Weekly Business News from Myanmar

Myanmar Business Association established in Yangon aiming to accelerate connection and cooperation among the entrepreneurs from the various fields in Myanmar
Myanmar Business Association was established on Thursday in Yangon. The association aims to accelerate connection and cooperation among the entrepreneurs from the various business fields in Myanmar. The Association will also perform as a bridge between the government and entrepreneurs, Chairman of the Myanmar Business Association stressed. Chairman, Myanmar Business Association, Ko Ko Htwe said “Our association will solve the difficulties entrepreneurs are facing. If there are some we cannot solve, we will seek help from the government. There are a lot of associations already but we need one for all and that is Myanmar Business Association.”
Thailand’s PTT Group and India’s Indraprastha Gas Limited and Gail Consortium (IGL Consortium) selected to supply and distribute electricity and natural to Myanmar New City project near Yangon
The main developer of a controversial new city slated for construction on the western bank of the Yangon River has selected two foreign companies to supply and distribute electricity and natural to for the project. New Yangon Development Company (NYDC) announced on Tuesday that it has chosen Thailand’s PTT Group, comprising PTT, PTTEP and GPSC, for power supply and distribution, and India’s Indraprastha Gas Limited and Gail Consortium (IGL Consortium) for natural gas supply and distribution. Last year, the Yangon government launched NYDC, which plans to develop the New Yangon City project on 20,000 acres of farmland across the Yangon River from downtown Yangon. At the launch ceremony in March, Yangon Region Chief Minister U Phyo Min Thein said, “It is expected that the new city will create 2 million jobs,” while claiming that NYDC is fully owned by the government. The project is still awaiting the Union government’s approval.
CB Insurance and Thai Life Insurance PCL signed an joint agreement to offer new insurance products in Myanmar market
Yangon-based Citizen Business Insurance Public Ltd (CB Insurance) has formalised a joint venture with Thai Life Insurance PCL (Thai Life) through an agreement signed on August 16 that will see both companies working together to offer new insurance products in the Myanmar market. Part of the CB group of companies that includes Co-operative Bank Ltd, the agreement between CB Insurance and Thai Life came about after the government announced in late July further liberalisation of the local insurance market by giving approval for six foreign insurers to form partnerships with local insurers. CB group chair U Khin Maung Aye said the partnership sees CB Life holding a 65% stake in the joint venture, with the remaining stake held by Thai Life. “The partnership will see Thai Life offer more life insurance products in Myanmar leveraging on its technology and market knowhow,” he said.
Total foreign direct investments (FDIs) expected to hit up to USD 5,800 million in the current fiscal year
The total foreing direct investments are expected to hit up to 5,800 million US dollars in the current fiscal year, according to the Myanmar Investment Commission (MIC). From October 1, 2018 to August 13, 2019 of this FY, the total FDI hit 3832.466 million US dollars. Eleven overseas investments worth 74.335 million US dollars, got the nod at the MIC’s meeting No.13/2019. The MIC allowed two investment proposals and one investments while the Yangon Region Investment Committee gave the permit to eight businesses. It can create 5887 new jobs for locals. These investments are linked to the industry sector. During this fiscal year, the MIC allowed 235 foreign investments worth 2291.442 million US dollars. The total FDI including investment promotion, reached 3608.786 million US dollars.
Export earnings from CMP garment industry up over one billion USD dollars when compared to the same period of last year
From October 1 of 2018-2019 fiscal year, the CMP garment industry earned over 3.8 billion US dollars, up over one billion US dollars compared with the same period last year, according to an official of the Commerce Ministry. Last year, the sector saw the export earnings of over 2.775 billion US dollars. The export earnings of CMP garment industry increased by over 1.037 billion US dollars. The CMP garment industry topped the list of the total export sector. In 2018, the garment export sector earned nearly 4.6 billion US dollars. The sector is expected to earn up to 10 billion US dollars in 2024, said Khaing Khaing Nwe, secretary of Myanmar Garment Entrepreneurs Association (MGEA), at the 5th annual meeting at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
In collaboration with the Myanmar Retailers Association (MRA), AYA Bank will provide loans to 50 local retailers under its SME shop Owner loans pilot project
In collaboration with the Myanmar Retailers Association (MRA), AYA Bank will provide loans to 50 local retailers under its SME (small- to medium-sized enterprise) Shop Owner Loans pilot project. U Thurein Nyein, the President of the Myanmar Retailers Association, said: “The Myanmar Retailers Association will provide loans to about 50 retailers, if they meet the requirements the bank has set.” The MRA and AYA Bank are now working together, and will provide the loans to approved retailers at the end of the year. The loans will be granted especially to retailers so that they can expand their businesses.
Myanmar foreign loans rise to USD $ 10.2 billion in the 2017 – 2018 fiscal year
Myanmar has accumulated US$10.2 billion in debt owed to more than 20 countries and multilateral organisations, the Joint Public Accounts Committee of the Pyidaungsu Hluttaw noted in a report on the Union budget for the 2017-18 fiscal year. The committee said the Ministries of Home Affairs; Agriculture, Livestock and Irrigation; Transport and Communication; Electricity and Energy and; Industry took the largest loans. According to the report, loans rose by more than US$1 billion (K1.587 trillion), or 11.5pc, between fiscal 2016-17 and 2017-18. Of the total loan amount as of March 2018, loans from China formed the biggest amount totaling US$4 billion. Some US$1.11 billion has been repaid.
Yangon City Development Committee (YCDC) plans to allow private operators to manage the market
Yangon City Development Committee (YCDC) is planning to allow private operators to manage the markets so they can stay open until later at night. “YCDC’s markets now operate more like an office; instead of being a market. Thus, it is better to hand them over to private operators. There is a big difference between private operation and state operation,”said U Maung Maung Soe, Mayor of Yangon. Since markets run by YCDC usually close before six o’clock in the evening, it results in shop owners selling their goods on the streets. People in Yangon are mostly office workers who would normally purchase items in the evening after work.
Myanmar Government likely to allow 35 percent of foreign investment in local wholesale and retail businesses
In order to make shopping centers stronger, the Myanmar Retailers Association announced that Myanmar is planning to allow foreign investments to comprise up to 35 percent of the total investment in local wholesale and retail businesses. This move will nearly double the current proportion of foreign investment allowed in locally-owned wholesale or retail businesses, which now stands at 20 percent. Naturally, up to a full 100 percent of foreign investment is allowed in any wholesale or retail business that is owned by foreigners. U Thurain Nyein, the President of the Myanmar Retailers Association, said: “Even with foreign investments of up to 35 percent, wholesale and retail companies will be regarded as locally-owned, and will still be able to enjoy the benefits available to local companies.”
Thai Life Insurance Company will become the first ASEAN insurer to enter Myanmar’s insurance field
Thai Life Insurance has struck a deal to take a 35% stake in Citizen Business Insurance (CB Insurance), becoming the first Asean insurer to enter Myanmar's insurance field, according to the Bangkok Post. Penetrating Myanmar's insurance market aligns with the company's strategy to expand operations to other countries in ASEAN, Chai Chaiyawan, president of Thai Life Insurance said in a statement.