Weekly Business News from Myanmar

The first Thai – Myanmar Business Matching Logistics 2019 was held in Yangon with the aim to discuss bilateral economic relations between the businesspersons of Myanmar and Thailand
Thai-Myanmar Business Matching Logistic 2019, organized by Thailand Embassy to Myanmar, was held at Pullman Yangon Centre Point Hotel in Yangon for the first time on September 11. The business matching included 14 logistic companies from Thailand. It was held with the aim of discussing bilateral economic relations between the businesspersons of Myanmar and Thailand. “We intend that our business matching is to make 14 renowned logistic companies in Thailand known to Myanmar public,” said the senior diplomat of Thai Embassy to Myanmar.
The Central Bank of Myanmar (CBM) will intervene to stablise the foreign exchange rate market in Myanmar
The Central Bank of Myanmar (CBM) is planning to take additional measures to further stabilise the foreign exchange market, vice governor U Soe Min said in Parliament on Monday. The new measures may include it intervening in the foreign exchange market, the Myanmar Times understands. The move comes on the back of a recent bout of volatility in the local exchange rate. After U Soe Thein, who is also vice governor of the CBM, raised concerns over runaway non-performing loans (NPLs) in Parliament in late August, the Myanmar kyat plunged more than 1 percent to K1487 per US dollar. The local exchange rate quickly rebounded after the CBM allayed fears that strict action would be taken against debtors. On Thursday, the exchange rate was K1532 per dollar, up 2.5pc from its August trough.
UMFCCI Centennial International Expo 2019 will be held on September 20 – 22 in Yangon to provide a platform for local products exposing those to the international market
This year marks the centennial anniversary of the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI). They will organize the UMFCCI Centennial International Expo 2019, which will feature both local and foreign products. The event will be held on September 20-22 at Fortune Plaza (Myanmar Expo) in Thaketa Township, Yangon. “This event will provide a platform for local products exposing them to the international market. Moreover, it is an attempt to contribute to the country’s economic growth,” said Dr. Maung Maung Lay, Vice President of UMFCCI. Businesses from Germany, Japan, the Netherlands, South Korea, China, Malaysia, Thailand, Vietnam, China (Taipei), and other local businesses will showcase their products. A variety of products will be present, including vehicles, electronics, construction materials, decoration products, garments, jewelry, food, auto parts, logistics, and information technology. “The expo will present investment and business opportunities for both local and foreign businessmen. We want our local enterprises to showcase their products at the expo as this expo is intended to boost the economy,” said U Myo Thant, Joint Secretary of the Central Committee for Expo. The expo will provide a platform for local and international business to connect, it will also include seminars such as Economic Development Initiatives in Myanmar. There will be over 200 shop booths for value-added and semi-finished products. Products will not only come from abroad but also from various states and regions across the country. The three-day event is expected to receive 30,000 to 50,000 visitors. (Myanmar Business Today: https://www.mmbiztoday.com/articles/umfcci-centennial-international-expo-2019-feature-local-and-foreign-products )
Union Government approved to upgrade a local airport to international airport status in Thandwe, Rakhine State
The government has approved the upgrade of a local airport in Thandwe, Rakhine State to international status, said U Kyaw Aye Thein, Rakhine State Planning and Finance Minister. The decision was made at the Union level after the Rakhine State Government submitted the request to upgrade, he said. The authorities were responding to private sector demand for the airport to be able to receive international flights from Europe. “Many investors and businessmen from Europe want to travel directly to Ngapali for meetings with the Ministry of Hotels and Tourism and other promotional events,” U Kyaw Aye Thein said. He added that with more direct international flights able to land in Thandwe, opportunities for Rakhine tourism would spike, supporting state efforts to draw more tourists to the state.
Myanmar – China border trade volume reached more that USD $ 5,450 million in the current fiscal year
The trade volume on Myanmar-China border has reached more than 5,450 million during the current fiscal year. From October 1 to the end of August in the previous FY, there were more than US$ 6,470 million. Especially, border trade volume decreased by more than 1,270 million in Muse and Lwejel border trade camps, according to the Ministry of Commerce. From October 1 to the end of August in 2017-2018 FY, border trade volume reached US$ 5,685.157 million in Muse border trade camp, US$ 219.073 million in Lwejel border trade camp, US$ 426.605 million in Chinshwehaw border trade camp and US$ 140.012 million in Kanpikete border trade camp. From October 1 to the end of August in 2018-2019 FY, border trade volume reached US$ 4,535.796 million in Muse border trade camp, US$ 183.925 million in Lwejel border trade camp, US$ 491.058 million in Chinshwehaw border trade camp and US$ 284.675 million in Kanpikete border trade camp.
The South Korea’s KB Kookmin Bank will provide home loans to low income households in Yangon
South Korea’s KB Kookmin Bank will participate in developing a government-funded residential complex for low income households in Yangon, Kim Chang-woo, chief representative of KB Kookmin Bank Yangon Representative Office, told The Myanmar Times. KB Kookmin Bank and Yangon Region Government signed a Letter of Intent to support the project during South Korean President Moon Jae’s visit to Myanmar last week. KB Kookmin Bank plans to help by providing financing to residents and supporting employment opportunities. The bank said it is in the middle of discussions at the Committee for the Development of Social-Based Housing Complex Projects on details of housing financing products to be provided by KB Microfinance, including interest rates, limits and loan duration and other plans to provide optimal service to residents, Kim Chang-woo said.
The fuel import volume reached more than USD $ 2.9 billion in 11 months of this year when compared to the same period of last year
The Commerce Ministry imported more than 4.9 million fuel tonnes worth of more than US$ 2.9 billion, with a decrease by 480,000 fuel tonnes worth of US$ 380 million, compared with the same period of last year, said an official of the Ministry of Commerce. "From October 1 to August 30 of 2018-2019 FY, more than 4.957 million fuel tonnes worth of US$ 2.942 billion was imported. Last year, more than 5.444 million fuel tonnes worth of US$ 3.326 billion was imported," an official of the Ministry of Commerce told The Daily Eleven. The current fuel import decreased by 486,150 tonnes worth of US$ 384.389 million in 11 months this fiscal year.
Myanmar Sugar Forum 2019 was held in Nay Pyi Taw for the sustainable development of Myanmar sugar industry
For the sustainable development for Myanmar Sugar Industry, Myanmar Sugar Forum 2019 was held in Nay Pyi Taw on Wednesday. Vice President U Henry Van Thio, Union Minister for Agriculture, Livestock and Irrigation Dr. Aung Thu, departmental officials and personnel from the related fields attended the forum. At the forum, the Vice President stressed to expand sugarcane cultivation to support the needs of local foodstuff industry, producing high-quality and value added sugar products, and seeking markets for export through the trade agreement. He also called for providing support to develop sugarcane cultivation for the socio-economic life of the growers. Deputy Director General, Department of Agriculture, Zaw Htun Myint said “For the sugar industry development, there is a little bit challenge like the high of production cost because of power consumption. If the production cost can be reduced, the growers will get good price. This forum intends to harmonize the sugarcane production and sugar market with good results by short-term and long-term solutions.”
The exclusive interview with Mr. Thanawut Naigowit, New Economic Counsellor and Director of the Thai Business Centre in Yangon for the trade and investment between Myanmar and Thailand
Thailand and Myanmar have long had business and economic ties, with the Thais even establishing a trade and business centre in Yangon. Last year, trade volumes between the two countries reached US$7.5 billion, representing a year-on-year increase of 7 percent. Moving forward, Thanawut Naigowit, who was appointed as Thai Economic Counsellor and Director of the Thai Business Centre in Yangon last month, has plans to increase trade between Thailand and Myanmar to US$10billion over the next few years. This comes at a time when Myanmar is attempting to raise export volumes to Thailand at the Myawady border. “Myanmar businessmen need to find the right business partners from Thailand. Most of Myanmar people know about products made in Thailand but Thai people need to know more about Myanmar products first before exports can improve,” Mr Thanawat told the Myanmar Times in a recent interview. During the interview, Mr Thanawat also discussed the role of the Thai Business Centre as well as drawing more Thai investments into Myanmar:
Yangon Regional Government will partner with the Netherlands on increasing an effective water resource management policy in Yangon
The Yangon Regional Government has partnered with the Netherlands on creating an effective water resource management policy. The country is facing various problems with water such as flooding in cities and towns, transport along shallowing waterways, and a safe and sufficient water supply for Yangonites. “We are working on methods for water management in order to provide services that meet modern city standards, and avoid disasters,” said U Phyo Min Thein, Chief Minister of Yangon. At present, major rivers such as the Ayeyarwady, Sittaung, Chindwin, and Salwin all face the same problem of shallow depth causing difficulties for water way transport. We have a twofold problem in the rainy season; lots of freshwater that is badly needed in the summer is lost to the ocean, and of course flooding. An effective water management plan can reduce floods while reassuring water security in the dry summer months.