Weekly Business News from Myanmar

Government authorities plan to permanently open the Maw Taung gate on the Myanmar- Thailand border to address the falling number of tourists
Maw Taung border gate in Myanmar-Thailand border is seeing less tourists and it need to open permanently to attract the tourists, according to officials and traders. Trading and tourism sectors through Maw Taung border gate have restrictions as it is a special temporary border trade post in Thailand side. Myanmar opened the border gate as a permanent border trade post in 2013 and Thailand opened Singkorn border post as a special temporary border trade post in 2015. Tourists from countries outside of Thailand cannot come through Maw Thaung-Singkorn gate as it is a special temporary border trade post. “Only Thai citizens are allowed to cross to here with border pass and temporary border pass. It’s the same with Myanmar citizens. More than 400 Thai citizens visited here using temporary border pass and over 80 Thai citizens visited here using border pass. There are lesser tourists in the rainy season. Transportation is also bad. People living in the villages around Maw Taung went to work in Thailand. Most Thai citizens that comes over are here for pilgrimage. They usually visited Myeik. The border pass holders can stay three nights and four days in Thailand. Myanmar allowed Thai citizens to stay 13 nights and 14 days for border pass holders and six nights and seven days for temporary border pass holders,” said Maung Maung Kyaw, an immigration officer from Maw Taung border post.
China and Myanmar vowed to boost the Belt and Road cooperation to strengthen the China-Myanmar Comprehensive Strategic Cooperative Partnership
Vice Chairman of the Standing Committee of China's National People's Congress (NPC) Ding Zhongli visited Myanmar from Sunday to Tuesday at the invitation of Myanmar's House of Representatives. During his visit, Ding met with Myanmar's First Vice President U Myint Swe, Speaker of the Union Parliament and Speaker of the House of Representatives U T Khun Myat, Speaker of the House of Nationalities U Mann Win Khaing Than, and held talks with Deputy Speaker of the House of Representatives U Tun Tun Hein. Ding said China and Myanmar are friendly neighbors linked by mountains and rivers and the Paukphaw (fraternal) friendship between the two peoples is long standing. He said China's National People's Congress is willing to work with Myanmar's Union Parliament to actively implement the consensus reached by leaders of the two countries and take Belt and Road cooperation as an opportunity to enhance friendly cooperation.
Current gold prices hit the highest levels in the country’s history which comes on the back of the rising dollar compared to the Myanmar kyat
Domestic gold prices are now at their highest levels ever at K10 lakh a tical, according to U Kyaw Win, chair of Myanmar Gold Entrepreneurs Association. On September 19, the opening price for one tical of high purity gold in Yangon Region was K 1,012,000. That had increased to K 1,018,000 by noon, said U Win Myint, secretary of Yangon Region Gold Entrepreneurs Association. A tical is equivalent to 16.6 grams. The current gold price is the highest in the country’s history and comes on the back of rising dollar prices compared to the Myanmar kyat, U Kyaw Win said. The situation is unique to Myanmar. “International gold prices are not increasing but the Myanmar gold price is rising because of the high dollar exchange rate. Domestic gold prices will continue to be volatile as long as the dollar continues appreciating,” he said.
KoneSi Freight Co., set an innovative technical solution to digitize Myanmar’s logistics sector which is able to reduce logistics costs to a large extent
RETAILERS will no longer need to bother about logistics and fleet operators now have no worries about empty runs in Myanmar thanks to an innovative technical solution launched earlier this year, according to SoePyaeAung, co-founder and chief operating officer of KoneSi Freight Co. “Logistics costs in Myanmar are among the highest in Southeast Asia, accounting for nearly 25 per cent of our GDP [gross domestic product]. So, if we are able to reduce logistics costs to a large extent, our products will be cheaper than ever, which will benefit end users,” he said in an interview. “Unlike big transport companies, it is really hard for individual fleet owners and small freight forwarders to find customers. In the low season, they often have no customers at all. We want to get them connected with the supply chain so they always have a job at all times.” The company has partnered more than 300 fleet operators to regularly serve some 30 businesses for their logistics convenience. Most of its regular customers are up and coming brands including Genius coffee, Maw Shan green tea, and Organic Farm pickled tea leaves, said SoePyaeAung.
Local business communities are disappointed that their meeting with the State Counsellor failed to discuss specific solutions for tackling a sluggish economy
The business community is disappointed that a much-hyped meeting in Nay Pyi Taw failed to discuss solutions for tackling a sluggish economy. A MEETING between State Counsellor Daw Aung San Suu Kyi and business leaders that was front-page news in state-controlled newspapers has come under criticism for failing to discuss specific solutions to the slowdown in the economy. Critics of the meeting within the business community say the event was little more than a speech and a photo opportunity for participants. At the end of her opening speech at the event in Nay Pyi Taw on August 27, Aung San Suu Kyi urged everyone involved in business to show goodwill and unity and use their knowledge and wisdom to benefit the country. “I will conclude by urging you all to use your knowledge and wisdom to find a solution,” she said.
Ministry of Electricity and Energy (MOEE) is drafting a renewable energy law in order to speed up energy sector development in Myanmar
The Ministry of Electricity and Energy (MOEE) is drafting a renewable energy law to develop the sector, said U Maung Maung Kyaw, Chief Engineer from the Department of Renewable Energy and Hydropower Plants under the MOEE. The ministry is aiming to generate 8 percent of the country’s electricity through renewable sources of energy by 2021. By 2025, the target is for 12pc of all electricity generated in Myanmar to be renewable. “We have plenty of natural resources such as solar and wind power. What’s lacking is legislation to govern the development of renewable energy. Without the law, investors are not protected and we do not have a system for providing incentives,” said U Maung Maung Kyaw. “We understand the situation and will try to enact a law to govern renewable energy to speed up development,” he added. The government will prioritise the development of solar energy, followed by wind energy, U Maung Maung Kyaw said.
US listed power management company, Eaton Corporation, will expand into Myanmar to provide technology solutions through a partnership with Myanmar Golden Rock International Co (MGR)
US-listed power management company Eaton Corporation announced its expansion into the Myanmar market through a partnership with Myanmar Golden Rock International Co (MGR), which provides technology solutions in the country, on Septemer 18. Together with MGR, Eaton will bring its expertise in power management technologies to the data center, healthcare, utilities and commercial building sectors with the aim of improving the reliability of existing and newly-developed power generation, transmission and distribution infrastructure in the country. Kidsada Santisak, Eaton country manager for Indochina West, said Myanmar displays growth potential in the power and energy market, with only a third of the country’s population currently enjoying access to a stable supply of electricity.
Myanmar Licensed Contractors’ Association urged Yangon Regional Government to ease newly enacted buildings restrictions
The Myanmar Licensed Contractors’ Association urged the Yangon Regional Government to ease newly enacted building restrictions, such as the reduced ground floor height requirement, and bans on penthouses. The Engineer Department (Construction) under Yangon City Development Committee (YCDC) issued an order back in April instructing contractors to reduce the height requirement for ground floors from 17 feet to 12 feet. There were no changed concerning penthouses. “At the time the new instruction was issued, there were a number of projects agreed between the owner and contractor under the old rules. We need to change the agreements under the new instruction, but owners will not accept the recent change because its harder for them to meet the new requirement. Therefore, we are urging the government to ease this new requirement,’’ U Lar Zel, General Secretary of the association, told Myanmar Business Today.
Ministry of Industry invited companies to submit Expression of Interest (EOI) for the consideration on a real estate development project in Kachin State
The Ministry of Industry (MIC) has invited Express of Interest (EOI) on a real estate project for a shopping mall, offices, and a hotel on 0.359 acre of land at No.139/D, Bo Gyoke Aung San Road, at the corner of Zay Gyi Road, in Kachin State. The plot is owned by the Department of Industrial Supervision and Inspection. The project will be developed under a Build-Operate-Transfer (BOT) system. The department will provide land and the company will provide the financial investment for the project. “We can only afford to purchase the land. Therefore, the applicant company must provide a business plan showing how much it will invest and how much profit the project will generate. We will choose the tender winner based on this information,’’ said U Tin Shwe Oo, Director of Department of Industrial Supervision and Inspection. The Ministry of Industry operated Win Thuzar Shop on the land in the past. Now the department is inviting submissions for an EOI to come and inspect the land, he added.
Ministry of Commerce (MOC) banned the Multi-Level Marketing (MLM) firms in Myanmar with the issued notification on 18 September 2018
The Ministry of Commerce (MOC) on September 18 issued notification (46/2018) which prohibits the business of multi-level marketing (MLM) in Myanmar. The ban will take effect immediately. Action will be taken against all MLM businesses found to still be in operation after the date of the issued notification, under the Essential Supplies and Service Law. The law states that those found to be in violation of the regulations could be punished with a minimum of six months up to a maximum of three years in jail. There will also be a fine not exceeding K500,000. The move comes after the Food and Drug Administration (FDA) met with 41MLM companies and conducted audits on the companies’ books in February.