Weekly Business News from Myanmar

Myanmar and China will sign a MOU on building the China- Myanmar Economic Corridor (CMEC) in order to promote economic integration between China, Southeast Asia and South Asia countries
Recently, U Aung Naing Oo, director general of the Directorate of Investment and Company Administration of Myanmar, said that Myanmar and China will soon sign a Memorandum of Understanding (MoU) on building the China-Myanmar Economic Corridor (CMEC), one of the key projects of the Belt and Road initiative (BRI). The two sides reached a 15-point MoU at the working group level in February this year and agreed to collaborate on many sectors including basic infrastructure, construction, manufacturing, agriculture, transport, finance, human resource development, telecommunications, and research and technology in order to develop the CMEC. Fresh progress on the CMEC since its announcement during Chinese Foreign Minister Wang Yi's Myanmar tour in November last year indicates Sino-Myanmar ties are heading in the right direction. The corridor connects Yunnan and three important economic centers in Myanmar, including Mandalay, Yangon New City and Kyaukphyu Special Economic Zone (SEZ), and aims to promote the economic integration of the region. This also coincides with the national development plan of Myanmar in which Myanmese leaders are trying to address economic imbalances by enhancing connectivity between developed Yangon and remote and undeveloped Rakhine State. Hence, the economic corridor is the convergence of common interests of Myanmar and China.
Plans afoot to seek the loans from Thailand for two lanes Dawei- Htikhee road which is included in the Dawei Special Economic Zone project (Dr. Than Myint, Union Minister for Commerce)
Plans are underway to seek loans from Thailand to build two-lane Dawei-Htikhee road included in the Dawei Special Economic Zone project, said Union Minister for Commerce Dr Than Myint, who is also chairman of Myanmar SEZ Central Work Committee. The construction has been agreed and approval sought from relevant parliaments. The government is also working together with Japan International Cooperation Agency to develop not only Dawei SEZ but also the whole of Tanintharyi Region. The Thai government offered to provide loans with low interest rate for construction of a two-lane road connecting the Thai border and Dawei SEZ. Myanmar's Ministry of Construction and Department of Highways from Thailand conducted a survey to measure the road axis. According to sources released by the Ministry of Information, the road will contribute substantially to the Dawei SEZ project and the local populace.
Myanmar authorities are hoping to secure an Overseas Development Assistance (ODA) loan from Tokyo in order to resuscitate the failed Hanthawadddy airport project
The transport ministry is hoping to secure an Overseas Development Assistance (ODA) loan from Tokyo to resuscitate the failed Hanthawaddy airport project, according to the Department of Civil Aviation (DCA). However, the facts show that an airport 80km away from Yangon is unnecessary and that the focus should be on strengthening the infrastructure for the existing airport and attracting more passengers instead. More alarmingly, officials said that the tender process for the project will begin once the Japanese aid is approved, but failed to mention any plan to undertake environmental assessment, which is required by law. DCA’s deputy secretary general U Ye Htut Aung said that the government is keen to revive the failed project by securing an ODA loan from Japan because the National League for Democracy-led government regards it as a priority for the nation. “Hanthawaddy airport must be developed due to the limited capacity of Yangon International Airport [YIA]”, he said, referring to both the terminal as well as runway capacity. Authorities have claimed in the past that the YIA is already at full capacity with 3 million passengers annually. This claim however does not match with the facts.
After two years suspension on mining activities, local and foreign investments are permitted in Myanmar’s mining blocks under the new Myanmar Mining Rule enacted in February 2018
Local and foreign investments in Myanmar’s mining blocks will be permitted under the new Myanmar Mining Rule enacted February 2018, according to the Ministry of Natural Resources and Environmental Conservation (MONREC) Mining activities had been suspended in 2016 so that the ministry could assess the industry’s compliance with environmental rules and regulations. “We have since inspected up to 519 mining sites and made many reforms. We believe the mining sector is now ready to contribute to our nation’s development,” U Khin Latt Kyi, director general of the Mining Department under the MONREC, said during a press conference in Nay Pyi Taw on July 13. “The mining sector is now open to local and foreign investors after two years,” he told The Myanmar Times. Applications made individually or online will be accepted starting from July 26.
FMI Air suspended services from 20 July 2018 after less than six years in operation in the latest sign of pressures on Myanmar’s domestic aviation industry
YANGON — FMI Air will suspend its services from July 20 after less than six years in operation, a company spokesperson has confirmed, in the latest sign of pressures in Myanmar’s domestic aviation industry. The airline was founded by businessman Serge Pun in September 2012 to operate commuter flights between Yangon and Nay Pyi Taw and has since expanded to several tourist destinations including Thandwe, Myeik and Kawthaung. A spokesperson said the company could not comment on the decision to stop operating and that further details would be released on Friday. In June 2015, First Myanmar Investment reduced its stake in FMI Air to 10 percent, selling a 40 percent equity stake to Yangon Land, a subsidiary of Serge Pun and Associates. At the time, the company said in a disclosure document to the Yangon Stock Exchange that it expected competition in the domestic airline industry to intensify. “We are of the opinion that the aviation industry will require consolidation to be more efficient,” it said.
Grab, a leading ride-hailing services provider in Southeast Asia, retains its leadership in Myanmar market
Grab, a leading ride-hailing service provider in Southeast Asia, is making plans to continue as the market leader in Myanmar with its new offerings for passengers and driver-partners, according to Alvin Loh, the firm’s acting country manager for Myanmar. Loh said in an interview that more and more passengers are enjoying ride-hailing services operated by Grab’s growing base of drivers in Yangon, and the firm will continue to expand its services to more cities. “Currently, we are focused on adding drivers and passengers to the platform, creating the best possible user experience and building new services,” he said. “Our journey in Myanmar has been meaningful for us. We have grown so quickly in such a short period of time. All of this would not have been possible without the support of our passengers and the commitment of our driver-partners.” According to Loh, the firm has enjoyed significant growth in Myanmar since it started app-based taxi services in Yangon in March 2017.
Existing companies are able to re-register online without any charges starting from 1 August 2018 when amended Myanmar Company Act comes into effect
According to the amended Myanmar Company Act, all companies must re-register at Directorate of Investment and Company Administration online or at the DICA’s office starting on August 1st. There will be no charge for those re-registering, according to DICA. Companies will be able to re-register online starting from August 1st when the amended Myanmar Company Act comes into effect and DICA then will establish a system called Myanmar Companies Online (MyCO) where everyone can have access to the information of companies. “Once online registration comes online, all the companies and enterprises can register free of charge. Their company certificate must be changed to the new one,” U Aung Naing Oo, Director General of DICA, told the press at DICA’s office in Yangon.
Myanmar launched two reports on its extractive industries to strengthen the implementation of the Extractive Industries Transparency Initiative (EITI) process in Myanmar
IN an effort to improve transparency and good governance in extractive industries such as mining, gems and jade, oil and gas, Myanmar on Thursday launched two reports on its extractive industries. “These reports were prepared to strengthen the implementation of the Extractive Industries Transparency Initiative (EITI) in Myanmar. We are eager to make all our extractive sectors responsible and transparent so the nation can generate more income for the good of the people,” said KyawThet, deputy director general at the Department of Mining and government representative of Myanmar EITI Multi-stakeholder Group (MSG). He believes Myanmar would yield a good result in the validation process which will start from July 1. “For our country, it is a very important process to become a compliant country for EITI. We are now preparing to develop the Open Data Policy which was described in EITI Standard 2016,” he said. “Since we began our efforts to join this initiative a few years ago, we have set our heart on having good governance in every single company that is doing business in all the extractive industries here. For developed nations like the United States and the United Kingdom, their institutions are strong enough and well-established so they do not need to be involved in the initiative. But on the contrary, we need to be active in this regard.”
53 local and international companies express their interest in building a 47.5 kilometre elevated four-lane ring road in Yangon
A total of 53 local and international companies/ consortiums are interested in the 47.5-kilometre elevated ring road in Yangon, the Ministry of Construction announced on July 4. On May 18 last year, the Ministry of Construction (MOC) invited local and foreign investors to submit Expressions of Interest (EOI) for the construction of an elevated four-lane ring road under a Public-Private Partnership (PPP) in Yangon. The ministry, together with the Yangon regional government, is planning to build a 47.5-kilometre four-lane elevated ring road, which is expected to connect downtown Yangon, Yangon Port, Yangon International Airport, Mingalardon Industrial Park and Yangon-Mandalay highway. Local and international companies have already submitted EOIs, covering areas such as designing, engineering, financing, construction, operations and maintenance before the end of June.
Myanmar recognizes Hong Kong’s distinctive role as the Belt and Road initiative’s “superconnector” (U Thaung Tun, Chairman of Myanmar Investment Commission)
Myanmar recognises Hong Kong’s “distinctive role” as the Belt and Road Initiative’s “superconnector”, a cabinet minister said last week during an official visit to the city, while businesses urged Nay Pyi Taw to draw up its own priorities in the Initiative and proactively reach out to investors. Newly appointed chair of the Myanmar Investment Commission (MIC) U Thaung Tun, who is also a cabinet minister, led a delegation including U Aung Naing Oo from the Directorate of Investment and Company Administration (DICA) and Daw Nilar Kyaw from the Yangon government as well as business leaders to take part in the third Belt and Road Summit organised by the Hong Kong Trade Development Council (HKTDC) last week. Myanmar recognises Hong Kong’s distinctive role as the superconnector in the BRI. - U Thaung Tun, cabinet minister and Myanmar Investment Commission chair “Myanmar has always attached and continues to attach great importance to Hong Kong. We are aware that Hong Kong is one of the best places in the world to do business.