Weekly Business News from Myanmar

Government is drafting a Corporate Governance Code with the aim of improving corporate governance standards in Myanmar
Myanmar is aiming to publish a Corporate Governance Code, said U Aung Naing Oo, permanent secretary of Ministry of Investment and Foreign Economic Relation. A draft report on the code by the Directorate of Investment and Company Administration (DICA), Securities and Exchange Commission of Myanmar (SECM) and Organisation for Economic Co-operative and Development (OECD) is expected to be ready this year. An MOU to draft an official Corporate Governance Code was signed in November last year with the aim of improving corporate governance standards in Myanmar, which, in turn, will support the further development of the country’s capital markets. “We will need a strong framework to effect strong corporate governance standards for Myanmar companies. A Corporate Governance Code which conforms with the current conditions of Myanmar is expected to be ready in 2020,” said U Aung Naing Oo.
Myanmar Investment Commission (MIC) approved the projects in education services and Golf Resort & Lodging services on B.O.T basis which will create 217 job opportunities
The Myanmar Investment Commission (MIC) meeting (7 / 2019) was convened at the meeting room of MIC in the morning on 11th May 2019 in Yangon. U Thaung Tun, Chairman of MIC, Dr. Than Myint, Vice Chairman of MIC and (9) members attended the meeting.
Pyidaungsu Hluttaw approved to borrow 1.4 billion baht from Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA) to reduce power shortage in Yangon
The Pyidaungsu Hluttaw has approved the borrowing of 1.4 billion baht from Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA) to supply more electricity in Yangon Region. With this loan, the Ministry of Electricity and Energy will make sure that Yangon’s power distribution system is improved and the frequency of power shortages reduced, said deputy minister U Tun Naing. The project term is from 2020 to 2022 and power plants and transmission lines will be built and upgraded in North Dagon, North Okkalapa and Shwepaukkan in Yangon. Currently, many townships in Yangon are experiencing blackouts every day. The interest rate for the loan is 1.5 percent per year and the loan term is 30 years. According to the agreement, 50pc of the contract’s value must be used for buying products and services from Thailand under an official tender system.
In collaboration with the DaNa Facility and UK aid-funded program, Myanmar Investment Commission (MIC) will organize one day workshop to promote and facilitate foreign investments
The Myanmar Investment Commission (MIC) collaborated with the DaNa Facility, a UK aid-funded program, to organize a one-day workshop to promote and facilitate foreign investments. Over 50 officials, who represented 16 different agencies of the Myanmar Government that deal with such investments, were in attendance. The workshop provided an enhanced understanding of foreign investors’ requirements. It also dealt with the adverse effects of bureaucratic rules and regulations on investors, as well as ways to support DICA in responding to their needs. This workshop was the first in a series designed to attract both domestic and foreign direct investment; the series as a whole will reach out to investment agencies in the various states and regions of Myanmar. The second workshop (16-17 May) will be held in Yangon, and cover lower Myanmar; the third (20-21 May) will be held in Mandalay, and cover upper Myanmar. All three will review the Myanmar-language version of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) Handbook on Investment Promotion and Facilitation. This document was prepared jointly by DICA and the DaNa Facility.
Government are still striving to get Japanese Government’s support on the building of Hanthaarwaddy International Airport in Bago Region
The government is still expecting to build Hantharwaddy International Airport in Bago with support from the Japanese, said U Win Khant, Permanent Secretary of the Ministry of Transport and Communications. “As Hantharwaddy is an essential airport, we’ve been trying hard to get construction started. We are seeking help from Japan to manage the construction of aircraft runways,” U Win Khant said during a press conference detailing the government’s performance in its third year in power, on May 13. U Aung Ye Tun, assistant permanent secretary of the same ministry, said negotiations with Japan’s Ministry of Land, Infrastructure, Transport and Tourism are ongoing. A tender for the construction of the US$1.5 billion airport was first launched in 2012. The project was awarded to a consortium comprising Japan’s JGC Corporation, Singapore-listed Yongnam Holdings and Singapore’s Changi Airports International.
Inflows of Foreign Direct Investment (FDI) into Thilawa Special Economic Zone (SEZ) reached over USD $ 1.6 billion till April 2019
Till April this year, Thilawa Special Economic Zone Project received an inflow of foreign investments worth over 1.6 billion US dollars, said Yangon Region Chief Minister Phyo Min Thein, at Yangon Investment Forum. Investors are always keeping an eye on Thilawa SEZ as it is located near the commercial city, Yangon. Myanmar plans to develop three Special Economic Zone Projects—Thilawa SEZ, Kyaukphyu SEZ and Dawei SEZ. With the expectations of the time when there will be the massive inflows of FDI into the Thilawa SEZ, Myanmar Thilawa SEZ Holdings Public Ltd (MTSH) plans to implement the phase-3 of Zone-B project. Win Aung, the Chair of the MTSH said: “Zone-B will cover 700 hectors. The first phase of Zone-B has been developed. The second phase is under implementation.” Myanmar Thilawa SEZ Holdings Public Ltd (MTSH) comprising nine public companies is formed in accordance with the Myanmar Companies Act.
PTT Exploration and Production Public Company Limited (PTTEP) announced its first quarter’s net income of USD 394 million which is decreased 7 percent when compared to the same period of last year
PTT Exploration and Production Public Company Limited (PTTEP) reported its first quarter’s net income of USD 394 million (equivalent to MMK 602,820 million). Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said the company recorded recurring net income in the first quarter of this year at USD 374 million (equivalent to MMK 572,220 million) an increase of 23% from USD 304 million (equivalent to MMK 465,120 million) in the same period of 2018. However, profits from non-recurring items was USD 20 million, decreased from USD 119 million in the same period last year. This was mainly driven by a less appreciated due to currency changes, which mostly has no impact to the company’s cash flow. Consequently, PTTEP reported net income for the first quarter this year at USD 394 million (equivalent to MMK 602,820 million), a decrease of 7% from USD 423 million (equivalent to MMK 647,190 million) in the same period last year.
Myanmar has committed to strengthen its relations with Asia Development Bank (ADB) in hope of achieving sustainable and inclusive through in line with its Country Partnership Strategy
In the hope of achieving sustainable and inclusive growth through connectivity in line with its Country Partnership Strategy, Myanmar has committed to strengthen its relationship with Asia Development Bank, according to Soe Win, Union minister for planning and finance. “We highly appreciate ADB for its continuous support. Since 2012 when ADB resumed its normal operations in Myanmar, it takes a crucial role in the nation’s development process,” he said in a statement to ADB board of governors at the business session of the 52nd ADB Annual Meeting last week. According to the minister, ADB has participated in rural infrastructure development, rural socio-economic development, transport and energy sectors particularly in electric power generation and distribution, irrigation, urban development, trade and investment climate, promoting public-private partnership, regional connectivity, capacity building and skills development in various sectors. The bank has also assisted in public debt management and bond market development.
The 3 days event of Myanmar’s largest International Food & Hospitality Trade Exhibition “Food & Myanmar 2019” will held in Yangon from 5th to 7th June 2019
Preparations are underway for the Myanmar’s Largest International Food & Hospitality Trade Exhibition “Food & Myanmar 2019”. The upcoming one at the Myanmar Expo exhibition space is the 6th International Exhibition for food & Drink, Hotel, Bakery, Restaurant & Food Service Equipment, Supplies and Services. Officials from Myanmar Restaurant Association, Myanmar Chef Association and UBM Myanmar and many other associations led the press conference on the upcoming exhibition. Vice-Chairman (2), Myanmar Restaurant Association, Myat Swe Myint said “It’ll be a great event for all related food industries. We can get equipments, technologies and opportunities. The event will bring many benefits to all. Our Myanmar Restaurant Association will participate with a booth for knowledge sharing.”
Myanmar Government is planning to buy 1000 MW of electricity from China Southern Power Grid by 2021 to solve an ongoing problem of domestic electricity shortage
Myanmar will buy 1000 MW of electricity from China as a quick solution to an ongoing domestic shortage. It will sell the excess to other countries if needed, said U Soe Myint, deputy permanent secretary from the Ministry of Electricity and Energy (MOEE). The additional supply of electricity will be purchased in batches from China Southern Power Grid over the next two years, said U Tin Maung Oo, permanent secretary of the MOEE, said at a press conference in Nay Pyi Taw in last week. “We will buy 1000MW by 2021 but it is impossible to use all the electricity. We will resell the excess,” U Soe Myint said. The electricity will be transported from Dohon in China to Muse, Mine-ye, Hopone, Loikaw and Phayagyi. “Even if we are not able to buy the entire 1000MW, we will purchase at least 300MW,” said U Tin Maung Oo.