Weekly Business News from Myanmar

Government eyes to be attracted more than USD$ 200 billion in investment over the 20 years under the Myanmar Investment Promotion Plan (MIPP)
The government reiterated its target of attracting more than US$200 billion in investment over the next 20 years, said State Counsellor Daw Aung San Suu Kyi. The effort will be carried out according to the Myanmar Investment Promotion Plan (MIPP), the state counsellor said at the Invest Myanmar Summit 2019 in Nay Pyi Taw on Monday. “Under the MIPP, the investment target will be more than US$200 billion for local business sectors. We will transform Myanmar from a low-income country to middle-income country,” Daw Aung San Suu Kyi said. While overall foreign investment in Asia-Pacific declined slightly last year, the region received the most foreign investment in 2017 and Myanmar saw 45pc growth in foreign investment that year, she said.
PTT Exploration and Production Public Company Limited (PTTEP) set its 5 years investment plan (2019-2023) to accommodate value-added creation from the legacy assets through exploration and production activities and to support investment opportunities in p
PTT Exploration and Production Public Company Limited (PTTEP) announces its 5-year investment plan (2019-2023), to accommodate value-added creation from the legacy assets through exploration and production (E&P) activities and to support investment opportunities in prolific areas in order to sustain the company’s long term growth. Phongsthorn Thavisin, PTTEP Chief Executive Officer, announced that the company has set aside a total expenditure of USD 3,256 million for PTTEP and its subsidiaries in 2019, of which USD 1,840 million is Capital Expenditure (CAPEX) and USD 1,416 million is Operating Expenditure (OPEX). The company also targets the average petroleum sales volume at 318,000 barrels of oil equivalent per day (BOED).
Myanmar conducted the survey for construction tasks for two lane road connecting Dawei SEZ and border area of Thailand and will start the construction soon
YANGON-Myanmar will be constructing a road that connects Dawei Special Economic Zone (SEZ) and the border area with Thailand, says Dr Than Myint, Commerce Minister and Chairman of the Task Force on SEZ construction. “Myanmar is now discussing about construction of road to Dawei SEZ with Thailand. We have conducted the survey for construction. Construction tasks for road will be start soon,” said Dr Than Myint. A tripartite discussion with Myanmar, Thailand and Japan will be held in Myanmar regarding the Dawei Special Economic Zone.
Myanmar business group suggested the government should focus on improving policy implementation and further liberalisation is necessary for economic growth
Myanmar’s largest business lobby group suggested that the government should focus on improving policy implementation and that further liberalisation is necessary for attracting investments. U Wai Phyo, vice president of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), said that the country needs to open up for foreign investors and at the same time support domestic players in the wake of increasing competition. He was speaking at a press conference during Invest Myanmar Summit 2019, the first official investment conference organised by the National League for Democracy-led government. The summit was intended to bolster support for Myanmar’s economy and it provided a platform for 10 states and regions to showcase their investment opportunities.
Government announced the launch of an online “Project Bank” which will change the way infrastructure programmes are planned, determined and funded
The government has announced the launch of an online “project bank” which will change the way infrastructure programmes are planned, determined and funded. Speaking at the Invest Myanmar Summit in the capital city, deputy finance minister U Set Aung said the project bank will contain priority infrastructure initiatives which have been screened and approved by Nay Pyi Taw. The centralised and publicly-accessible database will enable the government to coordinate ministries and departments and prioritise proposals which are in line with the Myanmar Sustainable Development Plan (MSDP). In other words, the project bank provides a mechanism to implement MSDP’s 251 strategic action plans. The online database should include technical specifications, type of project contracts and other essential details for investors to readily access the information and make informed decisions about, according to Jacobus du Plessis, an energy and infrastructure expert from law firm DFDL.
Central Bank of Myanmar permitted Japanese Yen and Chinese Yuan as the settlement options for banks in across border payments and transfer to facilitate the border trade development
The Central Bank of Myanmar (CBM) officially introduced Japanese yen and Chinese yuan as settlement options for banks in cross border payments and transfers. With the aim of facilitating border trade, the CBM’s January 30 directive permits banks with Authorised Dealer licenses for foreign exchange to open yen and yuan accounts and settle trades in those currencies. However, opening personal accounts or legal entities in the two foreign currencies are not permitted.
Negotiation between China and Myanmar government still underway to change the size, scale or location of the Myitsone dam project in Kachin State
Negotiations are underway to change the size, scale or location of the Myitsone dam project in Kachin State, U Thaung Tun, Minister of Investment and Foreign Economic Relations, told the media at the Myanmar Investment Summit in Nay Pyi Taw. A special commission comprising of senior government officials has been formed to review the Myitsone dam project and will release a report on the matter. The Myitsone project does not involve just the dam but includes various other projects. As such, officials are working on a solution, which could involve changing the size or location of the project to avoid adverse impact to local communities or the environment, U Thaung Tun said. The project had been suspended during U Thein Sein’s administration and is currently still under review by the government.
Union Minister of Investment and Foreign Economic Relations reaffirmed the plans to establish standard operating procedures (SOPs) and land bank to ease investment regulations in bid to attract foreign investment
U Thaung Tun, the Union Minister for Investment and Foreign Economic Relations and the Chairman of the Myanmar Investment Commission, attended the second day of the Invest Myanmar Summit 2019 in Nay Pyi Taw, and re-affirmed plans to establish standard operating procedures (SOPs) and a Land Bank to ease investment procedures. The setting up of the Ministry of Investment and Foreign Economic Relations, which was formed recently to attract foreign investment, is among the significant changes being made in Myanmar, said the Union Minister. The ministry’s MyCo System is offering online registration to companies, he added. He also stressed the important role played by the youth in the Fourth Industrial Revolution, appreciating the aptitude displayed by Myanmar youths who achieved success in the Robot Olympics.
State Counsellor tempted woo foreign investors to invest in Myanmar in the wake of falling Foreign Direct Investment and slowing growth
State Counsellor Daw Aung San Suu Kyi on Monday urged an audience of business bosses to invest in Myanmar in the wake of falling foreign direct investment and slowing growth, pledging to “build an investment-friendly environment”. She was speaking at the first official investment conference organised by her National League for Democracy-led government intended to win support for her handling of the economy. However, businesses were lukewarm about the speech, which did not touch upon the impact of political crises and offered few details on new reforms. Over the last year, Myanmar’s government has been under increasing pressure to bolster the economy and support the private sector. Approved FDI fell short of the official estimates by around 50 percent between April and October 2018, while a survey for European companies last month revealed that business confidence has fallen to a three-year low.
The collaboration between government and business community, two days Invest Summit was held in Nay Pyi Taw to provide the business opportunities for local and international investors and discuss the country’s potential investment potential
The Myanmar government opened a two-day investment summit in Naypyitaw on Monday aimed at drumming up interest in the country, showcasing some 120 projects worth more than $3 billion combined. The Invest Myanmar Summit 2019, the country’s first, is part of the government’s efforts to counteract a significant decline in foreign direct investment (FDI) in Myanmar over the last two fiscal years. A collaboration between the government and business community, the event aims to provide an opportunity for businesses to meet and for local and international investors to discuss the country’s investment potential. More than 1,600 local and foreign delegates are expected to attend and 40 companies are exhibiting.