Weekly Business News from Myanmar

Sagaing Region Government invited manageable-scale gems mining in order to boost gems mining in Sagaing Region
A person may apply for three blocks to engage in a manageable-scale gems mining in Sagaing Region, according to a press release issued by the region’s government on April 3. Applications will be closed on May 8. New mining blocks will be allotted in Khamti gems land with the aim of boosting gems mining, creating local job opportunities and ensuring regional development. A manageable-scale mining will be allowed in Nantsalin creek area in Khamti. Applications will be accepted in accord with the prescribed requirements and permits will be issued. Application forms can be fetched from Khamti Township One Stop Service Centre from April 3 to May 2 after taking registration in accordance with the Myanmar gems law. The applications can be submitted with effect from April 9 this year and closing date is May 8. One person may submit three applications for three blocks. However, only block with a one-year work permit will be allowed for one businessman.
Myanmar’s export market is suffering due to the trade policy change in China’s Yunnan Province
Myanmar’s export market has been hurt because of the trade policy change in China’s Yunnan Province, Dr. Than Myint, Union Minister of the Ministry of Commerce, said at monthly regular meeting between Vice President of Myanmar and local business leaders held on March 15 at UMFCCI. China, after changing its policies to track down illegal trade and corruption in the country, posed strict inspections on Myanmar’s imports which are now causing traffic jams in goods transportation which is causing fruits to spoil therefore causing financial loss to traders. “The market was hurt by policy changes in China’s Yunnan Province since October. Traders are trying to overcome the activities. The government is also trying to help the market,” he added. To improve the trade, the union minister acknowledged that Myanmar needs better roads for transportation, and noted that Myanmar will export one million tons of watermelon and cumber through the Muse-Yunnan trade route which will be faster when Muse-Lashio-Mandalay railroad is finished.
In collaboration with ICCO Corporation and One to Watch and Truvalu, DaNa Facility launched two projects under the inclusive Business Ecosystem Window in Yangon to strengthen Myanmar inclusive business
The DaNa Facility, funded by UK Government Department for International Development (DFID), launched two projects under the Inclusive Business Ecosystem Window on Thursday in Yangon. Each project will advance the start-up ecosystem for inclusive businesses through incubating at least 10 enterprises in the priority areas of AgriTech, FinTech, Health and Education sectors in Myanmar. Inclusive Businesses are commercially viable, scalable and innovative enterprises which include low-income populations into corporate value chains and create triple wins: for the poor, for companies and for government. This is the 3rd time of providing grants to the business models in Myanmar which could help create more job opportunities.
Asian Development Bank (ADB) expected Myanmar’s Economy to resume growth by 6.6 percent in 2019 and 6.8 percent in 2020
The Asian Development Bank (ADB) expects Myanmar’s economy to resume growth this year and continue to expand in the next thanks to more foreign investment and a positive response to the government’s economic and policy reforms. The Asian Development Outlook 2019 forecasts Myanmar’s economy to grow by 6.6 percent in 2019 and by 6.8 percent in 2020. Last year, Myanmar’s growth slowed to 6.2 percent, down from 6.8 percent in 2017. The ADB said foreign direct investment (FDI) approvals in Myanmar nearly doubled from $823 million between October 2017 and January 2018 to about $1.5 million over the same period a year on. The growth came from Singapore and other Asian investors taking larger stakes in the country’s manufacturing and service sectors. According to the Myanmar Investment Commission (MIC), Singapore became Myanmar’s top investor after committing more than $20 billion, surpassing China as of February. Last month the MIC announced that FDI flows into Myanmar increased for the first time since State Counselor Daw Aung San Suu Kyi took office in early 2016.
Five foreign insurance companies have been granted Myanmar licences after two year delay in opening up the Myanmar market
Five foreign companies have been granted provisional licences to issue life insurance policies through subsidiaries following more than two years of delay in opening up the Myanmar market. British Prudential, Japanese Dai-ichi Life, Hong Kong AIA, US Chubb and Canadian Manulife have been authorised to establish wholly-owned life insurance subsidiaries. The Ministry of Planning and Finance on April 5 published the list of foreign insurers as "preferred applicants" to operate as a life insurance company through a 100pc wholly-owned subsidiary. The announcement was originally scheduled for release on March 29. A day after The Myanmar Times on January 1 broke news that Samsung Life Insurance had closed its Myanmar office, the government announced they would grant up to three licences to foreign companies to offer life insurance as wholly-owned foreign insurers. Foreign investors have expressed frustration with multiple delays in the long promised liberalisation of Myanmar’s almost entirely closed insurance market.
Myanmar’s export to European countries up to 47 percent in 2018 when compared the same period of last year which is marked highest point since 2008
Myanmar’s export to European countries in 2018 hit €2.2 billion, an increase of 47 percent or €734 million over the previous year, and marking its highest point since 2008, according the European Union. Myanmar exported textiles, crops, footwear, hats, pearls and precious stones to the EU. In return, the EU and exported machineries worth €592 million to Myanmar. Myanmar exported over half of all their finished textiles to the EU, and expects to increase that to 60 percent in 2019. Despite the EU’s decision to restart tariffs on Myanmar rice imports by revoking GSP benefits it granted for Myanmar, Myanmar has exported $1.5 billion of agricultural products to its overseas buyers between October 1, 2018, and March 15, 2019, an increase of $100 million compared to previous period last year.
Myanmar’s economic growth is expected to raise 6.8 percent in 2019 -2020 fiscal year due to the higher foreign direct investment (FDI)
Myanmar’s economic growth is expected to raise in 2019 and 2020 due to higher foreign direct investment (FDI) and positive response to the government’s economic and policy reforms. According to the Asian Development Outlook 2019 launched in Yangon on Wednesday. The Asian Development Outlook utilizes data from related government bodies’ statistics and estimation on own key fundamentals. It was conducted by the Asian Development Bank (ADB) and the survey particularly looked at sector of share of GDP growth, agriculture industry, service in the supply side and government’s investment, private investment and consumption in the demand side. Principal Country Specialist, ADB Myanmar Resident Mission, Yumiko Tamura said “We maintain a very positive outlook for Myanmar’s economic growth of the next 2 years... The main drivers of such economic growth would be stronger domestic and international investment as well as growth in service sector. We assume good weather conditions will actually support agriculture performance”
DICA launched the One Stop Service Centre in Yangon with the aim to improve Myanmar’s overall raking in the World Bank’s Ease of Doing Business Index
Myanmar’s overall ranking in the World Bank’s 2019 Ease of Doing Business Index stands at 171 out of 189 countries. In order to improve this ranking, the Directorate of Investment and Company Administration (DICA) launched a One Stop Service Center at Sein Le May Avenue, Kabar Aye Bagoda Road, Yakin Township in Yangon on March 24. This one stop center was first announced in May 2018. The center will provide a convenient place for investors to go for all the requirement of getting started. The office will help investors complete the procedures such as getting export/import license, taxes, visas and work permits. The service center includes the YCDC, the Directorate of Industrial Supervision and Inspection, the Department of Labour, the Internal Revenue Department, the Environmental Conservation Department, and the Food and Drug Administration altogether in one place.
U Aung Naing Oo has been named the new Director General of the Office of the Union Investment and Foreign Economic Relations under Minister U Thaung Tun
A key architect of the government’s economic reform is to be transferred to assist newly minted minister U Thaung Tun. U Aung Naing Oo, director general of the Directorate of Investment and Company Administration (DICA) has been named the new director general of the Office of the Union Investment and Foreign Economic Relations under Minister U Thaung Tun, the Global New Light of Myanmar announced on March 29. U Aung Naing Oo is also to be de facto permanent secretary of that ministry as the position is currently vacant, The Myanmar Times understands. He told The Myanmar Times that he will remain involved in investment policy-related activities in his new appointment. U Thant Zin Lwin, current DICA deputy director general, who has been in the position since 2016, will take the position of DICA chief, U Aung Naing Oo added. However, U Aung Naing Oo will remain director general at DICA until U Thant Zin Lwin’s official appointment is announced. U Thant Zin Lwin is also expected to take up the position of secretary of the Myanmar Investment Commission (MIC).
Fisheries Department has invited the Expression of Interest (EOI) to lease and engage in three businesses of Fisheries Department under BOT system
The Fisheries Department has invited EOI (expression of interest) applications to lease and engage in three businesses on a long-term basis on the department's owned 530-acre land under BOT system. The department, under the Ministry of Agriculture, Livestock and Irrigation, is planning to lease out three businesses on a long-term basis. Therefore, local and foreign entrepreneurs and companies are invited to submit EOI. The three businesses to be leased out are Hlapadar livestock farm on 201.78 acres of land in Hlapadar Village, Hmawby Township, Yangon Region, the shipyard on 27.97 acres of land in Gyaungwai Village, Kyinmyindine Township, Yangon Region, and Wadaw livestock farm on 300 acres of land in Maubin Township, Ayeyawady Region.