of the Directorate of Investment and Company Administration (DICA) showed that foreign investment volume reached US$ 22,420.572 million in oil and gas sector, US$ 21,178.132 million in energy sector, US$ 11,430.434 million in production sector, US$ 10,908.433 million in telecom and transport sector, US$ 5,439.880 million in real estate sector and US$ 3,098.936 million in hotel and travel sector from 1988-1989 fiscal year to August of 2018-2019 FY.
Union Minister for Investment and Foreign Economic Relations (MIFER) attended an event in Singapore to boost economic ties and bilateral relations between two countries
Senior Myanmar officials have attended an event in Singapore as part of efforts to boost economic ties between the two countries. Union Minister of Investment and Foreign Economic Relations (MIFER) U Thaung Tun, who is also chair of the Myanmar Investment Commission (MIC), attended the Singapore Summit 2019 held on September 20 and 21. U Thaung Tun also met with Singapore’s Minister for Foreign Affairs Vivian Balakrishnan, and Deputy Prime Minister and Minister of Finance Heng Swee Keat to discuss increasing economic cooperation and investment between Myanmar and Singapore as well as relations between the two countries, the Ministry of Investment and Foreign Economic Relations (MIFER), said in a statement issued on September 22.
Union Government set to focus on supporting growth of digital economy such as telecoms infrastructure next year
A senior government official says that the government is set to focus on supporting the digital economy next year. Deputy Director General of Posts and Telecommunications U Than Thun Aung said this in his speech during the Myanmar Connect 2019 Conference on Tuesday. U Than Thun Aung said regulatory areas that will be the focus next year to support digital economy include regulation balancing, customer stratification, consumer protection, cyber security, support for the digital economy, regional integration, and social media and spam. Realising the importance of building a strong digital economy, the government recently announced the Myanmar Digital Economy Roadmap and the formation of the Digital Economy Development Committee (DEDC) with the goal of enabling the country’s digital transformation, introducing digital government, digital trade and innovation, and to develop a digital economy across all sectors for inclusive and sustainable socioeconomic development.
With the support Ministry of Commerce, Ministry of Planning and Finance and Myanmar Financial Intelligence Unit, EuroCham Myanmar organized Anti-Illicit Trade Forum 2019 in Nay Pyi Taw
The Anti-illicit Trade Forum 2019 was held at M-Gallery Hotel in Nay Pyi Taw on Thursday. It was organized by EuroCham Myanmar with the support of Ministry of Commerce, Ministry of Planning and Finance, and Myanmar Financial Intelligence Unit. A report on illicit trade that evaluates the tax losses in selected FMCG products was launched at the event. In 2017-2018, according to foreign custom data, the export to Myanmar was 25.12 billion US$, while the official import resulted to be only 18.68 billion US$. Therefore, it was 6.44 billion US$ worth of illicit trade.
Yangon Regional Government submitted a regional planning bill with 149 projects which will start in the upcoming 2019 – 2020 fiscal year
Yangon Region Minister for Planning and Finance U Myint Thaung submitted a regional planning bill that includes 149 projects slated to be continued or started in the upcoming 2019-2020 fiscal year to the parliament on Wednesday. U Myint Thaung told lawmakers that the bill includes 80 projects from the Yangon Project Bank development plan and others forwarded by the region’s seven socioeconomic development project committees. The minister said they expect the projects in the bill will contribute to the gross domestic product (GDP) growth of the region as well as the country. He added that the bill has been approved by the Regional Cabinet and the Regional Planning Commission. U Kyaw Zay Ya, secretary of the regional parliament’s Finance, Planning and Economic Committee, told The Irrawaddy on Thursday that the bill includes the New Yangon City project, a new city project in Dala, industrial zones in 11 townships on the outskirts of Yangon, upgrades to local markets and affordable housing projects.
The volume of foreign investment into Thilawa Special Economic Zone (SEZ) reached more than USD $ 362 million from 1 October to the middle of September in 2018 – 2019 fiscal years
Foreign invest volume reached more than US$ 362 million flowing into Thilawa Special Economic Zone from October 1 to the middle of September in 2018-2019 FY, said a source from Myanmar Investment Commission. International ports and logistic activities are needed in order to extensively operate the factories in Thilawa Special Economic Zone, said Win Aung, President of Myanmar Thilawa SEZ Holdings Public Co., Ltd (MTSH). Myanmar Thilawa SEZ Holdings Public Co., Ltd (MTSH) is a Multimodal Logistic Hub. With the international development assistance from Japan, Thilawa Multipurpose International Terminal began the services together with the ceremony of concluding construction of the jetty on December 14 in 2018.
Myanmar based private equity firms, Delta Capital will expand USD $ 30 million in local internet service provider Frontiir
Myanmar-based private equity fund manager Delta Capital will invest a further $30 million into local internet service provider Frontiir. Through Delta’s Myanmar Opportunities Fund II (MOF II), this time the investment is joined with two limited partners, IFU from Denmark and Norfund from Norway. Frontiir will expand coverage beyond Yangon and Mandalay with the latest round of funding. The expansion plans to reach over 20 cities and towns by 2022. This investment was led by British government-owned Commonwealth Development Corporation (CDC) after it announced in July its first direct equity investment in Myanmar. CDC is another limited partner of Delta Capital, and has contributed $15 million to MOF II.
The total trade using Individual Trading Cards (ITCs) through border gates reached over 55 billion kyats as of August 2018 – 2019 fiscal year
Total trade using Individual Trading Cards (ITCs) through border gates reached over 55 billion kyats (36.7 million U.S. dollars) as of August in present fiscal year 2018-2019, according to a Xinhua report. From Oct.1, 2018 to Aug. 31 this year, Myanmar's export using ITCs via border checkpoints amounted over 8.7 billion kyats (5.8 million U.S. dollars) while its import shared 46.4 billion kyats (30.9 million U.S. dollars).
IKBZ Insurance launched its new insurance company which is fully dedicated to life insurance products
IKBZ Insurance on Tuesday announced the launch of IKBZ Life, a new insurance company fully dedicated to life insurance products, in compliance with regulations by the Insurance Business Regulatory Board (IBRB). IKBZ Insurance is a general insurance company which obtained preliminary approval to operate a joint venture with Japanese insurance provider Mitsui Sumitomo Insurance on July 31. Final approval is expected on October 4 at the earliest. The JV will offer general insurance products while IKBZ Life will focus on products linked to life insurance including group health insurance, long term whole life insurance as well as an education savings plan. “By creating a separate legal entity we are not only complying with government requirements, we are also simplifying our offerings for potential customers. Clients interested in life insurance will have a dedicated company to support them, whereas customers looking to protect their assets will continue to be served by IKBZ Insurance,” said U Nyo Myint, vice chair of IKBZ Insurance.
Yangon Regional Government will take an action to crack down on illegal seafood imports from Thailand
The Yangon Regional Government will take action against those responsible for illegal seafood imports from Thailand. This will be done under a collaboration between the Fishery Department and the Food and Drugs Administration, according to U Hla Htay, Deputy Head of Fishery Department of Yangon. “Officials seized 180 tons of fish at the market in Mawlamyine on September 10. We examined the fish and found that they contain formalin and is unfit for human consumption. We will check on the fishery products by collaborating with the FDA,” he said at the meeting held at Myanmar Fishery Federation on September 10. At present, around 20 tons of white shrimp are supplied per day to Yangon’s markets, and officials have found out they also contained chemicals used for preserving fish, which are not suitable for human consumption.