Weekly Business News from Myanmar

Yangon Regional Government planned to make the beach at Sal Eain Tann Village in Kungyangon Township into an official beach and tourist attraction
On June 25, a lawmaker at the Yangon Regional Parliament asked whether the regional government has plans to make the beach at Sal Eain Tann Village in Kungyangon Township, Yangon, into an official beach and tourist attraction. Naw Pan Thinzar Myo, the Regional Minister for Karen Ethnic Affairs, replied that before making it into an attraction filled with swimming, frolicking, tourists enjoying a barbecue on the beach, the regional ministry will have to conduct a survey to ascertain whether it is an economically viable venture. It will then submit the findings to the Yangon Government. On January 1, 2015, the Union Ministry of Hotels and Tourism issued an announcement that this area would be an official beach, and that it would open for visitors. On the face of it, this looked like a fantastic idea, as it is located less than 100 kilometers south of Yangon, and is the closest beach to the city.
The exports of CMP sector increased over USD $ 1.1 billion which is up over 19 percent in nearly nine months of current fiscal year
For about nine months into the current fiscal year, the exports of CMP sector increased by over 1.1 billion US dollars, up over 19 per cent, according to the figures from the Ministry of Commerce. From October 1 to June 21 of 2018-2019 fiscal year, export earnings hit over 12.109 billion US dollars, 1.99 billion USD more compared with the same period last year. An increase in export earnings is linked to more exports of CMP products. In around eight months of this fiscal year, the export earnings saw a 19.49-per-cent increase as the exports increased by 1.199 billion USD compared with the same period last year.
The Electric Power Generation Enterprise (EPGE) called for the purchase tenders at five power projects to produce over 1000 MW of energy in time for summer 2020
The Electric Power Generation Enterprise (EPGE) under the Ministry of Electricity and Energy (MOEE) has called for purchase tenders at five power projects with the aim of producing over 1000MW of energy in time for summer next year. The invitation comes after State Counsellor Daw Aung San Suu Kyi last week officiated the opening of the Minbu Solar Plant project, Myanmar’s first commercial solar-powered plant, in Magwe Region. In Minbu, Daw Aung San Suu Kyi said an additional 1200MW of power will need to be generated over the short term to fulfill demand in the coming year. This will be purchased from existing gas-fired plants as well as floating power plants, U Ye Tun Zaw, an engineer for the MOEE, told The Myanmar Times.
Joint venture with Myanmar firm, Chinese petrochemical giant proposed the development projects which is worth USD $ 800 million near Kyaukphyu Special Economic Zone (SEZ)’s deep seaport and Ramree island
YANGON—A Chinese petrochemical giant and a Myanmar firm have jointly proposed to the Rakhine State government the development of nearly US$800 million (1.21 trillion kyats) worth of projects near the Kyaukphyu Special Economic Zone (SEZ)’s deep seaport and Ramree Island. The centerpiece of the proposal is a new logistics terminal on Maday Island situated 10 kilometers east of Kyaukphyu to support the deep seaport project. It also includes a project in Za Yet Pyin Village on Ramree Island called the Sea View Beach, 40 kilometers south of Kyaukphyu District, as well as a US$5 million fishery in the Than Zit River. Myanmar Bright Prospect International Logistics (MBPIL) director U Ding Ying, an ethnic Kachin businessman, held a meeting with Rakhine State Chief Minister U Nyi Pu, which was also attended by several state cabinet members, in Sittwe on June 28, according to Rakhine State Municipal Affairs Minister U Win Myint. During the meeting, U Ding Ying laid out MBPIL’s plans, including an estimated budget for each project, to the cabinet members, the minister said. The ruling National League for Democracy’s ministers in the state government promised to help the developer clear the necessary legal hurdles in order to implement the project “as soon as possible,” as they believe it will create job opportunities for local residents and boost regional infrastructure development.
Ministry of Commerce is planning to grow up high-yielding US soybeans in Shan State with the aim to introduce more widespread planting of the crop
The Ministry of Commerce will grow high-yielding US soybeans in Shan State’s Nawngcho township as an experiment prior to introducing more widespread planting of the crop. The ministry’s deputy director-general for consumer affairs U Aung Maun said native soybean species produce between 12 and 20 baskets per acre compared to US species, which can produce between 30 and 70 baskets. “There’s an opportunity here for both domestic consumption and exports if we can grow more soybean,” he said, adding that Myanmar could sell more soybean if China continues to halt US soybean imports since June after slapping a 25pc tariff last July due to the trade dispute with the US. U Aung Maun said that the first batch of US soybean would be grown as an experiment starting this October while a soybean forum has been planned to promote the US crop. A meeting was also held with the local Pyithu Hluttaw representative and the Myanmar Edible Oil Millers Association.
Consumer Price Index (CPI) hit 153.66 percent which is up 9.57 percent when compared to the same period of last year
Consumer Price Index (CPI) in late May reached 153.66 per cent, up 9.57 per cent compared with the same period last year, according to the report on the CPI and inflation rate issued by the Central Statistical Organization (CSO). According to the calculations using 2012 as the base year, the CPI for the food group hit 168.77 per cent with the non-food group, reaching 132.39 per cent in late January. An increase in the CPI is due to a significant increase in commodity prices. According to the same calculation, the CPI increased from 140.24 per cent in May to 148.95 per cent in November last year. In late May, all regions and states saw a slight increase in the CPI. Yangon saw the highest with 2.54 per cent and Kachin, the lowest with 0.33 per cent.
Ministry of Commerce drafted law to establish a trade development body to empower Ministry of Commerce and the new authority to issue the lists of restricted items and non-tariff regulations
The Ministry of Commerce (MoC) has drafted a law to establish a trade development body made up entirely of cabinet ministers and empower the new authority and MoC to issue lists of restricted items and non-tariff regulations. The legislation is expected to be approved by parliament within this year and the drafting was supported by the World Bank and German’s development agency GIZ. The text of the draft legislation, seen by The Myanmar Times, seeks to “promote fair competition and support locally-produced products, acquisition of technology and innovation which will lead to participation in the global business sector.” Under the draft trade law, businesses can import, export and re-export goods by obtaining trade registration certificates and licences issued by the commerce ministry, according to law firm DFDL.
Myanmar Productivity Centre (MPC) set to raise economic productivity in Myanmar in order to help the economy move up the value chain
Myanmar’s plans to raise economic productivity through improving human capital development will now be backed by the Myanmar Productivity Centre (MPC), an agency that aims to help the economy move up the value chain. The MPC was launched on June 22 with the support of the Ministry of Industry (MOI), Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Japan Productivity Center, with funding from the Asean Integration Fund. MOI permanent secretary U Ko Ko Lwin said the MPC fulfills the need for capacity building in the country. “It will focus on improving productivity,” he said. UMFCCI general secretary U Aung Kyi Soe said raising productivity levels by moving up the value chain would help the economy as goods that were being imported can be substituted with local products while at the same time help local manufacturers export more.
European car makers, Skoda vehicles in Myanmar expressed its interest to start production in Myanmar
The Czech Republic has announced interest to assemble Skoda cars in Myanmar, U Thaung Tun, Union minister for Investment and Foreign Economic Relations, said last week. “The Czechs sold the Skoda in Myanmar in the past and now they’ve made an offer to start production here,” U Thaung Tun said at an investment promotion event held on June 26 in Nay Pyi Taw. He added that Hungary has also voiced interest in starting similar operations in the country. Hungary and Czech Republic made the offers during State Counsellor Daw Aung San Suu Kyi’s Europe visit last month, he said. However, more information on assembling Skoda vehicles in Myanmar was not provided. Hungary has offered to manufacture electric cars in Myanmar and the Ministry of Industry will cooperate, said U Aung Naing Oo, permanent secretary of the Ministry of Investment and Foreign Economic Relations. “Hungary is making plans to cooperate with the Ministry of Industry. It will be an assembly plant,” he said.
Ministry of Planning and Finance called non-government organizations (NGOs) and international non-government organizations (INGOs) to provide microfinance services in Myanmar as companies
The Ministry of Planning and Finance have ordered non-government organizations (NGOs) and international non-government organizations (INGOs) providing microfinance services in Myanmar to form as companies. According to the order, issued in early June, if an NGO or INGO is going to provide microfinance services, they must have a license to perform those services in accord with the Myanmar Company Act. The Financial Regulatory Department asked the Ministry of Home Affairs and the Union Attorney General’s Office for their remarks on the matter. One of their replies was that financial institutions such as NGOs and INGOs do not need to register under the Registration of Organization Law; however, they will need to apply for microfinance licenses in accord with the Myanmar Company Act of 2017.