Weekly Business News from Myanmar

The import value of CMP (cut-make-package) raw materials businesses exceeded over USD $ 310 million in 11 months during this fiscal year when compared to the same period of last fiscal year
CMP (cut-make-package) businesses imported raw materials worth over US$2.1 billion in about 11 months during this fiscal year, exceeding over US$310 million compared to the same period of last year, according to sources from the Ministry of Commerce. CMP raw materials worth US$2.101 billion were imported from October 1 to August 23 in the current 2018-2019 current fiscal year. In the same period of the previous fiscal year, the value of imported raw materials amounted to just over US$1.787 billion, so this year saw additional US$313.281 million. CMP business means importing raw materials, manufacturing finished goods domestically and exporting them.
The tax exemption allowed for state development projects involving concessional loans and grants
The Ministry of Planning and Finance announced a tax exemption on August 23. The exemption is for companies working on state development projects that are funded by concessional loans or grants. The tax exemption also applies to foreign employees working for the companies. The exemption includes income tax for both foreign companies and its foreign employees as well as commercial tax on the imported goods, machines, and other required materials for the state development projects. The tax relief covers the income tax, commercial tax, and tax on service providers for state development projects that are implemented on a concessional loan. Companies will need to apply for the certificates and other required documents at the Internal Revenue Department to qualify for tax relief.
Yangon Region Government is planning to set out the development of micro, small and medium enterprises (MSME) which will help grow and access markets more quickly
The Yangon Region government is seeking to develop of micro, small, and medium enterprises (MSME) as part of its larger growth plans, Yangon Region Chief Minister U Phyo Min Thein says. Last year, the government surveyed MSMEs in the region and urged small business owners to register as official with the government in order to receive more official assistance. As part of its efforts to boost MSMEs, the regional government has been providing financial assistance to 100 selected companies to help them grow and access markets more quickly. The selected companies were also recommended for loans from banks. The companies were chosen based on their growth potential and business type.
Malaysian investors attracted to Myanmar’s agriculture and other industries despite rift over Rakhine crisis
Investors from Malaysia say they are attracted to Myanmar’s agriculture and other industries despite the rift between the two governments since the northern Rakhine crisis. “Malaysian businesses are keen to invest in sectors such as technology, construction, manufacturing, and service in Myanmar. They showed extra interest in agriculture-based businesses,” said Gilbert Lee, president of Malaysian Myanmar Business Chamber (MMBC), during the MMC event held at Wyndham Grand Hotel Yangon on Friday. Mr Lee has invested in Myanmar for more than 25 years and according to his experience, there are many opportunities for Malaysian investors in Myanmar but most of them are not aware of those great chances.
Myanmar Investment Commission (MIC) approved the six projects in real estate, livestock and fisheries, and agriculture sectors
The Myanmar Investment Commission approved six projects yesterday in the real estate, livestock and fisheries, and agriculture sectors, with investments amounting to US$214.223 million and K25.733 billion. The projects will create 374 jobs for Myanmar citizens. The MIC granted its approval at a meeting (14/2019) held in Yangon. U Thaung Tun, the Chairman of the MIC, and 9 members attended the meeting.
UMFCCI Centennial International Expo 2019 will be held in Yangon aiming to connect local and international entrepreneurs and penetrate into the international markets and distribute quality products in local market
Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) will hold the “UMFCCI Centennial International Expo-2019” at Fortune Plaza (Myanmar Expo) in Thakayta Township, Yangon from 20th to 22nd of this month according to the press conference on Monday. Ministry of Commerce, Ministry of Industry and Ministry of Investment and Foreign Economic Relations will support this expo. It aims to develop local products and business, penetrate into the international markets, and connect local and international entrepreneurs and to distribute quality products in local market. Vice President, UMFCCI, Dr. Maung Maung Lay said “We want to know more about UMFCCI 100th anniversary among the entrepreneurs and business organizations. UMFCCI is conducting creation for supply change and investment opportunity in our country. We are making efforts to inform the international participants for the economic investment opportunity and development. We also try to get export and import economic opportunities in the country.”
Manaung Public Company proposed the plans to implement ecotourism on Manaung Island to Rakhine State Government for approval
A local company named Manaung Public Company has presented plans to the Rakhine State Government to implement ecotourism on Manaung Island, according to the Ministry of Hotels and Tourism. The Ministry of Hotels and Tourism has laid out the master plan for the project. They first sent the plans to the Rakhine State Government for approval. Once approved they will be presented to the Rakhine State Parliament. “We have laid out and presented the master plan to the Rakhine State Government. When the state government and the parliament approve it, we will present it to the union. We cannot say when we will start and finish the project as we need to wait for the approval,” U Ye Aung More, Director of the Ministry of Hotels and Tourism (Rakhine State), told Myanmar Business Today.
PTT Group won a deal for the development of an electricity production system for New Yangon City in Myanmar
PTT Group announced today that it has won a deal for the development of an electricity production system for New Yangon City in Myanmar. Chawalit Tippawanich, president and CEO of Global Power Synergy Co Ltd (GPSC), said that the New Yangon Development Co Ltd (NYDC) of Myanmar has chosen PTT Group, comprising PTT Exploration and Production (PTTEP) and GPSC, to develop the electricity production system in New Yangon City, which borders Yangon. “For the later steps, the PTT Group will further discuss the details and talk with GAIL (India), which won the contract for sourcing natural gas for the development of the New Yangon project. PTT will require the natural gas supplied by GAIL for the development of the project,” said Chawalit.
Yangon Region Government granted the loans to 100 Small and Medium Enterprises (SMEs) aiming to bring the development of SME sector in Yangon Region
The Yangon Region government has chosen 100 small- and medium-sized enterprises from over 40,000 SMEs in Yangon Region for grant of loans, said U Myint Thaung, the Regional Minister for Planning and Finance, at a press conference held on Wednesday at the Yangon Region Investment Committee’s office. “There are over 40,000 SMEs across Yangon Region. We have shortlisted 100 SMEs which have the greatest potential to develop their businesses. Of these 100, over 40 SMEs have already received loans, while around 60 have been issued recommendation letters. Currently, we are negotiating with the concerned banks to issue them loans. The Loan Appraisal Committee has approved loans of over 60 SMEs out of the 100. We are making arrangements to provide loans to 100 more SMEs in the second phase,” said the Minister. “We are planning to provide loans to 100 more SMEs in the second phase for bringing about the development of the SME sector in Yangon Region,” said U Phyo Min Thein, the Chief Minister of Yangon Region.
UK government shifts its trade policy on Myanmar to focus on opening up specific sectors such as education, financial and professional service, infrastructure and energy where UK's companies have a foothold
Britain is signalling a shift in its trade policy on Myanmar to focus on opening up specific sectors where UK companies already have a foothold, including education, financial and professional services, infrastructure and energy. In an interview with The Myanmar Times, Warren Pain, director of international trade at the British embassy, set out how the UK is changing its approach, also in the context of its looming divorce from the European Union. Making its push for further engagement and market liberalisation, the UK has already decided to maintain Myanmar’s tariff-free access, whether or not the EU eventually decides to withdraw such trade privileges because of human rights abuses, as reported by The Myanmar Times. Addressing serious concerns raised by a UN report last month into crimes against ethnic groups committed by the military and its corporate web, Mr Pain called on UK companies to be “a bit more careful” when doing business in Myanmar but said they should continue to be active in Rakhine state “with caution”.