Weekly Business News from Myanmar

Myanmar tourism authorities are looking for to capitalize on recent tourism rebound and stimulate more investments in the tourism sector
Myanmar is looking to capitalise on a recent tourism rebound and stimulate more investment in the sector, following efforts to improve access to credit for smaller operators. On May 6 the first branch of the Myanma Tourism Bank (MTB) opened in Yangon. This is the country’s first bank dedicated to supporting the tourism and hospitality sector. Backed by the Myanmar Tourism Federation, the bank has an initial capitalisation of MMK22bn ($14.5m), with funding provided by the lender’s 26 shareholders, all of which are from the local tourism industry. The MTB is focused on providing low-cost, long-term loans to the sector, particularly to the small- to medium-scale segment, and will offer most of the services provided by commercial banks.
French spirits giant, Pernod Ricard completed a deal to take 34 percent stake in Seagram MM Holding which will produce and distribute whisky in Myanmar
French spirits giant Pernod Ricard has completed a deal to take a 34 per cent stake in Seagram MM Holdings, a joint venture between mainboard-listed Yoma Strategic, the Win Brothers and Delta Capital Myanmar which will produce and distribute whisky in Myanmar, The Business Times reported. Seagram MM Holdings is the holding company of Seagram Myanmar Company, a subsidiary housing Seagram’s whisky brands Seagram High Class and Seagram Imperial Blue.
The export of natural gas value in nine months of this fiscal year decreased by over 32 million when compared to the same period of last fiscal year
Over US$2.7 billion was earned from export of natural gas in more than nine months of the current fiscal year falling by over US$32 million compared to the same period of last year, according to the Ministry of Commerce. "We earned US$2.77 billion from export of 197,992,537 cubic feet of gas from October 1 to July 5 in the current 2018-2019 fiscal year," said a ministry official. In the same period of the previous fiscal year, over US$2.802 billion was earned from export of 349,695,495 cubic feet of gas. In comparison with last year, this year saw a fall of 151,702,958 cubic feet of gas worth US$32.593 million.
Chin State Government prioritized the faster implementation of power projects in order to get more development to Chin State
The Chin State government wants to prioritise a number of hydropower projects in order that more development can come to the state, which is the poorest in the Union. The state, bordering Bangladesh and India in western Myanmar and traversed by a number of mountain ranges with fast-flowing rivers, has seen much interest from foreign investors in building hydropower plants. According to the state government, more than 30 such projects have been proposed or are undergoing feasibility studies. Companies from China, France and Norway have expressed interest in such projects. Among them, a Chinese company signed five MOUs with the state government in early July to carry out studies in Hakha, the state capital, as well as Matupi, Htantlang and Paletwa townships to build 30MW hydropower plants while a Norwegian company has so far invested US$50 million in three medium-scale hydropower projects of under 30MW to be built in Kanpetlet.
Myanmar businesses are showcasing their products at THAIFEX – World of Food Asia 2019 expo in Bangkok
At the recently held THAIFEX - World of Food Asia 2019 expo in Bangkok, Myanmar pavilions showcasing produce from the country drew quite a bit of interest. A total of 11 Myanmar food firms and one Myanmar hosted buyer participated in the fair this year. Visitors were drawn to Khaing Kabar Company, which sells chemical-free gum sterculia, commonly used in the production of drugs, cosmetics, car mirrors, smartphone cases, and food such as bird's nests and Korean aloe vera. Khaing Kabar chief executive officer U La Pyae said the company exports to China, which buys between 400 tonnes and 500 tonnes, and Japan. “We have started negotiating with South Korea,” he said, adding that Hong Kong could be another potential export destination, with most buyers of the extract coming from the beverage and cosmetic industries.
Myanmar’s import of CMP (cut-make-pack) raw materials exceeded USD $ 1.8 billion between October and July of 2018-2019 fiscal year
Myanmar’s imports of raw materials used by CMP (cut-make-pack) businesses exceeded US$1.8 billion between October and July in the present Fiscal Year 2018-2019, up by over $298 million from the year-ago period, the Ministry of Commerce reported this Friday. At this time last 2017-2018 FY, Myanmar spent $1.5 billion on importing CMP raw materials from overseas trading partners. In the week from 29 June to 5 July, CMP raw materials amounting to $44.39 million were imported from partner countries, increasing by nearly $5.8 million from the same period in the previous FY, when CMP imports were valued at $38.6 million.
Japanese companies are planning to build a new power project, 1000 megawatts (MW) plant in Myanmar
According to U Zaw Min Win, Chairman of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), Japanese companies are planning to build a new power project in Myanmar that will be capable of producing 1,000 megawatts (MW) of electricity per year. “Investment in electricity production is really overdue,” he said at a regular meeting between local business leaders and the Vice President of Myanmar. “There are some companies, including U.S. companies, that met us and said that they wanted to invest in Myanmar’s electricity sector. We heard that Japan has plans to build this 1,000-megawatt plant in Myanmar.” Investments like these can improve Myanmar’s power sector which, in turn, will encourage people to make further investments and boost productivity in the manufacturing sector, he added. Moreover, the UMFCCI is working with the government to facilitate the investments. U Soe Win, the Union Minister of the Ministry of Planning and Finance, said: “We are planning to use more of our budget for infrastructure and electricity, both of which are necessary elements that investors consider when making a decision on investment.”
The construction of the Chin State's first major airport, Surbung Airport project in Falam is now more than 50 percent completed
About 53 per cent of the Surbung Airport in Falam has been completed, according to the Aviation Department. The project was started in 2016, and out of 6,000 ft of runway, 4,000 ft have been constructed. “Upon completion of the Surbung Airport, the socio-economy of Chin State would be uplifted and rescue works in Chin State would be sped up,” said Director U Kyaw Soe of the Department of Civil Aviation. Falam Airport is situated in the middle of Chin State and towns such as Falam, Haka, Thantlang and Tiddim can reach all airports in other states and regions thorugh here. Once this airport is completed it will become the aerial gateway of Chin State and enable visitors to come much more quickly.
Myanmar Extractive Industries Transparency Initiative (MEITI) revealed that the government earned million in revenue from the forest sector in Myanmar
Internationally known for forestry products such as teak, timber extraction in Myanmar is lucrative. The website of the Myanmar Timber Enterprise (MTE) boasts that the “forestry sector in Myanmar is one of the major contributors to the national economy.” A new report from the Myanmar Extractive Industries Transparency Initiative (MEITI) reveals that the forest sector earned more than US$463 million in fiscal year 2014-15 and nearly $480 million the following year, representing 0.2 percent of the country’s GDP. On Thursday, MEITI released two reports on the forestry sector for fiscal years 2014-2015 and 2015-2016, shedding light on issues like the discrepancy in annual timber production numbers between the MTE and the Forest Department and the alarming rate of overharvesting (more than 200 percent of timber was cut than is annually allowed). The reports reconcile data provided by companies in forestry sectors with data provided by government bodies. They also aim to help the government identify positive contributions the forestry sectors have made to the economic and social development of the country and to improve resource management in a way that fully implements that MEITI principles and criteria. The Irrawaddy spoke with Daw Khin Saw Htay, a policy analyst with Forest Trends, about the most significant findings from the MEITI forest report, potential reforms for the government and the MTE, and loopholes in forestry law. She works as an implementation partner and offers technical support to MEITI.
Joint venture with Global South Industrial Company (GSIC), Kayah State Government will build a metal refinery which is worth USD $ 50 million in Loikaw’s industrial zone
A Myanmar-China joint venture will be building a metal refinery worth US$50 million located in Myanmar’s eastern Kayah State’s capital of Loikaw. The Directorate of Investment and Company Administration (DICA) said in a statement that the joint venture, Global South Industrial Company (GSIC), was granted permission to build the refinery in Loikaw’s industrial zone. DICA said the US$50 million investment will also see up to 500 jobs created in the refinery, which will be used to refine tin-tungsten and wolfram. GSIC operates tin-tungsten mining near the Kayah State-Shan State border, which would be transported to the new site to be refined once its operational and then be exported mainly to China, the Kayah State DICA secretary Daw May Myo Zaw said.