Weekly Business News from Myanmar

Myanmar Government is planning to adopt a land use policy to make investment in the livestock breeding sector more attractive
According to the Farmland Law of 2012, using farmlands for any purpose except farming is prohibited. Penalties and fines for non-compliance could include six months to two years of imprisonment, a fine ranging between K300,000-500,000, eviction, or the loss of on-site assets. This has caused problems for those who wish to breed livestock or fish, and who need valuable land space in order to carry out such work. The Protecting Rights and Enhancing Economic Welfare of Farmers Law was enacted in 2013 in an attempt to alleviate some of the issues the previous law created. For example, it was to create a committee comprised of members not only of the government, but also representatives from farmer associations so that they could help enforce many of the “protection” segments of the law, as its very name stated. However, it was not a perfect solution for the issues.
Foreign Direct Investment worth more than USD $ 2.56 billion entered Myanmar as of 11 May in current fiscal year
Over the past seven-month period (Oct-May), overall foreign direct investments of $2.56 billion flowed into the country, including expansion of capitals by existing enterprises and investments of over $134 million in Thilawa Special Economic Zone, according to press release of the Directorate of Investment and Company Administration (DICA). From 1 October, 2018 to 11 May, 2019, a total of 155 foreign enterprises were received permits and endorsements, bringing in capital of $1.7 billion. Singapore-listed enterprises pulled the largest investments during Oct-May period, followed by China and Hong Kong.
The market demand for steel in Myanmar projected to surge to five million tonnes in 2025
According to World Steel Association’s projections, market demand for steel in Myanmar will surge to five million tonnes in 2025, said U Myint Swe, executive director of Danieli Myanmar, an Italian supplier of equipment and physical plants to the metal industry. U Myint Swe said this during a talk on the development of Myanmar’s iron and steel manufacturing sector organised by Danieli in Mandalay. He said there is a big gap between the quantity of domestic production and potential demand. “The World Steel Association’s projection’s for our country’s show market demand will rise to about three million tonnes by next year and continue to surge to about five million tonnes in 2025. So there is a big gap between production and demand. To close the gap, local manufacturing sector really needs to develop. The steel industry has a major role in developing the economy of a country. Our domestic steel industry will need to develop for the Myanmnar’s industrial development,” said U Myint Swe.
The 2nd Tourism MSME Forum 2019 was held in Yangon in order to develop small and medium enterprises of travel and tourism industry
MSME Development Subcommittee under the Union of Myanmar Travel Association organized the “2nd Tourism MSME Forum 2019” in Yangon on Thursday. This is to develop small and medium enterprises of travel and tourism industry. MSME Development Subcommittee was established in 2016 and made the travel and tourism industry included in the SME Law. MSME Development Subcommittee organized the 1st Tourism MSME Forum in 2017 and 6 issues were decided for the matters including taxation, development of vocational training and education for tourism.
European Chamber of Commerce in Myanmar will held its third Myanmar-EU Economic Forum on June 5 in Nay Pyi Taw
After the success of the previous two editions, the European Chamber of Commerce in Myanmar (EuroCham Myanmar) is proud to announce that the third Myanmar-EU Economic Forum will be held on June 5 in Nay Pyi Taw. Over two days, Myanmar and European business communities will be brought together, with more than 500 guests expected to be present at this high-profile event. As an annual event, the Myanmar-EU Economic Forum aims to discuss the current business climate, as well as what has been achieved by the extensive work of our advocacy groups. The purpose of this unique and diverse gathering of high-level government officials, leading private sector representatives, key experts from international organisations and leading academics is to share knowledge and play an active part in the advancement of Myanmar.
Yoma Bank will provide digital small business loans to shop sellers via its latest unsecured small business loan product, SMART Credit Plus
Yoma Bank has just partnered with Shop (shop.com.mm) sellers via their latest unsecured small business loan product, SMART Credit Plus. SMART Credit Plus was unveiled earlier this year when Yoma Bank entered strategic partnerships with Wave Money and the Union of Myanmar Travel Association (UMTA), offering SMART Credit Plus loans to their agents and members. Currently, SMART Credit Plus is available only to merchants and agents of Yoma Bank’s corporate partners. Shop has now become the third corporate partner to work with Yoma Bank in offering this loan product to its merchants. Through this partnership, Shop sellers will now be able to apply for SMART Credit Plus loans through an online platform. They will not need to physically go to a branch, nor will they need to provide collateral, guarantors, or extensive documentation.
Two Japanese owned companies will buy 28.5 percent of stake each in Toyo Thai Power Myanmar Co, to bolster their overseas operations
Shikoku Electric Power Co. and Chugoku Electric Power Co. said Thursday they will buy a 28.5 percent stake each in Toyo Thai Power Myanmar Co. as they seek to bolster their overseas operations, state media reported. The two electric power companies declined to provide the value of their stake in the company, which runs a gas-fired power plant in Yangon. But a Shikoku Electric spokesman said it will cost 4 billion yen to 5 billion yen ($36.4 million to $45.7 million).
Myanmar is likely to bolster European Union (EU) tourism through Visa-free program
Myanmar is likely to bolster European Union (EU) tourism through Visa-free program
Ministry of Agriculture, Livestock and Irrigation was held Myanmar Coffee Forum 2019 in Mandalay Region to accelerate the development of coffee sector in Myanmar
Myanmar Coffee Forum 2019 was held in Mandalay yesterday by the Ministry of Agriculture, Livestock and Irrigation. This forum moved to form a Coffee Board to push for production of quality coffee and expanding the export market. Vice President U Henry Van Thio said in his opening address that the aim of the forum was to – “To keep our coffee sector on its development trajectory, to deal with the current situation, and to fulfill the needs for the development of coffee”. The second coffee forum has come two years after the first one, which was held in Nay Pyi Taw on 23 May, 2017. In his capacity as the Chairman of the Body for Protecting Farmers’ Rights and Promoting their Interest, Vice President U Henry Van Thio appreciated the successful implementation of the decisions taken at the 2017 forum, and pointed out some more requirements.
American investors entering Myanmar are likely to focus on the IT sector in Myanmar
According to U Thant Sin Lwin, the Acting Deputy Director General of the Directorate of Investment and Company Administration (DICA), American investors entering Myanmar are likely to focus on the IT sector here, a field which is already booming. On April 30, nine American companies and local businesses organized a business meeting in Yangon. Its purpose was to discuss possible cooperation on trade, investments, and economic collaboration. At the meeting, both sides discussed possible investments in various sectors. Among these were oil and gas, water treatment, information technology, communications, the media, hotels and tourism, publishing, agriculture, livestock and fisheries, construction, banking, automobiles, shoe making, transportation, and logistics.