Weekly Business News from Myanmar

Goat, cattle exporters call for regulatory relief and market creation in domestic meat market
The goat and cattle exporter are asking for regulatory relief and market creation in domestic meat market as they are carrying a heavy burden due to export difficulties through border trade and high input costs such as feedstuff cost and labour wages. “We request the reduction of market barriers. It does not mean to reduce the Licence C fee, controlled by a municipal committee for butchery. We want the municipal to support breeding and meat production. If regulatory fees including permit fees by the Department of Livestock Breeding and Veterinary and tax costs around K5,000 per head of cattle, we can sell the boneless mutton of export quality at K10,000 per viss (a viss equals to 1.6 kg). The price, however, is not suitable for the domestic market. If there is a canned meat factory invested in the country, we can provide them as much as they want. The high-quality meat is not usually consumed in the domestic market. Consequently, the cattle and goat exporters are now waiting for the export market, while they are being burdened by feedstuff cost and other general costs.
Myanmar earned over USD $ 63 from exporting 410 tons of jade in the 2019 – 2020 financial year when compared to the same period of previous year
Myanmar earned over US$420 million from export of nearly 2,000 tons of jade in the 2019-2020 fiscal year exceeding over US$63 million from export of 410 tons more compared to the previous year, said an official from the Ministry of Commerce. “This year, we exported 1,964.488 tons worth US$420.036 million. Last year, we earned US$356.876 million from export of 1,548.452 tons of jade,” the official said.
Singapore-based fintech startup is pulling out of a new Shwe Kokko project
FINCY, a Singapore-based fintech startup, is pulling out of a new Myanmar border city, amid allegations that it is being used to prevent law enforcement from tracking financial transactions in the city, The Business Times reported. Its app, which enables users to perform currency exchange and pay merchants in various countries, is said to be the exclusive provider of financial infrastructure to Shwe Kokko’s 40,000 residents, who use the app to make purchases, perform transactions, receive salaries and manage their expenses digitally.
Singapore tops source of foreign direct investments (FDIs) in Myanmar in 2020 – 2021 financial year
Singapore has remained as the top source of foreign direct investments into Myanmar in the current financial year 2019-2020, according to data released by the Directorate of Investment and Company Administration (DICA). The 20 Singapore-listed enterprises brought in US$1.85 billion into Myanmar in the past financial year 2019-2020. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors. Hong Kong stood as the second-largest investors this FY with an estimated capital of $1.42 billion from 46 enterprises, followed by Japan investing $760 million in Myanmar. Myanmar attracted foreign direct investments of more than US$5.68 billion between 1 October and 30 September in FY2019-2020, and over $100 million is required to meet FDI target, the DICA stated. The FDIs flow into oil and gas, power, transportation and communication, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing, trading, logistics and other service sectors.
Myanmar attracted domestic investments over K 10,000 billion over the four and half years under the incumbent government
The domestic investments of over K10,000 billion made by Myanmar citizens have brought into Myanmar over the four-and-half years of the incumbent government, according to the Directorate of Investment and Company Administration (DICA). A total of 575 domestic enterprises put investments of K10,150 billion into the country between the financial year 2016-2017 and the 2019-2020FY. The domestic investments stood at K1,604 billion from 52 enterprises in the FY2016-2017, K3,978 billion from 119 enterprises in the FY2017-2018, K995 billion from 105 businesses in the 2018 mini-budget year (April-September), K1,691 billion from 169 enterprises in the FY2018-2019, and K1,881 billion from 130 projects in the FY2019-2020 respectively, the DICA’s data showed.
In partnering with Tranglo, KBZ to introduce remittance services in Myanmar
KBZ Bank is partnered with Tranglo, a Malaysian based cross border payment specialist, to provide inbound money transfers directly into the accounts of the bank’s customers from oversea countries, announced the bank. The remittance services, approved by the Central Bank of Myanmar, allow Myanmar citizens working in Malaysia, Singapore and South Korea to send money to their families. Beneficiaries will receive money in their currents, saving deposits or call deposit accounts free of charge and will be able to withdraw money via nearby ATMs or Kpay or KBZ mobile banking accounts.
Myanmar agricultural exports increased USD $ 474 million in the 2019 – 2020 financial year when compared to the same period of previous year
Myanmar’s exports of farm products remarkably soared to US$3.69 billion between 1 October 2019 and 25 September 2020 in the 2019-2020 financial year from $3.2 billion in the corresponding period of the 2017-2018FY, according to the trade figures released by the Ministry of Commerce. During the last FY2019-2020, the agro-export figures reflect an increase of $474 million against a-year ago period. Myanmar’s agricultural exports rose regardless of the impact of the coronavirus on foreign demand.
The domestic price of black bean jumps to above K 1.1 million per tonne on India demand
Following the notification released by India concerning 150,000 tonnes of the black bean import quota, the domestic price of black beans soared to above K1.1 million per tonne, the trade data of Yangon Region Chamber of Commerce and Industry (Bayintnaung commodity depot) showed. The black bean fetched around K107,000 per tonne in September-end. After the Ministry of Commerce and Industry of India notified the quota for black bean import on 1 October, the prices climbed up to K1,130,000 per tonne. The notification stated India’s companies would get import licence for an equivalent amount of bean import. The import deadline will be on March-end, 2021.
Sagaing Region Investment Commission approved over K 1.971 billion investment in poultry farms in Sagaing Region
The Sagaing Region Investment Committee has approved a local investment of over Ks1,971 million in running two poultry farms in Sagaing Region—one each in Butalin and ChaungU townships. The committee approved the investments made by Myanmar citizens in accord with the Myanmar Investment Law during its meeting (7/2020). May Kha Zaw Company Limited was allowed to invest Ks1,045.500 million in running a poultry farm and poultry distribution in Kanswe Village, Butalin Township, Monywa District.
Myanmar Investment Commission (MIC) will review Myanmar Investment Promotion Plan (MIPP)
Myanmar Investment Commission (MIC) will critique the Myanmar Investment Promotion Plan, said U Thant Sin Lwin, secretary of MIC. The commission and Japan International Cooperation Agency (JICA) will jointly review the MIPP, affected by the coronavirus crisis, to boost the agricultural, health, industrial and digitization sectors for the post-coronavirus era. “As per the MIPP, there are four task forces in which digitization is included. We need to review the digital industrial technology, with the assistance of JICA. Digitization plays a pivotal role in the coronavirus crisis. Consequently, the business digitization is required to be reviewed in manufacturing, production and related industries, he stressed. An Investment Promotion Committee meeting was held on 15 September, resulting in a decision to analyze the MIPP on account of the world economic situation. “To promote the investment, the MIPP is carefully implemented by paying close attention with mindful and close observation of detail,” the MIC secretary said. The MIPP stated that Myanmar intends to reach foreign direct investment target of US$5.8 billion for the Financial Year 2020-2021. Myanmar set FDI target of $5.8 billion in the previous FY; however, it reached nearly the mark — only $5.68 billion owing to the COVID-19 negative impacts.