Weekly Business News from Myanmar

According to the 2019 Doing Business in Myanmar Report, Myanmar is at the bottom among the 10 ASEAN member countries in ease of doing business ranking
Myanmar has been at the bottom of the list of 10 ASEAN countries in the ease of doing business ranking, according to a 2019 Doing Business in Myanmar report. The ease of doing business means reducing procedural steps, simplification, time and cost reduction in services provided by government departments for businesses. According to the Doing Business 2019 report, New Zealand is ranked first, followed by Singapore, Denmark, Hong Kong, Korea, Georgia and Norway. "Among ASEAN countries, Singapore and Malaysia are top tier. Other countries have also improved their rankings. Ironically, our country is ranked first in ASEAN countries if we look at the list from bottom to top. Our country is rich in natural resources. It is geographically strategic. Despite these sound conditions, the current situation is the lowest. This indicates that we must put more practical effort," said Aung Soe, director general of Myanmar Trade Promotion Board and secretary of Ease of Doing business Ranking Improvement Task Force.
A new glass melting furnace was opened in Kyaukse and has started operations: authorities expect to export to Vietnam and other ASEAN member countries
A new glass melting furnace at No.36 Heavy Industry (Kyaukse) was inaugurated on 19 November. With the factory beginning operations, the authorities expect to amp up production of glass soon with a view to export it to Viet Nam and other ASEAN countries. Within 20 days of operation of the furnace, the factory manufactured 2,000 tons of 12-inch-wide glass and distributed it in the local market. The authorities have entered into discussions to export glass from the factory to Viet Nam soon. They are also planning to export the glass to ASEAN countries. The inauguration ceremony was attended by the Union Minister for Industry, U Khin Maung Cho, the Deputy Minister for Natural Resources and Environmental Conservation, Dr. Ye Myint Swe, Mandalay Region’s Minister for Agriculture, Livestock, and Irrigation, Dr. Soe Than, International Glass Co. Ltd.’s Managing Director U Zaw Win, and officials from the Industry Ministry.
In October 2018, Myanmar’s stock trading value saw a sharp drop of over Ks 174 millions (USD $ 112,469) when compared to September 2018
YANGON, Nov. 6 -- Stock trading value on Myanmar's Yangon Stock Exchange (YSX) registered 780.3 million kyats (503,440 U.S. dollars) from trading of 184,812 shares in October, seeing a sharp drop of over 174 million kyats (112,469 U.S. dollars) compared to the September's, according to the monthly figures from the YSX on Tuesday. On September alone, stock trading value of five listed companies showed 954.7 million kyats (615,910 U.S. dollars) from trading 218,595 shares. Stock trading value on YSX continued drop for two consecutive months since August when it was recorded at 1.5 billion kyats (967,741 U.S. dollars).
Yangon Aerodrome Company Ltd (YACL) is working with government authorities to attract European tourists as growth slows
Yangon Aerodrome Company Ltd (YACL) is in negotiations with Lufthansa for the German airline to operate a direct flight between Frankfurt and Yangon. The move is part of efforts to lure European visitors back to Myanmar, Mr. Jose Angeja, chief operating officer of YACL, told The Myanmar Times on November 15 during a press conference at the Yangon International Airport (YIA). “We have been in conservation with Lufthansa for at least nine months. It’s taking some time because they also need to understand the Myanmar market,” Mr Angeja said. He added that negotiations are likely to result in a stopover flight from Frankfurt at a Vietnamese city, as the number of passengers for a direct flight to Yangon is still insufficient to justify the costs. On November 1, the Italian airline Neos Spa began operating a scheduled Boeing 767 flight from Milan to Yangon every Wednesday. The flight will stop over in Phu Quoc, Vietnam before landing at Yangon International Airport. Neos is first airline to fly from Europe to Myanmar.
Myanmar is attracting more foreign investments in three sectors: hotels and tourism, industry and housing development in 2017- 2018 fiscal years
More foreign investments entered industry, hotel and tourism and housing development sectors in 2017-18 FY and due to insufficient electricity supply, expensive transportation costs, rare skilled workers and difficulties obtaining land for long term investment are setbacks to attracting more foreign investments, according to Investment Report of 2017-18 FY released by Myanmar Investment Commission (MIC). The report said more foreign investments entered Myanmar as it set priority sector for foreign investment, announced instructions to facilitate investment in line with the time and negotiated between government departments for the investment. Investments from China, Hong Kong, South Korea, Japan and Asean countries such as Singapore, Thailand, Vietnam and Malaysia are mainly made. Establishment of new investment is slower in this year due to the United States and China tension in business sector. Asean countries including Myanmar are facing the difficulties, it said.
Myeik residents lament higher power prices after Myeik Public Corp Lt took over distribution of electricity in Myeik from Regional government
Electricity prices in Myeik, Tanintharyi Region, have risen since an agreement between the Tanintharyi Regional Government and public company Myeik Public Corp Ltd was inked on October 26 for the latter to take over distribution of electricity in the Myeik area. Under the electricity distribution contract, Myeik Public must commence distribution of electricity within six months of signing. South Korean company KHAN Co Ltd is investing US$40 million (K63.7 trillion) to improve the electricity grid for distribution, while Golden Green Energy Co Ltd (GGE) and Myeik Public will contribute K6 billion.
Minbu, 170 MW solar power plant will start producing electricity in time for summer 2019
A 170MW solar power plant in Minbu Township, Magwe Region, will start producing electricity in time for summer next year, said U Lin Naing Oo, business development department general manager of GEP (Myanmar) Co Ltd. The Thailand-based company is investing US$297 million in the solar project, which is Myanmar’s first. Electricity generated from the plant will be linked to 230-kV transmission lines and supply power to the national grid. The Ministry of Electricity and Energy (MOEE) has signed a power purchase agreement with GEP (Myanmar) to purchase electricity from the company at K150 per unit, said U Lin Naing Oo.
Myanmar’s Union Parliament approved the establishment of a new Ministry of Investment and Foreign Economic Relations to boost local and foreign investment and make investment socially and environmentally friendly
The Second Pyidaungsu Hluttaw tenth regular session held its third day meeting in Nay Pyi Taw yesterday where the establishment of the new Ministry of Investment and Foreign Economic Relations proposed by the President was approved. Prior to the Hluttaw approving the establishment of the new ministry, Union Attorney-General U Tun Tun Oo explained about it and said the Union Government consider this matter from all angles and proposed it for the benefit of the people. The new ministry will be formed with Foreign Economic Relations Department (FERD) and Directorate of Investment and Company Administration (DICA) of Ministry of Planning and Finance and at the moment will not require additional staff, building, cars, budget etc. Without creating additional burden for the State, this newly formed ministry will effectively coordinate between related ministries and organisations on local and international investments, development works implemented for various sectors with international development loans and aids.
UMFCCI will organize monthly dialogues with respective ministries and sectors to improve the private sector and expedite business transitions
The Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has submitted that regular dialogues will be organized in respective ministries and sectors on a monthly basis to help improve private economic sector and expedite business transactions, according to the 27th Annual General Meeting of UMFCCI. "It is true that regular dialogue is held with the Vice President. It happens monthly. One more regular dialogue we want to hold is for respective ministries and sectors. They are now coordinating with each other. Ministries have to take time because they are busy. We have submitted the proposal to hold regular dialogues monthly," said UMFCCI President Zaw Min Win.
The 21st regular meeting between the Private Sector Development Committee (PSDC) and Myanmar entrepreneurs was held at UMFCCI’s head office in Yangon
Vice President U Myint Swe, Chairman of the Private Sector Development Committee (PSDC) addressed the 21st regular meeting between PSDC and Myanmar entrepreneurs held at the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) headquarters in Yangon yesterday morning. Also present at the meeting were Vice-Chairman of PSDC and Union Minister for Commerce Dr. Than Myint, Deputy Ministers U Aung Htoo, U Win Maw Tun and U Maung Maung Win, Yangon Region Government ministers, UMFCCI President, Vice Presidents and members, Permanent Secretaries, Directors-General, officials from the Myanmar Garment Manufacturers Association, the Myanmar Federation of Mining Association and Yangon Region Chamber of Commerce and Industry.