Weekly Business News from Myanmar

Myanmar government expected to grow its GDP by 7 percent for the upcoming 2019- 2020 fiscal year
Myanmar expects its economy to grow by 7 percent as measured by GDP for the upcoming 2019-20 fiscal year compared to the 7.6pc expected for fiscal 2018-19. According to the budget estimate submitted by the Union government to the Pyidaungsu Hluttaw on July 15, it expects total revenue of K25.3 trillion and total expenditure of K32.3 trillion, which will mean a 5.9pc deficit to GDP. The rate of the kyat to the US dollar was set at 1,525 compared to the current fiscal year’s 1,360. Commenting on the deficit, a member of the parliamentary Joint Public Accounts Committee, U Sai Thiha Kyaw, said there should not be too much worry over the deficit because, as in previous years, delayed implementation of projects has led to less expenditure than what was budgeted. This was also noted in a mid-year report for the 2018-19 fiscal year, which observed that many projects have not met their deadlines and recommended full use of the allocated amounts.
Yangon Innovation Center was officially inaugurated in a grand scale with the aim for the youth to provide with the job opportunities and help to connect with technological companies
The opening ceremony of the Yangon Innovation Centre was held in front of that building in the compound of Health Port at the corner of Pansodan road and Strand road in Seikkan Township, Yangon Region, at 10 am yesterday. State Counsellor Daw Aung San Suu Kyi delivered a speech at the ceremony. She inaugurated the Centre by cutting the ceremonial ribbon. In her opening remark, she said, “Innovation is emerging as a top priority during the period of the Fourth Industrial Revolution. Developed countries have already applied Artificial Intelligence (AI) and the Internet of Things (IOT) across the areas from agriculture to education in their way to Industry 4.0. Automated machines have successfully taken over the combined use of man and machines in the production sector. On the whole, many global countries are found to be prepared for Industry 4.0 or Fourth Industrial Revolution. Our country has geographical advantages to produce green energy and healthy organic fruits abundantly. It also has many opportunities to become an agri-power nation through efficient and effective investments by applying technologies and innovations on the vacant cultivable lands. Therefore, it is very important that we need to have absolute self-confidence.
The parliaments of the Yangon Regional Hluttaw finally approved both Htantabin and Hlegu industrial park projects
Members of Parliament (MPs) for the regional Hluttaw of Yangon has finally given the green light for the Htantabin and Hlegu industrial park projects to the north of Yangon city. The MPs approved both projects after Minister of Karen National Affairs Naw Pang Thinzar Myo, who is also the chair of the Yangon Region Investment Committee (YRIC), gave more details on the projects, including their backers. The Hluttaw approved both projects, part of the 11 new industrial parks proposed in 11 mostly rural townships as announced at the Yangon Investment Forum, on July 12.The projects, according to YRIC secretary U Myo Khaing Oo, are expected to start early next year. “The minister explained the background to the projects thoroughly to the MPs, saying that the projects have investors,” Mayangone township regional MP U Yan Shin said. Htantabin township regional MP U Aung Bone Kyaw San Oo said the more than 100 farmers affected by the Htantabin project has agreed to the project after a series of meeting were held with them by the regional government.
PTT Oil and Retail Business (PTTOR) opened its first petrol station in Myanmar by the end of year
Thai energy company PTT Oil and Retail Business (PTTOR) has made official its entry into the Myanmar market by announcing the opening of stations and the construction of fuel depots, according to a petrolplaza.com report. PTTOR will open its first petrol station in Myanmar by the end of year and will build tank depots for oil and LPG as well as other fuelling facilities, according to Attapol Rerkpiboom, Chairman of PTTOR.
Myanmar’s trade with foreign countries reached over USD $ 26.58 billion as of 5 July in 2018 – 2019 fiscal year
Myanmar's trade with foreign countries has reached over 26.58 billion U.S. dollars as of July 5 in current fiscal year 2018-2019, Xinhua reported. From Oct. 1, 2018 to July 5 2019, the country's export earned 11.72 billion U.S. dollars while its import shared 14.86 billion U.S. dollars.
Japanese company’s Daiwa Securities Group set up USD $ 30 million venture capital fund in Myanmar to invest in local startups
Tokyo-headquartered investment bank Daiwa Securities Group has seeded a US$30 million venture capital fund in Myanmar to invest in local start-ups. Daiwa subsidiaries Daiwa PI Partners Co and Daiwa Corporate Investment Co have established the Daiwa Myanmar Growth Fund, with Japanese life insurer Taiyo Life Insurance Co as a partner. It will mature in 12 years with an investment period of five years. The fund will provide growth-capital to private firms by taking minority stakes of 10-30pc, focusing on consumer goods as well as services, telecommunications, infrastructure and logistics industries. It will also seek to “secure a meaningful influence on the corporate governance” of those companies by taking seats on company boards.
The rubber export earnings increased by over USD $ 61 million during the over nine months of this fiscal year
During over nine months of this fiscal year, Myanmar earned over 220 million US dollars from the exports of over 0.17 million tons of rubber, according to an official of the Commerce Ministry. From October 1 to July 5 of 2018-2019 fiscal year, the rubber export earnings hit 225.189 million US dollars. Last year, the export earnings from exports of 135,982 tons of rubber reached 163.777 million USD. This year, the rubber export earnings increased by over 61.412 million USD and the rubber export volume, by over 40,582 tons.
Joint venture with Ever Investment, China Lesso Group Holding Ltd entered to build an integrated commercial and logistics complex project in Yangon
Hong Kong-listed China Lesso Group Holdings Ltd, a building materials supplier, has entered into a joint venture with Ever Investment to build an integrated commercial and logistics complex in Yangon worth US$87 million. China Lesso’s Yangon-based subsidiary, Lesso Mall Investment and local partner Ever Investment formed a joint venture called Lesso Home Development for the project, with Lesso Mall holding a 60 percent stake and Ever Investment holding the remainder stake. Lesso Home Development has been authorized by the Myanmar Investment Commission (MIC) to carry out construction, selling, leasing and management of offices, commercial, wholesale and retail business in Yangon Region.
The foreign companies from Japan, South Korea, Thailand and China expressed their interest to make investments in the Myanmar electricity sector
Companies from Japan, South Korea, Thailand and China are inquiring to make investments in the Myanmar electricity sector, according to U Thant Sin Lwin, Acting Director General of the Directorate of Investment and Company Administration. “We have received many inquiries for possible investments in electricity. Some Japanese companies want to make investments in the power sector under joint ventures. Japanese and Korean companies want to provide power in Yangon. Meanwhile the Chinese companies want to know the necessary procedures to build hydropower plants,” he said. These companies came to Myanmar in May and met with the investment body to discuss the power sector. Likewise, U Zaw Min Win, President of UMFCCI, also said that some of the Japanese companies are planning to make investments in power projects that will produce around 1,000 megawatts.
Chief Minister of Yangon Region Government promised the local businessmen to find the international markets for agricultural and livestock products
U Phyo Min Thein, the Chief Minister of Yangon, has promised local businessmen that he will help find international markets for livestock and agricultural products. At a monthly meeting between local businessmen and the Vice President of Myanmar, the Chief Minister said: “Only the agricultural sector and livestock sectors can boost the country’s GDP. We are currently issuing Good Agricultural Practices (GAP) as a first step to make are agricultural and livestock products acceptable on the international market.” The present government has already upgraded 4,000 acres of land in Yangon, spending some K8 billion in the process. The minister continued to say that the government will work with private businessmen to find reliable international markets for local products. At the current time, Myanmar is in talks with the governments of Yunnan and Beijing.