Weekly Business News from Myanmar

Star High Asia Pacific Company granted a five year green light to begin mega dredging project in Yangon River
YANGON- The Star High Asia Pacific Company had been given a five-year green light to begin mega dredging project in Yangon River, says Myanma Port Authority. While vessels requiring nine meters depth of water were allowed to pass through the Yangon River, most vessels had to wait for the rising tide as the water way gets gradually clogged up with silt. Around 300 vessels enters and departs in the Yangon River daily. Myanmar Port Authorities invited the competitive tender on dredging project to facilitate travel for those vessels.
World Bank urged the Myanmar government to address risks as the economy picks up amid global and domestic uncertainty
YANGON – As the economy picks up amid global and domestic uncertainty, the World Bank has urged the government to address emerging risks that could impact business sentiment and weaken future performance, according to its new Myanmar Economic Monitor (MEM). Real GDP growth increased to 6.4 percent in financial year 2017-18, from 5.9 percent the previous year, the World Bank said at the launch of the monitor on May 17 in Yangon. Inflation fell to 5.5 percent and fiscal and external balances improved, while the kyat appreciated slightly on strong exports and foreign direct investment flows. “The pick-up in growth and improvement in the macroeconomic situation are encouraging,” said Ms Ellen Goldstein, World Bank director for Myanmar, Cambodia, and Lao PDR. “The government is also finalizing its Myanmar Sustainable Development Plan, which we hope will serve as a platform to accelerate economic reforms, modernize the financial sector and make progress in resolving conflicts that jeopardize inclusive and sustained growth”
Myanmar Economic Monitor (MEM), a bi- annual report was launched in Yangon: the report take stock of recent economic developments, highlights economic prospects, and selected policy issues for the coming period in Myanmar
The official launching ceremony of the Myanmar Economic Monitor (MEM): GROWTH AMIDST UNCERTAINTY was held in Yangon on Thursday. It was co-hosted by the Union of Myanmar Federations of Chambers of Commerce and Industry (UMFCCI) and the World Bank Group for the first time. The Myanmar Economic Monitor (MEM) is a bi-annual report that takes stock of recent economic developments and highlights economic prospects and selected policy issues for the coming period in Myanmar. Also it draws on available data reported by the Government of Myanmar and additional information collected as part of the World Bank Group's regular economic monitoring and policy dialogue. According to the World Bank's Myanmar Economic Monitor, Myanmar's economy performed better in 2017/18 amidst growing global and domestic uncertainty, partially offsetting slower growth in 2016/2017. It is estimated that Myanmar had a broad-based increase in growth of national income as well as lower inflation and improved fiscal and external balances. Growth of Gross Domestic Product (GDP) is estimated to have increased to 6.4 percent in 2017/18 from 5.9 percent in 2016/17. This growth was driven by a recovery in agriculture and especially crop production, improved manufacturing performance, and strong services growth despite a slight slowdown likely due to tourism and banking sector uncertainties.
Kayin State Chief Minister accused residents of opposing a controversial quarry project while ABD suspended disbursements to a China contractor that planned to use the Mt. Lun Nya quarry for an ADB- funded highway project
YANGON – Kayin State Chief Minister Nang Khin Htwe Myint has accused residents of “maliciously” opposing a controversial quarry project and claimed consultation with those affected by such projects is unnecessary. During a fiery meeting with residents of Lun Nya village in Hpa-an Township on May 12 to discuss the nearby quarry, the chief minister also suggested they may be obstructing the project in order to get compensation. Her comments come as the Asian Development Bank confirmed it had suspended disbursements to a Chinese contractor that planned to use the Mt Lun Nya quarry for an ADB-funded highway project. A spokesperson told Frontier the ADB was “concerned” at recent developments regarding the quarry and was “actively monitoring the situation”. “The ADB has stringent safeguard policies and we are following up with the government to ensure that they are being fully adhered to,” the spokesperson said, adding that the payments to the contractor had been stopped “due to noncompliance with ADB safeguard and government environmental requirements”.
Yangon Regional Government will form one centralised supervisory committee for all the industrial zones instead of continuing with one committee for each zone
The Yangon Regional Government is taking steps to form a central supervisory committee to oversee the development of Yangon’s industrial zones, moving from the current supervisory structure of having one committee for each zone. The move comes on the back of a slew of new industrial projects announced by the government this year. “We will restructure the current industrial zone committee set up and focus on forming one centralised supervisory committee for all the industrial zones. The restructuring process will begin as a test project at South Dagon industrial zone,” said Daw Nilar Kyaw, Minister of Electricity, Industry and Transport and Communication in Yangon, in parliament Wednesday. Daw Nilar Kyaw was responding to questions raised on the structure of the committees by U Kyaw Kyaw Maung, MP from East Dagon Myothit Township. Developed in the 1990’s, the objective of having an industrial zone is to provide firms such as manufacturers with better access to infrastructure and electricity. There are currently 29 industrial zones in Yangon. However, there are no official regulations governing such zones. Each industrial zone is governed by its own supervisory committee so rules and standards differ across each zone.
Ministry of Agriculture, Livestock and Irrigation (MOALI) will provide necessary assistance to fish farmers so that they can resume exports to Saudi Arabia
The Ministry of Agriculture, Livestock, and Irrigation (MOALI) will assist domestic aquaculture businesses in meeting trading requirements set by the Saudi Arabia Food and Drug Authority, U Hla Kyaw, deputy minister said during a Parliament session yesterday. The deputy minister was responding to questions raised by U Aung Kyi Nyunt, Hluttaw MP from Magway Region. “We will provide the necessary assistance required so that the businesses are able to export their products to Saudi Arabia once more,” said U Hla Kyaw. Saudi Arabia in February announced that it would suspend the import of aquaculture products from Bangladesh, India, Myanmar and Vietnam from April 1 onwards. The suspension will be in place until the facilities comply with Saudi Arabia’s requirements and is compliance with World Trade Organisation regulations.
Myanmar is likely to open more sectors to FDI: Myanmar Investment Commission (MIC) has been keeping an eye on the latest developments in the investment scenario to decide which sector should be liberalised first among the restricted sectors
A SURGE in interest among global players following the liberalisation of Myanmar’s education sector to foreign investors has motivated the authorities to continue opening up the economy in other restricted sectors. Thant Sin Lwin, deputy director general at the Directorate of Investment and Company Administration (DICA), said at a press conference on Tuesday that Myanmar Investment Commission (MIC) has been keeping an eye on the latest developments in the investment scenario to decide which sector should be liberalised first. “We are trying to catch up with our neighbours. We may liberalise the insurance sector in our next move, as many insurance companies have visited us to discuss about expansion of their services and products in Myanmar,” he said. “But honestly, we have not decided anything yet, though insurance is a sector with high potential for liberalisation. We also need to take China’s Belt and Road initiative into serious consideration.” According to the statistics, 24 foreign insurance companies has established their representative offices in Myanmar while 12 private local firms and state-owned Myanma Insurance Enterprise are offering a range of products to customers.
UK-based preschool franchise Linguaphone Group plans to expand further in Myanmar: the Group established its presence in Myanmar before the government opened up the education sector to international investment last month
A franchise of a UK-based preschool service provider located in northern Yangon has reached its first anniversary and is set to expand to downtown Yangon as well as Mandalay. With aspiring families in the country looking for quality education, demand is on the rise. Before the government opened up the education sector to international investments last month, Surrey-headquartered Linguaphone Group, which has licensed partners in over 60 countries, has already established a presence in Myanmar more than a year ago. In 2016, Myanmar-based EduWorld Co Ltd signed an English school franchise agreement with Linguaphone Group, who owned the Pingu’s English brand. Since then, the first school in the country was launched in February 2017, located in Bahan township, Yangon. The Myanmar Times spoke to Bryan Yen, EduWorld CEO, about his school and upcoming expansion plans. “English education is very important for Myanmar’s future. With Myanmar opening up its doors to the world, there is a growing demand from parents for high-quality English programmes for their children,” he explained, highlighting that there is market demand for an international curriculum and well-establish learning methodology.
InfoCrop Technologies, a Singapore-registered fintech company and RGK+Z&A Group will partner with the government to create a financial ecosystem to solve the risk of livestock insurance and enable use of livestock as collateral
InfoCorp Technologies, a Singapore-registered fintech company and RGK+Z&A Group will partner with the Livestock Breeding and Veterinary Department of the Ministry of Agriculture, Livestock and Irrigation and Myanma Insurance, an arm of the Ministry of Planning and Finance, to carry out a joint pilot project to perform Tamper-Proof Livestock Identification. The agreement, which was signed yesterday, will involve identification and tagging of cows and buffalos for the purposes of building an official livestock registry, which will in turn, enable livestock to be used as collateral in the loan application process. “This joint partnership will create a financial ecosystem that solves the risk of livestock insurance and potentially transforms the market into a force for development by enabling the use of livestock as collaterals,” said Mr. Roy Lai, Founder and CEO of InfoCorp Technologies. InfoCorp Technologies will implement the service through Sentinel Chain, which it claims is the world’s first platform to accept the use of livestock as collateral. Through the platform, InfoCorp is also aiming to bring ordinary financial services such as banking, loans and insurance to less developed parts of the country to resolve challenges of small farmers in running their businesses without banking facilities.
Transport of selected containerized goods will be permitted within the city during the day and is expected to significantly improve trade (U Soe Naing, Secretary of Myanmar Container Trucks Association)
Transport of selected containerised goods will now be permitted within the city during the day, U Soe Naing, secretary of Myanmar Container Trucks Association, said yesterday. The decision breaks a 2-year-long regulation by the Yangon Region Government prohibiting container trucks from entering the city during the day. It could also significantly improve trade as well as delivery times within the city. Now though, trucks transporting approved containerised goods will be allowed to move through the city. Goods scheduled for exports will be brought to the container depot in front of Insein Steel Factory on Bayintnaung Road. Container pickup and transport to the ports west of Yangon will begin at 11am.