Weekly Business News from Myanmar

Kanbawza Bank (KBZ) unveiled a new One-Stop SME banking centre to provide greater financial inclusion in Yangon
YANGON, MYANMAR, 7 MARCH 2018 – KBZ Bank have unveiled a new One-Stop SME Banking Center (OSBC) offering a range of services to meet the needs of growing businesses, such as improving access to finance and financial literacy. KBZ Bank supports SMEs with comprehensive, holistic solutions and the KBZ One-Stop SME Banking Centre will be vital to improving the banking experience by facilitating the expansion of enterprises across industries, sectors and regions of Myanmar. It will operate as a world-class hub for information, staffed with banking experts who act as trusted advisors on all aspects of SME business needs. Located at Yangon City St John shopping mall, conveniently close to the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) building, KBZ SME Relationship Managers at the centre will listen actively to customers’ business concerns, expectations and challenges. Based on their industry, cash flow projection and expansion plan, KBZ Bank can offer structured solutions and advice, tailored to each individual business.
Infrastructure necessary for Thilawa Special Economic Zone (SEZ) including roads, bridges, electricity, water supply and jetty will be fully completed by 2021
The infrastructure necessary for Thilawa Special Economic Zone (SEZ) will be fully completed within four years, according to Thilawa SEZ Management Committee (TSMC) and Japanese officials. These include roads, bridges, electricity, water supply and a jetty, which will be completed by 2021, the officials said during a press conference on the latest developments in Thilawa last week. For electricity supply, two 25 MW fuel and gas power plants were constructed in April 2017 in addition to 50 MW gas power plant in March 2016. Similarly, a 230 KV Thilawa power distribution plant was built in November 2017 and it will soon become operational and supply electricity in the SEZ, they said. “Required infrastructure for Thilawa is going to be 100pc completed. Over 90pc of land in Zone A of the SEZ and 50pc of land in Zone B has been sold. However, the number of factories that have started running is only over 40 due to lack of electricity,” TSMC chair U Set Aung said. Myanmar International Terminals Thilawa (MITT) and another new container jetty will also be constructed by December 2018, officials said.
Directorate of Investment and Company Administration (DICA) has approved two foreign investments in power distribution projects
Directorate of Investment and Company Administration (DICA) has approved two foreign investment proposals in power distribution; it was announced in a meeting held in early March. The two proposals include a 10 Megawatt diesel power plant built on the area of 68.25 acres by Southern Myanmar Development Company that will distribute electricity to household in nearby villages in Yay Township, Mon State. Also a 19 Megawatt diesel power plant by i-Land Park Myanmar Limited that will distribute to the business on the area of 7,300 square meters in i-Land Industrial Zone in Bago Region. “The project in Yay Township will sell electricity to around 10 villages. The project in i-Land Park will sell electricity to the businesses in the industrial zone.” U Than Aung Kyaw, Deputy Director of DICA, said.
Central Bank of Myanmar (CBM) permitted a total of seven foreign banks to provide trade financing services in Myanmar to get better business and wider trade financing options
Now that the Central Bank of Myanmar (CBM) has allowed a total of seven foreign banks to provide trade financing services in Myanmar, traders are anticipating much better business in the months ahead. Last December, the CBM permitted 13 foreign banks to apply for approval to offer trade financing services in the country. Since then, seven out of the 13 have submitted applications and received approval to do so. The remaining five banks are expected to receive the necessary approvals soon and all 13 banks will be able to provide trade financing within the year. “All foreign banks will be approved to offer trade financing. Right now, the remaining banks are not yet approved as they still need to complete the application process. After they’ve completed those processes, the remaining banks will be given approval,” said CBM Vice-Governor U Soe Thein.
Loans are required to build 28 factories to produce “high quality” rubber (Secretary of Myanmar Rubber Planters and Producers’ Association)
Financial aid and loans are required to build 28 factories to produce “high-quality” rubber, according to the secretary of Myanmar Rubber Planters and Producers' Association. Khaing Myint said that rubber farms, especially smaller ones, lacked modern machinery and did not make much profit from selling just rubber sheets. “Only if Myanmar could produce international-quality rubber, we have the market for its produce,” said the secretary. The country produces around 200,000 tonnes of rubber annually. The rubber is mainly exported to China and also to Malaysia, Singapore, Indonesia, Korea, Japan, Taiwan and India.
The military regime’s dream of a paper industry built on bamboo plantations has turned into an expensive nightmare for the current government
No, it’s not the lyrics to a hit pop song – it’s a propaganda tune from the State Peace and Development Council period that will be familiar to anyone who had the misfortune of watching MRTV in the mid-2000s. The military regime loved to trumpet its industrial and development projects – in this case, the Thabaung paper mill in Ayeyarwady Region (the lyrics say, “Thabaung, Thabaung 200 tonnes… pulp factory”). But like so many other state enterprises from that era, the mill is today more of an advertisement for incompetence and mismanagement than the modern developed nation that the generals envisaged. Built at a total cost of US$144.5 million, it’s actually three plants. There’s a 200-tonne pulp mill and 50-tonne high-grade paper mill, which were both built by China Metallurgical Construction (Group) Corporation and opened in 2005 and 2008, respectively, and a 60-tonne newsprint mill installed by Tianjin Machinery Import and Export Corporation in 2016-17. When the pulp plant opened in May 2005, Prime Minister General Soe Win was quoted in state media as saying that three quarters of production would be exported, and the rest would go towards meeting domestic demand of 160,000 tonnes a year and reducing reliance on imports. He declared that Thabaung “will become a region of paper and chemical zone creating a lot of job opportunities, and modern technologies will be disseminated”, adding that “such a gigantic project is beyond the reach of national entrepreneurs and paper industry is the one necessary for the state”.
An eco-lodge established on one of the most remote islands of the Myeik Archipelago aims to set a good example on sustainable tourism
NOT LONG after leaving the bustling jetty at Kawthaung, Myanmar’s southernmost city, the traveler will find themselves surrounded by the hundreds of islands that make up the Myeik Archipelago; some are so close you can see in detail the different flora on them, while others are nothing more than blue-green shadows on the horizon. After five hours of cruising through the archipelago, the boat’s captain smiles and points to an island in the distance. “Ah, here it is,” he says, identifying Boulder Island. To the untrained eye, it’s difficult to see how he could differentiate any of these islands, so it’s a fair question to ask how this particular landmass is discernable from the others. The captain’s answer is simple: “I know it’s this one because it’s the very last one before there’s nothing but open sea,” he says.
The master plan for new fish and prawn breeding zones in Yangon is pending on Union level approval
Some 10,000 acres of land near Twante Township in Yangon Region will be cleared for the farming of fish and prawns once Union-level approval is obtained, Yangon Region Chief Minister U Phyo Min Thein said. The fish and prawn farming project falls under a broader Breezing Zones Master Plan, which allocates land specifically for aquaculture use. “The master plan will require Union-level permission to proceed,” said U Win Kyaing, Secretary General of the Myanmar Fisheries Federation (MFF). The plan includes investments in modern packaging and cold storage facilities, which will be used for export purposes. “The fisheries sector is one of the most crucial sectors of the economy. Therefore, we are now preparing almost 10,000 acres of land near Twante township for fisheries development. Once established within three years, the fisheries sector will be able to contribute to the country’s GDP by creating job and export opportunities,’’ said U Phyo Min Thein.
In order to boost the region’s export competitiveness, the Kachin government, Ministry of Commerce, and UK-funded DaNa Facility organized a product show and export promotion workshop in Myitkyina
The Kachin government, the commerce ministry and UK-funded DaNa Facility organised a product show and export promotion workshop in Myitkyina over the weekend to boost the region’s export competitiveness. The “Kachin Regional Product Show and Export Promotion Workshop”, spearheaded by Dr Khet Aung, Chief Minister of Kachin State, U Aung Soe, director general of Myanmar Trade Promotion Organisation (MyanTrade) and Peter Brimble from DaNa, brought together business leaders as well as policy-makers from the government. The aim is to boost exports from Kachin and harness the potential for Kachin products in the National Export Strategy. The workshop focused on the roll-out of the Myanmar Private Sector Development Framework and Action Plan, which outlines government’s approach to private sector development.
State Counsellor and Union Minister of Foreign Affairs, Daw Aung San Su Kyi received the delegation of Japan Economic Federation to discuss the investment opportunities and business situation between the two countries
The state counsellor and union minister for foreign affairs, Daw Aung San Suu Kyi received the delegation of Japan Business Federation (Keidanren) at the ministry, Nay Pyi Taw on Monday. At the meeting, they discussed the investment opportunities and key sectors as the volume and amount of investment of Japanese business are on the rise, giving young Myanmar workforce trainings accordant with the service sectors required in Japan and vocational trainings, more involvement of Japan companies' investments in the energy and electricity generating sectors in the future. The Japanese delegation led vice president of Japan Business Federation (Keidanren), chairman of Japan-Myanmar Economic committee, chairman of executive committee of Mitsubishi Corporation and and chairman of Marubini corporation is comprised of 40 members from Japan's leading businesses, transportation and construction companies.