Weekly Business News from Myanmar

Although over 1,000 applications have been received for mining blocks since July, only 193 applications received are complete
Over 1000 applications have been received for mining blocks since July, according to U Min Min Oo, permanent secretary at the Ministry of Natural Resources and Environmental Conservation (MONREC) at the 4th annual general meeting of Myanmar Federation of Mining Association held last week. However, only 193 of all the applications received are complete, he said. Major discrepancies in the applications include applying for overlapping blocks, already-permitted blocks and a single block by more than one person, U Min Min Oo said “Applications with complete data will be submitted to the ministry. They can take one to six months to process, depending on how quickly the regions and states can respond,” he told the media.
Myanmar Credit Bureau Ltd signed the agreement with Equifax New Zealand Information Services and Solution Limited to provide loan data service, which will be available at the end of 2019
Myanmar Credit Bureau Ltd will start providing the credit bureau service at the end of 2019. On December 10, Myanmar Credit Bureau Ltd signed the agreement with Equifax New Zealand Information Services and Solutions Limited for credit bureau service. Zaw Lin, President of Myanmar Credit Bureau Ltd said: “This is the first step to implement Myanmar’s first Credit Bureau. We signed Credit Bureau Software License and the installation and consultancy agreements today. We will provide credit bureau service within 9 to 12 months since the contract signing.” The credit bureau has kept the information about money lenders and borrowers. The company will provide service whether or not the borrowers follow the loan rules and repay loan in a correct manner. Those who have got the highest mark designated by the Credit Bureau an easily take loans with guarantee.
A new survey shows that confidence among businessmen in Myanmar is sinking due to concerns about the National League for Democracy-led government’s management of the economy
More European businesses say they have lost confidence in Myanmar due to concerns about the National League for Democracy-led government’s management of the economy compared to the last two years, a new survey shows. According to the latest survey from the European Chamber of Commerce in Myanmar (EuroCham) published yesterday, a majority of firms (81 percent) are not happy with Myanmar’s business environment, compared with 76pc in 2017 and 67pc in 2016. Almost half of the firms surveyed (45pc) said the business environment has worsened over the last 12 months, a significant increase from 2017 (30pc) and 2016 (18pc). Falling profitability may have dampened confidence as only 37pc of the companies reported profits from their businesses in the country. In 2017 and 2016, the number stood at 41pc and 50pc, respectively.
Ministry of Natural Resources and Environmental Conservation will allow logging and export from private forest plantations by local and foreign investors
Ministry of Resource and Environmental Conservation will now allow logging and export from private forest plantations by local and foreign investors. The government, attempting to protect the environment and prevent deforestation in Myanmar, banned export of whole logs, in April 2014, with the exception of processed wood products. Following the ban, the volume of exports dropped significantly from $900 million in the 2013-2014 fiscal year, to $200 million in recent years. “We have proposed allowing logging to the Ministry, and will allow the export of logs from private forests as soon as we have approval from the cabinet. This is a move to lure interest from investors to grow our private forest,” said U Tin Tun, Director of the Department of Forestry under the Ministry of Resource and Environmental Conservation.
Government authorities expect to receive more foreign investment in Ayeyarwady region after a new road connecting Ayeyarwady with Yangon is complete
Investors eyeing expansion opportunities in Myanmar might want to consider Ayeyarwady Region, where the government is now prioritising developments in the agriculture, livestock and marine, forestry, industry, infrastructure, transportation and tourism sectors, said regional chief minister U Hla Myo Aung. “Although much of the country’s exports originate in Ayeyarwady, foreign investments in the region are currently minimal. However, we can expect that to rise in the coming years after a new road connecting Ayeyarwady with Yangon is complete and a project that will fulfill Myanmar’s electricity needs commences construction in this region,” said U Aung Naing Oo, Director General of the Directorate of Investment and Company Administration (DICA). The officials were speaking at the Ayeyarwady Region Investment Fair 2018 held on November 30.
Earth Rights International and Dawei Development Association (DDA) launched a new report “Communities in the Balance: Local Voices and Prospects for the Dawei SEZ Project” which revealed local concerns on the Dawei SEZ project
2018 marks 10 years since the Myanmar and Thai governments agreed to establish the Dawei Special Economic Zone (SEZ) project. The Dawei Special Economic Zone is an industrial development project in southern Myanmar. It is one of three SEZs in Myanmar that is designed to attract businesses by lowering environmental regulations, offering tax breaks, and waving minimum wage requirements. If completed, the SEZ will include a deep-sea port, an oil refinery, a steel mill, fertilizer and petrochemical plants, industrial factories and operations, a reservoir and a road connecting Dawei to Kanjanaburi, Thailand. If completed, it would be one of the largest industrial zones in Southeast Asia. However, the project faced controversy, and the Myanmar government suspended it in 2013, following funding deficits and community opposition.
European Union (EU) has withdrawn GSP for long grain rice exported from Myanmar and plans to set a tariff in 2019
European Union (EU) has withdrawn Generalised scheme of preferences (GSP) granted for long grain rice (Indica rice) exported from Myanmar and planned to put a tariff next year, according to a report from Reuters news agency. The EU countries failed to determine whether to impose tariffs on rice coming from Myanmar and Cambodia from the start of next year to curb a surge in imports, leaving the European Commission (EC) to make the final decision. The EC had proposed the measures to control rice exports from Myanmar and Cambodia for three years and the commission would enact them when there is no decisive vote from the member states.
Local prices of fuel and gold have weakened on the back of lower dollar exchange rate after an agreement on the temporary suspension of new tariffs on goods traded between the US and China
Local prices of commodities like fuel have weakened on the back of the sliding value of the US dollar against the Myanmar kyat following an agreement to temporarily suspend any new tariffs on goods traded between the US and China . The trend is expected to persist for the next few months, business and economic experts say. “This is partly the result of the current cooling in the US-China trade war, which has brought a little more confidence to the market. Although it is always difficult to forecast in the long term, economic indicators could improve over the next four to five months,” said wholesale fuel importer U Myo Htwe. As of yesterday, retail fuel prices had dropped between K10 and K20 per liter to K855 for Ron 92 petrol, K925 for Ron 95 petrol; K1025 for diesel; and K1010 for premium diesel. Fuel prices per liter on November 30 were K865 for Ron 92 petrol, K945 for Ron 95 petrol, K1035 for diesel, and K1010 for premium diesel.
Myanmar Fishery Federation (MFF) will organize a meeting with foreign banks on fishery loans to improve production (U Win Kyaing, General Secretary of MFF)
Myanmar Fishery Federation (MFF) will organize a meeting at UMFCCI and invite foreign banks in Myanmar to discuss granting loans for fish and prawn breeding business in Myanmar, according to U Win Kyaing, General Secretary of MFF. “When MFF president told the president of UMFCCI, he agreed to the idea. So, we will hold a meeting on a convenient day, and invite foreign banks operating in the country. Our people need finance in order to improve production. We don’t have funds and our business are not improving,’’ he added. Central banks on November 8 allowed foreign banks that have been operation in Myanmar since 2015 to provide loans to local enterprise the same as local banks. Businessmen in fishery sector want to borrow credit from foreign banks.
Local banks have been significant growth and are on the right path to improvement despite their struggle with stricter regulations
The Myanmar banking sector has improved since regulations aimed at strengthening the system were imposed over the past two years, U Soe Thein, vice governor of the Central Bank of Myanmar (CBM), told the media late last month. “The Financial Institutions Law was enacted in 2016 and new rules were released again in 2017. At first, the banking community protested against the regulations. But most of the banks complied with our directives and there has been significant growth and improvement in the banking sector over the past year,” U Soe Thein said. Among the directives released by the CBM is notification 7/2017 last November under which all local banks must convert overdraft facilities into term loans. By July 2020, the volume of overdrafts as a percentage of a bank’s loan book should be reduced to 20 percent from 50 pc in July this year.