Weekly Business News from Myanmar

PTT Exploration and Production (PTTEP) raised investments in Myanmar offshore projects to maintain gas production
Since 2014, a total of 345 million cubic feet of natural gas for daily domestic consumption and export to Thailand is channeled from the offshore Zawtika Project in the Gulf of Moattama to the Zawtika Operation Center (ZOC) in Kanpauk Township, Tanintharyi, said Mr Piya Sukhumpanumet, general manager of PTTEP Myanmar Assets. Natural gas, which is produced at the Zawtika field at Block M9, is being processed at the Zawtika Platform Quarter Complex at the project site and transferred via a 230-km subsea pipeline to ZOC. Located approximately 300 kilometres south of Yangon, the Zawtika gas field development project is being developed by Thailand’s PTT Exploration and Production Public Company Ltd (PTTEP). The company also owns an 80 percent stake in the project, while state-owned Myanma Oil and Gas Enterprise (MOGE) owns the remaining 20pc. A production-sharing contract was signed in 2003 and gas was discovered at M9 in 2007.
Maungdaw- Kanyinchaugn economic zone in Rakhine State will be upgraded with additional projects
The still under-construction Maungdaw Kanyinchaung economic zone in Rakhine State will be upgraded with additional projects and the state government is planning to build a new industrial zone in Ponnagyun, said the State Chief Minister Nyi Pu. Despite worries from investors about the present situation in the state, the Chief Minister claimed that they shouldn’t. “The conflicts occurred in the inner areas of Rakhine State. Investors can make their investments in Mrauk-U, Kyauktaw and Minbya. In Maungdaw, we are developing Kanyinchaung economic zone,” he said. The Kanyinchaung economic zone is located about three miles away from Maungdaw and is invested in via the cooperation of the state government and Nat Myit Ahlin Co. Ltd. The total investment is Ks 2.2 billion with Ks1.5 billion from the state government and Ks0.7 billion from private sector, according to an announcement from President’s Office.
Local financial experts and economists says that Central Bank of Myanmar (CBM) headed in right direction and expected effective for the development of the banking sector
The Central Bank of Myanmar (CBM) has begun taking the initial steps to stand as an independent body, local financial experts and economists say. They added that recent actions taken by CBM early this year are seen as effective for the development of the banking sector. The CBM has started the year strong by preparing to tackle illegal money transfers and implement a national payment system. Experts say if the central bank continues in this vein, it will help develop the financial sector as well as the economy. “In recent years, we have seen many reforms made by CBM such as addressing the regulations of banks. As a consequence, efficient credit supply and strong economic development become more feasible,” financial expert Dr Aung Thuya told Myanmar Times.
Myanmar is planning to export 800 tons of honey to European Union member countries
Myanmar is planning to export 800 tons of honey to E.U. member countries as it received an offer from the E.U., according to Department of apiculture under the Ministry of Agriculture, Livestock and Irrigation. “The E.U. did offer to buy our honey, but beekeeping farms, honey treatment facilities, exporters, as well as our ministry are just preparing so that our products meet their requirements. At the moment, what we have is an offer, but we cannot export yet. However, when we start, we will export around 800 tons. We are testing and preparing what we need to in order to meet their requirements in next two or three years,’’ U Aung Min, Director of the Department of Apiculture, said.
Myanmar remains confident to attract foreign visitors with its natural attractions and traditions to raise tourists’ interest despite international media coverage of conflicts in Rakhine State
DESPITE the current decline in tourists coming from Europe and the Americas due to international media coverage of conflicts in Rakhine state, Myanmar remains confident it can attract foreign visitors in the months to come, according to officials and industry leaders. The nation will promote its natural attractions and traditions to raise tourists’ interest, May Myat Mon Win, chairwoman of Myanmar Tourism Marketing (MTM), said in an exclusive interview. “We have a lot of unexplored attractions across the country. This does not mean that we are not yet ready [for a tourism boom]. With authenticity and commitment, everything is possible,” she said. According to her, it is now time to take another step in the “Myanmar, be enchanted” rebranding campaign launched in late 2018. From this year onwards, Myanmar will mainly focus on tourism marketing by participating in international travel shows, maintaining its current attractions and creating new destinations.
Yoma Strategic Holdings will acquire 65 percent stakes in Yankin Kyay Oh Group of Companies Limited (YKKO) to satisfaction of certain conditions
Yoma Strategic Holdings Ltd. today announced it will acquire a 65% stake in Yankin Kyay Oh Group of Companies Limited (YKKO) subject to the satisfaction of certain conditions, according to a press release. YKKO was founded in Yangon in 1988 and has since grown to become one of Myanmar’s largest restaurant chains with 37 outlets in Yangon, Mandalay, Nay Pyi Taw, Bago and Mawlamyine. The total cash consideration to be paid is approximately MMK 19.4 billion (US$12.6 million) which was arrived at on a willing-buyer willing-seller basis, taking into consideration, amongst others, the current and projected earnings of YKKO. The net tangible asset value of YKKO was approximately MMK 6.22 billion (US$4.09 million) as at 30 September 2018. The consideration will be funded by internal resources and recent financing activities and upon completion, YKKO will become a 65%-owned subsidiary of Yoma Strategic.
Bank experts seek the needs for further clarity over foreign equity in Myanmar banks
The latest regulation by the Central Bank of Myanmar (CBM) permitting foreign institutions to invest up to 35 percent in local banks has been well-received by the banking and financial industry. However, experts have flagged the need for further clarity in its provisions. U Than Lwin, senior advisor to KBZ Bank, said the CBM should further clarify if foreign banks are allowed to invest solely in public banks or if they are free to invest in private banks or family-owned banks. “The new regulation by the CBM is good for the industry as weaker banks will enjoy stronger financing and improve their services. But they should be more specific about the types of banks foreign investors can invest in,” he said. U Pe Myint, senior advisor to Cooperative Bank, added that “if foreigners are now allowed to buy equity stakes in the local banks, then the next step is for the private banks to convert their status to public banks.”
Shan State government will be allowed local and foreign investments across seven sectors including basic infrastructure, hotel and tourism, agriculture, electricity and energy sectors in Shan State
Shan State government will allow local and foreign investments across seven sectors including basic infrastructure, hotel and tourism, agriculture, electricity and energy sectors in Shan State, sources said. The sectors are basic infrastructure and land development, natural resources, hotel and tourism, agriculture, electricity and energy and education. In basic infrastructure and land development, there are about 800 acres of development land and about 547 acres of non-development land in Yatsauk Township. While Yatsauk is on eof the least developed area in southern Shan State, investors are interested in the township as agriculture and livestock sectors has strong potential in the township. It also has a road connecting to northern Shan State. Businesses invited for natural resources sector are a cement factory in Ywangan, construction of fertilizer factory and others in Taunggyi-Ayethaya zone, China-Myanmar economic collateral and mining in Muse and Chinshwehaw.
Experts warned that the rate of sand mining in the Ayeyarwaddy River has already reached unsustainable level and destroying the livelihoods of farmers, fishers and placing environmental stress on the nation’s rice bowl
‘Our land is collapsing around us’: Ayeyarwady at risk from rampant sand mining Irresponsible sand mining in the Ayeyarwady River is destroying the livelihoods of farmers and fishers and placing environmental stress on the nation’s rice bowl. ON JANUARY 16, about 250 residents of Thet Thit Kyun village tract in Bago Region sailed in wooden boats on the Ayeyarwady River, to Shwedaung. They shouted slogans and brandished placards that read, “stop sand mining in the Ayeyarwady River”, “stop corruption in giving licences for mining” and “protect the rights of local fishermen and victims of riverbank erosion”. There were no sand dredging boats to be seen on the Ayeyarwady that day as the aggrieved fishers and farmers motored towards their destination. It was the Shwedaung Township office of the Directorate of Water Resources and Improvement of River Systems (DWIR), where they demanded an immediate halt to operations that they believed had triggered the collapse of their villages and plantations.
Siam Cement Group (SCG) revealed its 2018 operating results that show overall profit decease from the Chemicals Business
Siam Cement Group (SCG) recently revealed their 2018 Operating Results, they show an overall profit decrease from the Chemicals Business while the Packaging Business exhibited consistent and robust growth and Cement - Building Materials Business enjoyed favorable prospects. SCG is pushing forward with two key strategies in 2019, focusing on financial stability and long-term growth management by delivering integrated solutions and new business models that harness digital and deep technologies, and collaborate with leading startups in various regions and research and development institutes worldwide. SCG is also seeking new opportunities to meet consumer needs throughout the region. Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited Operating Results for FY2018, with registered Revenue from Sales increase 6% y-o-y to 21,264 billion MMK. Profit for the year registered 1,989 billion MMK, a decrease of 19% y-o-y from global economic uncertainties, primarily driven by trade war, volatile oil market and a strengthening Thai baht, in which affected the overall performance of SCG.