Weekly Business News from Myanmar

Mandalay Region Investment Committee approved over K 1.4 billion in investment after MIC established Region and State Investment Committees in accordance with the Investment Law
The Mandalay Region Investment Committee has approved over K1.4 billion in investments since the Myanmar Investment Law was approved in October 2016, U Thike Htoon, assistant director at the Directorate of Investment and Company Administration (DICA), said on Monday. The investments were approved for the first time after the Myanmar Investment Commission (MIC) established Region and State Investment Committees in accordance with the Investment Law. It is the second largest amount invested in a region after Yangon, the country’s business hub. “Mandalay enjoys the second highest volume of investments after Yangon. The amount of investment from locals and foreigners has totaled more than K1.4 billion. We have approved over $8 million in foreign investments in Mandalay for the first time,” U Thike Htoon said. The approved investments include two industry projects and one in agriculture, which will be run by local companies, and two foreign investments in the industrial sector, adding up to five new and approved projects in total.
A majority of participants at Myanmar’s second digital rights forum were of the view that the freedom of expression in the country had worsened in 2017
A majority of stakeholders who attended Myanmar’s second digital rights forum believed that the freedom of expression in the country has worsened in 2017 while online privacy has also deteriorated. Over 150 participants took part in the second digital rights forum in Yangon on January 18 hosted and jointly organised by Phandeeyar together with MIDO, Engage-Media, Free Expression Myanmar and the Myanmar Centre for Responsible Business (MCRB), with support from the Swedish government. Over half of the participants came from civil society organisations working on a variety of issues including peace, gender, freedom of expression, consumer rights, with the remainder evenly split between the private sector, government and parliament, the media and academia. More than three quarters of participants were attending for the first time. The inaugural digital rights forum was held in December 2016.
More than US$ 280 million had been invested at Thilawa Special Economic Zone (SEZ) this fiscal year 2017-2018
More than US$280 million has been invested in the 2017-2018 fiscal year at the Thilawa Special Economic Zone (SEZ), including promotion of existing investment, according to the Directorate of Investment and Company Administration (DICA). “There are nine new investments until January 19 in Thilawa SEZ, and investment is US$280.29 million,” said an official from DICA who did not want to be named. The foreign investments include three from Japan, two from Singapore and Thailand, and one from South Korea and the Netherlands. The first phase of a 101-hectare project in Zone B of Thilawa SEZ was opened in February 24, 2017.
Collier International Myanmar predicts that the industrial sector will be a star performer in the Yangon property market in 2018
The industrial sector as a star performer, rising bank confidence in providing mortgage loans and further falls in residential rentals are among Colliers International Myanmar’s top 10 predictions for the Yangon property market in 2018. Other predictions in a report released this month are office rents remaining competitive amid a decline in new supply and developers focusing more on basic condominiums and apartments, as well as smaller serviced flats and flats for lease. It quotes Colliers International Myanmar founder and director Mr Tony Picon as saying “speedy reforms and further economic liberalization will be fundamental, eventually driving the real estate sector to new heights”. The prediction of the industrial sector as a star performer is based on growth in the garment, fast moving consumer goods and logistics industries. However, the report cautions that infrastructure may remain inadequate in the near to medium term. It said Colliers continually urges industrial developers to focus on improving land development “as well as provisions for generators for redundancy purposes”.
Government reaffirms commitment to reform the labour market at a forum with stakeholders to discuss progress and challenges
Representatives of the Myanmar government, employers, workers, civil society and international partners on Wednesday gathered for the third time since 2015 in a forum to discuss the progress and challenges faced in an ongoing effort to implement labour market reforms. Taking place in Nay Pyi Taw, the forum was held as part of the ‘Initiative to Promote Fundamental Labour Rights and Practices’ in Myanmar. Partners of the initiative include Denmark, the European Union, Japan, the US and the International Labour Organisation (ILO). U Thein Swe, Minister of Labour, Immigration and Population reaffirmed the government’s commitment to reforming Myanmar’s labour laws and strengthening social dialogue with employers’ and workers’ organisations. Meanwhile, EU Ambassador to Myanmar Kristian Schmidt stressed that economic growth must go hand in hand with social justice, respect for human rights, and the protection of the environment in order to be sustainable.
Private investors expressed their interest in Myanmar’s digital economy, which is expected to have the highest increase in smart phones in the region in the next few years
Investor interest in Southeast Asia’s digital and technology start-ups has been on the rise of late, with private equity firm Belt Road Capital Management (BRCM) injecting A$2.25 million in Digital Classifieds Group (DCG), an online classifieds business, on Thursday. Although based in Australia, DCG has launched online portals in countries such as Cambodia, where it owns the real estate portal www.realestate.com.kh as well as leading general classifieds websites in Laos, www.yula.la. In a statement, DCG CEO Mathew Care said the company’s major investments in its technology and core human resources had seen increased investor interest in recent funding rounds. “We are presently reviewing a range of expansion opportunities, particularly in Southeast Asia, where we have seen a tremendous surge in internet penetration and rapid urbanisation,” Mr Care said, adding that the initial approach from BRCM was unsolicited.
Despite the slow pace of economic reforms and a drop in investors’ confidence, the Myanmar economy is expected to gain momentum in the near and medium term
The economy of Myanmar is set to continue gaining momentum in the near and medium term while the slow pace of economic reforms has led to a drop of investor confidence, according to the Oxford Business Group. This growth is anticipated to take place despite concerns over the slow pace of economic reforms and the Rakhine crisis. The International Monetary Fund (IMF) released a forecast in November that the country’s economy is expected to grow by 6.7 percent in this current fiscal year, which lasts until March. The figure is considerably above the 5.9pc growth secured in the preceding fiscal year, and well above the IMF’s prediction of 5.1pc expansion across Southeast Asia in 2017.
To promote the role of the private sector and foreign investment, Myanma Foreign Trade Bank (MFTB) expands financial services
The Myanma Foreign Trade Bank (NFTB) provides international banking services for the State as well as for the private sector, co-operatives and, joint ventures in Myanmar. Besides international banking services, the MFTB offers additional monetary services for Myanmar currency banking sectors. The MFTB conducts domestic and external trade, promoting the role of the private sector and promoting foreign investments.
Myanmar authorities explore sustainable tourism and development plan to create new tourism routes and attractions with its abundant natural resources
Myanmar's Second Vice President U Henry Van Thio recently called for exploring sustainable tourism development plan, stressing the need to create new tourism routes and attractions and to combine innovation with its abundant natural resources to create more choice for tourists. U Henry Van Thio, who is also Chairman of the Central Committee for the Development of the Natural Tourism Industry, urged for laying down systematic plan for developing the tourism sector. "Despite the abundance of natural scenery and tourist attractions, the number of visitors to Myanmar still remained below expectation," he said. While promoting Myanmar to the world as a place of interest, he emphasized the need to provide convenient and safe services and safe food to visitors. He highlighted the points including the availability of visa-on-arrival, direct international flights and visa-free entry to nationals of targeted countries.
Ministry of Electricity and Energy (MOEE) pledged to provide an additional 3,600 megawatts of electricity within the next four years
The Ministry of Electricity and Energy (MOEE) has pledged to provide an additional 3,600 megawatts of electricity within the next four years, Deputy Minister Dr. Tun Naing said in Parliament Monday. The announcement comes after an MOEE study revealed that electricity consumption in Myanmar is expected to reach 5,774MW by 2021-22 from 3,189MW in 2017-18. Between 2010 and 2017, demand for electricity rose by 16 percent on average per year, the study also showed. To achieve that target, power from some 500 new transmission lines and substations across the country will be tapped. These include power generated by several projects targeted to be completed in 2018-19, such as the 4 MW Yarzagyo hydro power plant, 40 MW Minbu solar power plant, 118.9 MW Thaton gas power plant, 106 MW Thaketa gas power plant and 225 MW Myingyan gas power plant.