Weekly Business News from Myanmar

Myanmar government authorities will invite submissions of Express of Interest (EOI) for implementing economic zones in border areas in early of 2019
The Government of Myanmar will invite submissions of Express of Interest (EOI) for implementing economic zones in early 2019, in Kan Paite Tee in Kachin State, as well as Muse and Chin Shwe Haw in Shan State, all of which are located at the Myanmar-China border. The border economic zone in Muse will be implement as a priority project. Only local businessmen are eligible to submit an EOI, the first step of tender process. “We will invite EOI submissions in 2019. Examining the facts submitted by companies, we will work on a master plan, and conduct negotiations for the project. Then we will try to implement the project as soon as possible,” U Khin Maung Lwin, Deputy Permanent Secretary of the Ministry of Commerce, told Myanmar Business Today.
Myanmar-Korea Chamber of Commerce and Industry (MKCCI) launched in Myanmar aiming to support investments and businesses between two countries and to boost Myanmar economic growth
The Myanmar Korean Chamber of Commerce and Industry (MKCCI) launched on December 22 became the latest business group to formally open its doors in the country. The organisation aims to support investments and businesses from the two countries and to boost Myanmar’s economic growth, said Tong Soo Chung, MKCCI’s chair, during the launch. There are 13 founding members and 76 members from both countries, including well-known Korean firms such as KEB Hana Bank, Yulchon LLC, feed business Sunjin, chemicals company Jungho E&C, JBJ Entertainment and Korea university Kaist, among others. U Aung Naing Oo, Directorate of Investment and Company Administration (DICA)’s director general, emphasised that South Korea is Myanmar’s important economic partner, “bringing billions of dollars of investment to the country.”
Myanmar Licensed Constructors Association (MLCA) signed an agreement with Real Estate Associations to improve the quality of apartments which being constructed in Myanmar
Myanmar Licensed Constructors Association signed an agreement with Myanmar Engineering Society, Myanmar Real Estate Service Association and Myanmar Constructors Association to improve the quality of apartments being constructed in the country. According to the agreement, when a member association receives foreign experts, they must arrange a meeting with Myanmar Licensed Constructors Association as well as providing technological assistance and training. “Because of this, we will be able to meet foreign experts, when they visit Myanmar. We can work with other associations regarding construction. The construction sector will develop if we, the associations, work together in the construction process such as building high quality affordable housing,’’U Lah Zel, General Secretary of Myanmar Licensed Constructors Association, told Myanmar Business Today.
Ministry of Planning and Finance plans to launch an interactive and publicly accessible online “Project Bank” which will enhance transparency and competitiveness
The Ministry of Planning and Finance is preparing to launch an interactive and publicly accessible online “project bank” containing priority initiatives that have been screened and approved by the government for their positive impact on economic and social development. The initiative aims to overhaul the way in which ministries identify and tender projects, and will provide a new framework for public-private partnerships and enable the private sector to invest in state assets. Deputy Minister for Finance and Planning U Set Aung spoke to Frontier about the alignment of the project bank with the Myanmar Sustainable Development Plan (2018-2030), its likely impact on government procurement and how it dovetails with other state-led initiatives, such as the China-Myanmar Economic Corridor.
Yangon Investment Committee approved investments which cost over US$37 million and Ks3.493 billion in Yangon and create more than 2500 job opportunities in the region
Yangon region investment committee allowed over US$37 million and Ks3.493 billion worth of investments which can create more than 2,500 job opportunities in the region, according to the committee. The committee approved them during its meeting held at Yangon Region government office on December 24. The committee approved 14 foreign investments from five countries and two local investments in the region. It can create job opportunities for more than 14,000 people. The increase of foreign investment in industrial sector is over US$5 million. Foreign investment is reached to about US$466 million from October 1 till at the end of November in this fiscal year and transportation sector topped the list of foreign investment with US$171 million followed by production sector with US$100 million.
Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) urged government to allow providing exchanges services for the Chinese Yuan and South Korea Won
The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) made a request to the Private Sector Development Committee chaired by Vice President U Myint Swe to allow providing exchange services for the Chinese Yuan and Korean Won. U Kyaw Min Hlaing, President of Hotel and Tourism Working Committee of MBI under the UMFCCI, argued that, if Myanmar offers a visa free program to other countries with an aim of boosting tourists, we should provide a currency exchange for those countries too. UMFCCI urged the government to allow exchanges for the currencies of the countries, which are enjoying visa free benefit granted by Myanmar, because there are illegal exchanges for those currencies. “The authorities said that they are in talks with counterparts of the other countries and we will know about it soon,’’U Kyaw Min Hlaing added.
Myanmar government authorities are preparing to invite tender from international companies for upgrading of Yangon- Pyay railway in early of 2019
Myanmar is preparing to invite tender from international companies early next year to upgrade Yangon-Pyay railway, one of the most important sections in the country which carries some 75 percent of all rail passengers, the official Global New Light of Myanmar reported on Sunday. The work of upgrading the railway will start in 2020, an official of the state-run Myanma Railways (MR) was quoted as saying. The MR is currently conducting feasibility study to use 200 million U.S. dollars to upgrade the railway and the project will be implemented within three years. The MR will also receive loans from the Asian Development Bank (ADB) and the European Investment Bank (EIB) for the upgradation project.
The operation of Thilawa port will be begun in February 2019
The mixed-use Thilawa Port, with its 400 meter long terminal and necessary container handling equipment, will commence operations in the Thilawa Special Economic Zone in February 2019, according to JICA’s statement on December 14. The Myanmar Port Authority, under the Ministry of Transport and Communications, is implementing the port using ¥23.4 billion loan (yen) from JICA under the contract signed between the Ministry Planning and Finance and JICA in 2013 and 2015. The 40 year loan has an interest rate of 0.01 percent, with 10 years of grace period.
Business communities are “wait and see” as government plans for transformation of the General Administration Department (GAD) to civilian control improvement of bureaucracy and regulatory environment for doing business in outside of major cities
The business community will “wait and see” if the transfer of the General Administration Department (GAD) to civilian control improves the bureaucracy and regulatory environment for those doing business outside major cities. The President Office last week announced that the GAD under the military-controlled Ministry of Home Affairs is set to be shifted to the Ministry of the Union Government Office, which is headed by U Min Thu, who was until recently a deputy minister in the President's Office. U Zaw Htay, the President’s Office spokesperson, told the press on December 22 that “the policy has been set” and the government “will work according to the procedures to implement it.” The military still has control over defence, border affairs and home affairs ministries without the oversight of civilian authorities.
The volume of Foreign Direct Investment (FDI) has doubled from the beginning of this new fiscal year to the second week of December 2018 when compared to the same period of last fiscal year
From the beginning of this new fiscal year, to the second week of December, the amount of Foreign Direct Investment (FDI) has doubled compared to the same period last year, according to Directorate of Investment and Company Administration. Myanmar changed the fiscal year format from April-March to October-September, starting from 2018-2019 fiscal year. During 2017-2018 fiscal year, the volume of foreign direct investment reached over $355 million from October to the second week of December while this fiscal year’s FDI hit $749 million during the same period. “During the last fiscal year, there were only 19 projects in Yangon, this year though received 25 projects. Last year, Kayah State and Tanintharyi Region didn’t receive any FDI compared to this year which Kayah State received one project and Tanintharyi Region has received two projects. There are also new FDI flowing into Mon State and Thialawa SEZ,’’U Aung Naing Oo, General Director of DICA, said.