Weekly Business News from Myanmar

Foreign investments are increasing in the least-developed regions as Kachin, Kayin, Chin and Rakhine States
According to the Myanmar Investment Commission (MIC), the least-developed regions of the country are Kachin, Kayah, Kayin, Chin, and Rakhine States. Now, foreign investments in these least-developed areas are increasing, according to the Directorate of Investment and Company Administration. At least four or five foreign investments have recently flowed into these states. The investments in Rakhine, Kachin, and Kayin States have been in the manufacturing sector; meanwhile, due to electricity issues, the investments in Chin and Kayah States have been in the eco-tourism sector. At a recent press conference, U Thant Sin Lwin, Director General of the Directorate of Investment and Company Administration, said: “Less developed regions are receiving more interest from investors. However, states like Chin receive less interest because of transportation difficulties in that area. Meanwhile, places like Loikaw in Kayah State are receiving more investment than before.”
Myanmar authorities are encouraging the development of automobile assembly industry in Myanmar
Myanmar is encouraging the development of automobile assembly industry, allowing auto manufacturers to import products that are essential to make vehicles in the country, Xinhua reported. According to the Supervisory Committee for Motor Vehicle Imports and Related Business Monday, between April 2018 and January 2019, the committee has allowed eight auto manufacturers to import such products.
Myanmar is on the radar for business planning to shift funds from China to avoid the fallout from the trade war
Myanmar is well-positioned to benefit from the flight of capital to the Asean region as the trade war between China and the US plays out, officials said. ‘’Myanmar is one of the targeted countries for businesses planning to shift out of China to avoid the fallout from the trade war,” Li Fuquan, the chair of China Myanmar Economic Cooperation and Development Promotion Association, told The Myanmar Times. However, he warned that Myanmar faces stiff competition from other Asean hotspots like Vietnam and Cambodia. “Other regional countries are also attractive for investors. So, Myanmar needs to up its game to if it wants to draw businesses to its shores,” Mr Li said. He said businesses in China now expect the trade war between the two superpowers to be a long and drawn out one and many are making plans to move their factories and headquarters into the region to avoid US tariffs and stay competitive.
Myanmar Productivity Centre (MPC) launched in Yangon for the capacity building of industrial human resource for productivity improvement in Myanmar
For the capacity building of industrial human resource for productivity improvement, Myanmar Productivity Center (MPC) officially launched in Yangon on Saturday. The project for MPC started in December, 2016 with the financial assistance of Japan ASEAN Integration Fund (JAIF), supported by the Ministry of Industry and implemented by UMFCCI and Japan Productivity Center. MPC will carry out promoting productivity through management innovation, continuous improvement, and human resource development, achieving sustainable development by promoting responsible businesses and environmental protection as well as creating strong foundation for capacity building on development of all industries. Minister, Yangon Region Ministry of Planning and Finance, Myint Thaung said “Productivity is very important for the country economic development. Labor productivity improvement is also important. So I believe that MPC will conduct more training programs for improvement of labor productivity.”
Nippon Life Insurance Company will buy 35 percent of stake in an insurance firm under Myanmar’s Grand Guardian Life Insurance Holding Public Co., Ltd
Nippon Life Insurance Co. of Japan will buy a 35 percent stake in an insurance firm under Myanmar’s conglomerate Shwe Taung Development Co. to enter the underdeveloped market. The Japanese leading life insurer said Friday it has agreed with Grand Guardian Insurance Holding Public Co. to pay $21 million for the share of its life insurance arm Grand Guardian Life Insurance Co. Nippon Life expects to complete the transaction sometime between September and October, subject to the relevant regulatory approval, and will rename the joint venture Grand Guardian Nippon Life Insurance Co., it said in a statement. Nippon Life agreed with Grand Guardian Insurance Holding in April to form a joint venture to tap the market in an early stage of development, the Japanese company said
The Russia-Myanmar Business Seminar was held in Moscow to exchange views and discuss the extension of bilateral economic relation and cooperation among the entrepreneurs of small and medium enterprise
H.E U Thaung Tun, Union Minister for the investment and foreign economic relations and H.E. Mr. Maxim Oreshkin, minister for economic development of Russia Federation cordially exchanged views and discussed the extension of bilateral economic cooperation in Moscow on 19th June. Also present at the meeting were the deputy minister for economic development of Russia Federation Mr. Tumur Maximov and responsible officials and Myanmar ambassador to Russia Federation U Ko Ko Shein. Next, the union minister attended Russia-Myanmar Business Seminar organized by the ministry of economic development of Russia Federation and discussed the boosting of bilateral economic relation, investment opportunities and the promotion of cooperation among the entrepreneurs of small and medium enterprises.
Myanmar Tourism Bank (MTB) launched new non-collateral loans with interest rates, 14 percent for business to improve tourism industry
The Myanmar Tourism Bank (MTB) has launched a new product. It has begun offering non-collateral loans with interest rates as low as 14 percent for businesses in the tourism industry, as well as for small-to-medium sized enterprises (SMEs). U Andrew Khant, Deputy Managing Director of MTB, said: “The Central Bank of Myanmar has set the maximum interest rate for loans with collateral at 13 percent. For loans with no collateral, it set a maximum 16 percent interest rate. So we can set our interest rates at 14 percent for this type of loan, and we will be able to practice relationship pricing.” Relationship pricing, or relationship-based pricing (RBP) is a pricing and billing framework where the pricing is determined by a customer’s overall purchases and circumstances, as opposed to it being delivered on a product-by-product basis.
Government will have to fund in upgrading Kawthaung airport in Tanintharyi Region if there is no private investor interested to invest after Golden Myanmar Airlines
The government may have to step in to upgrade Kawthoung airport in Tanintharyi Regionif no private investor is willing to come in after Golden Myanmar Airlines, a domestic airline based out of Yangon, pulled out of the project. Department of Civil Aviation deputy director-general U Ye Htut Aung said the upgrading of the airport would be carried out with government funding if no other private investor steps up with the funds. “No matter what, Kawthoung Airport will be upgraded. The Ministry of Transport and Communications (MOTC) is drawing up the project costs for the government,” he said. It has been estimated that private investors would have to cough up US$36 million to improve the airport. Originally, Golden Myanmar Airlines, which won the tender, was suppose to invest 65pc, with 33pc to come from Singapore’s KMA Resources while China’s Beijing ZH Airport and Tanintharyi Capital would invest 1pc each.
There is over 600,000-acres unoccupied land are still available for local and foreign investors in Mandalay
There is 627,149 acres of unoccupied land in Mandalay, the land is available for local and foreign investments, Dr. Zaw Myint Maung, Chief Minister of Mandalay Region, said at Mandalay International Trade Fair & Business Forum 2019. “If you want to make investments in Mandalay, we will make it easier for you and find the land you need. We want to make Mandalay the second biggest driving force for the country's economic development,” he added. He pledged that he will help investors who are looking to invest in Mandalay’s five investment project zones, and will help make investments easier and efficient for them. The aforementioned five investment project zones are Myotha Industrial City project, New Mandalay Resort City project, Amarapura City project, Yedagontaung City project and New Star Light Group project.
Myanmar Special Economic Zones Central Working Body held its coordination meeting in Nay Pyi Taw to accelerate the development of special economic zones in the country
Myanmar Special Economic Zones Central Working Body held its coordination meeting (2/2019) on Wednesday in Nay Pyi Taw. In his address at the meeting at the Ministry of Commerce, the Central Working Body Chairman Union Minister Dr. Than Myint stressed plans, ways and coordination to accelerate the development of special economic zones. He also highlighted transparency and cooperation with the states and regional government in compensation for confiscated lands and resettlement. The Union Minister called for suggestions to tackle the difficulties and challenges. Chairmen of Thilawa, Kyaukphyu and Dawei special economic zones explained about the ongoing work process in the zones and plans.