Weekly Business News from Myanmar

Myanmar Investment Commission (MIC) approved nine investment proposals which will create over 5,700 job opportunities for citizens
The Myanmar Investment Commission (MIC) meeting (2 / 2019) was convened at the meeting room of MIC in Yangon on 4 February 2019. The meeting approved nine projects in manufacturing and sales of Wet Pulp, manufacturing of photosensitive Powder, manufacturing of various kinds of bags and belts on CMP basic, aqua feed products and related products processing, cold storage and distribution, electronic ticketing service with E-Payment for public bus transportation in Yangon region, construction of jetty for storage, distribution and sale of diesel, gasoline and LPG, private education services, construction and operation of cinemas show which will be create 5,753 job opportunities for citizens.
According to the two regulations governing petroleum and petroleum based products, Ministry of Electricity and Energy will take action against deceitful fuel stations
The Ministry of Electricity and Energy will take action against gas stations selling low quality fuel or using inaccurate measurement in accordance with two regulations governing petroleum and petroleum based products. According to the regulations, the penalties for selling lower quality fuel or using inaccurate gages start with a warning for the first time offenders, but the penalties go up from there. They include being fined, suspension of the business license for certain period of time, revoking or canceling the license permanently, and finally not more six months in jail. If customers are suspicious of inaccurate measurements, they can check for themselves by using the standard measurement cups placed at the station. Pump the fuel into the cup and check the listed volume against the pump’s gages.
Myanmar Fisheries Federation (MFF) will establish Global Earth Public Co Ltd to export catfish as a major export item via public company
Myanmar Fisheries Federation (MFF) will establish Global Earth Public Co Ltd in order to export catfish (silonia childreni) as a major export item, said Win Kyaing, general secretary of MFF. The project will be implemented in Pantanaw Township, Ayeyawady Region. Currently, 6 million catfish are being raised and a 1,000-acre farm is being dug for breeding more fish. 'Catfish will be farmed and we will export fish meat. In the project, 100 percent will be exported with the aim of earning foreign exchange. There will be many job opportunities," said Win Kyaing. The project will include modern fish farms, feedstuff factory, cold storage factory and staffing housing. When the project comes into shape, Global Earth Public Co Ltd will invite shares.
Small and Medium Industrial Development Bank (SMIDB) will provide Cash Flow Based (CFB) loans without collateral
Small and Medium Industrial Development Bank (SMIDB) will provide Cash Flow Based (CFB) Loans, based on six-month term loan without collateral to small and medium enterprises with the annual interest rate of 8.5 percent. “The Cash Flow Based Loan does not require collateral, instead it looks at the financial flow and profit margin of the borrower’s business,” Dr. Zeyar Nyunt, CEO of SMIDB, said. “We are now providing loans to small businesses and those who don’t have working capital. We will also give credit, which equal one third of the value of the businesses, to those who are operating their businesses on a rented factory and want to have their own factories,’’ he added. The bank will provide the non-collateral loans by lending up to K30 million using funds from the bank, they will not loan money by using the two-step loan system, which uses JICA’s grant fund. So far, the bank has not disclosed the total amount of loaned money.
Kaladan river crossing bridge included in Kaladan multi-purpose project will finish build in this year (U Salai Lian Luai, Chief Minister of Chin State)
Kaladan river-crossing bridge included in Kaladan multi-purpose economic project will finish build in this year and transportation of goods will be made to middle areas of India in coming year, said Salai Lian Luai, Chief Minister of Chin State. “Kaladan River is a river in Paletwa, Chin State. We built a deep seaport in Sittwe and will carry goods with small ships which can carry 300 tons of cargos from the deep seaport to Paletwa. We are building Kaladan river-crossing bridge and it will be finished next year. We can send goods from the deep seaport in Sittwe via Paletwa by crossing Mizoram State to the middle areas of India,” said Chin Chief. “We can come to Paletwa from Rakhine State and all areas of Myanmar including Magway, Sagaing and Yangon regions and northern Chin State will send goods via Sittwe deep seaport to Mizoram State. The transportation of cargos will start next year,” he said.
Index Creative Village Plc prioritises Myanmar in its overseas expansion despite the reluctance of many foreign companies to invest large in Myanmar in fear of policy uncertainty
DESPITE THE reluctance of many foreign companies to invest large amount of money in Myanmar in fear of policy uncertainty, Index Creative Village Plc is expanding its business in the country, according to Kreingkrai Mek Kanjanapokin, founder and Group CEO of the company. "We are focused 100 per cent on Myanmar because it is the most important market for us. I have spent a lot of time studying the Myanmar market, more than any other we are doing business in," he said at a press conference yesterday. According to Kreingkrai, the company usually holds nearly 30 events in Myanmar every year. It plans to organise three major trade fairs in the country in the second half of the year - Myanmar FoodBev, Myanmar Retail Sourcing Expo2019 and Myanmar Build & Decor. He said the company enjoyed a 5 per cent revenue growth to US$2.8 million in Myanmar last year. Globally, it posted a 10 per cent rise in revenue. “This year, we are targeting $3.4 million in revenue from Myanmar, given the brighter outlook for the event business in the country," he said.
China Railway Eryuan Engineering Corporation (CREEC) started a partial survey for a major road and railway project (Muse-Mandalay-Kyaukphyu railway line)
China Railway Eryuan Engineering Corporation (CREEC) has started a partial survey for the Muse-Mandalay-Kyaukphyu railway line, part of the China –Myanmar Economic Corridor (CMEC) and the larger Belt and Road Initiative (BRI). Myanmar signed a memorandum of understanding (MOU) for the project, expected to be one of the largest road and railway projects in the country, last October. The project calls for the building of a high-speed railway line from Kunming, China, to Muse on the Myanmar-China border and from there to Mandalay and terminating in Kyaukphyu in Rakhine. The survey project Muse to Mandalay the 430km line is expected to support trains travelling at up to 160kmh and will feature seven cargo stations and five passenger stations. China is said to view the project to connect the Kyaukphyu Special Economic Zone and deepwater port in Myanmar as something that will benefit both countries under the larger CMEC umbrella,.
JFE Meranti Myanmar (JMM) signed a contract with Myanmar Antaco Company Limited (Antaco) for installation of JMM’s world class steel coating facility in Thilawa SEZ
JFE Meranti Myanmar (JMM) signed a contract with Myanmar Antaco Company Limited (Antaco) for the installation of Mechanical & Electrical Equipment on the two main process lines at the new JMM steel coating facility at Thilawa SEZ. Antaco will immediately proceed with Mechanical & Electrical Equipment installation on the JMM Metal Coating Line (MCL) & Continuous Paint Line (CPL). The agreement between these two companies is another significant step forward in the development of JMM’s world class coated steel facility at the Thilawa SEZ. At the contract signing ceremony, the Chief Executive Officer and Managing Director of JMM, Dr. Sebastian Langendorf, stated, “We are delighted to have appointed Antaco as the equipment installation contractor for the JMM coated steel project at Thilawa SEZ. Antaco has a well-deserved reputation within the region for high quality work and delivering excellent outcomes to its international partners.”
Foreign Insurance companies expected to be granted operating licences within months after years of waiting to enter the Myanmar market
After years of waiting, foreign insurers have been given the go-ahead to enter the domestic market, to the chagrin of their Myanmar competitors. AFTER WAITING years to enter the Myanmar market, foreign insurance companies have been told they can expect to be granted operating licences within months. The licences will be issued under an industry liberalisation plan that was delayed for more than a year – a hold-up that the regulator, the Insurance Business Regulatory Board, has defended as being necessary to strengthen the transparency of the process. The licensing decision was announced by the Ministry of Planning and Finance in early January. It said up to three foreign life insurance companies would be allowed to operate as 100 percent wholly owned subsidiaries and the rest would be required to establish joint ventures with domestic insurers to offer life and other forms of cover. The ministry’s Financial Regulatory Department has since issued a request for proposals (RFP) for those interested in one of the three foreign life insurance licences, and for expressions of interest (EOI) for life and non-life joint ventures.
Yoma Bank signed MMK 2.2 billion funding agreement with Mahar Bawga Finance Company Limited (MBF) in order to support MBF’s operations in Myanmar
Yoma Bank and Mahar Bawga Finance Company Limited (MBF) signed a MMK 2.2 billion funding agreement in support of MBF's operations in Myanmar on 1st February. With the funding provided by Yoma Bank, MBF aims to reach an additional five thousand new customers. The partnership aims to address the growing demand of consumers, who are in need of unsecured loans for personal or business development. MBF started their business operations in 2014 with a mission to facilitate loans for the businesses and individuals. Currently, MBF is offering financial solutions to more than fourteen thousand clients in Yangon with an aggregate loan book of MMK 4.59 billion. Yoma Bank is one of Myanmar’s largest banks with over 3,000 employees and 80 branches throughout the country. Yoma Bank takes the lead in bringing the unbanked population into the formal financial system in partnerships with Micro Finance Institutions and Non-Bank Financial Institutions, which are the drivers of economic growth and the development of Myanmar. This is the Bank’s first semi collateralized funding agreement supporting NBFIs. Yoma Bank believes this partnership will share benefits not only to the two parties involved, but also to consumers by improving the level of their borrowing behavior and financial literacy.