Weekly Business News from Myanmar

Hong Kong and ASEAN signed a new Free Trade Agreement (FTA) to promote business collaboration
A new Free Trade Agreement (FTA) between Hong Kong and the Association of Southeast Asian Nations (ASEAN) and a related Investment Agreement are set to create fresh opportunities for business collaboration between Hong Kong and Myanmar. “These two agreements will provide a more competitive platform for companies throughout the ASEAN region to do business in Hong Kong and to reach new markets, particularly those in Mainland China and along the routes covered by the far-reaching Belt and Road Initiative,” said Edward Yau, Hong Kong’s Secretary for Commerce and Economic Development. Mr Yau added that the agreements are very comprehensive, covering trade in goods and services, investment, economic and technical co-operation, dispute settlement mechanism and other related areas.
Yangon Regional Government plans to establish a new Special Economic Zone (SEZ) in Dala Township after completion of the Yangon- Dala Bridge
A new Special Economic Zone (SEZ) will be established at Dala township in the Yangon Region after completion of the Yangon-Dala Bridge, said Yangon Chief Minister U Phyo Min Thein at the Challenges for Business Enterprises in 2018 public talk at the Union of Myanmar Federation of Chambers of Commerce and Industry headquarters on Sunday. Construction of the Yangon-Dala Bridge is expected to commence by year-end and be complete in the 2020-21 fiscal year, according to the Ministry of Construction.
The new Condominium Rules allow more flexibility for foreign investors to invest in the local property sector
Foreigners will be given more flexibility to invest in the local property sector, according to new rules under the Condominium Law announced Thursday. The Condominium Rules are the final steps of the implementation of the Condominium Law, which was approved last year. The rules, which were signed by the Union Minister for Construction on December 7, will be published “soon” and comes amid a slowdown in the local construction and property sectors. Under the new rules, foreigners will now be permitted to develop property, subject to approval from the Myanmar Investment Commission, said Daw Moe Thida, Deputy Director from the Department of Urban and Housing Development (DUHD), in Nay Pyi Taw on Thursday. The minimum requirements for a condominium project are to build at least 6 floors on 0.5 acres of land area.
AIA Group Chief Executive discussed the company’s plans for Myanmar and the market situation of foreign and local insurance firms in the Myanmar market
The Myanmar government is preparing to liberalise the insurance market and allow in foreign players, but it’s unclear whether that will be on a joint venture or fully owned subsidiary basis. Mr Ng Keng Hooi, group chief executive and president of AIA Group, discusses the state of the insurance market, his company’s plans for Myanmar and the perceived lack of independence of the local regulator with Frontier’s Kyaw Ye Lynn.
To facilitate cross-border settlement within Asia, Myanmar will become a member of the Asian Payment Network (APN)
Myanmar will become a member of the Asian Payment Network (APN), which was established to create a common payment settlement platform within the Asia-Pacific region, said U Zaw Lin Htut, CEO of Myanmar Payment Union (MPU). MPU has already met with officials from APN, and is waiting for the membership announcement to be made, U Zaw Lin Htut said at the second MPU annual meeting held in Yangon on Sunday. “We have met with APN many times. We think they will confirm Myanmar’s membership at the yearly APN conference meeting in 2018,” said U Zaw Lin Htut. The APN was formed in 2006 by the central banks of Singapore, Malaysia, Indonesia and Thailand with a view of establishing a cross-border settlement network in Asia. That network has since expanded to a total of 10 countries, including the Philippines and Vietnam as well as South Korea, China, Australia and New Zealand.
Myanmar authorities will introduce a new Companies Law to replace the Companies Act of 1914 from 1 August 2018
Myanmar authorities will introduce a new Companies Law, replacing the Companies Act of 1914, from Aug. 1 next year, according to a Xinhua report quoting U Aung Naing Oo, director-general of the Directorate of Investment and Company Administration (DICA). The promulgation of bylaws and application of the law as well as working on the operating manual for online registration will be done in last week of July next year, he was quoted as saying. In accordance with the new law, foreign investors are allowed to take up 35 percent in local companies, the report said.
Yangon Region Government is planning to allow the return of shared taxi services to meet rising demand in the Yangon taxi market
The Yangon Regional Government is planning to allow the return of shared taxi services between the outskirts and Sule Pagoda in downtown Yangon, said Daw Nilar Kyaw, Minister of Electricity, Industry, Transport and Communication. The move comes amid rising demand and is likely to introduce more competition in the Yangon taxi market. The Yangon Regional Government is planning to allow the return of shared taxi services between the outskirts and Sule Pagoda in downtown Yangon, said Daw Nilar Kyaw, Minister of Electricity, Industry, Transport and Communication. The move comes amid rising demand and is likely to introduce more competition in the Yangon taxi market.
Factories will be inspected for Environmental Management Plan (EMP) and Wastewater Treatment Plant activities
Factories will be inspected for Environmental Management Plan and Wastewater Treatment Plant activities, said Daw Khin Thida Tin, the Director of Yangon Region Environmental Conservation Department. “There are weak points in dumping wastewater from some factories. In addition, they are not well-prepared for the Environmental Management Plan. Supervision Committee chairmen for respective regions and states Environmental Conservation and Climate Change will lead inspections in cooperation with the departments concerned. The cabinet will soon release official documents regarding inspections of factories”, she continued. Factories are encouraged to strictly adhere to environmental emission guidelines in setting up wastewater treatment plants within nine months, as mentioned in the official announcement. If they fail to establish the wastewater treatment plant and abide by the prescribed procedures, action will have taken against them under the existing laws.
As part of efforts to modernize Mandalay Region, the Urban Development Project in Amarapura has commenced with approval from the Mandalay Regional Government
Construction of Phase 1 of the Amarapura Urban Development Project in Mandalay has commenced after receiving approval from the Mandalay regional government, said U Za Ye Win, information officer of Mandalay Business Capital City Development (MBCCD), which is the developer of the project. “The government plans to approve the project in phases,” U Zaw Ye Win told The Myanmar Times on Sunday The project, which is part and parcel of a bigger plan to modernise Mandalay, will be developed over 2,000 acres of reclaimed land along the Ayeyarwady River, south of Mandalay, in Amarapura township.
To make the tax law more productive, Yangon Regional Government plans to hold a meeting with business leaders to discuss the 2018 Union Tax Law
The Yangon Regional Government is planning to hold a meeting with business leaders this month to discuss the 2018 Union Tax law in order to make the tax law more productive, according to Dr. Maung Maung Lay, Vice President of Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). U Phyo Min Thein, Chief Minister of Yangon Regional government, an¬nounced the topic at the monthly meeting between Vice President U Myint Swe and business leaders. The present 2017 Union Tax Law faces criticism and complaints that it is difficult to apply because voices from business were not included in drafting it.