Weekly Business News from Myanmar

A Research Report on Opportunities and Challenges for Local Business Development in Chin State was released to encourage business development in Chin State
In a bid to encourage business development in Chin State, a research report on Opportunities and Challenges for local Business Development in Chin State was released yesterday at the Taw Win Garden Hotel in Yangon. The report was developed by the Aye Chan Myanmar Institute (Gender and Development Institute-Myanmar) and the American Friends Service Committee (AFSC). The report was analyzed by more than 60 people, including high-ranking officials from townships in the Chin State, representatives from civil society organizations, local businesspersons, and women and young leaders. “These people understand the Chin State government’s two-year performance,” said a researcher with the Aye Chan Myanmar Institute.
Yangon Aerodrome Company will upgrade the Yangon International Airport to open up new markets despite the slowdown in visitor growth in 2018 compared to the past five years
Yangon Aerodrome Company Limited (YACL) have announced they will be increasing the capacity of Yangon International Airport (YIA), and stepping up marketing to open new international routes, even as YIA is likely to close 2018 with the slowest growth in air passenger traffic in five years. At a media briefing to announce the five millionth passenger arrival so far this year, YACL said that 2018 is expected to show an increase of 2.5% of around six million in air passenger traffic at YIA, compared to 5.92 million for the whole of 2017. Over the past five years, air passenger growth at YIA had increased at an average of 8.6% per year. YACL said that while tourist arrivals from Asian markets continue to grow in 2018, those from European and North America markets appear to have been impacted by international media reports on domestic Myanmar issues.
According to the recent published report by Myanmar Centre for Responsible Business (MCRB), Myanmar’s private sector need to respect biodiversity and ecosystem early on to avoid cost and conflict
Myanmar’s private sector needs to identify the impact of their businesses on biodiversity and ecosystems early on to avoid cost and conflict, a recent report states. Yangon-based Myanmar Centre for Responsible Business (MCRB) recently published a briefing paper on biodiversity, human rights and business, advising stakeholders on how some types of investment can negatively affect biodiversity and hence affect human rights. Commenting on the report, MCRB director Vicky Bowman said that investors should study the potential impacts their project could have on biodiversity and ecosystems, as well as communities who are benefitting from them, at the conceptual stage of the project, when it is first being considered. “It’s at this stage that it’s easiest to re-route a road alignment to avoid a sensitive area, redesign the hotel to reduce water use, or change the dam design to reduce inundation. The alternative is to find out later, that changes have to be made or an ‘offset’ needs to be added, which is more expensive, or the investor ends up in conflict with other stakeholders, which can even lead to the project being suspended,” she told The Myanmar Times.
The Central Bank of Myanmar is working to raise the value of Myanmar kyat to prevent dollarization
The Central Bank of Myanmar (CBM) is making efforts to raise the value of kyat and prevent dollarization by making use of Myanmar currency compulsory for all transactions across the country to make the kyat stronger and to curb illegal hoarding of money, Xinhua reported quoting CBM Deputy Governor U Bo Bo Nge said.
Myanmar authorities will grant banking license to new foreign banks next year to provide services in the domestic market
Central Bank of Myanmar, which has a great market potential in the banking sector, will grant banking licenses to new foreign banks allowing them to provide services in the domestic market. “We are considering allowing more foreign banks. We have plans to start granting license to the most suitable foreign banks,”U Soe Thein, Vice President of Central Bank, said. So far, there are 13 foreign banks in Myanmar, which have been operating over the last 4-5 years. On November 8, Central Bank allowed them to provide wholesale banking services to local corporations with the aim of widening access to finance for local businesses and to control Kyat depreciation by allowing more currency inflow.
Myanmar earned more than USD $ 160 million from CMP export sector during 1 October - 2 November 2018
Myanmar earned US$160 million more from CMP export sector during more than a month period of this fiscal year, according to Ministry of Commerce. It earned US$1.274 billion from October 1 to November 2 in 2018-19 FY and received US$1.114 billion in the same period last year. Main export products from Myanmar are farming products, animal products, fishery products, forestry products, mining products, CMP and other materials. The garment industry is mainly included in CMP sector and other products included are shoes and bags.
Myanmar Automotive Group (MAG) and European Chamber of Commerce Myanmar (EuroCham) signed an agreement to cooperate on efforts to push for a stronger automotive industry in Myanmar
The European Chamber of Commerce Myanmar (EuroCham) and local industry organisation Myanmar Automotive Group (MAG) have signed an agreement to cooperate on efforts to advocate for a stronger automotive industry in Myanmar. The agreement signed by EuroCham’s Automotive Advocacy Group and MAG last week is expected to work on suggestions for the government to help boost the country’s automotive sector. The signing ceremony also provided a platform to discuss the recent publication of the World’s Bank Ease of Doing Business Index and how it relates to Myanmar’s automotive sector. The main topics discussed at the event were the delays in the implementation of the Yangon Vehicle Quota (YVQ) system and the plight of vehicle importers.
Myanmar Credit Bureau Limited, a joint venture between Myanmar Bank Association and Singapore’s Asian Credit Bureau Holdings, will be operational in the next two years
Having been granted a license on May 17 of this year, Myanmar Credit Bureau Limited, a joint venture between the Myanmar Bank Association and Singapore’s Asian Credit Bureau Holdings, will be operational in the next two years, U Soe Thein, Vice President of Central Bank of Myanmar, said. “It would be very beneficial if we have credit bureau. A credit bureau will be operational in the next two years. However, not having a bureau does not mean that financial services can’t lend,”he told Myanmar Business Today at the press conference at Central Bank. On November 8, Central Bank started allowing foreign banks and branches to provide wholesale financial services to local corporations the same as local banks do.
Myanmar’s breeders are being urged to increase production due to the high demand for striped catfish witnessing a growth in China and countries from the Middle East
With the demand for striped catfish witnessing a growth in China and countries from the Middle East, breeders in Myanmar are being urged to increase production, according to the Myanmar Fisheries Federation (MFF). Myanmar’s striped catfish has now a great demand from China and the Middle East countries. Starting last month, Myanmar has shipped about 8 containers of striped catfish to China and about 14 containers to countries in the Middle East. At present, Myanmar is exporting scraped striped catfish meat and ready-to-eat products. Some Chinese companies want to purchase striped catfish skin, oil, and swim bladder. Striped catfish started to penetrate the export market last year. As demand for the fish has been growing significantly, the MFF has been urging fish farmers to increase area under striped catfish production in the past few months. As a result, the number of striped catfish farmers is estimated to have risen by 40 per cent, said U Zaw Lin.
The President has appointed U Thaung Tun as the Union Minister for the new Ministry of Investment and Foreign Economic Relations
YANGON — Myanmar Investment Commission chair U Thaung Tun will lead a new Ministry for Investment and Foreign Economic Relations that will be formed from two existing departments, as parliamentarians ask whether another ministry is really needed. President U Win Myint announced Thaung Tun’s appointment and the formation of the new ministry on November 19. The investment ministry will take over the Directorate of Investment and Company Administration and the Foreign Economic Relations Department from the Ministry of Planning and Finance. Win Myint had informed parliament of his intention to create the ministry on November 12 and on November 15 nine representatives discussed its formation.