Weekly Business News from Myanmar

Mottama Holdings Limited has nine major projects in the pipeline, which is expected to be complete by 2022
Mottama Holdings Limited, a Yangon-based company owned by Myanmar-Chinese entrepreneur U Yang Ho, has nine major projects in the pipeline, valued at US$1 billion and expected to be all completed by 2022, according to the company’s announcement on June 15. Established in 1997, Mottama’s nine projects cover residential apartments, office towers, shopping malls and public recreational centres. There are four projects carried out with international partners: M Tower on Pyay Road, Min Residences on Mindhama Road, Mottama Centre and affordable housing project M Green Apartment in Yangon’s Mingaladon township. The remaining five projects are domestic partnerships: an aquarium inside Kandawgyi Park, Harbour Trade Tower on Strand Road, HL tower on Pyay Road, Bonnamy Tower on Kyaik Wine Pagoda Road and Mottama Business Tower on Mindhama Road.
Government announced new appointments for Myanmar Investment Commission (MIC): U Thaung Tun, Union Minister of the Ministry of the Office of the Union Government, is now the Chair of MIC, and Dr.Than Myint, Union Minister of Commerce, is the Vice Chair
The Union government on Saturday officially announced changes in the ranks of the Myanmar Investment Commission (MIC). According to notification (61/2018), U Thaung Tun, union minster of Ministry of the Office of the Union Government, formerly a member of the MIC, will now be the commission’s chair. Meanwhile, Dr Than Myint, Union Minister of Commerce, has been appointed vice chair. U Set Aung, who is deputy minister at the Ministry of Planning and Finance, has been appointed a new member of the MIC. Other members of the MIC include U Tun Tun Oo, Union Attorney General, Daw Nilar Kyaw, a minister of the Yangon Region Government, economist and advisor to the former government Dr. Aung Tun Thet, U Khin Maung Yee, permanent secretary of Ministry of Natural Resources and Environmental Conservation, U Toe Aung Myint, permanent secretary of the Ministry of Commerce, U Htein Lwin, permanent secretary of Ministry of Electricity and Energy, U Htay Chun, former deputy director general of the Directorate of Investment and Company Administration (DICA) and U Aye Lwin, Central Executive Committee Member of the Union of Myanmar Federation of Chambers of Commerce and Industry.
Internal Revenue Department (IRD) will place more focus on collecting taxes from the securities and brokerage firms which run operations in Thilawa Special Economic Zone this year
The Internal Revenue Department (IRD) will place more focus on collecting taxes from the securities and brokerage firms as well as companies which run operations in Thilawa Special Economic Zone this year, said U Tet Htut Aung, director of the Large Taxpayer Office under the IRD. The IRD also expects profitable State-owned enterprises to contribute to the government coffers during the period, he said. Nevertheless, the bulk of the IRD’s revenue will come from the oil and gas sector in 2018-19, said U Tet Htut Aung. This will include revenue from commercial, income and special commodities tax within the sector. The IRD is also expecting communications and insurance firms, domestic and international airlines as well as the banks to contribute to government’s coffers during the fiscal year.
Relaunching Myintsone Hydropower dam after a long suspension could build foreign investors' confidence in Myanmar
Myanmar President U Win Myint on Thursday started a visit to Thailand, where he will attend the 8th Ayeyawady-Chao Phyra Mekong Economic Cooperation Strategy (ACMECS) Summit. The summit is intended to promote regional economic integration by narrowing the development gaps among the five member countries - Cambodia, Laos, Myanmar, Thailand and Vietnam. In 2015 when the 6th ACMECS Summit was held in Myanmar, former president U Thein Sein invited foreign companies to invest in the emerging country. If Myanmar wants to make itself an attractive destination for investment, especially in the field of hydroelectric infrastructure, the country must pay more attention to maintaining policy continuity and consistency.
Ministry of Electricity and Energy is reviewing the fiscal terms in production sharing contracts with energy companies to make the country more internationally competitive
With an offshore oil and gas tender on the horizon, the Ministry of Electricity and Energy says it is reviewing the fiscal terms in its production sharing contracts to make the country more internationally competitive. THE GOVERNMENT is reviewing the structure of its contracts with energy companies amid warnings that the present fiscal terms are deterring investment, particularly in riskier or marginal projects. Myanmar’s high-taxing fiscal regime and low global energy prices are clearly having an impact on the sector, with energy companies having relinquished almost half of the offshore blocks awarded in a 2014 bidding round. The “government take” – the proportion of revenues from oil and gas projects that goes to the government – can be as high as 94 percent under present production sharing contracts, according to energy research and consultancy firm Wood Mackenzie. Despite this, investors bear all the risk; the government invests nothing in exploration or development.
New Union Minister for Planning and Finance raised hopes for better economic management after two years of lackluster leadership
PLANNING AND finance is perhaps the most important ministry in the civilian government, after the President’s Office and State Counsellor’s Office. Yet for more than two years, the National League for Democracy entrusted the minister’s position to someone who was widely considered ill-equipped for the role. U Kyaw Win has been described as honest and reliable. More often, the words indecisive and incompetent are used. What is perhaps most surprising is that his resignation on May 25 was the result of a corruption investigation. It has been clear to most since soon after the NLD took office in March 2016 that he was not the right man for the job, yet State Counsellor Daw Aung San Suu Kyi refused to heed calls for his removal. His replacement, U Soe Win, the former head of the Myanmar branch of Deloitte, assumes the role at a time of apparent macroeconomic stability. Economic growth, inflation, the budget deficit and current account are all at their healthiest level in years. But beneath the surface, all is not well. The private banks are teetering as they struggle to comply with new prudential regulations, while planned reforms and market liberalisation have stalled.
Experts warn that a local firm’s plans to mine sand in Tanintharyi Region would be highly damaging to a nearby pearl farm, biodiversity and fisheries and livelihoods of local communities
A local company plans to extract 5 million cubic metres of sand over five years in sensitive coastal areas in Tanintharyi Region without legally-required environmental assessments. Experts warn that the proposed sand mining will be highly damaging to a nearby pearl farm, biodiversity and fisheries and livelihoods of local communities. The issue highlights some of the problems companies face when pursuing development plans in the frontier economy. Two official documents seen by The Myanmar Times reveal that Kyaw KS Development Trading Co Ltd, registered as a local company in Yangon Region, is seeking approval to extract 5 million cubic metres over five years in Tanintharyi Region, claiming that there will be “no environmental damage”. There was no mention of environmental assessments. Notice No. KDTC-Sea Sand 42/2018 from Kyaw KS, dated May 25 and signed by township administrator Tin Myo Aung, argues that the site of the sandbanks is “13 miles away from A Lae Man Island, where the locals live, and it does not affect the local fishing sites”, and that the extraction will attract investments for the regional government and residents. The letter suggested a “ground survey” and examinations to be conducted to check if there is overlap between the mining area and fishery sites.
Foreign investors who plan to invest in domestic banks still need to be reviewed by the Central Bank of Myanmar (CBM)
Foreign investors who plan to invest in domestic banks still need to be reviewed by the Central Bank of Myanmar (CBM)
Government promotes the sustainable development of the tourism sector through a Public- Private Partnership system
Promoting tourism sector in Myanmar requires more cooperation through the Public-Private Partnership system between the government and the people, said Vice President U Henry Van Thio yesterday at the Myanmar Tourism Conference in Nay Pyi Taw. He also urged all participants of the conference to make the best and most effective discussions to create a conducive enviroment for the travel sector in Myanmar. Vice President U Henry Van Thio, Chairman of the Central Committee for the Development of the National Tourism Industry (CCDNTI), made the speech at the opening ceremony of the Myanmar Tourism Conference 2018. The ceremony was attended by former President U Htin Kyaw and wife Daw Su Su Lwin, union ministers, Nay Pyi Taw Council Chairman and wife, state/region ministers, departmental heads, diplomats, travel entities and officials. He also expressed his hope that the national-level conference will support the implementation of the tourism sector development. The coordination meetings of CCDNTI were held twice last year.
Partnership between Thai digital advertising firm 360 Innovation and local marketing services agency Pintale responds to opportunities in Myanmar’s digital transformation
Thanks to an explosion of investment in the past couple years, around 90 percent of people in Myanmar currently have access to smartphones with Internet connections, according to the Myanmar Computer Federation. From a marketing perspective, this situation presents an unprecedented opportunity to dramatically increase exposure of products and services inside the country and beyond. One group that has emerged to respond to these opportunities is Pintale360', a partnership formed in March 2018 between leading Thai digital advertising firm 360 Innovative and local marketing services agency Pintale, operating under Mandalay Advertising Group. The partnership hopes to build a bridge between traditional marketing and the digital transformation that is already well underway in Myanmar. In an exclusive interview with Mizzima, 360 Innovative Vice President for Business Development Ying Amekong and 360Pintale' Managing Director Kyaw Zay Ya talked about their hopes for the future.