Weekly Business News from Myanmar

Yoma Bank provided unsecured SME loans to Kargo, a local online goods delivery service app to assist the firm’s growth
Kargo, a local online goods delivery service app, and Yoma Bank have signed an SME loan agreement where the bank will finance an initial loan of K200 million (US$130,000) to assist the firm’s growth, according to a release on Thursday. “With Yoma Bank’s support we will be able to fuel our growth, business growth and drivers’ income, as we seek to realize our vision to provide quality trucking logistics solutions that are priced fairly for both the consumer and driver,” said Alex Wicks, founder and CEO of Kargo. The loan is aimed at resolving the common problem among small and medium-sized enterprises (SMEs) of cash flow management especially for those which provide services to multinational firms and will be based on Kargo’s accounts receivable. It also aligns with Yoma Bank’s strategy to support the growth of Myanmar’s SMEs.
Joint venture with Security Company in Myanmar, Former Blackwater contractor will be provided international standard security services for international investors in Myanmar
YANGON — A security firm with former US military contractor Mr Erik Prince on its board has moved into Myanmar to provide protection services for international investors, the company told AFP, as it weathers backlash to revelations over planned work in China's restive Xinjiang region. Hong Kong-headquartered Frontier Services Group specialises in providing security and logistics for firms working in risky and conflict-hit regions. One of the company's board members and its deputy chairman is former Navy SEAL Prince, co-founder of notorious private security firm Blackwater and the brother of US Education Secretary Ms Betsy DeVos. Employees of Blackwater, which was later renamed, played a controversial role during Washington's wars in Iraq and Afghanistan, including the 2007 killing of 14 unarmed Iraqi civilians.
Government has dropped fines for illegal fish and prawn ponds to Ks 30,000 per acre
The government has dropped the K1 million fine for illegal fish and prawn ponds to K30,000. Paying the fine will make the ponds legal, according to Dr. Aung Thu, Union Minister of Agriculture, Livestock and Irrigation. He remarked on the subject during a seminar on the development of the fish farming industry, held at the Myanmar Fisheries Federation in Yangon in February. “We have decided to impose a fine of only K30,000 on illegal fish breeding ponds that already exist. If you want to have a new fish or prawn breeding ponds, you will need to apply for a permit at the fisheries department,” he said. In October 2018, the Mandalay Regional Government announced that it will fine fishery ponds built on farmland an amount equal to one million kyats, but Dr. Aung Thu promised that he will help negotiate between the two parties: fish breeders and the regional governments.
Chin State government encouraged farmers to harvest the corps on permanent farm land by using modern upland cultivation and slopping land technologies
The Chin State Government aims to reduce and eventually put a stop to shifting cultivation, said Mang Hen Dal, state minister for agriculture, livestock, forestry and mines. Shifting cultivation is an agricultural system in which plots of land are cultivated temporarily and later abandoned to allow the lands to revert to their natural vegetation. Meanwhile, the cultivator moves on to another plot. The main disadvantages of shifting cultivation are forest decimation and climate change. The areas are also prone to landslides and floods. Meanwhile, the cost of cultivation is also higher for farmers. The state government is now encouraging farmers to harvest their crops on permanent farm land using modern upland cultivation and slopping agriculture land technologies, Mang Hen Dal said.
The National Micro Small and Medium Enterprises (MSMEs) Products Trade Fair & Contest was held in Nay Pyi Taw
The national Micro, Small and Medium Enterprises Products Trade Fair and Contest was held in Nay Pyi Taw yesterday attracting MSME winners in nine regional and state level competitions. At the contest, national level awards will be given to the winners. In his opening address, Vice President U Myint Swe, Chairman of the MSMEs Development Working Committee, pledged to grant the MSME logo of the working committee to the winners of regional and state competitions. He urged the winning MSMEs to produce and supply the best products and services after accepting the suggestions of the customers. He called for cooperation among the Union Government, the Nay Pyi Taw Council, regional and state governments and the private sector to provide technology support to MSMEs across the country, to attract investment, to produce skilled labourers and to find new markets for the MSMEs.
Union Government is striving to extend land leasing term to over 70 year terms in Chin State
The Union parliament is likely to lease land in Chin State, one of Myanmar least developed states in Myanmar. The lease terms will likely be over 70-years, Myanmar Investment Commission said. The state is receiving the least amount of both local and foreign investments even though it offers seven years in tax exemptions just as Sagaing Region and Magway Region do. Therefore, the issue of low investment in Chin State compared to other states and regions was submitted to the Vice President of Myanmar at the 23rd meeting between him and local business leaders. “The tax exemption remains the same—it’s still seven years. However, the union government informed us that they will extending the land leasing terms. But the long-term leasing can be difficult because local people are not interested in leasing their land for generations. It can work if you do projects such as contract farming,” U Kyin Lian Man, Vice President of Chin State Chamber of Commerce and industry, said.
PTT Exploration and Production (PTTEP) executed an appraisal campaign in Block M9 prolong gas production to provide a sustainable energy supply for Myanmar and Thailand
To provide a sustainable energy supply for Myanmar and Thailand, PTTEP Myanmar Asset, a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP) executed an appraisal campaign in Block M9. With a total of nine appraisal wells distributed over the central and northern parts of the block, the campaign has been conducting since Q3, 2018. Currently, five wells have been drilled and have successfully shown the proven potential of two commercial prospects. Zawtika-24 well, one of the successful wells is confirmed to discover a commercially proven hydrocarbon reserve. The well was spudded on 21 January 2019 and reached at total depth at 2,030 meters to a true vertical depth on 31 January 2019. The result of the well has proven substantial with 152 meters of net gas sands, and it was greater than the expected 41 meters. With these significant outcomes, the location of the well is one of the firmed platforms for the next development campaign (Phase 1D) targeting to fulfill and prolong the Zawtika’s gas production.
Joint venture between Ga Mone Pwint Co.,Ltd and Thonburi Health care Group Public Company Limited, Ar Yu International Hospital was opened in Yangon to improve healthcare access and capability in Myanmar
GE Healthcare and Sea Lion Company Ltd. (“Sea Lion”) today announced collaboration with Yangon’s newest internationally-designed hospital, Ar Yu International Hospital (“Ar Yu”). Ar Yu International Hospital is a joint-venture between Myanmar mall operator Ga Mone Pwint Co., Ltd. and Thonburi Healthcare Group Public Company Limited, Thailand’s renowned healthcare company with over 40 years of experience. Dr. Watson Aphiwatanakoon, CEO and Hospital Director of Ar Yu International Hospital highlighted, “With highest regards to take Yangon’s medical services to the next level and to lift hospital standards in Myanmar, we need to have good facilities and well-trained professionals who are focused on quality and safety. We have invested in high-quality medical equipment manufactured from GE Healthcare for Ar Yu International Hospital.”
Local insurer, Global World Insurance Co (GWI) is expanding its crop insurance pilot project with the signing of an agreement with private contract farming business
Local insurer Global World Insurance Co (GWI) is expanding its crop insurance pilot project with the signing of an agreement with a private contract farming business, U Soe Win Thant , the director of Global World Insurance, revealed. In 2016, Global World Insurance submitted a proposal on offering crop insurance to the Insurance Business Regulatory Board IBRB under the Ministry of Planning and Finance. Last January, the ministry approved a two-year pilot project for GWI’s crop insurance. The company’s crop insurance is yield-based and the premium is two percent of the market price of rice from one acre (0.4 hectares) of farmland. Should crops be damaged due to bad weather, the insurer will calculate compensation payouts based on the market price per acre of rice harvested in different regions.
Myanmar Tourism Bank will open three branches in three major cities, Yangon, Mandalay and Nay Pyi Taw in next two months to support tourism sector development
Myanma Tourism Bank will open three branches in Yangon, Mandalay and Nay Pyi Taw within the next two months, U Zin Ko Ko, deputy head of the small and medium-sized enterprise (SME) department at Myanmar Tourism Bank told The Myanmar Times. Myanmar Tourism Bank is one of five sector-specific banks granted a banking license by the Central Bank of Myanmar (CBM) last year. It is founded by a public tourism company. The branches at Mandalay and Nay Pyi Taw are already open, while preparations are still underway to open the Yangon branch, U Zin Ko Ko said. “Yangon is the last to open as we want to ensure better services are available. As a tourism bank, we will focus on lending to the tourism sector. But we also plan to offer financial support to other related sectors and businesses,” he said.