Weekly Business News from Myanmar

Myanmar expects foreign direct investment (FDI) to hit USD $ 5.8 million in 2018- 2019 fiscal year, which is the same as the previous 2017- 2018 fiscal year that ended on 31 March 2018
Myanmar is expected to draw foreign direct investments (FDI) totaling US$5.8 billion in the upcoming 2018-19 fiscal year beginning on October 1, said U Than Aung Kyaw, deputy director general of the Directorate of Investment and Company Administration (DICA). That’s unchanged from the previous 2017-18 year ended March 31, during which Myanmar received $5.7 billion in FDI for 222 projects. In comparison, the country received $6.6 billion for 135 investments in 2016-17. DICA’s estimates also come amid a trend of falling capital flows into Myanmar. Between April and August this year, FDI totaled $1.4 billion versus the $3billion forecast by DICA for the April-September six-month interim period between 2017-18 and 2018-19. But U Than Aung Kyaw said investments from Asian countries including Singapore, Japan, South Korea and Thailand have not faltered. “In addition, with the New Companies Law will enforced in the coming fiscal year, we expect to see increasing FDI in sectors that are opening up, such as education and retail,” he said.
Next Code Pte Ltd is working to set a digital healthcare platform to reshape the national healthcare industry in Myanmar
THOUGH MOST of the healthcare service providers in Myanmar are yet to become familiar with the latest technical solutions, Next Code Pte Ltd, a technology start-up that focuses on creating a digital healthcare platform, has big hopes of shaping the digital future of the nation’s healthcare industry. ThihaZaw, founder and chief executive of Next Code, said in an exclusive interview that the company is currently working to bring all private hospitals, clinics, dentists, healthcare services and beauty-care in Myanmar under an umbrella of its application and hospital management system. “Firstly, we will start with dentists in Yangon. Then we will expand our reach to general practitioners, clinics, hospitals and all healthcare services in major cities throughout the country,” he said. To date, the company has gathered 50 dental clinics in its application, which was launched on August 1. ThihaZaw expects to cover all dentists and a large percentage of clinics in Yangon within two months of the launch of their application.
Government called for the crack-down on illegal selling of farmland for residential purposes, which has reduced the amount of land available for agriculture
Government called for the crack-down on illegal selling of farmland for residential purposes, which has reduced the amount of land available for agriculture
Yangon new city development project is needed to attract more foreign investment to Yangon (U Phyo Min Thein, Chief Minister of Yangon Regional Government)
Yangon must be developed further to free up space for new industrial zones and residences, which, in turn, will draw more foreign investors to the city, said U Phyo Min Thein, the region’s chief minister, during an August 24 press conference detailing his government’s plans for the coming quarters. The chief minister this year announced several new projects for Yangon, including the US$5 billion new Yangon City project, which will include five townships and10 sq km of industrial estate on the west bank of Yangon River, the Yangon Amata Smart & Eco City and up to 11 new industrial zones in 11 townships. Instead, the government has drawn flak from members of the public, who have questioned its ability to supervise and manage new projects given the long list of problems the existing city still faces, such as poor water distribution and power shortages. Many are also concerned that the new projects could cannibalise funds and resources that could be put to better use in the old city. But U Phyo Min Thein said the new projects will help accommodate the rising number of migrant workers from other states and regions. It will also help alleviate chronic traffic congestion and problems with squatters, which are big problems in the existing city of Yangon.
Local and foreign tourist will be permitted to visit pearl farms in Tanintharyi region starting from October 2018 with the aim to develop the tourism sector
With the aims of developing the tourism sector, earning foreign income and creating job opportunities for local people, local and foreign tourist will be permitted to visit farms owned by four private companies and a state-owned farm in Taninthayi Region starting from October according to Myanmar Pearl Enterprise. A state-own pearl farm and 11 private pearl farms are located on 15 islands in Myeik and Kawthoung districts, Taninthayi Region. State-own farm on Pearl Island and private farms on Jalan Island, Golden Island, Nga Lone La Phe Island and Done Palae Island will be opened for visitors. Only one island namely Palae Island is in Myeik District and the other four islands are in Kawthoung District. “Tourist vessels are not allowed to enter into the pearl farming area. Tourist vessels will have to anchor outside the restricted area and relevant farms will pick up the tourists using their small fiber boats. If the time of visit coincides with inserting of pearl nucleus into the oyster and extracting of the pearl from the oyster, tourist can observe the operation from a designated area. Rules and regulations for tourist industry on this matter will be announced soon,” said U Myo Lwin, Deputy General Manager of Myanmar Pearl Enterprise.
Pioneering Maubin industrial zone development in Ayeyarwaddy Region moves forward with strong interest from Chinese investors
A Union committee’s decision removes a key obstacle to plans for a privately owned and managed industrial park on farmland in Ayeyarwady Region that has seen strong interest from Chinese investors. THE DEVELOPMENT of an industrial park in Ayeyarwady Region has taken a major step forward following a decision to designate hundreds of acres of farmland as suitable for industrial use. The decision in July by the National Land Resources Management Central Committee came with work expected to begin early next year. Maubin Development Public Co Ltd received approval from Myanmar Investment Commission last November to develop the park on 250 acres (101 hectares) of farmland in the rural township, on the vast Ayeyarwady Delta plain about 90 kilometres west of Yangon. MDPC has formed a joint venture with Shanghai Yangon Investment Co Ltd, which has a 55 percent share in the project, the Ministry of Information said in a May 2017 news release which noted that some of the 136 shareholders are farmers.
Bidding for new oil and gas fields to commence in first and second quarters of 2019
Fresh bidding rounds for offshore and onshore oil and gas blocks will be called during the first and second quarters of 2019, according to the director general of the Ministry of Electricity and Energy’s Oil and Gas Planning Department. “Tenders for one block in an existing onshore field will be called before the end of the year and we’ve started preparing to submit the necessary documents to the President’s Office. For offshore and other onshore fields, bidding will be called in the first and second quarters of next year,” he said. If all goes according to plan, it will be the first time a bidding round is held under the current government. The last tender for work at Myanmar’s oil and gas fields was conducted in 2014 under U Thein Sein’s former administration. State-owned Myanmar Oil and Gas Enterprise (MOGE) will invite international tenders for oil and gas exploration and drilling and production activities in unoccupied onshore and offshore blocks in partnership with foreign oil companies, the ministry announced last month. Projects will be awarded under Production Sharing Contracts and Improved Petroleum Recovery Contract arrangements.
Government called for the crack-down on illegal border trading at Kachin, Shan, Mon, Kayah and Kayin State which are bordered with China and Thailand
The government has begun an organised crack-down on illegal border trade at Kachin, Shan, Mon, Kayah and Kayin, which border China and Thailand, after orders were given to the relevant ministries to establish special task forces for the purpose, vice president U Myint Swe said at the (UMFCCI) on August 24. Arrangements are also being made for similar operations to take place in Tanintharyi region in the south, near Thailand, and Rakhine State, which shares the border with Bangladesh in the north. “Drug trafficking has been prominent in Rakhine state and must be controlled and stopped. We have already started preparations to crack down on illegal trade activities there,” U Myint Swe said. U Than Myint, minister for the Ministry of Commerce, said illegal smuggling of goods into Myanmar via the country’s borders has increased with better transport options and unguarded routes.
Korean Industrial Complex will submit its proposal to MIC and Union Government after signing an agreement with Mon State Government Committee to rent the land plot at the Sittaung Paper Mill in Kyaikhto Township in Mon State
MAWLAMYAING-A Korean firm had agreed with the Mon State Government Committee to rent a plot at the Sittaung Paper Mill in Kyaikhto Township, Mon State. The firm will be submitting its proposal to the Myanmar Investment Commission (MIC) and the Union Government later on. “Mon State Government Committee agreed with Korea Industrial Complex - KIC about land rent. We are going to submit the proposal on land rent to the MIC as well as the Union Government separately. Now, it is at the beginning stage. They [KIC] told us it would become a mega industrial project which can compete even with Yangon. Plans are underway to prepare the land plot on the industrial zone project site which will include garment, rubber and automobile industries. Later on, they will also offer other entrepreneurs looking to invest in the zone. They had also observed Bago region but are likely to invest in Thein Zayat village, Kyaikhto Township, Mon State. If there will be any sizble vacant land, we are going to implement the industrial zones. Investors are especially, very important. If he or she will invest in our region, the industrial zone will be established. The industrial zone may be small or large as it will depend on the initial host of investors and their amount of investment. It is still just in a signing stage to rent the land plot. The MIC is likely to allow the proposal if the state government committee agrees to it and the proposal can pass this year. The project period will be two or three years long,” said Wunna Kyaw, Minister of Mon State Planning, Finance, Immigration and Population.
Swine industry faces difficulties due to the rampant illicit export of pigs from Thailand to Myanmar
The swine industry is in a difficult time, given what is happening in the region and the impact those developments caused, an industry leader said. U Zaw Myo Tun, joint secretary from Myanmar Livestock Federation said that China decided to end imports from Vietnam, due to a territory dispute at sea, and Japan stopped the purchase of swine from Thailand for four months after discovering an infection involving swine-specific disease. As the Vietnam swine market collapsed, Thai brokers bought the animals with low price, resulting in Thai swine farms being infected with the disease. As a consequence Japan stopped Thailand imports for a four-month period. But, pigs from Thailand are still being exported illegally to Myanmar. The pork meat shipments have affected the domestic market.