Weekly Business News from Myanmar

Businesses seek closer ties with Thailand and the Directorate of Investment and Company Administration (DICA) expects more Thai investments in Myanmar: in the previous fiscal year ending on March 31, Myanmar received US$123 million (Bt3.84 billion) from T
THOUGH MYANMAR received only US$123 million (Bt3.84 billion) from Thai investments in the previous fiscal year ending on March 31, the nation’s investment body foresees a significant inflow of Thai businesses over the next few years. Aung Naing Oo, secretary of Myanmar Investment Commission and director-general at the Directorate of Investment and Company Administration, said Thai investments would grow from this year on, thanks to closer cooperation between the countries in both public and private sectors. “Thai investments in Myanmar fluctuate wildly from year to year. In 2016-17 fiscal year, we approved $423 million in Thai investments. But we could not get more than one-third of that amount last year. Now it is time to grow further,” he said.
The economic indicators can’t show the development of the state perfectly (Daw Aung San Suu Kyi, State Counsellor)
State Counsellor Aung San Suu Kyi said that the economic indicators could not portray the development of the State perfectly and it was difficult to know the right situation from these figures. “The economic indicators cannot show the development of a State perfectly. Sometimes it is difficult to know the correct answer as the calculation methods are different from each organisation. The main point is how much can indicators show the genuine impact on the people’s welfare and socio-economic situation. For instance, our rice export figure reached the highest point after independence last year. The main point is how much this progress and achievement can have a great impact on rice producers, peasants. We must start policy formulation process only after analysing all these facts and figures,” she said.
The Yangon Government has formed a company to implement the "new city" development project, however, the project is very ambitious and business leaders question why the government is engaging in commercial activities
YANGON’S government has formed a company to develop a landmass twice the size of Singapore as a re-launch of the “new city” development project abandoned last year. While officials has gone as far as comparing the project's ambition with the urban development of China’s Shenzhen, a business leader has called into question why the government is entrenching itself in the commercial activities. On March 31, the regional government launched the New Yangon Development Company (NYDC). NYDC was incorporated under the Special Companies Act and 100pc owned by the regional government. Infrastructure works related to Phase 1 are expected to amount to a sum in excess of US$1.5 billion. This will include the construction of five village townships, two bridges, 26km of artery roads, 10km2 of industrial estate, power plant, transmission and distributions facilities as well as fresh water supply and wastewater treatment plants. The development for New Yangon City will be primarily based on a Public-Private Partnership model, with businesses contributing in equity investments. The project planners aspire to rival the likes of Shenzhen, South Korea’s Incheon and Malaysia’s Iskandar, according to NYDC.
More than 930,000 foreigners visited Myanmar via the Tachilek border this fiscal year (Ministry of Hotels and Tourism)
More than 930,000 foreigners visited the country via the Tachilek border point in the current financial year, according to the Ministry of Hotels and Tourism. Between 23 and 29 March this year, some 767 foreign visitors, including 195 day-trippers, entered the country through Tachilek, a land border in Shan State in eastern Myanmar, and the Mae Sai border on the Thai side, to visit the town’s well-known destinations on a one-day return visit or overnight trip. Most of them came from neighbouring Thailand, China and third-world countries. International tourist arrivals through the borders are increasing each year. Foreign travellers visit the country to enjoy its natural scenery, including the highlands, mountains, rivers and forests. The diverse range of culture, traditions and lifestyles of the rural communities in Myanmar are also major attractions.
The New Yangon Development Co., Ltd (NYDC) invited local and foreign investors to participate in Yangon’s new satellite townships project
The New Yangon Development Co. Ltd (NYDC) has invited third parties — local and foreign entrepreneurs — to invest in the urban city extension project with new satellite townships. The project is expected to create massive job opportunities for some 2 million people. NYDC invited investments to facilitate infrastructure development through public-private partnerships at the launch event of the NYDC at Lotte Hotel, Yangon, last Saturday. Officials from the Yangon Region government and several enthusiastic local and foreign investors attended the event. NYDC is wholly owned by the Yangon Region government. The implementation of phase 1 includes core and social infrastructure projects, which are slated to be completed by 2020. In the first phase, some 1,500 square kilometres on the west side of Yangon river will be developed to build five townships, two bridges, a 26km-long arterial road, 10 square kilometres of industrial zone, electric power generation factory and facilities, and water treatment plants, said Serge Pun, CEO and Vice Chair of NYDC.
Myanmar Licensed Contractors Association
The local agri-processing company, Lluvia and Japan based Kamigumi jointly established the international Bulk Terminal Co., to develop and operate a greenfield bulk terminal in Thilawa
A bulk terminal is in the pipeline near Thilawa Special Economic Zone in southern Yangon. The US$65 million project is partly funded by the International Finance Corporation and will be among the first providers of bulk cargo handling for the country. Lluvia, a domestic agri-processing company, and Japan-based Kamigumi jointly established the International Bulk Terminal (Thilawa) Co, which will develop and operate a greenfield bulk terminal located at Thilawa. The estimated project cost is $65 million, while the IFC said on March 27 that it is providing long-term financing of $15 million to the venture. The bulk terminal will be one of the first bulk terminals for the country, with a capacity of more than one million metric tonnes. It will lower transport and logistics costs and improve the competitiveness of Myanmar’s supply chains by making it cheaper and more efficient to transport goods. In the near future, the port will be able to facilitate trade flows of wheat, animal feed and rice as well as other non-agricultural commodities. The current lack of specialised and efficient bulk facilities forces producers and traders to containerise bulk commodities, which involves high handling costs, the IFC argued.
Ministry of Construction invited the tenders for the new Bago river bridge connecting the area with Yangon, which will be a major development for Thilawa Special Economic Zone (SEZ)
The new Bago River bridge will become operational in 2021. INVESTORS in Thilawa Special Economic Zone (SEZ) and Thanlyin residents now see the light at the end of the long tunnel, as a new bridge connecting the area with Yangon is scheduled to complete within four years. The new Bago River bridge, expected to become operational in 2021, will be built next to the existing Thanlyin bridge, connecting Thaketa and Thanlyin townships. With four lanes in total (two lanes each way), it will be a steel cable-stayed, PC box girder and steel box girder bridge. The Ministry of Construction will decide whether there will be any toll road charges. It has invited tenders for the project. Construction of the bridge will be financed by JICA loan reserved for the Myanmar government. The loan amount involves about 31 billion Japan yen, with a 10-year grace period and repayment period of 40 years at an interest rate of 0.01 percent per annum.
PTTEP confirmed its commitment to the development and growth of Myanmar’s oil and gas industry at the Offshore Technology Conference Asia 2018, which was held in Kuala Lumpur, Malaysia on 23 March 2018
PTTEP reaffirmed its commitment to the development and growth of Myanmar’s oil and gas industry at the Offshore Technology Conference Asia 2018 this week. Despite the exploration and development challenges in Myanmar’s oil and gas sector, opportunities for successful discovery and production can be captured with the effective use of innovation and people, said Mr. Piya Sukumpanumet, General Manager of PTTEP Myanmar Asset, at the Offshore Technology Conference (OTC) Asia 2018 held in Kuala Lumpur, Malaysia on 23 March 2018. “We know there are gases in the Gulf of Mottama but the challenge is in identifying economic and efficient methods to develop the gas. In this respect, technology is a key focus for PTTEP,” he said. “Analysis of our long-term experience operating across various geographical locations indicates that significant improvements in exploration and development efficiency can be achieved when we have a mix of the right people and technology.”
Government will invite local and international investors to build infrastructure for China- Myanmar Economic corridor project (Directorate of Investment and Companies Administration – DICA)
YANGON- Government will be inviting local and international investors aiming to build basic infrastructures such as industrial zones, urban development projects and agricultural zones which are being included in China-Myanmar Economic Corridor project, says Directorate of Investment and Companies Administration (DICA). China is implementing the One Belt, One Road Initiative. Moreover, economic corridor project also includes in the Initiative. “In conclusion, China plans to build economic corridor starting from Myanmar border area to commercial hub of Yangon. Concerning this project, urban development, IT sector, agricultural and industrial zones will emerge. And then, border trade and tourism industry will be blooming. We have a plan to implement China-Myanmar economic corridor which is under One Belt, One Road Initiative. Myanmar delegation led by the Union Minister went to China last month. But, we didn’t reach the stage of signing. The project will be implemented after holding a discussion with both sides’ leaders,” said Aung Naing Oo, Director-General of the DICA. He continued that the project would bring the more results in conjunction with the emergence of railroads, motor roads and jetties. Not only China but also Myanmar citizens would be participating in the economic platform project.