Weekly Business News from Myanmar

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  Government’s efforts raised to promote Rakhine State as an investment destination

  Rakhine State is being prioritised as a destination for investments within Myanmar says a senior trade official. Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) Executive Committee Member U Htun Htun Naing said yesterday that a delegation from Myanmar will be visiting India for a three-day trip next week to promote Rakhine State as an investment destination. He said this at an event to announce UMFCCI will be hosting the “Invest Myanmar Summit” in Nay Pyi Taw on January 28 and 29 next year.
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  Yoma Strategic inked a franchise deal with US Focus Brands to bring Auntie Anne’s soft pretzels brand to Myanmar in coming months

  Singapore-listed Yoma Strategic inked a franchise deal with US Focus Brands to bring Auntie Anne’s soft pretzels brand to Myanmar, opening the first outlet in Yangon in the coming months. Myanmar is currently among the last frontier markets in ASEAN which the brand has not established a presence. Auntie Anne’s, founded in 1988, is the world’s largest hand-rolled soft pretzel franchise, being known for its bakery products. The companies in a joint release said “more ambitious expansion planned over the next five years” following the first store. Myanmar is set to be the latest addition for the American soft pretzel franchise. Auntie Anne’s has 1,800 outlets across 30 countries and has established a strong presence in the ASEAN region, including Thailand, Philippines, Cambodia, Indonesia, Malaysia, Vietnam, Laos and Singapore.
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  Myanmar needs to ensure safe and efficient use of its airspace ( Mr.Brian Davis, Vice President for airlines at Honeywell Aerospace and aerospace leader at Honeywell International in Malaysia)

  Debate is growing over Myanmar’s infrastructure needs in the aviation sector and whether there is an economic case for a proposed new airport near Yangon in the short-term. Brian Davis, vice president for airlines at Honeywell Aerospace and aerospace leader at Honeywell International in Malaysia, tells Frontier about his company’s cooperation with the Department of Civil Aviation and why larger airports and longer runways alone are not enough to ensure efficiency and safety.
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  Framework agreement to develop Kyaukphyu Special Economic Zone Deep Sea Port project was signed in Nay Pyi Taw

  The framework agreement on Kyaukphyu Special Economic Zone Deep Sea Port Prject was signed by the Kyaukphyu SEZ Management Committee and CITIC Consortium at the Ministry of Commerce in Nay Pyi Taw yesterday. At the ceremony, Myanmar Special Economic Zone Central Body Chairman, Union Minister for Commerce Dr. Than Myint and Ambassador of People’s Republic of China to Myanmar, Mr. Hong Liang, delivered the opening speeches. CITIC Group Chairman Mr. Chang Zhenming, and Kyaukphyu Special Economic Zone Management Committee Chairman and Deputy Minister for Planning and Finance U Set Aung delivered messages of thanks.
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  Foreign Direct Investment (FDI) in Myanmar will take a hit if European Union (EU) removes Generalised Scheme of Preferences (GSP) privileges to Myanmar

  Foreign direct investments (FDI) will suffer a blow if the EU withdraws its Generalised Scheme of Preferences (GSP), under which Myanmar enjoys easy trade access to the world’s largest trading block. EU FDI in Myanmar as well as FDI from countries which target the EU market through the country could take a hit should the EU cancel its GSP privileges to Myanmar, said U Aung Naing Oo, Director General from Directorate of Investment and Company Administration (DICA). The EU is considering removing the GSP due to the ongoing crisis in northern Rakhine. Last week, an EU monitoring mission visited Myanmar to meet with government officials, businesses and labour associations as part of it decision making. As a whole, FDI from the EU accounts for 10pc of total FDI to Myanmar. Most of the funds are channeled into the garment manufacturing sector. Myanmar exports almost half its garment products to the EU.
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  United Kingdom will provide technological assistance to implement renewable-energy projects in Myanmar

  The United Kingdom will assist Myanmar in implementing renewable-energy projects. a senior UK official said. Douglas Barnes, director of the UK’s Department for International Trade, made the comment during a knowledge-sharing workshop for policies and regulations covering renewable-energy use and reducing carbon emissions organised by his agency in Nay Pyi Taw on Monday. “After the workshop, the governments of the UK and Myanmar will have continuous discussions. From that relationship, policies and regulations will be drafted,” Mr Barnes said. “When those policies are in place, Myanmar will need technologies and we will provide these technologies. UK businesses will also be invited to invest in the sector in Myanmar,” he added.
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  Gas pipeline at the Zawtika project, offshore of Myanmar will be replaced to reliably supply gas to Myanmar (Mr. Piya Sukhumpanumet, General Manager of PTTEP Myanmar Asset)

  The replacement of a gas pipeline at the Zawtika project, offshore of Myanmar, will be conducted to reliably supply gas to Myanmar, said Mr. Piya Sukhumpanumet, general manager of PTTEP Myanmar Asset. Mr Piya was speaking to journalists during a media tour to Zawtika, located in block M-9 of the Moattama Gulf, Tanintharyi Region on November 6. Myanma Oil and Gas Enterprise (MOGE) holds a 20pc stake in block M-9, while the remaining 80pc is held by Thai oil company Petroleum Authority of Thailand Exploration and Production International (PTTEP). .The latter is the operator of the project. The daily gas production at M-9 Zawtika is 345 million cubic feet, of which about one third, or 100 million cubic ft is allocated for domestic consumption. The remaining gas produced – around 240 million cubic ft – is exported to Thailand on a daily basis, said Mr. Sayan Charoensook, Zawtika field manager.
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  Foreign Direct Investment registered actual amount is $ 2.14 billion while Myanmar Investment Commission's approved amount is $ 1.76 billion in past mini budget period from April to September

  The actual amount of Foreign Direct Investment during the past mini-budget period from April to September is worth US$2.145 billion, while the amount approved by the Myanmar Investment Commission (MIC) was registered at $1.765 billion, according to the MIC. The approved enterprises, however, might not bring in the entire submitted capital immediately, which means some investments will arrive during three or four events. Otherwise, only small amounts of approved investments might flow this year, and large capital can be delivered in the upcoming years, said U Aung Naing Oo, the secretary of MIC. Every three months MIC releases the actual amounts of foreign investment arriving in the country.
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  Myanmar government eyes e-commerce which can create jobs, trade and promote Myanmar’s economic growth

  Government officials, donors and partners have met to consider the United Nations Conference on Trade and Development (UNCTAD)'s appraisal of how e-commerce can boost Myanmar's economy and the next steps forward. The power of e-commerce to create jobs and increase trade in Myanmar was in the spotlight on 30 October, as government officials, development partners, donors and the private sector met in the southeast Asian nation’s capital Nay Pyi Taw to discuss ways to support online business, according to a press release. "The Ministry of Commerce is committed to making e-commerce a powerful engine for economic growth, inclusive trade and job creation in Myanmar,” Deputy Minister of Commerce U Aung Htoo said. The event marked the national presentation of UNCTAD’s Rapid eTrade Readiness Assessment of Myanmar. The assessment, first published in April, was carried out by UNCTAD with funding provided by the Government of Sweden.
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  According to the newly released World Bank’s 2019 report, Myanmar ranks 171 out of 190 economies, as it is still weak in enforcing contracts and protecting minority investors

  Myanmar has done undertaken two reforms to improve access to power supply and the ease of starting a local business, according to the latest report from the World Bank. However, pace of reform on most regulations affecting the private sector remain stagnant. In the newly-released World Bank’s 2019 Doing Business rankings, Myanmar ranks 171th out of 190 economies in the overall ease of doing business, unchanged from last year’s position. It is the third consecutive year where the country fails to advance its ranking, remaining as the worst place in ASEAN to conduct business. Economies are ranked on their ease of doing business, from 1-190, based on the average of each economy’s ease of doing business scores for the 10 topics, which capture several important dimensions of the regulatory environment as it applies to local firms. The analysis provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. Myanmar scores an average of 44.72, which is the lowest in ASEAN, compared to the second lowest-scored Laos with 51.26 and the regional average for East Asia and the Pacific with 63.41.