Weekly Business News from Myanmar

The access to financial services for small and medium enterprises (SME) improved in the first quarter of the 2018-2019 fiscal year while the banking sectors credit growth in slow
While the banking sectors credit growth is slow, access to financial services for Small and Medium Enterprises (SME) has improved through the first quarter of the 2018-2019 fiscal year. According to World Bank officials at the press conference on Myanmar Economic Monitor report held on June 18. In lending, banks have become stricter which has slowed lending activities in the 2018-2019 fiscal year. Growth in credit to the private sector dropped by 21 percent in the first quarter of the 2018-2019 fiscal year. However, despite overall slow credit growth, there are signs of progress in financial access for small and medium enterprises, year on year growth is at 80 percent in the first quarter of the 2018-2019 fiscal year.
Japanese firm, Japan’s JFE Engineering Corporation will help building an industrial zone for agricultural goods in Yangon
A Japanese company will develop an industrial zone in Yangon focusing on the production of value-added agricultural goods. Japan’s JFE Engineering Corporation and Myanmar’s Dagon International Co. signed a memorandum of understanding on development of the industrial zone on Tuesday. The US$150-million (227.55 billion-kyat) industrial zone will be established on 500 acres of land owned by Dagon International Co. in East Dagon Township, according to U Thurein Aung, the chief executive officer of the Myanmar company. “Though we are an agricultural country, we only export primary products, which are processed by foreign countries and exported back to us as value-added products. So, if we can invite those processing plants into our country, we will be able to make value-added goods from our agricultural produce and supply them to consumers,” he told The Irrawaddy.
The leaders of the American Chamber of Commerce in Myanmar (AMCHAM) and Myanmar Government discussed the ways to improve the ease of doing business in Myanmar in order to attract more US investments in Myanmar
Leaders of the American Chamber of Commerce in Myanmar (AMCHAM Myanmar) met with government officials yesterday to discuss ways to improve the ease of doing business in Myanmar, lower the cost of doing business and ultimately attract more US investment. Among the attendees of the forum were U Soe Thein, Deputy Governor, Central Bank of Myanmar, Dr. Ye Myint Swe, Deputy Union Minister, Ministry of Natural Resources and Environmental Conservation, U Aung Htoo, Deputy Minister, Ministry of Commerce and U Minn Minn, Director General, Ministry of Commerce. Discussions were guided by a Policy Recommendation Paper developed by Amcham Myanmar which outlines specific recommendations on business opportunities and ways to tackle immediate challenges to enable businesses to thrive.
US investors are interested in investing in various sectors of the Myanmar economy (Mr. Scot Marciel, Ambassador of the United State to Myanmar)
US ambassador to Myanmar Mr. Scot Marciel said that companies from US were interesed in investing in various sectors of the Myanmar economy. A summit meeting was held under the theme ‘Ease of Doing Business in Myanmar’ at Melia Hotel in Yangon on June 26 and government officials and leading businessmen from the US Chamber of Commerce and Industry (Myanmar) attended.
The first new facility of solar power plant of Myanmar stared its operation in MinBuu in Magwe Region
The very first solar power plant of Myanmar commissioned into service on Thursday. It is situated on MinBuu-Ann Motor Road, 16 miles west of MinBuu in Magwe Region. State Counsellor Daw Aung San Suu Kyi attended the opening ceremony together with Chief Minister Dr. Aung Moe Nyo, and gave a speech.
Yangon’s standard land prices reduced 10 percent when compared to the same period of last fiscal year
Land prices on a per square foot basis in Yangon’s townships for the 2019/2020 fiscal year has been reduced by 10pc compared to the last fiscal year in order to support more sales transactions as well as encourage landowners to pay their taxes. The standard land prices were released by the Inland Revenue Department earlier this month and these prices would be used for tax assessments in real estate sales. iMyanmarHouse.com managing director U Nay Min Thu said the reduction in prices was implemented after it was found that government standard prices were higher than actual market prices.
The government has announced that electricity rates will increase substantially for both residents and businesses from July, 2019
Electricity rates will increase substantially from July for both residents and businesses in the first changes in tariffs for five years, the government has announced. Monthly bills for consumers of 100 units will go up by over 70 percent. Investors in the energy sector and analysts welcomed the increase, however. Myanmar’s present electricity price is financially unsustainable, with rates the lowest in ASEAN and unchanged despite years of discussions. The proposal by the Ministry of Electricity and Energy (MOEE) to raise prices was approved by parliament in April. At present even the wealthiest residents in Yangon purchase subsidised electricity below cost. These subsidies are incompatible with the ambitious electrification plan the government has set out. The state subsidy for power supply is a key obstacle to attract investors to scale up the country’s much-needed power generation.
The price of Myanmar fresh chili is on the rise due to the demand from China and Thailand
The price of Myanmar fresh chili is on the rise on account of good demand from China and Thailand, said U Khin Han, the chairman of Kitchen Crops Producers and Exporters Association. “There are two varieties of fresh chili grown in the delta region—tharmoe and deemore. We are purchasing fresh chili and transporting it in cold storage cars. If we dry the fresh chili, we will be able to sell it for about K24,000-25,000 per viss (1 viss=1.6 kg). Currently, we are only exporting fresh chili. So, dry chili is being imported from India and Viet Nam. These days, the price of chili has increased slightly,” he added. “Last year, fresh chili was fetching K1,500-2,000 per viss. Now, the price of fresh chili has increased to K8,500. Currently, fresh chilies are hard to find in the market. So, the Ministry of Commerce has been asked to import fresh chili via the border for local consumption,” he said. “We have already asked the Commerce Ministry to issue Food and Drug Administration (FDA) certification and grant permission to import fresh chili. We cannot make a decision on behalf of the government. They are making arrangements to hold a meeting in Kyaukse Township. Then, they will arrive at a decision. If they give permission to import fresh chili, the price will decline slightly. If not, the price of fresh chili will rise to K10,000 per viss,” said U Khin Han.
Thilawa Special Economic Zone has received 108 foreign companies from 19 different countries
Thilawa Special Economic Zone, located on the outskirts of Yangon and regarded as the most successful economic zone in Myanmar, has received 108 foreign companies from 19 different countries, according to the Special Economic Zones Central Committee. Countries who have made the greatest investment in Thilawa SEZ are Japan, Singapore, Thailand and Hong Kong. These countries stand at the top in terms of investment volume. “Given its strategic location, this special economic zone offers great opportunities and investments allowing it to grow gradually,” said Dr. Than Myint, President of the committee. The total investment in the zone has topped $1.6 billion so far from the time it opened. In this 2018-2019 fiscal year, it has received over $20 million in investments, according to the Directorate of Investment and Company Administration-DICA.
The Investment Promotion Committee (IPC) was formally launched by the Ministry of Investment and Foreign Economic Relations in Nay Pyi Taw
The Ministry of Investment and Foreign Economic Relations formally launched the Investment Promotion Committee (IPC) at a ceremony held in Thingaha Hotel in Nay Pyi Taw yesterday. The ceremony was attended by U Thaung Tun, Union Minister for Ministry of Investment and Foreign Economic Relations (MIFER), Deputy Ministers, U Aung Hla Tun, Ministry of Information,U Kyaw Myo, Ministry of Transport and Communications, U Set Aung, Ministry of Planning and Finance, Permanent Secretaries of Ministries concerned, representatives ofthe Japan International Cooperation Agency (JICA) and participants from various departments, the private sector and the media. U Thaung Tun, Union Minister of MIFER and Chairman of the IPCspeaking on the occasion noted the important role of the IPC and stressed that the success of the committee and its 5 task forces would help to ensure Myanmar’s economic growth. It would also create a fair and prosperous society by promoting quality investment. A project that aims to contribute to the enhancement of domestic industrial competitiveness of Myanmar was also introduced at the meeting. These endeavors reflect the government’s efforts to promote a responsible investment environment.