Weekly Business News from Myanmar

Rakhine State Government inaugurated 24 hours power supply services in Sanae, Kyauk Phyu T0wnship
A 24-hour power supply service was inaugurated by the Rakhine Government yesterday in Sanae, Kyaukpyu Township, Rakhine State. At the ceremony, Rakhine Chief Minister U Nyi Pu stressed the need to develop the region by making the best use of completed infrastructure, such as electricity and roads, in the State. The Chief Minister said he took pride in the government’s achievements in its three years in office, adding that out of 17 townships, 16 townships have got access to electricity. “Plans are under way to supply power to the remaining township, Manaung, using solar energy,” said the Chief Minister. U Nyi Pu also asked the local people to use the opportunity to promote investment in agriculture, tourism, trade, and industry, in cooperation with the Rakhine government. He said he was delighted that the local people had obtained access to electricity, which many people wish for, and expressed his hope that education, health, and economic sectors in Rakhine would improve thanks to the infrastructure.
Mon communities should have a say in how commercial activities and business development are determined and planned and all investments in the state and it will come under official inspection within the next few months
The current approach in rushing through investment proposals concerning Mon State by authorities in Nay Pyi Taw is alarming. Projects should not be approved without proper community consultation because communities should have a say in how commercial activities and business development are determined and planned. Questions around investments in Mon State are heating up these days. The Economic Affairs Reviewing Committee of Mon’s parliament has announced that, within the next few months, all investments in the state will come under official inspection. This inspection is taking place in the context of a recent surge of investments in the state – particularly following the New Mon State Party’s (NMSP) signing of the Nationwide Ceasefire Agreement (NCA) with the National League for Democracy-led (NLD) government in February 2018. Despite the concern in the state legislature about the ramifications of the investment inflow, the Union Parliament has rubber-stamped all of these investments. The Union Parliament appears to be taking its cue from the NLD administration. At the Invest Myanmar Summit 2019, the State Counsellor proclaimed that “As Southeast Asia’s final frontier market – final and best – we offer a world of opportunities… Investment opportunities are everywhere in Myanmar; some are there to be seen, and others are waiting to be found.”
Soft shell crab production which is among the promising income generating businesses in the region has offered series of job opportunities for local residents
Fisheries industry is one of the major livelihoods of locals in Labutta of Ayeyawady Region. Production soft-shell crab is among the promising income generating businesses in the region since it achieves a great market demand in local and export. The industry also received support from international organizations, and the very first crab hatchery was also established in the area which creates job opportunities for local residents. Worker, Zar Chi Aye said “We have to rake and look whether the crabs are molting or dead in the basket. If the crab becomes a soft shell one, we will see a shell and a body. It will be 2 year that I’m working here in this April.” The farm is run by the technical support of Texchem. It also receives the student interns to study about artificial hatching of mud crabs under the EU funded Myanmar Aquaculture Programme (MYSAP). At present, two students from Pathien University are working as interns at the farm.
Myanmar Insurance Summit 2019 will be hosting in Yangon from 11-12 June 2019 to deliver insights on Myanmar insurance market opportunities
In a long-awaited move, foreign insurance providers have finally been given the green light to operate in Myanmar, according to a press release. Myanmar is the last frontier in South East Asia that has a great potential insurance market, with general insurance growing at 16.1% a year and life insurance at 25.3% a year, and with insurance density only estimated to be US$0.99537 and penetration at 0.07%. This liberalization is expected to accelerate economic growth through risk transfer and dramatic transformation is likely to affect the insurance industry over the coming months. Magenta Global (Singapore), in consultations with the industry regulator and players, will be hosting a two-day summit providing a platform for the gathering of local, regional and international participants. INTO MYANMAR Insurance Summit 2019 will be taking place at the Park Royal Hotel Yangon in Myanmar from 11-12 June. A distinguished panel of speakers has been invited to discuss the changing insurance landscape and how to position for growth.
In coordination with US based agricultural experts, Ministry of Agriculture, Livestock and Irrigation will control new agricultural pest called fall armyworm
U.S.-based agricultural experts were in Myanmar last week working with the Ministry of Agriculture, Livestock, and Irrigation (MOALI) and farming communities to mitigate the spread of a new agricultural pest called Fall Armyworm, which has the potential to dramatically reduce maize crop production in Myanmar. The U.S. Agency for International Development (USAID) brought eight experts from Michigan State University to Nay Pyi Taw to conduct a two-day workshop with MOALI to discuss mitigation strategies with agribusiness representatives, NGO’s, CSOs, and national and local-level government officials. The Michigan State team and officials from the MOALI Plant Protection Division and Department of Agricultural Research conducted field assessments with farmers whose crops have been hardest hit by Fall Armyworm in the Nyaungdone, Danuphyu, and Hintada townships of the Delta Region. “The Myanmar government asked us for help to assess and advise on how to mitigate crop losses due to this agricultural pest, which is new to Myanmar. We are happy to be able to help,”Ambassador Scot Marciel said at the workshop.
Myanmar real estate service law will be enacted within three months which can provide stability to land prices and protect buyers and agents
The Pyidaungsu Hluttaw will approve a real estate service law within three months, said U Tin Maung Win, chair of Transport, Communication and Construction Committee at Myanmar Real Estate Services Association annual meeting on March 23. “Although some have said that it is too early, the law will be enacted within three months if it is carried out now. Such a law is needed here as it is already in place in other countries,” he said. The Myanmar Real Estate Services Association has signed an agreement linking its economy with other ASEAN countries. As foreigners are also involved in the local real estate market, an exact law is needed to regulate real estate services in Myanmar, said U Tin Maung Win. If a Myanmar real estate service law is in place, it can provide stability to land prices and protect buyers and agents. It can reduce wrong decisions in the sale of properties and foreign investors can enter the real estate market, said experts.
Myanmar Micro, Small and Medium Enterprises Qualitative Study Report 2018 was launched in Nay Pyi Taw in order to develop a strong policy for the country’s economic development
Launching Ceremony of the Myanmar Micro, Small and Medium Enterprises Qualitative Study Report (2018) was held in Nay Pyi Taw on 26th March. Deputy Minister for Planning and Finance U Set Aung gave the opening speech, followed by Danish Ambassador to Myanmar Mr. John Nielsen. The Outline and objectives of MSME Survey (2018), key results, conclusion and outcome of the Qualitative Study and the Outline and Objectives of SAM, as well as the brief overview and findings of four in-depth studies were also explained by the concerned officials. The survey was conducted with the support of Denmark Government from March to October 2018. It focused on manufacturing sector including garment industries, timber extraction, and foodstuff production.
Department of Civil Aviation (DCA) will conduct a field study on the construction of Hantharwady International Airport in Bago Region
The Department of Civil Aviation (DCA) will conduct a field study on the construction of Hantharwady International Airport in Bago, according to deputy director U Zaw Min on March 21, during a meeting on crop compensation for farmers living within the vicinity of the project site. The US$1.5 billion project will be fully funded by Japan, which is now making its fifth attempt to revive the project, U Zaw Min said. The two governments are scheduled to meet next month with regards to kick starting the project. “After the meeting, we expect to start conducting preliminary ground studies at the site of the airport,” he said. As such, in addition to compensating farmers, appeals to remove squatters living in the area have been sent to the regional government.
The import value from 1 October 2018 to 15 March 2019 declined USD $ 511 million when compared to the same period of last fiscal year
The value of imports between 1 October, 2018 and 15 March, 2019 during the current fiscal year stood at US$8.14 billion, which declined by $511 million from the corresponding period in the last FY, according to data released by the Ministry of Commerce, state media reported. Over the past five and half months, import values in the private sector were $502 million less than in the last FY, while the public sector witnessed a small increase.
Norwegian Power company signed a MOU with the Chin State Government to make USD $ 50 million of investment for a new hydroelectric power plant in Chin State
Norway Power Company Limited signed an MoU with the Chin State government to make a $50 million of investment for a new hydroelectric power plant. Chin State’s infrastructure can’t provide enough electricity for the present demand. The state also happens to be one of the least developed states in Myanmar. Therefore the government is trying to work with the private sector to provide enough electricity. “What Chin State needs most is better transportation and electricity. We need to produce electricity through potential hydropower resources, and upgrade existing infrastructure in our power grid so that we can provide enough electricity to local people. Only after these sectors improve will other sectors in Chin State improve,”said U Salai Lian Lwe, Chief Minister of Chin State. Only five townships out of nine townships in Chin State are electrified. The five townships are: Kanpetlet, Hakha, Felam, Thantlang, and Mindat. The remaining four townships, Tedim, Tonzang, Matupi, and Palatwa, have yet to be connected to the grid.