Weekly Business News from Myanmar

The investors are still welcoming the higher tariffs if businesses are able to enjoy a regular, uninterrupted supply of power
Despite higher electricity prices, if businesses are able to enjoy a regular, uninterrupted supply of power, the move is still welcome as most will still be commercially viable, some investors said. “In the last year alone, blackout time in our factory was over 300 hours. When the power is out, we have to run the factory by using diesel-powered generators, which drives up costs substantially,” said U Myint Soe, chair of Myanmar Garment Manufacturers Association. He added that businesses need not worry about additional electricity costs if the power supply is regular. “Based on a one-year projection of electricity costs under the new tariffs and if supply is regular and stable, our industry can make a profit,” he said. To save more costs, more power saving equipment can be deployed and measures taken to establishing a more disciplined used of electricity, he said.
The Farmland Management Central Group was held its 22nd meeting in Nay Pyi Taw to make the decisions on a series of matters including compensation for farmlands and crops and land use permit
Farmland Management Central Group held its 22nd meeting on Wednesday afternoon at the Ministry of Agriculture, Livestock and Irrigation in Nay Pyi Taw. Chairman of the Central Group Union Minister Dr. Aung Thu called for farmland work in line with the instructions abiding by the existing Farmland Law as the 2012 Farmland Law is being amended. He also stressed that farmers would have benefits.
The government authorities called to legalise the activities of the wildcat prospectors whose hand-dug oil wells dot land inn Magwe Region
There is a need to legalise the activities of the wildcat prospectors whose hand-dug oil wells dot the land in Magwe Region, in central Myanmar. These illegal activities are a source of corrupt practices and loss of revenue to the regional government. These wells, a source of income and jobs for many in the surrounding countryside despite the volatility of global oil prices, have also become a source for corrupt practices in recent years. Early last month, the Anti-Corruption Commission arrested a number of local-government officials and police officers from Pauk township alleged to have received bribes worth K90 million connected to these hand-dug wells. Magwe has been a source of oil for more than a century and revenue from these wells in modern times have been used to run the regional government. As an indication, the regional government of the previous administration received K7.5 billion over the five-year period to mid-2016 as tax from the oil industry. From then until mid-June this year, revenue collected have nearly doubled to K14 billion.
The first public consultation on a Chinese company’s proposal to conduct a mining feasibility study in Sagaing Region ends in shouting match due to the resistance from the local people
The Sagaing regional government’s first public consultation on a Chinese company’s proposal to conduct a mining feasibility study in the Wazeintaung area came to an abrupt end on Wednesday due to resistance from local people. The first public consultation was organized in Yinmarpin Township on Wednesday by Sagaing government officials, and attended by the regional municipal minister and minister of natural resources and environmental conservation. The meeting was brought to a halt when nearly 500 local residents in attendance began shouting, insisting they would not accept the project due to concerns over potentially serious environmental and social impacts. They later walked out of the meeting. “All the villagers strongly oppose the project. We fear the potential impacts. We will lose water resources, our farms and livelihoods,” Daw Than Nyo, a member of the Wazeintaung Protect and Watch Committee (WPWC), told The Irrawaddy.
Bangkok Airways expressed its interest in opening a direct route between Bangkok and Bagan
Bangkok Airways, a Thai regional airline, is interested in opening a direct route between Bangkok and Bagan, which has just been accorded the World Heritage Site status by UNESCO. Bagan, an ancient site of Buddhist temples, monasteries and fortifications in Mandalay Region, already popular with tourists, could see more interest now that it has finally been endorsed by UNESCO. Other destinations the airline would like to open direct routes to include Heho in Shan State and Myeik in Tanintharyi Region as part of plans to expand operations to Myanmar’s tourist destinations. Bangkok Airways vice-president of sales Mr. Varong Israsena said in a media briefing that the airline would like to open up direct routes to Heho, Bagan and Myeik due to their tourism potential.
Myanmar’s tourism targeted to reach out to the US travel market by cementing closer ties with the American of Travel Advisors (ASTA)
Myanmar’s tourism leaders are reaching out to the US travel market by cementing closer ties with the American Society of Travel Advisors (ASTA), TTR Weekly reported. Myanmar Tourism Marketing the official channel for promoting tourism in overseas markets signed a Memorandum of Understanding with ASTA last week. Over 150 people from the tourism industry attended the event organised to show Myanmar is prioritising efforts on the US outbound travel market.
DaNa Facility will invest USD $ 1.7 million in a new mobile banking project for a financial services scheme for the clients in the remote parts of Myanmar
DaNa Facility and a microfinance institution will invest in a new mobile banking project which will extend digital financial inclusion to Myanmar’s unserved population in rural areas and disadvantaged groups. VisionFund Myanmar (VFM), a UK-based microfinance institution, together with the Department for International Development (DFID)’s DaNa Facility will put down US$1.7 million for a financial services scheme for clients in the remote parts of Myanmar. VFM will receive assistance to upgrade their system and technology and utilise mobile applications so it can further expand its services to include women, migrant workers, and smallholder farmers. “Through the project, VisionFund aims to provide customers with mobile wallets and clients with access to digital financial products. It has the potential to transform the lives of so many poor and marginalised people across the country,” said Ma Su Wint Wah, PSD policy officer of UKaid Myanmar.
The 20 member of Indian delegation met up with the executive members of UMFCCI to exchange the bilateral commercial relations and futures of Act East Policy
A relationship building tour from India made 2-day visit in Yangon, and on the 4th of July, they met with the Myanmar officials at Pan Pacific Hotel. A 20-member Indian delegation exchanged views and futures of Act East Policy with the executive members of Union of Myanmar Chamber of Commerce and Industry (UMFCCI) and India-Myanmar Chamber of Commerce (IMCC). The tour intends to interact with prominent organizations and to sensitize the decision makers for potential economic growth of the State of Assam and larger North Eastern Region of India and their proximity to Myanmar. Assam located in the North Eastern Region of India stands as the most favorable location to focus on implementation of India’ Act East Policy
Myanmar Investment Commission (MIC) permitted Chinese cattle breeder, Kangrui Agriculture & Livestock Development Company to invest in the breeding cattle in Myanmar
The Myanmar Invest Commission (MIC) last month permitted China’s Kangrui Agriculture & Livestock Development Company to invest in the raising of cattle in Myanmar. The investment will involve an injection of US$37 million in funds. A breeding facility will be established in Mahlaing Township, Mandalay Region. Kangrui Agriculture & Livestock Development Company, which is 90 percent owned by Shanghai Penghe Supply Chain Management and 10pc by Dehong Penghe Agriculture Development, will be the first wholly-owned Chinese outfit to invest in breeding cattle in Myanmar. The cattle will be bred domestically and mainly exported to China, said U Thant Sin Lwin, Acting Director General of Directorate of Investment and Company Administration (DICA).
Yili Group and Mandala (Myanmar) signed the cooperation agreement to distribute best quality dairy products to Myanmar consumers
Signing Ceremony of Cooperation for Distribution between Yili Group of China and Mandala (Myanmar) took place in Yangon, Tuesday. The event is aimed to distribute best quality dairy products to Myanmar consumers through cooperation. Assistant General Manager, Yili Group of China, Kevin Zheng said “I think China and Myanmar has very near and we have so many commercial activities. Through our cooperation, we can sell our products here and like more Myanmar consumers to have a taste about our products. So I think through all products, I can like more and more Myanmar people to get know about Chinese products.” Both sides have planned to distribute dairy products in Myanmar through cooperation since 2016. Through several meetings and discussions, the agreement can be signed this year and the dairy products are planned not only to distribute to Myanmar consumers but also to South-East Asia countries, an official of Mandala (Myanmar) said.