Weekly Business News from Myanmar

In partnership with Myanmar Golden Rock International Co (MGR), Eaton Corporation Plc entered Myanmar in September 2018 to optimize power solutions
EATON CORPORATION PLC, a multinational power management company with 2017 sales of US$20.4 billion globally, expanded into the Myanmar market last month by signing a partnership agreement with Myanmar Golden Rock International Co (MGR), according to Kidsada Santisak, the firm’s country manager for Indochina West. “At Eaton, we have a global marketing intelligence team to collect information on markets around the world. Interestingly, we have found out that only 30 per cent of Myanmar people have access to electricity the reliability of which is not that good. That is why we decided to enter Myanmar to better optimise power,” he said in an exclusive interview. Kidsada has noticed Myanmar’s growing demand for power and energy solutions as the country races towards electrifying 100 per cent of its households by 2030, the primary goal set out in the Myanmar National Electrification Plan.
U Yan Naing Tun, Permanent Secretary of Ministry of Commerce highlighted the need for quality exports to compete in the global market
The permanent secretary of the Commerce Ministry has stressed the need to ensure good quality to be able to compete in the global market while efforts are being exerted to ensure a firm export market. Permanent Secretary Yan Naing Tun was speaking to the media during a press briefing on trade affairs held at the ministry in Nay Pyi Taw on Thursday. "We have a meeting with China in December to boost the export sector. We are trying to get a firm market. But we have to try and compete against international market in terms of quality. It is important for our products to be better in quality. In this context, it is also necessary to reduce production cost," said the permanent secretary.
Experts said that it’s a good time to enter the property market while availability of home loans are increasing, the introduction of the Condominium law 2016 and market stability
Property-market watchers say the increasing availability of home loans, the introduction of the Condominium Law 2016, and stable market makes this a good time for those looking homes to start considering taking the plunge. At present, management bodies that will enforce condominium rules and regulations are starting to emerge and as soon as they are formalised, big housing projects can be legally registered. “After registration, a project will be able to sell 40 percent of the apartments to foreigners according to the Condominium Law 2016. This will support the development of the property market and attract foreign investors, said U Kyaw Sithu, the owner of a construction company.
Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) called on the European Union (EU) to deliberate trade sanctions on Myanmar
The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) called on the European Union (EU) to deliberate on its intended trade sanctions on the country, expecting a balanced assessment with the issue after meeting with representatives from all sectors, according to a press release of the UMFCCI Tuesday. An EU monitoring team, in its mission to observe and assess facts if it should withdraw its Generalized Scheme of Preference (GSP) previously offered to Myanmar, met with business circle, led by the UMFCCI, in Yangon Monday.
Myanmar Rattan and Bamboo Entrepreneurs Association (MRBEA) will implement integrated bamboo industrial zone in six years, 2019- 2024
Myanmar Rattan and Bamboo Entrepreneurs Association (MRBEA) will implement an Integrated Bamboo Industrial Zone in six years 2019-2024. The association proposed the plans to U Ohn Win, Union Minister of the Ministry of Resource and Environmental Conservation at the meeting between them and Forest Farm Family Company, which has established a private forest, officials from the association and the Minister held the meeting at Forestry Department’s office in Yangon on October 24. The zone will be implemented in Bago Region and will focus on bamboo products and the complete supply chain from growing bamboo. From bamboo shoots, bamboo sculptures, bamboo furniture, bamboo tiles, tooth picks and so forth will all be part of the industry. Commenting on the proposal, the minister said that his ministry is also trying to increase the number of bamboo plantations and advised that they will be able to acquire a loan from the government in case more funds are need when establishing the zone.
Myanmar CEO survey remains broadly confident about the investment climate in Southeast Asia’s last great frontier market despite Myanmar's domestic and international challenges
Despite fierce domestic and international headwinds that have threatened to blow Myanmar’s fast-growing economy off course, executives who participated in Oxford Business Group’s latest Business Barometer: Myanmar CEO Survey remain broadly confident about the investment climate in Southeast Asia’s last great frontier market. Of the 100 respondents, 77pc indicate their firm intends to make a significant capital investment in the year ahead, while 64pc have positive or very positive expectations of local business conditions. The survey was conducted face-to-face in Yangon at a time when Myanmar was facing international scrutiny into the unrest in Rakhine State, as well as severe pressure on its currency stemming from the tightening of US monetary policy, moderating foreign direct investment (FDI) inflows and underperforming exports.
The value of bilateral trade between Myanmar and Thailand reached USD$ 2.39 billion from April to August of the past mini-budget period
The value of trade between Myanmar and neighboring country Thailand has reached 2.39 billion USD from April to August of the past mini-budget period, comprising export worth $1.23 billion and import valued $1.15 billion, according to data released by the Ministry of Commerce. Thailand tops on regional trade line-up with the largest trade value. Myanmar’s main export items are fishery products such as crab, fish and shrimp, as well as onions, sesame, dry tea leaves, coconut and turmeric, while consumer goods, cosmetic machinery, food products, and agricultural equipment and trucks are imported into the country from Thailand.
The government of Myanmar and China will sign a framework agreement for the construction of the Kyaukphyu deep sea port project in Rakhine State next week
The Myanmar government and China-based CITIC Group will sign a framework agreement for the construction of the Kyaukphyu Deep Sea Port project in Rakhine State next week, said U Aung Htoo, deputy minister of commerce. “It was agreed that for the first phase, the deep sea port will be implemented with US$1.3 billion (K2.4 trillion) in funds. The framework agreement will be signed between CITIC and Kyaukphyu Special Economic Zone (SEZ) Management Committee on November 8,” he told journalists in Nay Pyi Taw yesterday. CITIC Group initially won the tender to construct the Kyaukphyu (SEZ) with an estimate investment of $7 billion in December 2015. The development comes after months of difficult negotiations between China state investment vehicle CITIC Group and the NLD-government to reduce the Chinese consortium’s stake in the port from 85 percent to 70pc. Under the previous government, CITIC had won the original tender to build the port based on an 85:15 ratio.
Negative impact on investments in Myanmar from the loss of EU “GSP” is debatable (U Than Aung Kyaw, Deputy Director of DICA)
The Directorate of Investment and Companies Administration (DICA) believes that revoking Myanmar’s EU GSP will probably not have a severe impact on investments in Myanmar, according to U Than Aung Kyaw, Deputy Director of DICA. “It’s only been around five years since the EU granted us Everything But Arms (EBA) in June 2013. We already have CMP garment investments in our country. Moreover, when you look at the investments in Myanmar, most of the investments in the country are not from the West,’’ he added. He was referring to the Cut-Make-Pack (CMP) garment exports. As of 2017 the sector stood third on the list of export items as earnings reached nearly $700 million USD during four months of 2018FY. The EU placed more orders in the CMP market after the reinstatement of GSP rights to Myanmar. In the past many companies from South Korea and Japan invested in the sector; now the sector sees an inflow of investments from China as well.
Government will take action on the shadowy trade in gold and dollars in order to protect the country's economy
Panic over a falling currency and surging gold prices has put the spotlight on a network of brokers and speculators profiting from – and possibly fuelling – volatility. “THE GOVERNMENT will take action against the brokers who are manipulating the market and find out why they are doing it.” When government spokesman U Zaw Htay addressed reporters on September 21, Myanmar’s currency, the kyat, had been enduring a rough few days. Over the last three days it had fallen from K1,565 to the dollar to K1,630, but had also seen wild swings in which it gained or lost as much as K15 – nearly 1 percent of its value – in just an hour, according to websites that track the market rate. During this three-day period, the US dollar was generally losing value against other currencies; the kyat would normally have been strengthening. It seems that there were indeed other forces at work.