Weekly Business News from Myanmar

First Myanmar Investment (FMI) share trading will be suspended for five business days on Yangon Stock Exchange (YSX)
The share trading for First Myanmar Investment (FMI) Co., Ltd. on Yangon Stock Exchange (YSX) will be suspended for five business days, including non-exchange transaction transfer (NETT), in order to conduct the issuance of one fully-paid bonus share for every twenty existing ordinary shares as “Bonus Shares” on the Record Day. The FMI’s share trading will be suspended from 21st to 28th August, 2018. The trading for FMI share will resume on 29 August on a post issuance basis. The base price for FMI share will be announced on 28 August, 2018, according to a recent notice of YSX. FMI’s notice of proposed dividend, recommended by the board of directors of the company, stated that shareholders of the company are entitled to the proposed dividend of Ks. 100 per ordinary share and the issuance of one fully paid bonus share for every twenty existing ordinary shares held as “Bonus Shares” for the financial year ending 31 March 2018. FMI is an investment holding company that owns shares in companies engaged in a number of diverse businesses. Its core businesses are in the financial services, real estate and healthcare sectors.
With the support of Building and Construction Authority of Singapore and Malaysia, a new law is being drafted to establish a Construction Industry Development Board (CIDB) to set standards for the construction industry
A law is being drafted to establish a Construction Industry Development Board (CIDB) which will set standards for the construction industry, U Kyaw Lin, deputy minister of the Ministry of Construction told the Pyidaungsu Hluttaw on August 20. The new law is being drafted with help from the Building and Construction Authority of Singapore and the Malaysian CIDB. U Kyaw Lin said the law will make sure that construction businesses across the country comply with international standards on safety, health and the environment. An official construction management manual setting norms for the industry will also be rolled out. “After the legislation process is completed, a simple construction management manual will be released,” he said, adding that, “in it, required measures such as setting up a fire alarm system will be included.” If a CIDB is established, rules enabling a more level playing field for larger construction companies and smaller ones can be set. The new law will cover both public and private projects and aim to generate more transparency in the bid and tender process as well as public spending.
Myanmar authorities temporarily suspended re-exports of sugar and diesel since the cash flows involved are huge enough to influence the exchange rate
The spike in the exchange rate between the US dollar and Myanmar kyat appears to have tapered after the Ministry of Commerce (MOC) on August 17 temporarily suspended re-exports of sugar and diesel. “We suspended re-exports of sugar and diesel because the cash flows involved are huge enough to influence the exchange rate,” said U Yan Naing Tun, director general of the Directorate of Trade under the MOC. As a result, the local currency appears to be fighting back against the dollar. On August 20, it was trading at K1,500 per dollar compared to a peak of K1,560 this month. During an August 19 interview, U Bo Bo Nge, deputy governor of the Central Bank of Myanmar (CBM) told The Myanmar Times that “pressure on the kyat had eased after we suspended the re-exports.” The move has also been well-received by traders. “The government halting re-export activities is a good sign and as the harvest season for domestic sugarcane is coming up in November and December, the corresponding increase in the price of sugar is good news for local farmers, who will be able to fetch a better price for locally produced sugar,” one trader said.
Union Minister U Win Khaing conducted the consultation on China- Myanmar bilateral cooperation in electricity and energy sector during his visit to China
The Myanmar delegation led by U Win Khaing, Union Minister for Electricity and Energy who was in Beijing, Republic of China discussed with CNPC International Co. Ltd. Chairman and Petro China Co. Vice Chairman Mr. Wang Zhongcai and officials, officials from Sino Pipeline International Co., Ltd., Petro China Gas Marketing Co., Ltd. and Chinnery Assets Limited on the morning of 19 August. At the meeting, they discussed matters related to China–Myanmar bilateral cooperation in oil and gas sector, future potentials and opportunities and cooperation programs. Later in the afternoon, the Union Minister and party met with Power China Group Executive Vice President Mr. Li Yanming and officials, TBEA Company Limited President Mr. Huang Hanjie and officials, China Energy Engineering Group International Company Limited President Mr. Yang Yisheng and officials, China Huadian Company Chairman Mr. Feng Zheng and officials, Zhefu Holding Compnay Chairman Mr. Sun Yi and officials.
State Counsellor plans to meet economic professionals and experts to discuss sharp upturn in dollar prices (U Zaw Htay, Spokesperson to the President Office)
State Counsellor Aung San Suu Kyi is planning to meet professionals and experts from the economic field this month to hold discussion over relatively high dollar prices, said Zaw Htay, spokesperson to the President Office, on the sidelines of a press conference of Rakhine State Independent Investigation Commission on August 16. "The State Cousellor, president of the Central Bank of Myanmar (CBM) and officials from economics-related ministries are always discussing the issue. Later this month also, the State Counsellor is due to meet people from the economic field. What I mean is that the government is taking charge of policy making while entrepreneurs are responsible for economic transactions. Meanwhile, we are receiving suggestions from economic experts and businesspeople. The State Counsellor and the President and those responsible from the economic filed are doing their best and coordinating for the matter," said Zaw Htay.
Mining entrepreneurs will receive the regional government’s permission to operate small-scale gold mining blocks in Homaline Township, Sagaing Region, within a month
Plans are underway to allot some small-scale gold mining blocks in Homalin Township, Sagaing Region, with permission from the region government, and mining entrepreneurs are willing to receive permission as quickly as possible. As per the mining bylaw, about four acres of small-scale gold mines will be allotted. Currently, they are running without a licence. If permits are issued, there will not be illegal gold mines. The plan for permission is said to be implemented within one month. I think we will receive permission in one month," said Kyaw Thura, chairman of Homalin Township Mining Entrepreneurs Association. Small-scale gold mines have been allowed to operate under the permission and control of the region government with effect from August 6 this year. One mining block is about four acres.
Japanese, Thai and South Korean investors eye investment opportunities in retail and wholesale markets in Myanmar
Wholesalers and retailers from Japan, Thailand and South Korea met with the Ministry of Commerce (MOC) to discuss investments in the Myanmar retail sector, said U Yan Naing Tun, director general of the Department of Trade under MOC. Among the companies was Japanese retailer Aeon Co, which invested in the Myanmar retail sector under a joint venture – Aeon Orange Company - with local partner Creation Myanmar Group of Companies (CMGC) in August 2016. Aeon Orange Co acquired 14 supermarkets operated by Hypermart Asia Co, an affiliate of CMGC. It opened its first store in North Okkalapa, Yangon, in September during the same year. The Myanmar Times understands that Aeon is eyeing opportunities to further expand its presence in Myanmar. “Interest from Japanese, Thai and South Korean investors has spiked since the MOC allowed foreigners to wholly-own wholesale and retail business in Myanmar,” said U Yang Naing Tun.
With the support of the Asia Foundation, Kayah State Government organized the Budget Transparency Forum in order to provide information on Kayah State’s financial situation
On August 17, the Kayah State Government, with the support of The Asia Foundation, organised a Budget Transparency Forum aimed at equipping civil society organisations and the community with the knowledge of Kayah’s state planning, revenues and spending process. A total of 62 participants including Kayah Chief Minister U L PhaungSho, Speaker of the State Parliament U Hla Htwe attended the forum, which provided information on the state of Kayah’s financial situation. The forum comes at a time when state and region governments in Myanmar are taking steps to strengthen democratic governance and their relationship with citizens after decades of secrecy surrounding budget data and a lack of public access to financial information. For example, for the 2017-18 financial year, Kayin, Bago and Tanintharyi State and Region Governments have launched Citizen’s Budgets, which are simplified versions of their subnational government budget.
Ministry of Commerce plans to submit the outcome of the meeting on pulses industry development to the Union Government to update the current conditions and requirements of Myanmar’s pulses market
Suggestions regarding Myanmar’s pulses, beans and sesame seeds production and export development will be submitted to the Union Government, said U Toe Aung Myint, permanent secretary of the Ministry of Commerce. He mentioned that at the workshop for development of the pulses industry, organized by Myanmar Pulses, Beans and Sesame Seeds Merchants Association and Yangon Region Chambers of Commerce and Industry (Bayintnaung commodity depot), at the Union of Myanmar Federation of Chambers of Commerce and Industry office on 18 August. “We will report the outcome of the meeting to the Union Government, submitting the requirements faced by the pulses industry”, said U Toe Aung Myint. The workshop aims to realize the current condition of Myanmar’s pulses market, especially mung beans and pigeon peas to all stakeholders in the supply chain, including pulse growers, merchants and related organizations. Future plan for pulse production and selecting more profitable crops for farmers as substitution for mung beans and pigeon peas were also discussed, according to Myanmar Pulses, Beans and Sesame Seeds Merchants Association.
Pyidaungsu Hluttaw approved to accept a €30 million interest free loan from Italy to provide electricity in Chin State and other rural areas in Myanmar
Pyidaungsu Hluttaw has approved a €30 million interest-free loan from Italy which will be used to provide electricity to villages in Chin State and other rural areas in Myanmar. Under its agreement with Italy, Myanmar will begin repaying the loan over a period of 10 years starting 2036. The repayment amount will be €3 million per year, said Dr Aung Thu, Union Minister of the Ministry of Agriculture, Livestock, and Irrigation (MOALI), which will be managing the electrification project. The private sector will be allowed to participate in the electrification project by distributing power generated by small-scale solar and hydropower systems. The loan will cover 60 percent of the electricity costs, while investors and the public will be expected to split the remaining 40pc. Electricity prices currently range from K350 to K500 per unit. Users will also need to fork out 10pc of the cost for installing solar panels at their homes. The project is part of the National Electrification Project with the aim of achieving national electrification by 2030. The World Bank has already provided US$400 million in assistance towards that goal. So far though, only 40pc of the estimated 64,000 rural villages enjoy access to electricity.